sponsorship pricing Archives - Power Sponsorship

Valuing Contra vs Cash Sponsorship

This is another of my vintage blogs, reworked and updated to reflect changes in best practice, and new angles. How to value contra, otherwise known as in-kind, sponsorship is a question I get almost every day. What is most interesting is how differently sponsors and sponsorship seekers view contra, and they both overcomplicate what is really quite a simple equation. Sponsorship seekers take contra for granted. Well, okay… most sponsorship seekers take contra for granted. The attitude is, “those airline seats would be empty anyway, so why do we have to put a value on them?” Newsflash: If you didn’t get those seats through contra, you would have to pay someone for them, so they […] Read More

The Problem with Sponsorship Levels

This is a total rewrite of one of my most popular blogs. For years, this blog has sat squarely in the top five, and according to analytics, virtually everyone gets here because they’ve done a search on something like, “How to create sponsorship levels”. The problem is, sponsors hate levels. Gold-silver-bronze, or whatever cutesy, “creative” names you’ve put on them, sponsors see a proposal full of set packages, arranged by size, and they know you don’t get it. They think you’re unsophisticated. They think you’re inflexible. They may even think you’re lazy. And they know for sure that you either don’t know or don’t care what they are trying to accomplish, because if you did, you’d […] Read More

Should We Hire a Sponsorship Valuation Service?

Seeking sponsorship is hard. Even if you do it perfectly, you’ll still hear “no” more than “yes”, and if your skills are less than best practice, you’re probably not hearing “yes” very often. If you’re struggling, you probably want some way to demonstrate what great value for money you’re going to provide. That’s when some of you consider hiring a valuation service. These are consultants that use some methodology or another to put a price tag on what you offer, and at first glance, this can seem like a great idea. You can point to the valuation and tell sponsors, “We’re offering $120,000 in benefits for only $80,000!” If only it worked that way. Seriously, I […] Read More

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

30+ Offer 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

40+ Sponsorship Sales Resources for Rightsholders (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