Consider using an agency or Connection resource: Agencies generally speaking get paid when you see results, so they are working harder than ever right now.
So we submitted last week that it’s a good idea to build a strong network. One way of taking the same concept of making valuable connections and networking to the next level is to work with an agency or sponsorship resource. When you build a house you don't leave without your tools - there are resources that equip you with the best tools for your sponsorship toolbelt too! We’ll talk about why a sponsorship agency is valuable, what to consider when pursuing an agency for support, and then we’ll move on to other sponsorship resources.
The connections that a sponsorship agency has are typically some of the highest quality (considering their job puts them in contact with key players in the sponsorship world on a daily basis). They know intimately the needs of the sponsors they are in contact with, and it’s their job to research others that might be a good fit for your opportunity. Sponsorship sales is typically one of many tasks a property owner manages – someone who sells sponsorship as for a living obviously has an advantage. Why? Because it’s their full time job to do that, and experience matters. They have access to decision makers that the average person might not be able to reach so easily. The best part is, typically they are paid much better when they place a sponsorship, so they’re truly “singing for their supper” right now in such a competitive sponsorship environment. They have very good incentive (commissions) to get your opportunity a sponsor; and unless you are a full time sponsorship sales employee, an agency rep will likely better know the ins and outs of what’s happening in the sponsorship world, what’s popular and what is not, how to communicate value and how to get their foot in the door better than you do. The truth is that it’s a tough economy and sponsorship is as competitive as ever. People that make it in this era are those who are resourceful and innovative. But you don’t want to use just any agency at any time – there are some good questions to ask before taking the next step:
- What kind of sponsorships do you typically place? Sports, entertainment, arts, cause-related, etc. If you are an athlete looking for sponsors you shouldn’t reach to agencies who place sponsorships for Broadway musicals. It’s not their area of expertise.
- What kind of success have you seen? It’s good to know their success rate, their testimonials, and their activation examples. Don’t move forward with an agency if they can’t tell you these things. You should be able to take a look at an old proposal as an example of their direct efforts.
- What is your fee structure? Since agencies vary so much in their rates, it’s very smart to ask this question before assuming too much. This obviously has the potential to be a deal or no deal kind of a question. Most agencies do ask for a retainer of some sort which is nonrefundable – don’t be surprised by this; as well as some kind of commissions for the deals they place.
The clear fact about working with a sponsorship resource is that there are specialists in a particular focus of sponsorship that can add value to the sponsorship partnership in some way. The question is to do your research on what’s out there, and then determine based on your unique opportunity what would give you affordable value that you couldn’t implement without them. There are resources that help with determining your target audience information at an event (like txtstation) which improves ROI information, there are resources which assist with activation efforts and hospitality, resources that help with sponsorship connection (like SponsorPark), and there are companies that focus on Valuation or reporting (like SponsorshipPRO+). Regarding the topic of targeted networking – if you’re not a member of Sponsorship Insights Group (SIG) on LinkedIn, and you’re involved in sponsorship in some way, you’re missing out. An entire community interacting with one another, asking and answering questions as well as connecting is what SIG offers – a smart place to be. Obviously when doing your homework on sponsorship resources you’ll cater the same questions as above to their specific focuses. We do have several great resources listed on our website for reference in case you are curious and want to know more. Some of the resources might have long term value to consider – for example, if you provide sophisticated reporting on the value of a partnership, it’s possible you’ll have a long term partner as a result.
Like most of life, there are resources that can take something we start with and make it better. It’s about determining affordability, asking the right questions, and managing multiple relationships that make you better able to grasp great results vs. a mediocre effort. Sponsorship really has transitioned into more of an event planning role, lots to manage but lots to gain. You can’t be an expert at everything, but you can harness the knowledge and influence of others so your sponsorship experience is well rounded and well done.