5 Signs You Could Be Making Money Through Sponsorship
28th February, 2018
Could you increase your revenue through sponsorship and just what is it sponsors are looking for?
Each week, we receive multiple calls from events, charities, start-ups and sports teams enquiring whether they can generate more sponsorship (or new sponsorship). Around 99% of the time we speak to them, the answer is yes.
We follow a strategic framework, tailored to each client, to uncover sponsorship opportunities that aren’t being capitalised on. But there’s no need to go so in depth at first.
If you’re simply wondering whether your company or organisation could be making money through sponsorship, take a look at these five key questions. The more times you answer yes, the better your sponsorship potential:
- Do your competitors make money from sponsorship?
Reviewing the competitive landscape is a good first indicator of whether you can make money from sponsorship. After all, if Coca-Cola are sponsoring all of your competitors but not you, chances are you’re missing a fairly obvious trick.
A simple Google search should be enough to identify which of your competitors are getting those sponsorship dollars. You’ll need to employ a bit of common sense when researching though, as not all sponsors are cash sponsors.
And if your competitor research doesn’t turn up any sponsors? Well that doesn’t mean you can’t generate revenue yourself. Answer the following questions to see if you’re offering something brands are looking for.
- Do you have an engaged audience?
Brands sponsor events, start-ups, charities and sports teams for a number of different reasons – they may want to be associated with your product, create awareness of their brand, generate leads or show themselves in a positive light – but one of the main reasons is to talk to your audience.
Many believe that the size of your audience is everything when it comes to attracting sponsorship. Yes the numbers help, but the real value lies within how engaged these people are – 100 truly engaged people are worth more than 100,000 who aren’t.
- Is your organisation unique?
Being unique is critical when working out if you can make money through sponsorship. The more unique your offering, the higher value your audience becomes. Brands often want to be associated with or speak to a specific target group
We don’t mean too specific though, if you’re the only person in the world who can balance a pen on your nose while reciting the Lord’s Prayer backwards, no one cares, this is not a sponsorship platform. But if you have a blog that speaks to young women who just bought a pug – and there are plenty of brands out there who want to speak specifically to that audience – then you’re on to a winner.
- Do you already generate advertising revenue or sell tickets?
If you’re making money through other means, this shows what you’re doing is of interest. And more often than not, if there’s interest, there’s sponsorship value too.
- Do you have regular contact with your audience?
If you have multiple touch points for a sponsor to speak to your audience then it’s much easier for them to justify their sponsorship spend.
So while your annual event may only come around once a year (funny that), you might have a high open rate for your weekly newsletter or blog. These are the kind of assets that create added value for a sponsor.
Want to know more about how sponsorship could work for you? Drop us an email: [email protected]