This is a guest post from Joe Waters, sponsorship expert and author of Selfish Giving. Show
I’ve been selling sponsorships - or helping others sell theirs - for longer than I care to admit. This is good news for you because just about every nonprofit sells - or should be selling - sponsorships. Sponsorship is a great source of additional revenue and contacts. It can also be a driver of individual giving, the most lucrative piece of the philanthropic pie. On top of selling sponsorships for nearly 20 years, I’ve only sold local sponsorships. I never worked for one of those big nonprofits (e. g. St. Jude, Feeding America) that have companies showering them with money. I wish. No, the last nonprofit I worked at was a safety-net hospital that no one wanted to sponsor. Still, we figured out how to sell millions of dollars in sponsorships. Take a look at the map of Massachusetts, my home state, below. It shows just how “local” my work has been. The red line is Route 128, a major state highway. About 95% of the sponsorships I've sold in my career have been within that red line. That's local sponsorship sales! My goal here is to give you more than the sponsorship 101 stuff you find on most sites. This will be an advanced placement course in identifying, selling and closing sponsorships. We’ll cover: - What is a Sponsorship? Read More: 4 Ways Small Nonprofits Can Leverage Corporate Philanthropy What is a Sponsorship?A sponsorship is when a company commits money or resources to a nonprofit event or program in exchange for specific promotional benefits. In exchange for supporting the nonprofit, the company gets their name and logo on things like:
The business objective of sponsorship is to reach a specific target audience and to earn a “halo” for supporting a good cause. By aligning themselves with purpose-based organizations, sponsors give their businesses a competitive edge that goes beyond product and price. It’s marketing, but more socially responsible. Sponsorship is win-win and work-work. Both the nonprofit and the for-profit benefit from the partnership, but success depends on them working together to ensure the other’s success. Types of SponsorshipsDepending on your needs, there are several different types of sponsorships that can help you with your next event:
An Example of a SponsorshipIf you’re looking for an example of sponsorship in action, take a look atthe Boston Marathon, which is run by a nonprofit organization, the Boston Athletic Association or BAA. The event has a number of longstanding corporate sponsors, including running shoe maker Adidas. Like I mentioned, a great sponsorship benefits both the nonprofit and the sponsorship partner. So what does that look like here? The BAA benefits by:
And how does Adidas benefit from the sponsorship?
Being associated with such an important and famous event gives Adidas a favorable connection with thousands of runners and millions of spectators - both along the course and watching at home on television. Is the partnership win-win for both partners? Absolutely. Do the BAA and Adidas have to work hard to ensure each other’s success? You bet. One thing you don’t need to succeed with a sponsorship is a large athletic event like the Boston Marathon or a global shoe company like Adidas. There are many sponsorship opportunities with organizations of all sizes and types. How to Get a Sponsorship: 8 Key TacticsBefore you start securing a sponsorship, keep these 8 key tactics in mind:
How to Find a Sponsorship With an Asset AnalysisYour first step is to do an asset analysis of your organization, events and programs. Look for assets that would be valuable to a potential business partner. These may include:
One of the most valuable assets you can have is an existing connection to a company. I like to say that a company in hand is worth two waiting in the bush! Maybe you have a CEO that personally supports your cause, but hasn’t involved her company. Or perhaps your organization has a long-standing vendor relationship with a company that would be open to a fundraiser. Nonprofits don’t usually know where to start when it comes to selling sponsorships to businesses. That’s because they have their sights set too high and miss the low-hanging fruit! Read More: Everything you Need to Know About Virtual Sponsorship for Nonprofits How to Get a Sponsorship: Defining Your AudienceAs I mentioned, a winning sponsorship benefits both the sponsor and the nonprofit. But there’s another part of that equation: a great sponsorship also rewards your audience. And knowing your audience is key to snagging that perfect sponsor and delivering a successful event. For your sponsors, your audience is your most valuable asset. All you need to do is frame your audience in the right way. By doing so, you’re showing your sponsor the breadth and depth of exposure their brand can get from the partnership. I recommend reviewing your data to draw out information that can qualitate what makes your audience so special. You can investigate areas like your:
Sponsorship Pitches: Everything You Need to KnowConsider this your crash course in delivering a successful sponsorship pitch. Armed with the right knowhow and tools, your pitch will have you well on your way to securing a great sponsorship! I’ve broken down the process to make it digestible. In this section, I’ll cover:
Without further ado, let’s get started. Key Components of a Sponsorship PitchA good sponsorship pitch is about helping your prospect understand your organization in a way that resonates with them. Include essential information, but with the angle of how a partnership will benefit them and align with their values. I recommend including these elements:
Who to Pitch toTo successfully pitch a sponsorship opportu nity, you have to know who you’re dealing with. I’ve found that decision makers can be lumped into one of these three groups: Thinkers, Feeler and Deferrers. Most people are a combination of all three, but one style usually dominates.ThinkersThinkers are my favorites because they are most like me! They want to hear the rationale, the logic behind a sponsorship and why it makes sense for their business. They like facts, figures, research, statistics, data and any other analytical information to drive their decision. If you’re pitching a Thinker on an event sponsorship: Talk about how many people attended the event, the split between men and women and their favorability toward sponsors. FeelersFeelers are moved more by narrative and emotional appeals and will respond better to appeals centered around the mission of your organization, how the consumer experience will be enhanced and how employees will derive more meaning and fulfillment from their jobs. If you’re pitching a Feeler on an event sponsorship: Talk about the emotional connection people have to the event and how it will tangibly impact your mission. DeferrersDeferrers follow the lead of others. Show them what the companies they admire or compete with are doing and how they can join the “cool kids.” Credibility and reputation are important to a lot of people. But for these prospects, it means a whole lot more. If you’re pitching a Deferrer on an event sponsorship: Talk about the other companies that are sponsoring the event and the high profile leaders that will be attending. Tips and Tricks for PitchingWhether you’re dealing with a Thinker, Feeler or Deferrer, there are certain tips and tricks that are important to keep in mind:
Who to Reach Out to FirstNonprofits often ask me what kind of companies they should target for sponsorship. “Oh, that’s easy,” I say. “The company that will say yes!” Of course, some businesses are more likely to say yes than others. Part of the puzzle of a successful sponsorship pitch is knowing who to reach out to first. In this section, I’ll break down each type of contact, covering:
The Bull’s-Eye: SupportersWho are they?The bull’s-eye is your sweet spot and where you should aim. The companies within the bull’s-eye are existing supporters of your organization. These companies already give you money. The CEO may be a major donor, or the company might be a sponsor or underwriter of a program or event. This company is a friend, supporter, and an ally with whom you can kick off a partnership. Why do they matter?Companies that are supporters are already on your side and open to experimenting and taking risks because they know and trust you. You’ll need this. First tries are rarely perfect, and these partners will have the patience and forgiveness you’ll need to safely try, and try again. When should you reach out to them?Reach out these people first! During my 20 year career working in nonprofits, I always had one goal on my first day at a new job: to find out what companies my new employer already knew. These companies were the foundation for everything that followed. Always start with the people you know and you’ll never hear “No”! The Inner Circle: ContactsWho are they?The first circle outside the bull’s-eye is populated with what I call contacts. You know these people and they know you. But they’re different from bull’s eye supporters for one key reason: they haven’t given you any money. Why do they matter?These people are excellent secondary prospects. Why? They’re familiar with your organization. Examples of good contacts are your organization’s vendors. If you work at a large nonprofit you probably spend a lot of money with several vendors that can either join you in a cause-marketing program or introduce you to a company that can. Another example of contacts is your board members’ contacts. When should you reach out to them?After you’ve reached out to bull’s eye contact, turn your attention to your contacts. I once landed a meeting with a major convenience store chain because when I mentioned the owner’s name to a board member she exclaimed, “I live next door to him!” It’s best to work from the inside out. Begin with companies within the bull’s-eye, execute a program or two, and then shop your success and experience to the next circle of prospects that will need more convincing than your generous supporters did. The Outer Circle: SuspectsWho are they?The companies in the next circle aren’t even prospects. I call them suspects—that’s how weak their connection is to you.These companies have no connection with your organization. They don’t know you and you don’t know them. Why are they important?This is the hardest circle to work, but it also has the most potential because 95 percent of companies are neither supporters nor contacts. If selling were as easy as pitching supporters and contacts, organizations wouldn’t need you! Remember, just as the second circle is harder to work than the bull’s-eye, the outer circle is the most difficult of all. When should you reach out to them?Work the inner circles first. You’ll gain valuable experience and references. You’ll need these when you approach suspects. You might be thinking you can just start at the outer circle and make cold calls. Not only is this not very fun, it’s not very effective either. It sometimes works—like finding a needle in a haystack. But when you’re stuck at the outer ring where it’s cold and lonely, a better option is to revisit the basics (e.g., cultivating individual major donors, adding influential members to your board, building your brand, etc.) so one day you can score a sponsorship bull’s-eye. Sponsor Management Tools: How a CMS Makes Sponsor Management EasyA contact management software (CMS) is a great way to keep track of all your prospective sponsors and any interactions you have with them. If you’ve never used a CMS before, or are reluctant to use the one you have, let me be clear on the importance of having one. Your CMS can help you sell more sponsorships and raise more money for your organization. Period. What is a CMS? A contact management software (CMS), is essentially a database for storing and finding contact information, tracking information, and linking all communication that is associated with your contacts. It’s a rolodex brought to the next level. The sooner you view your prospect management software as the valuable, money-making sidekick it is, the sooner you'll be embracing a valuable member of the team. Here are some tips:
6 Common Questions About Securing a SponsorshipI get a lot of questions about the best ways to get through to prospects. There’s email, social media, but the best and most common is to contact via phone. Gearing up for your first call? Here are my recommendations.
Presenting the Perfect Sponsorship PitchBeing asked to present your sponsorship proposal in person or virtually is a good sign that your prospect is interested in partnering with you. If your presentation is good, you’ll have a new sponsor. This is an opportunity not to be squandered! Not only does it give you an opportunity to engage with your prospect in real time, it’s the perfect opportunity to answer their questions and dissuade any doubts. There’s also a good chance other key decision makers will be on hand for your talk. If you find yourself in this situation, here are some things to keep in mind when speaking to potential corporate partners:
How to Get Sponsored: Closing the Sponsorship DealClosing a sponsorship deal isn’t easy, especially these days when companies are scrutinizing everything and watching every penny.Here are some tips on how to close the deal.
Finally, don’t forget the mission of your organization. I say this because I used to get so caught up in the marketing I would forget to stress the amazing work my organization was doing! Maybe this sounds like you. We’ve trained ourselves to sell the benefits of sponsorship so much we sometimes forget our mission! In the world of corporate sponsorship, that’s one benefit we can’t forget to feature. Your organization is doing great work, so make sure your prospect knows this. Because after all, the entire reason for getting a sponsorship is to create a greater, more meaningful impact together. The reason you’re targeting this prospect is because you have shared interests and values in mind. Keep this in mind with everything you do. That way when you secure the right sponsorship, you’ll be sure that that partner is a good (no, perfect) match. _____ This article was written by Joe Waters (Selfish Giving), Cause Marketing expert and speaker, writer, consultant and online trainer. Joe has raised millions of dollars from local, regional and national corporate partners. He’s also the author of three books: Fundraising with Businesses, Cause Marketing for Dummies and QR Codes for Dummies.Image sources:Sponsors Welcome andCrowdsourcing and Funding – courtesy of BigStockPhoto.com How do you reach a company to sponsor you?Determine your needs. The first step to asking for sponsorship is determining what you actually need. ... . Outline what you have to offer. ... . Create a one-pager. ... . Create a list of prospects. ... . Try to get in touch with an individual, if at all possible. ... . Keep it short and sweet! ... . Follow Up. ... . If at first you don't succeed, try again.. How do you get paid by sponsors?How To Get Your Sponsorship Invoices Paid On Time. Use the Right Tools. Hate to break it you, but you need to ask yourself if you're making it easy for your sponsors to pay you. ... . Set Up Your Sponsorship Invoices. ... . Get Everything in Writing (if important to you) ... . Get a Deposit. ... . Don't Do The Work Unless You're Paid.. Who can I ask for sponsorship?You have to think of sponsorship more like marketing than corporate philanthropy. Your sponsors won't just give you money to get nothing back.. Banks.. Hotels.. Grocery chains.. Insurance companies.. Food brands.. Beer brands.. Major retailers.. Airlines.. How do you approach a sponsor?Here are some tips so you can make that fantastic first impression and get the meeting going with your best foot forward.. Research potential sponsors. ... . Master the elevator pitch. ... . Let your numbers do the talking. ... . Remember, sponsorship is more than signage. ... . Include interactive activities in the deal.. |