I talk a lot about sponsorship leverage, but it’s so critically important to sponsorship results that it warrants a lot of attention.
Leverage is what a sponsor does with a sponsorship to turn the opportunity they’ve got into the results against objectives they need. And while leverage is a sponsor’s responsibility to plan and implement, it’s in a rightsholder’s best interest to provide sponsors with leverage ideas in proposals and throughout the sponsorship.
But what exactly is the sponsor supposed to leverage? Because a lot of sponsors, and even more rightsholders, get it wrong. You’ve got three choices, but only one of them is correct. I’ve described them all below.
This approach is that a sponsor should leverage in such a way that the connection between the sponsor and the property is crystal clear. Lots of “proud sponsor of”. Lots of self-congratulatory content featuring logos and such, with zero pertinence to fans. The overarching theory is that if fans love the property, and the sponsor is super-obvious that they sponsor the property, people will transfer some of that love to them.
Wrong. That simply doesn’t happen. And you know it doesn’t, because when you go to events or sports or whatever you love doing, you don’t make note of the sponsors, so you can transfer your love to them. But this approach is still common.
In fact, both sponsors and rightsholders would do themselves a huge favour if they rearranged this model, making the property simply the conduit that connects the sponsor and the fans. That’s not saying the rightsholders are unimportant. They bring the authenticity that brings the sponsorship to life.
This approach tends to happen when a sponsor gets into a relationship and ends up with a compliment of benefits. They then approach leverage with the question, “What are we going to do with these things?”
Wrong again. Benefits are certainly important, as they form some of the raw materials sponsors can use for leverage, but benefits shouldn’t be the focal point.
In addition, most rightsholders sell – and an alarming number of sponsors still buy – packages that are almost entirely made up of commodity benefits; those boring benefits offered by every rightsholder, regardless of category:
Focusing on leveraging these benefits is like pulling a few basics out of your kitchen cupboard and trying to figure out what to make with them. You may end up with something edible, but it’s unlikely to be great.
A much better approach is to find a good recipe and pick out the exact ingredients you need to make it. The sponsorship version of this is to start with finding some amazing leverage ideas – doing that before you commit to a sponsorship – and negotiate for exactly the creative benefits you need to support those ideas. It’s creativity, not commodities, that makes sponsorship work.
For a huge list of potential benefits, download my Generic Inventory template. This is meant to be a creativity tool for rightsholders, but works equally well for sponsors who are preparing for a negotiation.
Woooo! Now we’re talking!
Sponsorship isn’t about the property, and it’s not about the benefits. The most valuable, irreplaceable, and leveragable thing in sponsorship is meaning; what it means to the people a sponsor is targeting. Meaning is sponsorship’s superpower. It’s what makes sponsorship the unicorn among marketing channels.
Leveraging the meaning is infinitely flexible. It transcends geography and the duration of the event or season. It works equally well for in-person and remote fans. And it gets to the crux of why sponsorship is so powerful: Because people really care about what’s being sponsored, and if a sponsor can make that better for them – more fun, less hassles, more wins for the fans – they’re a welcome part of that fan experience. The mantra I use to drive this thinking is:
Don’t sponsor the property. Sponsor the fans.
To do that, you need to understand exactly why people care, what fans, customers, potential customers, and staff love about the property, and what’s not so great for them. Develop that empathy and your path to great leverage becomes crystal clear. Rightsholders, you need to understand all of this, as well, and be able to convey it to sponsors. You’ll sell more sponsorship and get better renewals.
I’ve outlined the while empathy/leverage process in detail in my online training for both sponsors and rightsholders. The perspective is different, but the approach is very similar.
For sponsors: Corporate Sponsorship Masterclass
For rightsholders: Getting to “Yes”
You may also be interested in my white papers, “Last Generation Sponsorship Redux” and “Disruptive Sponsorship: Like Disruptive Marketing, Only Better“. I’ve also got a self-paced, online sponsorship training course for sponsors, covering the whole process of sponsorship strategy, selection, negotiation, leverage, measurement, and management, with lots of inclusions. Interested? Check out the Corporate Sponsorship Masterclass. I’ve also got Getting to “Yes” for rightsholders.
If you need additional assistance with your sponsorship portfolio, I offer sponsorship consulting and strategy sessions, sponsorship training, and sponsorship coaching. I also offer Sponsorship Systems Design for large and/or diverse organisations. Please feel free to drop me a line to discuss.
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