How Much Revenue Could My Project Earn Through Sponsorship?
9th March, 2018
One of the most common questions people looking for sponsorship ask us is, ‘what could my property be worth?’
It’s an obvious question to ask, but without knowing exactly what’s being offered to a sponsor it’s almost impossible to answer. Therefore, before you approach a brand or agency about sponsorship, it’s worth taking a bit of time to consider exactly what you have to offer.
When creating a sponsorship package and working out sponsorship value here are three key things to take into account.
How is a sponsorship package valued?
To be able to value a platform correctly, all the sponsorship assets – such as inclusion in newsletters, social media posts, logo integration and hospitality tickets – need to have been considered and packages created detailing the frequency an asset can be used. These details are measured against the reach your project will have – how many people are going to see it and, more importantly, how valuable is that audience to a brand. The value of each asset can then be calculated to provide an overall price.
Nail down the details
We often find that people coming to us with a new venture have a good grasp on the fundamentals of their projects, such as where and when it’s going to be, but they may not have the specifics nailed down – and the specifics are everything when it comes to the value.
For example, claiming an event will be shown on TV is not enough to be able to value an opportunity and, likewise, probably won’t be enough for a brand to sponsor. Instead, make sure you know the specifics, including what channel it will be shown on and how often the sponsor can be featured – the latter is where the real value lies. The same goes for any media partner whether it be TV, radio, magazines or blogs. You need to be sure that agreements have been finalised before approaching sponsors.
Don’t approach sponsors too early
Sponsorship deals can take many months to get across the line so it can be tempting to approach potential sponsors before you have the complete sponsorship toolkit confirmed. It may seem like a good idea to get the ball rolling as soon as possible but it can lead to you coming unstuck in the boardroom as the brand can’t justify the value of the deal without knowing exactly what they’re going to get. This can lead to delays or even end the hope of any potential agreement.
Therefore, to understand the sponsorship revenue your project could receive you need to turn your ideas into serious realities by confirming the specifics of your offering. You may be pleasantly surprised by the value at your fingertips.