Even in a world where you might have to add perks you wouldn’t normally add to sell the sponsorship, or consider additional assets to bundle for more package options, make sure your pricing aligns with the value you’re offering a sponsor. When the economy bounces back, you don’t want to be stuck in a rut because you undersold your sponsorship previously.
Since SponsorPark is not involved in the actual sale of the sponsorship at all, we want to make sure our members are well prepared to consider the best approaches when entering into sales conversations. Sponsorship sales are more competitive than ever – we all know this to be true. We all know that many corporate sponsors are cutting budgets, dropping sponsorships, and the “sure deal,” isn’t such a sure thing anymore. It’s tempting to react out of panic and desperation in order to keep your events and programs alive, but stop what you’re doing, take a deep breath and let’s consider a few things to get a big picture perspective before you make a calculated response. You have options, so consider them wisely before moving forward with negotiations.
Truth: it’s a buyer’s market. Sponsors are really in a place right now that they can be choosy and even make demands that they never would have been able to before for the sole reason that they know you need them.
Option #1: Add perks to sponsorship packages that you “throw in,” in order to make a package more valuable. It’s better to add perks than to drop your price. When you drop your price too low, you start to set yourself up for some painful sales in the future. When a sponsor is used to getting a package of benefits at a particular price, they’re going to be a tough sell when you offer the same thing at a higher rate in the future. This doesn’t reward their loyalty, and it will require you to communicate value under scrutiny. Plus, when you reduce the cost of a package, you’re going to have to make up for it somewhere else, and we all know that finding more sponsors isn’t the best option - plus when there are too many sponsors, value of partnership is reduced - too much brand clutter. What does this option require of you? That you get creative about the perks you offer. Dig in to uncover assets you’ve never considered valuable before, use sponsor summits, or access to your target audience in new and inventive ways that don’t cost you more money. Maybe you’ll feature them in a newsletter as well as sending out an email campaign on their behalf – free and simple.
Option #2: Offer a deal with a multi-year contract. It’s true that sponsorship partners are able to accomplish more with longer partnerships. The pressure for annual sales is relieved, and so maybe you give them discounts on year two and three if they sign now.
Now, if you’re not going to undersell your sponsorship, you have to make sure you approach a sponsor with an edge. What’s that edge? Know your stuff. This isn’t the season to not be sure about your target audience or know what to expect for attendance. This is the season to have great ideas about activation, to approach with confidence knowing the power of your potential partnership and communicate the ROI you expect for your partner. This is the season to know how your opportunity is distinguished from your competition. You should get to the point quickly, ask for next steps efficiently, and approach with plenty of time in advance. Don’t waste your time in multiple meetings with a sponsor when you can find out in meeting one whether or not this is a realistic partnership. Can you deliver for one another what you both want in order to make this work? Basically, apply the other 8 tips we’ve already mentioned!
So, how have you applied some of these efforts in your sales push? Are there some additional options you recommend to keep from selling yourself short? We’d love to hear them – and so would many others in sponsorship sales!