STOP ASKING FOR MONEY, START OFFERING VALUE
Rethinking event sponsorship
Over a cup of coffee other day a good friend of mine, who is an experienced project and event manager told me that she absolutely hates sourcing and engaging event sponsors. Knowing how tight profit margins for business can be in the current market, she told me that she hates asking people and businesses for sponsorship. The view she took was this direct ask for money or products is a cost to the sponsors she approaches and that makes her feel really uncomfortable.
I suggested that is not an unusual feeling but that she is thinking about it from the wrong perspective. Sponsorship arrangements are like any event stakeholder relationship, in that that they are all about achieving mutually beneficial outcomes.
Her current approach usually saw her thinking too small and in the short term. It doesn’t work if you bounce into the potential sponsor’s workplace the day before you need something from them and put the hard ask on them for cash or product, that is equivalent to seeking a donation where the benefit is really one sided toward the event. She would be better to focus on establishing a long-term relationship with the potential sponsors based on mutually aligned business objectives. If my friend approached potential sponsors with a simple “here’s what we can do for you” attitude, she might be more comfortable asking for sponsorship contributions.
Here are some ideas we talked through to help her approach sponsorships:
Develop sponsorship products. Think of your requests for sponsorship as an exchange, where you are providing benefits (your products) in exchange for in kind or direct monetary investment. A product may be as simple as putting up signage, distributing flyers or announcing a business name, through to an event presence, speaking and presenting opportunities or online exposure partnerships. Decide on what you perceive as the value for each of those products and why, as you do this think of what is measurable. This helps you build a value proposition in your own mind before you even put your potential sponsors contact list together.
Be honest, in developing products that can benefit your potential sponsors. There is no use offering a VIP Dinner experience if you don’t have a time slot for it or the venue you use doesn’t have the infrastructure to suit. Likewise, be honest about the reach you have (or can develop short term if it’s a new event) in your socials or webcast and the number of event participants or spectators that will attend. This helps build confidence in the sponsorship products you are taking to the market and provides the sponsor with confidence in their investment with you, building quality relationships for future event support.
Developing compelling sponsorship proposals is about telling the story that fits the levels of investment you are seeking. The proposals will help highlight the various sponsorship product features and benefits that can be presented and moulded to suit the mutual benefits being sought by each of you. Perhaps the package for in kind goods to offer as competitor prizes ensures their name is announced during the presentation and they have a spot to erect signage during the event. Whereas your principal event sponsor (often better viewed as partner) may benefit from pre, during and post event socials exposure, webcast marketing opportunities and attendance at event presentations or VIP functions.
Developing your prospect list. Engage others to help you in discussing who should appear on this. Don’t just target the organisations that are directly connected to your event discipline, or businesses that you know personally. The local saddlery and or produce suppliers are consistent targets for every equine event. They need to be on your list but make sure you broaden the scope to include the range of businesses that you and others in your organising group use. This might include motor vehicle repairers, truck sales, real estate and travel agencies, restaurants, and hotels to name a few. This list should include your event participants or existing event contacts you have; you don’t know what decisions these people may influence, to help you reach your targets.
Get your proposals out there and follow up. You could have the best product package, the prettiest sponsorship proposal, and a world class prospect list but if you don’t get that information out and talk about it you won’t see the investment in your event. It is of value to share your sponsorship packages beyond your prospect list and on socials. Make it easy for organisations to engage online and share content. Use direct personal networks and get organising group members to pass on the materials and message. There are businesses that will see opportunity in supporting your sponsorship products, you just have to get the message to them that they are available.
Follow up sponsors. This part is just as important as the original product development. Always set time aside during and post event to speak with sponsors. Find out what worked for them and don’t be afraid to understand what didn’t. It’s always valuable to find out what went well, what went badly, and what needs to be done differently next year. This not only helps build long term relationships with sponsors for future events but will help mould the event sponsorship product offering each year to entice more sponsorship investment. We all need that!
Sponsorship sourcing and management doesn’t have to be confronting. Be honest and transparent with your stakeholders, only make promises you can deliver on, and focus on developing and maintaining mutually beneficial relationships. Make every decision with those factors in mind and you are setting everybody up for success.
The coffee was good too!