Treat Them Mean, Keep Them Keen – Not In Sponsorship 6th May, 2016

Now more than ever the sponsorship market is packed full of opportunities for brands, making the task of securing brand sponsors an ever harder job for rights holders. The need now for rights holders is to not only understand the value of their propositions, but also find a way to differentiate from the competition to bring in that much craved sponsorship revenue.

To do this, many rights holders are now investing heavily to upskill their sales teams. In doing this, rights holders are realising that there is a great deal of prior effort and expertise needed to secure sponsors, and therefore retaining sponsors is perhaps now even more important than it once was.

As sponsors become ever more precious to a rights holder you would assume that it would be fundamental for a rights holder to make sure they go above and beyond on delivery, however, all too often there still seems to be a disconnect, as many brands are miss-sold on promises that are never delivered.

This disconnect will of course hurt a brand when it comes to successfully activating their sponsorship, but for rights holders, besides the obvious initial financial void and short term pressures that come with that, this could have a far more adverse effect in the long run:

Bad Reputation – people talk. It doesn’t matter whether the brand has paid £5k or £5m, it’s a small world and word travels fast, especially in this digital era with a bad reference only a click away. Much like how happy sponsors are generally very willing to shout about you in a positive light, the same goes for a disgruntled sponsor who will have no remorse when shouting about you in a derogative fashion. Having a bad reputation as a rights holder when it comes to delivering sponsorship will undoubtedly plant seeds of doubt into any brand when they receive a proposal about investing in your platform.

Weakened Platform – in many cases sponsors provide a lot more than just cash, they can add significant value to a property though a variety of means such as increased promotion, engagement and consumer experience. Having successful case studies and previous positive relationships are great tools when selling to prospective brands, so not having these case studies will make a sale all the more difficult. In some cases, the sale of sponsorship could also depend heavily on who is already associated with the platform (especially in B2B sponsorship), so losing one sponsor could potentially result in losing a number of prospective ones too.

Regret – rights holders with multiple sponsors generally have a harder job to ensure a flawless delivery, and will often find it becomes a fine balancing act to decide which brand should be given the most attention at any given time. In these circumstances, it is often most likely to result in the lower tiered sponsor being neglected, and therefore walking away from future involvement (although there are cases of this occurring with high profile sponsors also). Either way, it is criminal for a rights holder to fail to deliver on their promises no matter who the brand is or what they have invested, especially in today’s climate when it is possible for brands to become world famous overnight. Imagine if that lower tiered sponsor turned out to be the next Uber or Spotify.

Selling sponsorship is never easy, in fact it is probably one of the most underrated skills in business full stop. Due to the nature of sponsorship and the regular changes in strategies for both rights holders and brands, it is natural that some sponsorships will have a short shelf life and often nothing can be done to stop the relationship coming to an end, but to lose a sponsor due to a poor relationship or miss selling is something that needs to be avoided at all costs!

To learn more about the ins and outs of selling and maintaining sponsorship effectively – attend our Sessions event on Thursday May 26th or call our London office on 0207 226 5052 for more information.

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