|Seeking Sponsorship part 1 & 2
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|Author:||butch_mcc [ Sun Feb 23, 2014 10:14 am ]|
|Post subject:||Seeking Sponsorship part 1 & 2|
I have been ask a lot of times about finding a sponsor.
Sponsorship is long dead from the past and the old viewpoint of putting a decal of the business name on your kart and holding your hand out for money. In today's marketplace, it's no longer "sponsorship", it's Marketing Partnerships and it's a business and needs to be looked upon and treated as such.
You are marketing yourself to prospective partners, and once you obtain a partnership, you are a marketing agent for that partner. In affect, you have become a contractor, providing a service for agreed compensation. You should set up an actual written contract outlining your obligations and the partner's obligations.
Whether you are a racer, promoter, or track operator, it's all the same principal. It's best to set yourself up as an LLC and do as mentioned above concerning a contract. Besides, this will look more professional to prospective partners. Keep track of all expenses and all income,(race winnings, "sponsorship" monies/value of products, etc. that influx the newly formed LLC).
Three things to think about when seeking Marketing Partners:
ABP- Always be prospecting. Never pass up the opportunity to prospect any business you frequent, for an appointment to speak to the person in charge of the decision making so you can propose a partnership.
ABM- Always be marketing. Once you have obtained that partnership, don't let an opportunity pass by to promote the partner for extra exposure.
AVOD- Add value or die. Add value to your proposal/obligation to your partner that others haven't. Make yourself stand above the others proposals received by giving value for the partners outlay.
You should always look and act professional. A well dressed and professional acting team goes a long way. It gets attention....good attention. After all, you are representing your partner/sponsor to the public. A dirty, greasy driving suit or jacket and jeans, sloppy or dirty kart and trailer don't go very far when looking for someone to pay your racing expenses. Offer to display your team and kart at your partners place of business, hand out any promotional flyers or business information to customers coming in or out of the business. Answer any questions, and be available to talk with prospective racers, or their customers.
Let the partner display some of your trophys, and pictures at their place of business, and ALWAYs.....ALWAYS...send them a thank you letter, thanking them for the opportunity that they gave you, and keep them informed about your racing, with tracks and big events you plan to race at, and give them a free pass to the races, and ask if the promoter will announce the name of the business making it possible for you to race.
These are just a few things in obtaining a sponsor/partner. One of the main things I've found out over the years is always act and look professional. After all, you are representing the business that is paying the bills.
|Author:||mike davis #99 [ Sun Feb 23, 2014 12:12 pm ]|
|Post subject:||Re: Seeking Sponsorship|
Wow Butch , that is a fantastic point of view. And great advise for anyone seeking sponsorship / partnership for our club or themselves.
|Author:||butch_mcc [ Sun Feb 23, 2014 5:07 pm ]|
|Post subject:||Re: Seeking Sponsorship part 1 & 2|
I have looked over some of my sponsor deals I had when I raced Sprint Cars and some of my kart racing and made some points to follow. As I mentioned before, the sweetheart deals are just about gone and it is all business now. Getting a sponsor is not just walking into a business and asking for money, it takes some effort to getting a sponsor or marketing partner. Here are some things I did that helped me.
#1- Know the difference: There are two types of sponsors- those who, more or less, just give you money(supporters/fans) and expect nothing in return, and those who are serious sponsors who actually expect a return on their investment.
#2- Research the potential sponsor: Be sure that the sponsor can benefit from the program you offer. Be sure they can afford what you are asking. Custom tailor a program incorporates current marketing objectives for that business.
#3- Don't sell too cheap.If you don't feel that what you offer is worth much, businesses will agree. Set a realistic figure based on value offered, and make it higher than what you need.(that leaves room for negotiations) You can always come down on your fee, but almost impossible to increase the amount.
--figure out what it takes you to run a race day.ie. pit passes, fuel, oil, chain, spark plugs, clutch maintenance, and engine re-builds, tires etc.
#4- Request a realistic amount of money: Too many sponsorship seekers think a serious primary sponsor should finance the race team. A sponsor/serious business man is only going to give you what he thinks the deal is worth to him. If you can show that the package you offer will affect his bottom line or bring customers into his business, and generate exposure, chance of getting that business man to sign are greatly improved.
#5- Don't beg: Never tell a potential sponsor that if you don't get a sponsor, you won't be able to race. They don't care. At least those offering serious sponsorship don't care.
#6- Talk racing as it pertains to increasing the sponsor's business: Most sponsors don't care about your racing. They do care about their business, and what you can do to help that business. SHow that you have a way to attract customers, and they will listen. Telling them about all the wonderful things you have done in racing or plan to do, will do nothing for the business, and they will have no interest.
#7- Don't promise what you can't produce: Don't promise to win races and championships. Don't promise to get the sponsor exposure in all area newspapers, trade publications, and other media. Instead, tell the potential sponsor that you will be giving it all your best effort.
#8- Add value to the package: Many sponsorship packages are done backward. Ninety percent is devoted to the race team and 10 percent is devoted to the marketing efforts to make the sponsorship work. It should be just the opposite. As I said before in the previous post, The days of offering to paint the sponsors name on the kart and calling it "sponsorship" are long gone. You have to offer a package that includes perhaps, signage at the track(a banner hung in your pit) where you race on a regular basis. Include a day at the races for the sponsor, public address announcements. The racer should be spending part of the money from the sponsor to keep the sponsor happy. Set aside a marketing fund to make sure the sponsor gets the exposure that they paid for. Twenty percent is a good figure that I found to work with.
This is a general idea of things that I used to get sponsors. Getting a sponsor takes some effort, but if you feel that you can not write a sponsorship proposal, find some one with some writing talent to do so for you. This goes back to the part of being professional. Remember....it's a business partnership.
I've seen too many people get a sponsor and then forget about them, and wonder why they are not interested the next season when they're ask about sponsorship.
Good luck in your sponsorship search, and remember, you can have more than one sponsor to split the racing expenses. The same applys to all of them.
|Author:||trigun7469 [ Thu Feb 27, 2014 10:44 am ]|
|Post subject:||Re: Seeking Sponsorship part 1 & 2|
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