Sponsorship is a $67 billion industry and if you are writing books, running podcasts or hosting conferences and events then you need to understand how it works!
When hosting an event, one of the first questions that often comes to mind is how you are going to fund it? Unless your company is already well established and has a big marketing budget, you’re going to have to get help to get your event financed. Even well-funded events need sponsors to help bring in more revenue, so the logical solution is to seek out sponsors.
Because event sponsorships play such a significant role in event revenues – one recent study shows that 63% of event managers rely on sponsorships as a significant source of income – it’s important that you give yourself and your events the best chance to attract the right sponsors. And it’s also critical that you have the right systems in place to deliver the value your sponsors are looking for.
Finding sponsors, is like trying to get hired for a job. You will submit tons of proposals and get rejected or not get a response at all. Don’t worry about that, there are strategies you can implement to help your event attract more sponsors!
Sell Solutions Not Sponsorships
Folks, it’s time to go beyond “logo’s and signage.” It goes without saying that logo’s and signage are very important pieces of the overall sponsorship package but, if you are leading with that you are in trouble! In 2019 sponsors can get their logo seen by hundreds if not thousands of customers every month just by getting their interns to craft a decent social medial plan. They don’t need their logo on signage to introduce their brand or “further their reach.”
It’s time to change how you engage with potential sponsors and make them a part of their own success plan. Start out by explaining what you’re offering then ask “How do you see your sales people engaging with attendees at this event?
Or, “If you could design your own sponsorship what would it look like?” Listen with an open mind and craft the sponsorship around your potential partner. Even if you can’t manage everything they asked for, if you can incorporate one or two of their ideas you will have won a partner.
Of course, you need time to implement this strategy. If your event is in April, you don’t want to wait until January to start engaging with sponsors. Well, you can, but unless you have a very strong re-sign rate among your current sponsors and exhibitors your results will be mediocre at best. Most budget decisions are made between August and November of the previous year.
Some sponsors don’t even care about networking opportunities as sponsorship benefits.
If you are working with your dream sponsor and they’ve been in the industry over 40 years, has market penetration in every major city, and basically are the “name” in whatever field you are selling in what would they need to sponsor your event? That is what you need to find out.
This is also why you must do your research and develop a relationship with your sponsors. Find out what they want then offer it to them in the form of a partnership.
Listen First
When first contacting your potential sponsor, make sure your conversation targets the sponsor’s goals right at the beginning.
Ask them what they need and what their goals are. Paint a picture of success for them.
You want to try to capture that person’s ear right away and let them know that you are not trying to sell them an empty sponsorship that has no value after the event, but a real way to achieve their goals.
The goal here is to find out what your sponsor wants. That’s it. The goal of this meeting or call is not to tell them about your audience, or wax poetic about your awesome activations. Your job is to be a detective and find out what your sponsors goals are.
Highlight the ROI
This is important. Your conference or event may be in the best location, you could have top-notch speakers and be expecting over 2,000 decision-makers in attendance but if you can’t articulate the return on investment to your sponsor then you have lost them.
Today there is just too much competition for sponsorship dollars to assume that those reasons alone are enough to make your sponsors sign a $25,000 check. When explaining the ROI for your event, talk more about the value received in terms of what they told you their goals were in your earlier conversations.
Round off the discussion by explaining the ongoing value of sponsoring (and make sure there is some).
Partnership Not Sponsorship
I know we’re supposed to be talking about sponsors but who we should be talking about are partners.
There are no sponsors anymore. There are businesses who are looking for partners that can help them solve a problem, fulfill a need or level up. Think of sponsors like dates. You may go out for an evening and have a great time but, that doesn’t mean there will be another date.
Partners are with you year after year, project after project, event after event. They are growing with your organization and offering expertise and advice you wouldn’t ordinarily get. They are invested in your company doing well because it also benefits them.
A partner will support your events with enthusiasm. This is the superstar of sponsors and this is the relationship you want to develop.
Will every sponsor become a partner? Probably not, but if you treat every vetted lead as a potential partner you will end up with some loyal sponsors and every year your job will get easier until your event eventually sells itself.
Sell Real Value, Not What Needs Funding
Nobody wants to fund your party. Think about it, have you ever thrown an all-expense paid birthday or anniversary party for someone? You went all out with high-end snacks, open bar, band or DJ, plus lighting, flowers photography etc…This isn’t something you do lightly nor is it something you’d do for people you only see once a year. However, the entertainment event is normally the highlight of many sponsorship offerings.
Instead of highlighting the party itself, highlight the benefit the party offers such as the opportunity to introduce a new product or brand redesign or to be positioned as a subject matter expert (SME) in a particular field.
Highlight business building opportunities at your event to facilitate business between cosponsors. These things are the ROI you want to sell, not the party.
Instead of offering every sponsor your highest sponsorship which is usually the entertainment event, research sponsors who have supported similar events at other conferences, ask them what their goal is in sponsoring that type of
Sell Based on Value, Not Price
If I could remove the prices from all sponsorship brochures I would. I envision a beautifully-designed brochure featuring all the best activations professionally photographed and organized by interest. Sponsors would flip through this awesome book and stop at things that caught their attention which would spark a conversation about how you could do something similar with them.
This brings us to the sponsorship valuation piece which deserves its own post.
Valuing what your sponsorship opportunities are worth is a tricky business. It’s not for the faint of heart but it is doable, and it is necessary. To get started visit Chris Baylis over at The Sponsorship Collective for more information on valuing sponsorships.
Focus on the prospect’s need to build their business, not your need to sell out a sponsorship level. And, most importantly, focus on what you can offer that NOBODY else can?
Getting a Sponsor for your events is important. Follow the above guidelines to help attract your ideal Sponsor. As always, let me know if you need help or have any questions!
