Acquiring Event Sponsorship: The 30,000 Foot View [Sample]

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This is a sample from Sponsorship U.You can download the full version for free at www sponsorshipu org

Acquiring Event Sponsorship:

You can download the full version for free at www.sponsorshipu.org

Acquiring Event Sponsorship:T H E 3 0 , 0 0 0 F O O T V I E W

SponsorshipU

@sponsorshipu

#sponsorshipu

February 2010www.sponsorshipu.org - The Business School for Event Organizers

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Why Are We Doing This?Why Are We Doing This?

We get slammed with requests on a daily basis for advice on acquiring event sponsorship or connections to sponsors. In a nutshell, it isn’t easy. We can’t spend 10 minutes on the phone with people, and expect to solve their problem (not to mention it's time-consuming and impossible to help more than a few people).

The e a e a small n mbe of e ent o gani e s that a e e good and get the majo it of the sponso shipThere are a small number of event organizers that are very good and get the majority of the sponsorship dollars. But there’s a large number of event organizers that are deficient in a few correctable areas and they work really hard, but don’t get any sponsorship.

Many event organizers want a sponsor to fund their idea, but it often takes them a long time to realize that such sponsors don’t exist. By this time, they are bitter and tired and blame the companies, rather than their own lack of understanding of what it takes to get sponsorship funding.

For brand/marketing managers and agencies, we hope to increase the quality of pitches in your pipeline, and, thus, hope to improve the quality of events produced. , p p q y p

We’ve pretty much made all of the mistakes listed in this guide. Often times, more than once. You’re encouraged to read this, read it again, and read it once more.

This guide won’t guarantee that you’ll get funded, but it will put you in a better position. At the end of the day,This guide won t guarantee that you ll get funded, but it will put you in a better position. At the end of the day, you’ll realize that either (a) you don’t need to pursue sponsorship as a method for financing your event, or (b) you have to make some adjustments to your current strategy.

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Who Is This For?Who Is This For?

Individuals and organizations who plan events, but don’t want to be burdened by the full cost of putting it on:

• Conference/Workshop Planners/ p• Non-Profit Organizations/Charities• Party Promoters• Political Organizations• PR/Marketing Firms• Religious Organizations• Small Businesses• Event Venues• Learning Institutions

Remember, you’re building a business case, not simply putting together a “proposal.”

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ForewordForeword

“Will this type of presentation guarantee you funding? Of course not Even if you have theWill this type of presentation guarantee you funding? Of course not. Even if you have the world’s best event you might find out that your particular market might have a really, really

high bar of achievement for funding. In fact, just trying to implement these concepts showing tangible progress will make most event organizers realize how hard really raising money is.

Try it ”Try it.

-Steve Bank (paraphrase)

This document is intended to show you “the what” about raising funds for events. There’s soThis document is intended to show you the what about raising funds for events. There s so much information to cover that we have to keep this as high-level as possible (if there’s

enough demand, we’ll dig deeper and develop a paper discussing “the how”).

We’ve tried to simplify our language as much as possible. But in the end, people who getWe ve tried to simplify our language as much as possible. But in the end, people who get funded have that intangible quality of finding the answers to terms/concepts they don’t

understand by themselves. In short, they want to be great.

To help you out when additional research is required, we’veTo help you out when additional research is required, we veadded a Google icon or a Help bubble.

- Jarel, Joey, & Tirrell

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SPONSORSHIP IS EVIL

It implies you are looking for someone to foot the bill. Partnerships are reciprocal, sponsorship is selfish and oneis selfish and one-side. If no one but you wins, then don't expect the sponsor to sign onthe sponsor to sign on for the next event. Partnerships/Partners always come back…

- Leontyne Brown Former Brand Jordan National Advertising Director

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ContentsContents

1. Your Path

2. What You Need To Know

3. Awesome Events

4. Financing The Event

5. Partners

6. Returning Value

7. Traction

8 The Ask8. The Ask

9. Pitching

10. Closing The Deal

11. Prove Your Value

12. A New Hope

13. Before We Let You Go

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14. Questions?

Choose Your Fundraising StrategyChoose Your Fundraising Strategy

Before we get to the good stuff, you’ll need to decide how you’re going to spend your time raising funds. You, pretty much, have three options:

The Chosen One Strategy:The Chosen One Strategy:

Wait until you’re obviously fundable before you raise money. Keep building value until partners come to you.

The Hobby Strategy:

Keep working on the event while you raise money as a hobby. Spend less than 25% of your time fundraising so you can focus on activities that havethan 25% of your time fundraising so you can focus on activities that have a greater chance of creating value.

The Efficient Strategy:

Hint: Don’t Choose the Hobby Strategy.

Raise money full-time and test the market very efficiently through focus and lessons learned.

Source: Mark Susterwww.sponsorshipu.org 7

IDEAS AREIDEAS ARE WORTHLESS

only thing that matters is executionis execution.

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Why Proposals Get DeclinedWhy Proposals Get Declined

Now that you know how you will be spending your time. Let’s look at the people you are pitching.

Brand/marketing managers get thousands of pitches/ proposals a year g g g p p p y(unsolicited in many cases), and most get ignored.

The most common reasons for getting turned down are:

h d ’ h k h k• They don’t answer the key questions the partner is asking• Isn’t in a format that they can sell internally• They don’t show how the partner will get their money back• They aren’t directed to the decision-maker

The concept isn’t a match for the partner’s marketing strategyHint:

If k tti • The concept isn’t a match for the partner’s marketing strategy• A solid relationship has not been built• Information came in at the last minute

o 6-8 weeks for large companies (Nike, P&G, etc.)o 5-6 weeks for smaller companies (Brand Jordan)

If you keep getting asked non-key questions, then

something is wrong with your pitch.

o 5-6 weeks for smaller companies (Brand Jordan)o 2 weeks or less: get the heck outta here…

• “The Ask” is not included (you know, what you're actually asking for)

Bo us: Larg compa i s start s tti g th ir budg t 12-18 mo ths i adva c Th y’ll

www.sponsorshipu.org Source: Eric Ries

Bonus: Large companies start setting their budget 12-18 months in advance. They ll need time to include your event in the budget. Once the money is gone, its gone…

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Ten Common MistakesTen Common Mistakes

These are the some of the mistakes event organizers make when raising funds for their event:

1. Inadequate Preparationq pToday’s economic climate requires you to get inside the head of the typical brand manager and a deliver a plan and event model that will meet his/her concerns.

2. Mass Sponsorship Solicitation EmailsSending a generic deck via email to many brands at once.

3. Failure To Understand The PartnerFailing to learn or understand your partner’s business (i.e. how they make money).

4. Tied To The PlanFailing in love with your plan (creating stubbornness, inflexibility, and defensiveness).

5. No TeamFailing to recognize that proven ability to create ROI is what really matters to brands.

6 Bigger Is BetterHint: It’s key to

6. Bigger Is BetterProviding decks that are four inches thick (size does matter and shorter is better). Be prepared to have multiple presentations in different lengths.

7. Bad TimingForgetting that timing is everything. Don’t raise money at the last minute. It will be already be too late and the cost of desperation will be too high

cultivate the relationship even if

you don’t get sponsorship dollars the first go-around. late, and the cost of desperation will be too high.

8. Price Wise/Partner FoolishIt’s not just about getting the best financial deal, it’s also about learning what other strategic benefits the partner brings to the table.

9. No CompetitionBelieving and professing to brands that your event has no competition

g

g p g y p10. Fear

Being so afraid of sharing your idea that you don’t tell anyone about it. You can’t see if you don’t tell.

www.sponsorshipu.org Source: Atlanta Urban League10

The Key QuestionsThe Key Questions

Let’s show you what key questions they are asking. They should describe how you will create ROI for partner’s product/service:

1. Does this concept fit a marketing need?1. Does this concept fit a marketing need?2. Are you going to blow the partner’s investment?3. Can you really pull this event off?4. Are those numbers real?5. How big is the total addressable market?g6. Can your team execute the growth plan?7. Can you monetize that traffic (or drive traffic to a profitable destination)?8. Who is the customer, and how do you know?9. How do you know anyone would want the partner’s product/service?0 d f i h ?

Tip:10. Have you made money for your partners in the past?11. Are you domain experts?12. Are you committed to an idea in your domain expertise?13. What kind of risk do you need to mitigate (concept risk, market risk, team

risk funding risk)?

Tip: Basically, these

questions are intended to reduce investment

riskrisk, funding risk)?

14. Why was your last event not successful? What lessons did you learn?15. What are the explanatory events?16. Why can’t you grow faster?17 What are the accelerating effects?17. What are the accelerating effects?

Source: Eric Ries & Glen Kelman11

Here’s What You NeedHere s What You Need

Thought you had it all, huh? In short, do you have:

• Ability to Sell the Brand Manager/Agency Account Manager• Amazing Concept/Unique Event ModelAmazing Concept/Unique Event Model• Rock Star Team• Traction• In a Large or Fast-Growing or Hard-to-Tap Market • Defensibilityy• Repeatable ROI Model• Financials• Reasonable Financial Terms• Measureable Milestones for Success

l d f d /S i G l l i• Knowledge of Product/Service Governmental Regulations• Agility To Adapt to Market Reality• Mastery of the Art of Persuasion

ROI = Return on Investment

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assume you have 30 competitors. assume half of them have more money than you do. assume they’re ahead of you. don’t worry when they launch before you dodo….

EVERY OVERNIGHT SUCCESS STORY IS THE RESULT OF YEARS OF SUSTAINED FOCUSEDOF SUSTAINED, FOCUSED EXECUTION

Source: Babak Nivi

Amazing ConceptAmazing Concept

So you have a concept for an event do you? What makes it so awesome? Your event should provide the ability to touch the consumer in ways the brand can’t.

Ask yourself:Ask yourself:

• What problem in the market are you trying solve?• How is your concept solving this problem and what’s so amazing about it?• What is the opportunity(s) for the market and partner? Tip:pp y( ) p• Who are your competitors?• What is your revenue model (if applicable)?• What’s the next version of the concept/ What is the end game?• Is it designed for the “everyday person” in your domain?

Tip: Competitors

aren’t just similar events. Other

entertainmentti s

The objective is to find a model that repeats. You are on a manhunt for a model that is more science than art. To achieve this, you should:

Execute the basic version of your concept (without the bells & whistles)

optionsYour proof that you have a great concept comes from people

attending your event.

• Execute the basic version of your concept (without the bells & whistles)• Test your assumptions in front of consumers• Preserve cash until you have a model that works• Turn guesses into facts• Understand why the model works• Understand why the model works • Repeat

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Rock Star TeamRock Star Team

Ok, so now your concept is awesome. Who is going to help you execute it again? You aren’t going to do it by yourself are you?

A rock star team includes:A rock star team includes:

• Management Level Participantso There is more than one of you, right?o Are any of you marketing ninjas?y y g jo Do you have a following?o Do you all have the right amount of experience/expertise in your

niche?o Do they have numerous key relationships?

l kill ?Um “keyTip: Find a mentor that will provide youo Any relevant skills?

• Service Providerso Design (Web, Graphic, etc.)

Public Relations Firm

Um, key relationships” don’t

mean Facebook friends and those

you follow on Twitter.

that will provide you honest feedback with recommendations to

better you & your team.

o Public Relations Firmo Talent (deejay, band, speakers, etc.)

• Advisory Boardo Industry Veteranso Industry Veteranso Old Clients

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Location + People + Culture = MarketLocation + People + Culture = Market

Now you have an awesome concept and a rock star team to execute it. Who is attending your event? This will go a long way in helping to estimate a reasonable ROI. Keep in mind, market requirements drive concept development.

• How many people are really in your market?• How do they operate?• What are their needs?• What do they do everyday?Tip: y y y• How many of these people are really going to purchase the partner’s

product/service?• How do you know?• What products are they using that fulfills a similar need (substitute

d )?

pIf your following

already purchases “product x”, then why

would theBrand want to products)?

• How are they currently purchasing these products?• What is their degree of loyalty to current products/providers? • What are the growth trends?

Brand want to partner with your

event? They already have them hooked.

Market Size = # of buyers in your niche x quantity purchased by average buyer in market per year x

price of average unit

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DefensibilityDefensibility

Your concept is awesome, your team is full of rock stars, and people are coming out in droves...If you have, even, moderate success, your concept will probably be stolen. Anticipate and pivot:

• Find the things that only you do well• What is going to prevent your concept from being copied?• Do you have exclusive access to some important resource that others can’t

get to?g• Are you building a “tribe”?• Are you aligned with key sales stakeholders?

Google “Tribes”

by Seth Godin

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FinancialsFinancials

You have a rock star team to execute an awesome concept in a proven market. Even better, the concept is difficult to replicate. But, seriously, how can you prove that you'll make money? More importantly, how are your partners going to see a return?to see a return?

You must have a deep understanding of the numbers that matter to your business. Prepare a detailed document that reflects the numbers of the event:

• Shows historic information• Shows the primary & secondary ROI sources• Identifies timing of cash needs• Is any component of the event scalable (marketing, downloads, etc.)?

d d h i i i f h f

Google "scale" for more info, but, think

• Do you understand the consumer acquisition costs of the event AND for the partner?

• What are your assumptions and what data supports them?

about scaling as increasing revenue

alot while your expenses barely

increase

Note: Any good manager will cut your projections in half Be realisticprojections in half. Be realistic.

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BE A RISK TAKERif you’re not willing to proceed with the eventif you re not willing to proceed with the event without funding, why should a brand take a risk with you?

This is a sample from Sponsorship U.You can download the full version for free at www.sponsorshipu.org

www.sponsorshipu.org - The Business School for Event Organizers February 2010