sponsorship pricing Archives - Power Sponsorship

Is First Right of Refusal the Sponsorship Equivalent of a Ball and Chain?

First right of refusal is a valuable defensive benefit for a sponsor, guaranteeing them the opportunity to review and take up a new sponsorship at the end of the contract, before it’s offered to a competitor. The parties involved often assume that means it needs to be a similar offer to the one currently contracted – no matter how under-priced or badly structured it may be, or inappropriate it has become – making first right of refusal the sponsorship equivalent of a ball and chain. Thankfully, that’s not actually true, and you don’t have to live forever with a portfolio full of sponsorship mistakes. There are instances where you do have to offer a continuation […] Read More

How Do You Get a Fire-Sale Sponsor to Renew at a Realistic Level?

You shouldn’t have. You know you shouldn’t have. But you did. You sold a sponsorship at way below market value because time was getting short and so was your budget. Most sponsors won’t take up a fire-sale sponsorship. They know that their results come not from the sponsorship itself, but from the leverage they do around it. That takes time, so they don’t invest when they don’t have enough time – no matter how cheap. The sponsors who do take up fire-sale sponsors tend not to be very sophisticated and they expect the property to deliver their results, and can be some of the worst sponzillas around. That’s not the worst outcome of a fire-sale […] Read More

Introducing The Sponsorship Seeker’s Toolkit Fourth Edition!

If you follow this blog or my social media stuff at all, you know that a lot of the past year has been about writing and production of the Fourth Edition of the industry bestseller, The Sponsorship Seeker’s Toolkit. What started as an intended 20% rewrite quickly blew out to about 50%, with lots of new content on social media, new tools and techniques, and dozens upon dozens of amazing new case studies of sponsorship being done as well as it can be done. Whew! It’s now available through Amazon worldwide, as well as many other booksellers. You’ll notice a huge variation in price, so do shop around. In some regions, buying from Amazon and […] Read More

Should You Have Opt-Out Clauses in your Sponsorship Contracts?

I was recently involved in a debate about whether multi-year contracts are preferable to year-to-year deals. I make no bones about my preference for multi-year deals (in most cases), but there was a compromise suggestion put forward that had me, frankly, gobsmacked. One sponsorship seeker said that their standard contract was for three years, with an annual review, where the sponsor could opt out of the rest of the contract. Several others chimed in saying that either sounded like a great idea or that they were doing that now. Ummm… not to put too fine a point on it, but how is that any different than a year-to-year contract, functionally? If a sponsor can just […] Read More

Should a Sponsor Pay for Extended Benefits?

You’re a sponsor. You sponsor a team that has just got into the finals/playoffs. The team enacts the contract clause that states you either have to pay additional money to extend your sponsorship benefits through the finals, or they will withdraw benefits (cover your signage, withdraw ticket and hospitality privileges, etc) until after the season. This is fair, right? I mean, you did sign a contract with those provisions, so it’s not like they sprung this on you. What if you’ve stuck with that team through eight dismal seasons in a row, falling fan numbers, television coverage down the gurgler, and half-empty corporate boxes because your customers aren’t that interested in seeing the team lose […] Read More

23+ Proposal Development Resources for Sponsorship Seekers (Updated)

Before you can even think of making a sale to a sponsor, you need to develop an offer and a proposal that is compelling – that meets their needs, showcases your partnership orientation, and stands out from the stack of other proposals they receive. There are a lot of resources on this website that will help you to develop those offers. In this blog, I’ve distilled it down to the most important ones. It’s probably 90 minutes of reading/viewing, but there is no question it will affect your approach in one way or another. If you like any of these, I encourage you to share them on Twitter, LinkedIn, Facebook, or whatever social media you […] Read More

27+ Sponsorship Sales Resources for Sponsorship Seekers (Updated)

Sponsorship sales are tricky. Even if your offer is perfectly crafted, getting the proposal looking good, to the right person, talking their language, and closing the deal can be a minefield. This blog is full of resources for sponsorship sellers. I’ve now distilled some of the most critical information into this blog. It’s probably 90 minutes of reading/viewing, but I’m sure it will change the way you sell sponsorship for the better! If you like any of these, I encourage you to share them on Twitter, LinkedIn, Facebook, or whatever social media you prefer. Let’s spread the word! Recommended blogs The First Sponsor Meeting (And How Not to Make an Idiot of Yourself) Can We […] Read More

Corporate Sponsorship SAQ (Should-Ask Questions)

A few months ago, I wrote a blog entitled “Asking the wrong questions: Sponsorship by the numbers”. Ever since, I have had a steady stream of people requesting the questions sponsorship professionals should ask. So, I’ve now done a sponsorship SAQ (should-ask questions) for both sponsors and sponsorship seekers, covering the most important questions our industry tend to ignore. Questions sponsors should ask, but usually don’t… Why are we sponsoring this? Why are we sponsoring anything? This is THE big question, and while many sponsors do ask it, most don’t really dig for the answer. If you answer this question with anything having to do with the sponsorship itself, you’ve got it wrong. You aren’t […] Read More

20 Pieces of Corporate Sponsorship Advice – 140 Characters at a Time

I can admit it – I’m a little verbose. I like words and I love writing, so short little posts have never been my strong suit. Twitter… well, that’s been a whole new challenge! When people ask for my advice on Twitter, I always struggle to respond in just 140 characters. Today, I’m in the mood for a challenge, so I’m going to provide twenty pieces of corporate sponsorship advice, no more than 140 characters at a time. (Jeez, I can’t even explain what I’m doing in 140 characters, so this should be interesting!) By the way, if you feel like retweeting one of these bite-sized tidbits, my Twitter name is @KimSkildumReid. Concise advice for […] Read More

Is Naming Rights Sponsorship Worth the Money?

I’ve had this question a few times lately. More often than not, it’s a brand manager who asks the question, after a senior executive has indicated interest in a major naming rights. That right there raises a red flag for me, as when the idea for a big naming rights comes from the top, it is – more often than not – corporate ego talking. There are some compelling reasons why naming rights sponsorship is worth the money. There are also some big pitfalls. First and foremost, naming rights sponsorship gives you a dominant platform for leverage. No one else in the sponsorship roster will have access to what you do. No other sponsor will […] Read More