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What’s included in a basic sponsorship proposal?
A basic sponsorship proposal includes five key elements:
1. Who are you?
You need to define who you are, what you have done and what you want to do. Be succinct. Include all the information on one page.
2. What are you selling?
This should include information about the series in which you want to compete; the team (if defined); key highlights about both; the scope of the series; the schedule; who is participating and watching it live and on television.
For example, if you are focusing on the IndyCar Series, you would highlight the Indy 500 and the dynamic schedule the series has in key markets. You would focus heavily on ABC’s long-standing relationship with the series. (Accent the positives and contain the negatives.) If you will be running with XYZ Motorsports and they are two-time champions, highlight this and include a quote from the team owner.
3. What are the features and benefits?
This should be a summary of all the benefits associated with your program and possible options. Options can include hospitality, employee recognition programs, driver appearances, two-seater rides, merchandising, consumer promotions, public relations campaigns, product launches, etc. It is an overview of what you could do.
4. What are you offering?
This should be a summary list of what the sponsor will receive and for how much. It defines the signage and branding of the driver and team assets, rights to driver’s likeness, credentials, driver appearances and other benefits such as team merchandise and tours of the team in addition to possible non-driver assets such as a show car program.
5. How to contact?
Your contact information.
What is Return on Investment (ROI)?
ROI is a measure of the value of the sponsor’s investment in your program. Companies will typically not know how to track, measure, and quantify their involvement in racing as this is a non-traditional property. Therefore, it is the responsibility of the driver (and/or team) to establish the framework for a reporting process on the milestones and accomplishments of the program. Taking the initiative ahead of time to report on the achievements of the program goes a long way.
To lay out the framework, talk to your sponsor about specifics – what do they want out of the program during the year, or the term of your contract, to deem it a success? At season’s end, you can go back and tick off the boxes to show what was accomplished. It is a way to demonstrate that you delivered on what was promised and it makes it easier to negotiate next year’s deal.
Be realistic. Always aim to over-deliver.
How do I Research Companies and Contacts?
It’s important to develop an ongoing network of contacts that may or may not be interested in supporting you the first time you talk to them. You need to maintain a database of these contacts to call upon with an idea in the future.
If you are researching companies, there are several ways to identify potential prospects.
First, follow the national business news. Read the business sections of USA Today, The Wall Street Journal, BusinessWeek and Sports Business Journal as well as monthlies like Forbes and Fortune.
The business section of your local newspaper is possibly the most important source because, with your local connection to a company, it is an instant reason to speak with them.
Also consider trade journals in an industry that you’re interested in. This can help you track
industry trends and transactions that often escape the general news sources.
Once you identify a prospect, do your homework. The internet can provide vital insight into any public company and many in the private sector. Always research before you approach a company.
How do I approach a company for the first time?
Be fearless.
There are three ways to approach a company. At the low end, is via email. The middle end would be a phone call. The high end would be a face-to-face encounter. Email is the easiest and also the ¬least effective. Face-to-face is the most intimidating but also the most effective.
I found my first sponsor at a trade show. When you are approaching someone face to face, they can’t avoid you. Yes, some can be rude but hopefully, at a minimum, you will walk away with a business card and some general information about the company.
Don’t settle for an email when a phone call or face-to-face encounter is possible. Be fearless. You can’t get hurt. With each attempt you’ll learn quickly how to improve the next time.
And by the way, be fearless.
Which contacts should I add to my mailing list?
Everyone. If you have someone’s business card, even if they didn’t express interest in helping you right away, it is okay to send regular email updates on newsworthy occasions. You can assume that this is okay unless they opt out.
For email updates, don’t forget to include pictures in a condensed file size (less than 1MB).
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