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12 Myths and Mistakes of Selling Sponsorships

Guest post by: Sylvia Allen

Article Overview: All levels of businesses are selling sponsorships now. There are a number of myths and mistakes regarding sponsorship sales that can sink your efforts before you even start.

12 Myths and Mistakes of Selling Sponsorships

1. Sponsorship sales are the same as fundraising

Sponsorship dollars and fundraising dollars come from separate budgets within a corporation. Think of a corporation as having three doors.The first door is called "Membership". This is a very small door around the side of the building where the corporation sets aside a small amount of money to join Chambers of Commerce, trade associations, and civic groups such as the Lions and Rotary.

The second door, toward the front of the building, is the "Philanthropy" entrance. Corporate grants are usually in the $1,000-10,000 range and are given on a year-to-year basis. The corporate giving staff is frequently housed in the public relations department (a tip off to the next level of funding) and their goal is to spread the limited philanthropic dollars over a large number of organizations. Corporations like their employees to be involved in the giving process, and so a corporate person on your board or a committee can be instrumental in securing continued or long-term funding for your group.

The third door, right at the front of the building, is the "Marketing"entrance. Corporations spend billions of dollars every year to market their good and services and if your non-profit can assist the company in its marketing efforts to enhance its image, reach potential customers, or reinforce existing customer relationships, they will want to work with you.This is where you'll find sponsorship dollars.

2. Sponsorship fees should equal the cost of the event/activity

Determining the fair market value for your sponsorship starts with taking inventory of what you have to sell. What types of exposure are you offering? Flyers, posters, radio spots? Using a Cost Per Thousand valuation method helps buyers determine the cost of exposure for your event. The value of your individual inventory items should exceed the actual cost of producing them.

3. Selling off an event, piece by piece, generates the most revenue

Not necessarily. You may have to sell the individual pieces cheaper and provide fewer benefit over a shorter period of time. It's also easier to sell the whole event, because it has a greater ROI.

4. Sponsors are most interested in exposure

Yes, sponsors are often interested in exposure, but there are also other reasons they buy into sponsorships. Some may use an event or activity as a way to entertain their clients; some may do it to re-inforce their brand image, or differentiate themselves from their competition. Ask what their objective is when determining how to present your offering.

5. Category exclusivity is not important to sponsors

Category exclusivity is an important enticement to sponsors - it allows them to stand out from the crowd, so don't disregard it's potential as an enticement.

6. Gold, silver and bronze are good sponsor levels with corporations

Try to avoid too many levels or cutesy heading. Limiting it to "Title", "Presenting","Associate", product specific and event specific categories are easier to understand and sell. And, if you use gold, silver and bronze your buyer will automatically assume you're an amateur.

7. Sponsorship sales is one of the necessary evils of running an event

Sponsorships are an excellent opportunity for both the event organizer and the potential sponsor, if the two are properly matched. It helps organizers defray costs or make additional money, and provides a valuable asset for the sponsor.

8. Sponsors are anxiously awaiting your call

Sponsors are busy running their business, not waiting for your call.

9. Sponsors always return your calls.

Sponsors are busy people and sometimes your phone message gets pushed to the bottom of the list. Allow a day or two for them to return your call, if they don't, call again.

10. Sponsorship sales are easy

If sponsorship sales were easy, nobody would be reading this article. It requires a solid evaluation of your offering, fair pricing, a strong presentation and tenacity in following up.

11. You will get many calls from sponsors wanting to be a part of your event

See number 10.

12. Sponsors never lie

They don't lie intentionally... they just don't want to hurt your feelings!

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Article Tags: myths, sponsorship sales



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