Sponsorship Isn't Just For Events

A lot of times, when I'm first talking to folks about the "Brought to you By…" sponsorship sales system, many will immediately jump to the conclusion that sponsorship is strictly something for companies that put on meetings and events. (After all – our event, the National Sports Forum, has sponsors and it's an event, right?!)

Well, it is an event and it does have sponsors … but that's it as far as any "cause and effect" similarity goes. Simply stated, any company that leverages (communicates and cultivates) a 'herd' of customers & prospects has a viable shot at creating a sponsorship component to their business. And that could very well be YOU.

Where it comes to sponsorship, the owner of a Mexican restaurant would have every bit as good a chance of cultivating sponsorship for their establishment … as… say, a newsletter author or e-zine writer. Or perhaps even someone who is actively involved in the speaking business. (While they, themselves, don't put on the meetings, they present at them … and in the process, speak to an audience that shares many "commonalities")

All of these folks actively "recruit", cultivate and hopefully communicate with a group of loyal patrons, (… and perhaps even some "curious patrons"). These patrons, readers and audience members each harbor a common interest that brought them into that "space" in the first place. (For instance, they each like Mexican food … or they each have an interest in whatever topic the writer or speaker is discussing….)

And that's the key to attracting sponsors – having a collective group of people that possess a common interest. An interest that brings them together -- and brings them to you.

And it's in your ability to promote and market this "common bond" which your customers all share (…in your product) that will spell the success of your being able to recruit a stable of sponsors. Do a good job of getting to know your customers … and pretty soon, before you know it -- you'll be introducing them to your new sponsors!

A Little Background...

For those of you that are new readers to our blog (…and that should include just about everybody… given that we just launched this a couple weeks ago…), we want to welcome you.

For logical reasons, most submissions that we're going to post will deal directly with Sponsorship issues; however, by way of background, for those of you that don’t know much about me or our company – sponsorship is only ONE of the things that we "tackle" here at Seaver Marketing Group.

Our "roots" are in the sports industry (…sports sponsorship and sports promotions to be precise), and we drew on these roots some fifteen years ago in launching our annual conference & trade show, The National Sports Forum.

The business of sports – for those of you that may not be sports fans out there … is huge – in fact, sports is now the nation’s fifth largest industry!

And our event, the NSF, gathers the top team marketing, sponsorship, sales, advertising and fan entertainment executives together each winter, (…usually the week leading into the NFL's Super Bowl).

Each year we draw together about 600-700 executives from across the industry -- the NFL, Major League Baseball, the NBA, NHL, Major League Soccer, the Minor Leagues, Auto Racing, Colleges, Horse Racing … you'll even find a handful of Sports Commissions there with us each year in attendance.

To this nucleus, we're joined by corporate sponsors, sponsorship agencies, event management firms … and a Trade Show hall that’s been (thank you!) sold out for years now.

And as you might imagine when you get a conference hall full of sports business executives together -- sponsorship is one of the PRIMARY topics we address each year.

I tell you all this so that you won't be surprised when you pick up a bit of a "sports theme" to many of my entries here. Sports currently accounts for about 65% of ALL sponsorship dollars spent each year – so it's the 3,000 pound gorilla out there in the sponsorship world.

As for our conference, the Sports Forum isn't open to the general public; however, should any of you be curious to learn more about the NSF—please feel free to take a tour through our website: www.sports-forum.com.

Again, thanks for joining us – we're delighted you found us! Here's looking forward to "talking sponsorship" with you (…even if there's a little bit of a sports flavor mixed in!)

Why Would a Company be Interested in Sponsoring a Group like Mine?

This is the third concern that my friend James raised in our recent taped interview for his Inner Circle members. It's a little bit similar in nature to his first concern (…which was, "Is it Hard to find Sponsors?"), but I think it takes that first question a bit deeper.

It probably shouldn't surprise us when we read that Company "X" is paying $1.5 million a year to sponsor an NBA or NFL team, but hey (…you're thinking…), you're not the LA Lakers, right? You've got a group of 65 association members that gets together once a month to talk about wine! (Or some such subject…)

Well … I'm guessing this probably won't come to you as a "news flash" – but your group probably won't net you $1.5-million dollar-a-year sponsorships … but it's very possible that it could net you $20,000 a year … $30,000 a year … or more.

The truth is – you might be extraordinarily surprised by how much a company might be willing to spend to sponsor your group, your speaking tour, or your newsletter.

And the reason why is in the numbers.

In fact, let's just take your wine association (referenced above) as our example to demonstrate this very point.

Let's say you've built a "herd" of 65 wine lovers (… I think they're called "Oenophiles", aren't they?) Let's say each member of your group spends -- on average, $60 a month buying various wines. (That comes to what… $15 a week? Not really all that much considering what a good bottle of wine costs these days, right?)

But let's say you've got a bunch of cheap-o wine drinkers for members. Okay -- let's do the math. 65 members spending $60 a month on wine = $3,900.00 a month. Multiply that times 12 months a year and you're clocking in at just shy of $50,000. Hmmm… not bad (…especially for cheap-o wine drinkers!)

Now these members of yours have to buy their wine from SOMEBODY, don't they? You think there might be a liquor store (…or 70) in your community that wouldn't mind being the "preferred vendor" to your Wine Club? Heck – why not? Think about it from their perspective -- without buying a single newspaper ad or Penny Saver page … you've walked them straight into a potential windfall of $50,000. Seems like a "no-brainer" don't you think?

All they need to do, in return, is provide you with a modest sponsorship check (…or better yet, eradicate your monthly wine expenses for your personal and Club needs by providing you with "in-kind" product!) Now you’re thinking!

No, they probably won't give you a $70,000 sponsorship check – but they might give you a $7,500 one. Afterall – they probably have a 2x (or greater) mark-up on the wine they sell … which means that they're pocketing $25,000 on the $50,000 worth of wine your members are consuming each year. That means they’ve made $25,000 for doing what…? Right – NOTHING! You did all the work!

You walked them into your Club and literally handed them a check for $50,000. That’s got to be worth something. If not to one liquor store … then maybe to another. But trust me … someone will "get it".

And that’s just ONE sponsor. Let me ask you … what goes great with wine? That’s right – CHEESE! Why not look for a market that specializes in gourmet foods to come aboard as another of your Club’s sponsors? There’s no rule that says you can only have one sponsor, right?

That’s the ticket

Is Sponsorship Hard Work?

In our last blog entry, we addressed one of the leading "concerns" that people have when they first start thinking about going out after sponsorships – that being: "Are Sponsors Hard to Find?"

Today we’re going to address another concern we get asked about a lot:

"Is Sponsorship Hard Work?"

I think the fear is that finding, servicing and activating sponsorships might become a cumbersome nuisance, and I'm here to tell you that such is not the case.

Sure there will be times when you run across a sponsor that is … um, shall we say, "extremely user-friendly" – and we can talk about how to deal with those folks in a later post.

However, so long as you're up-front and lay out the specific parameters of what you're offering your sponsors … right from the get-go … and you walk your talk … you should have little to no trouble at all. Believe me – sponsors WANT this to work. They're investing in you and your group, and they'd love to see it pay off.

So don't get off on the wrong foot by trying to "sell" unrealistic results. Tell them right up front – this is what you will receive from us and this is what it will cost you.

And then work your tail off to give them everything you promised them. And then some.

And don’t worry about being "liked" by your sponsors. Popularity is nice, but that's not really what this is all about. As much as they may "like" you – what they REALLY "like" is increased business. You establish right up front what their goals and objectives are for their sponsorship affiliation with you, and then you tell them what you can do to help them to accomplish those goals. Don't promise what you can't deliver … and deliver what you promise.

Where properties get into trouble is when they purposefully or inadvertently leave things unclear. Not established. Fuzzy or unspecific. "The devil is in the details" – or so the saying goes and this is ever-so-true with sponsorships. Get everything down in writing and then knock off each of your responsibilities.

Is It Hard To Find Sponsor's?

A couple days ago I had the pleasure of being interviewed by James Malinchak for his upcoming monthly CD recording that will be sent out to some 500 members of his Inner Circle group. James is the president of James Malinchak International, Inc. – a professional speaker as well as a professional speaker trainer. I've taken part in one of his 'Speaker’s Secrets" seminars and for my money – he's exceptional at what he does. I'd encourage anyone in the market for a top-notch motivational speaker (… or anyone interested in becoming a professional speaker), to stop by his website at: www.malinchak.com.

Anyhow – one of the benefits of being a member of James' Inner Circle is that each month he puts out not only a first-rate newsletter, but also a CD in which he interviews one of his members or acquaintances on their particular field of expertise. In my case, our interview was all about sponsorship.

During the interview – you could tell that James "got it". He definitely understood the many various values that come with incorporating sponsors and sponsorships into one’s "product". However, as we started the interview, James brought up three "concerns" he had going in about sponsorship, and I wanted to take today … and the next couple of days … to address each of these three concerns as I'm pretty sure they might be concerns you're thinking about as well. Shall we?

James' first concern was:

"Is it hard to find sponsors?"

Honestly – it’s really not. As you get better at presenting what it is you "have" (your group of loyal readers, followers or members…), the easier it becomes. (In fact, don't be surprised if they start looking for you!)

The reason is simple: companies very much need to get out in front of … and stay out in front of their core, target prospects. These "prospects" are those consumers that are the most inclined to purchase their products or services. These are the folks that are most in need, or desire, for what the company has to offer.

You need only suitably demonstrate to prospective companies, businesses and establishments that you have exactly what it is they’re looking for … and the rest will come naturally.

So don’t "look for sponsors" – look instead for companies that offer up the goods or services that your audience wants. Canvas your herd – ask your members specific questions as to what it is they need. What are their "commonalities"? Then find the companies, and categories of companies that provide the things your group, your readers are looking for.

Afterall -- you have what the sponsors want. And they have what YOU want.

What Sponsorship IS, and ISN'T

Sponsorship ISN'T a "money grab." Nobody worth their salt is going to do you a favor here and hand you a whomping check for the right to hang a banner up in the front of your meeting room. That’s not going to happen, so get any "get rich quick" notions out of your head right now.

Sponsoring you - or not sponsoring you - is strictly a business decision, nothing more. It's a company (or companies) looking at the assets you bring to the table and deciding if they can derive some business from tapping into those assets.

Sponsorship IS a relationship business. If you're going to be any good at this, it'll be because you quickly realize that you’re going to need to start to care as much about your sponsors as you do about your existing customers.

(In fact, do this right and your sponsors will become your BIGGEST customers!) Perhaps a little bit differently than the folks sitting out there in your audience, but customers nonetheless. And like anything worth pursuing, your sponsors are worth keeping. Let's face it, it's not going to do you a whole lot of good if you bust your tail to get a handful of sponsors on board if they keep bailing out at the end of your contract!

Activation Is Everything

If you're not familiar with the term activation, it's the act and actions you and your sponsor take to make the sponsorship work for the company doing the sponsoring.
Or as the sponsorship experts, IEG, put it:

"The marketing activities a company conducts to promote its sponsorship. Money spent on activation is over and above the rights fee paid to the sponsored property. Also known of as leverage." (Source: IEG’s Guide to Sponsorship)

I don't know about you, but that still sounds a little vague to me. So let's try a "for instance."

Let's say as part of your deal you offer your sponsor the opportunity to give away two free year-long memberships to your association (or a couple of free registrations to your upcoming conference). That's great, but only as far as it goes. To take it to the next level somebody's got to let the sponsor's customers know that this benefit is available or it won't do anybody any good, right?

Getting word out about the sponsor's affiliation with you, and about this free registration opportunity, is activation. It’s how you take the words off the proposal page and put it into action. And just as IEG said in their definition above, the cost of activating the sponsorship is frequently on top of the cost the sponsor pays to buy the rights to the association from you.

But you have activation responsibilities as well. Your sponsor has to get the word out on their end, but so do you. You've promised your sponsor you're going to do certain things for them, and now you have to do it! And it’s those actions, the ones that you take in doing it is how you activate their sponsorship.

And this is critical, because how you do it, and how well you do it, often makes all the difference in whether this is a "one time thing" or if you're going to get the renewal.

The Deal's Not Done Until...

I want to share with you a short story about the importance of getting the paperwork completed after you land your sponsors…

I ran into a good sponsor friend of mine a few years ago who shared with me a story that still has me shaking my head. Her employer, a well-known bank, had agreed to sponsor a professional ball club and went into the new season with high expectations for success. The negotiations had gone back and forth during the pre-season but ultimately, with both sides agreeing to make concessions, they had emerged with a six-figure deal she thought was both fair and effective.

About halfway through the season her contact person at the ball club left suddenly. In talking over the bank’s sponsorship package with the new club marketing head, she realized that a number of things her rep had promised her the team would do simply weren’t getting done.

She pressed the new marketing director about this and learned, to her chagrin, that the new marketing head had no knowledge of a good half-dozen of his predecessor’s concessions. You see there weren’t any records. Instead, stuck on the back of file folders, was a number of little yellow “stickies” with cryptic notes scrawled on them. However, stickies aside, without anything official and concrete, the ball club had failed to make good on a series of agreements and promises. This, as you can imagine, caused a great deal of embarrassment all the way around, not to mention a half-season’s worth of “make goods” the club owed the bank the following season.

That’s really a shame, but it’s not the first time a good relationship has unraveled because one side or the other failed to properly execute the paperwork.

So my advice to you is not to learn this lesson the hard way. Always remember that no sale is ever finished until the paperwork is complete! (And, on the sponsor’s side, don’t ever assume you have an agreement until you’ve seen it in writing.)

And the most important of these documents is, of course, the contract.

Where do I Start? (Part 2)

Where do I Start? (a.k.a. zeroing in on your prospects) PART 2

In yesterday’s post, I asked you the question, "Who ELSE out there wants to reach the people I have?" Your "homework assignment" was to start making a list of who or what other product/service suppliers out that are also targeting your "herd?"

For instance, let's say, you put on a monthly meeting for avid golfers. These golfers are young, old, tall, short, Caucasian, African American, men, women, college educated, PhD certified, -you name it. But one thing we know they all have in common is that they play golf and need clubs, balls, gloves, proper clothing, latest technology, sunglasses, sun screen, etc.

Think there is any golf shops or sporting good stores in your community whose store owners wouldn't mind having a "direct pipeline" into your group? How about the local public courses in your community? And what about some of the local teaching pros in your area?

With your list in hand, now's the time to ask yourself the second question:

"Who ELSE stands to benefit from my success?"

The first question (Who ELSE out there wants to reach the people I have?) doesn't usually catch my clients by surprise ... but this one does. This is a tricky one; however, once you get where I'm going here - you usually start to smile.

As your group continues to grow, as your meetings and your mailing lists begin to increase in size... there are bound to be companies out there that will also profit from your success.

Let's go back to our golf group example. You probably put these monthly meetings ON somewhere every month, right? (I'm guessing you probably don't meet in your living room?) Maybe back in the early days you might've started out in your living room, but as you grew larger, you needed to expand your meeting space to get everyone in.

So you left the homestead and rented a meeting room. After that, the larger your group got, the larger the meeting room you needed to rent. And each time you moved into a larger meeting room - the more money you spent every month. (Ahh... the price of success....)

But wait a second.... don't you think the meeting center or the hotel you're booking your meetings with every month has a "vested interest" in your success? Sure they do! The bigger the room, the more money they put in their pocket.

So why shouldn't they HELP you to grow larger?

How?

By sponsoring you!

You can use that money to promote/advertiser your group and grow it even larger! (You grow the group; they get more money. It's a beautiful thing.)

So let them help you help them by sponsoring you!

And what about the catering company that brings in all the food and drink your members scarf down at every meeting? Think they wouldn't mind having you spend more money with them every month? (And what about them having the additional benefit of promoting their services to your members?)

And the printer that prints your monthly newsletter! Think he/she wouldn't mind seeing you bump up the number of newsletters you put out every month? And what about the local golf course where you put on your tournaments - they get paid for every member of yours that tee's off, right? If you put on a tournament that pulls in 24 members ... they'll get "X". But if they can help you to grow your tournaments...and you pull in 48 players, they'll get "2X". The golf course helps you with a little ... you reward them with a LOT! That's just good business...

So while this is still fresh in your mind, pull out your checkbook (time for today's homework assignment...). Go through your check register and start jotting down all of the product/service providers that you write out checks to as a part of your business execution. You support these fine folks and now you're going to give them a chance to return the favor.

Once you start looking at your suppliers as possible sponsorship/advertising candidates, you'll see a whole world of potential dollars opening up for your organization here.

And it all starts with two little questions...

"Who Wants Access to What I've Got...?"

-And-

"Who stands to BENEFIT from my success?"

Now you're on your way!

Where do I Start? (Part 1)

Where do I Start? (a.k.a. zeroing in on your prospects)

In a previous post, I discussed the importance of knowing WHO your customers are...because THEY (not you...) hold the core key to your sponsorship success. These folks - your customers, are easily the most valuable piece of your business and for you to have any success in selling sponsorship, you've got to get your arms around what you do have ... before you go out looking for what you don't have!

So, now that we know WHO our customers are, where do you go from here? What's the next step?

Your next "step" is really little more than asking yourself one simple question:

"Who ELSE out there wants to reach the people I have?"

In other words, who or what other product/service suppliers out there can you think of that are also targeting your "herd?"

For instance, let's say, you put on a monthly meeting for avid golfers. A group of people that come together once a month ... every month ... 12 times a year... to discuss new courses, the latest golf-related technology and go over/practice new techniques.

Demographically, they're all over the map: young, old, tall, short, Caucasian, African American, men, women, college educated, PhD certified, -you name it.

Ok, we've got enough, let's get to work.

Right off the bat we know there is one thing they all have in common... that's right, their LOVE of golf!

To play golf you're going to need clubs, balls, gloves, proper clothing, latest technology (toys), sunglasses, sun screen, etc. So whip out your yellow pages or hop up on-line. Are there any local golf shops or sporting good stores in your community? (Do you think any of those store owners wouldn't mind having a "direct pipeline" into your group?!)

I'm thinking they probably would.

But don't stop there... how about the local public courses in your community? Bet they wouldn't mind hosting a tournament or filling a few empty tee times with your group, eh? And what about some of the local teaching pros in your area? (What golfer out there wouldn't mind shaving a few strokes off their score?)

Now you're getting it. Grab a pad and a pen and start writing down all the categories that "touch" on what it is you do ... and those that wouldn't mind tapping into your "herd" (Go ahead and write down some of the "crazy" ones as well ... don't worry, no one's going to grade your paper!) A little creativity and ingenuity will go a long way as you start to put together a target list of prospects to pursue.

Remember: Don't over-analyze, just START writing!

Take some time now (yes, right now – not “later”, not “tonight” – right now) and start writing. That’s your “homework assignment” and we’ll pick it up from there in tomorrow’s post.

Why Sponsors Sponsor (Part 2)

In a previous post, I addressed the question of: Why do sponsors sponsor?

Here's a little more insight into the reasoning behind sponsorship.

The best answer to the "Why do sponsors sponsor?" question can be found in the quote of the great P.T. Barnum, one of the world's best promoters -- who put it best when he said:

"A funny thing happens when you don't advertise ... NOTHING!"

You can have the absolutely BEST flowers in town at your flower shop ... but if no one knows you have a store, than no one can buy from you. Right? Which means that as a business owner, you have to figure out the best way to get your name out there in front of your target market. And KEEP it out there. (Your very livelihood depends on it!)

So ... what is the best, most cost effective way to get your name out there?

To best answer this question, let's switch roles for just a second - let's make YOU the advertiser. Let's put you into the role of being the business owner whose very survival depends on being able to cost-effectively get your name out there in front of your target market. How are you going to do that?

Well, let's see -- you could always use:

Television: That one was easy. With TV you can most certainly reach a HUGE audience. But at what price? You see... TV's terribly expensive. (One 30-second spot can set you back literally thousands of dollars.) And to do an even halfway effective job, you've got to buy lot and lots of spots to create any sort of frequency. (Like we said - it's not enough to GET your name out there ... you've got to KEEP it out there for folks to remember you at all. And that takes repetition. And that spells m-o-n-e-y!)

But let's say money is "no object" to you. That's great. But you still have to figure out which shows you should buy to reach your market. And with well over 120 channels to choose from - good luck! You're taking a really expensive gamble here!

So how about Radio?

Well, the good news is, cost-wise, we're getting closer here. But radio is still a really busy, crowded medium. And again, you will have to buy a large schedule, (...and hope that listeners don't tune away when commercials start to run).

Newspapers?

You're looking at a dying breed here my friends. Most folks either don't have the time ... or they don't make the time to read their local newspaper these days. And of those that do - well, you're spending an awful lot of money hoping they'll "discover" your quarter page ad in the Life section, page 16. Taking a bit of a pricey risk here.

Billboards, Social Media, Internet Advertising?

Numerous plus's and minus's with all these options. On the "plus" side, you're definitely getting access to a growing number of "eye balls". But so is everyone else out there! Let's face it you're definitely not alone using "mass media".

With "traditional" media ... even new media - you're going to be running into a lot of your competition out in the market. And all of them have the exact same objective you do -- get their name, their message out and get customers in.

The result is that we (as consumers) are getting absolutely bombarded with advertising messages all day long. Everyday. In massive numbers. (Experts estimate we're getting exposed to over 5,000 commercial messages a day.) Pheww -- we couldn't possibly process all of it if we wanted to (...and believe me, we don't!). So to better deal with it, we (again, as consumers) have developed an internal filter to tune out the majority of it!

So let's switch back again - you're the advertiser. Faced with these "traditional" advertising prospects you've got to ask: "Okay - so what ARE we going to do to get our name out there in front of our target market?"

Well ... have you thought about sponsorship?

Sponsorship isn’t flawless. It too has its up's and down's.

For one, you won't be reaching as many target customers as you would with mass media advertising. But, on the other hand, sponsorship isn't nearly as "in your face" as traditional advertising is. Sponsorship is subtle. It doesn't scream "ADVERTISING"! Instead, it flies below the radar screen. (And although you may not think so, subtle can be a great thing!)

Why? Because your audience (...their "target market"), for the most part, won't filter out the sponsor's message because it'll hit them while they're actively engaged in a desired activity. If done right - the sponsor comes across as a valuable "ally" to their interest ... not the insufferable commercially yapping interloper that's keeping them from their desired programming.

If done right - you're sponsor is going to come across as a "hero" to your members, your audience and to your readers. You're going to help these companies (your sponsors) to side-step their competition and to cut through "all the noise" going on out there.

Help them to get their message out successfully to their target market ... and you can count on them being with you for years to come. It's that simple.

Who are these people?

I am being bombarded with questions asking me different suggestions or ideas as to who these people might be that want to sponsor your businesses, so in today’s post I’d like to discuss, WHO these people are...and WHY do they want to hand you their money??

It's been my experience that most folks wanting to sell sponsorships to their properties-their meetings, associations, newsletters and e-zines all tend to look at the sponsorship equation strictly from THEIR point of view. They focus solely on what THEY hope to gain out of the association.

But sadly, and all too quickly - they invariably come to understand that having a "self-centered" mindset like that accomplishes them nothing.

Instead you must train yourself to look at the sponsorship equation from the SPONSOR'S point of view. (You're going to discover real quickly that sponsors really don't care a whole lot about what YOU want. Understandably they really only care about what THEY want.) And what they want is to sell more of their products or services. If you can do that for them...trust me, they'll gladly sit down with you!

So ... before you ever walk through their front door -- put yourself in their position and answer for them WHY they should want to give you their money?

How can YOU help THEM?

If you really understand what you have to offer, and you have a pretty good handle on what a prospective sponsor's objectives are...you have only to put the two of those pieces together and "talk turkey". Once they recognize that you've got the "target audience" that they're looking to reach- and that you can help them to move product ... they'll gladly consider your property.

And since we're talking about sponsors and their mindset, here's another sponsor tip....

Don't confuse business with charity.

When a company agrees to sponsor your event, your group, your publication or your speaking tour ... they're making a business decision - not doing this out of some sense of "charity" or good-will. (Not that you won't occasionally run into someone that has a huge heart, but for the most part - this is 100% business.)

I see this mistake made all the time. Properties just getting into the sponsorship arena start to think that their new sponsor has made a "donation" to their event. Trust me - they haven't. What they HAVE made however is an investment in your event. And treat it like that.

And like all good investments - they expect a return.

You can let them know that you understand this by staying in frequent communication with your sponsors. Don't be afraid to take their "temperature" - ask them how their involvement with your organization is working out for them. And while you're at it, ask them how else you can help them drive business through your property? In short, REALLY be an asset for them and their business - that's what good partners do.

So don't be shy. If you don't ask ... you won't know. And if you don't know - you can't make their involvement with you better. And if you don't do that --- you won't get them back for a renewal.

The Most Valuable Piece of your Business

Wanna Know What the MOST VALUABLE Piece of your Business Is...??
(and here's a surprise ... it's not what you THINK it is...!)

You know, if I walked up to most business owners out there at their shop or in a meeting and asked them this very question, they'd stop ... stroke their chin a few times ... and respond that it's undoubtedly something about their product, service, special formula or award-winning customer service.

Not bad. No doubt - all good answers. But all wrong...wrong...wrong.

Pure and simple, the most valuable thing you own in your business isn't your intellect or your intellectual property. It's your "own" database. This is your roster of readers, customers, meeting bookers, current and past clients, former attendees, on-going association members and, even some of your hottest prospects. This is your "life line" - and believe me, you need to guard this list with your life!

In many more ways than one, these good people are going to keep you in business. And it's these very same people that are going to get you noticed by the hundreds of potential sponsors out there.

These folks (...your current and past customers) have demonstrated to you that they believe in you and are partial to doing business with you. IGNORE THEM at your own PERIL! Do not make the mistake of thinking that they will continue to come back to do business with you no matter what.

(Now I know you might be reading this thinking: "Yeah - yeah. Take good care of your customers. Got it. But what the heck does that have to do with my GETTING a SPONSOR?")

In a word.... EVERYTHING!

At the end of the day, "sponsors" don't really care a whit about you. They don't care what you can say, sing or sell. They only care about ONE THING and one thing only - and that's what you can do for THEM!

And here's what you can do: you can give them lots of quality access to your "herd" - your group of members, your readers, audience, exhibitors and other sponsors.

But you can't do that if you don't take good care of your customers and keep them coming back for more -- and more often. And you can't deliver maximum value (...and therein charge maximum fees....!) if you don't track and identify who your members/readers/customers are.

It's not enough to say, "I've got 2,000 subscribers". That's good --- but it's not good enough. "Who ARE these subscribers? Anyone I (your potential sponsor...) would be interested in reaching? Are these MY type of customers?"

What do you KNOW about your customers?

Who are these people that support your business?

Most likely you might know their names, their address, and maybe even their email addresses. However, beyond that -- most of you might be admitting to yourself that you really have no clue as to who your customers are!

Don't worry; fact is most companies have NO idea who their customers are. But you can imagine that if I were looking at sponsoring your speaking tour or your annual association gathering - I'd want to gain as much "insight" into your herd as possible. After all, the more I know about them, the more I know if they might be a good group for me to tap into, right?

So get busy ... find out who your customers are. Start right now!

Start asking a few simple questions at opportune times (say... when they order, visit your website or call in). Take advantage of every opportunity you can to ask specific, direct questions of your customers.

(TIP: And tailor those questions to garner useful information that would be pertinent to the prospective sponsorship categories you're going to be pursuing. For instance, if you run a club of marathon runners and you're going to go after running-related sponsors (i.e. shoes, training gear, isotonic drinks, etc.), "survey" your club members asking them to identify how many pairs of running shoes they own (for instance), and which brands do they usually buy? For sore muscles ... which ointment do they use, or pain reliever do they prefer? Compile that information and use it! It's GOLD!)

In closing, let me share with you one of the very best things one of my marketing mentors taught me years ago. Like most people, I was always thinking that the reason you get a CUSTOMER is to get a SALE. Right?

Well he turned me around when he taught me that the REAL reason you want to get a SALE ... is to get a CUSTOMER! Make a sale and you can eat for a day.... but once you can make a CUSTOMER ...you can eat forever!!

What is Sponsorship Anyway??

What is Sponsorship Anyway??

Well....

"Sponsorship" is one of those "one-size-fits-all" terms that you've undoubtedly heard tons of times before (... usually in conjunction with something -- like a sports team for example), but probably never as something you'd use yourself.

And it's also one of those terms that's been mis-used over the years as well.

Over the years I've heard lots of definitions for what "sponsorship" is, but probably the best one I've run across is the one used by an organization out of Chicago, IEG, Inc. (IEG is, in my opinion, are the foremost experts on all things sponsorship), and the definition they use for Sponsorship is:

Spon*sor*ship (noun): "The trading of Cash and/or In-Kind Products or Services in exchange for the right to be officially affiliated with your Team, Event, or Program."

(And by the way ... if you're interested in learning more about IEG, Inc. - you can start by checking out their website at: www.sponsorship.com)

Now that you know what it is ... let's talk about what it's going to mean for you.

Sponsorship has the very real potential of being a great source of revenue - even a "gold mine" to anyone out there who hosts any kind of meeting, gathering, training, newsletter, association, and so forth.

(Now I can hear you already, you're sitting there thinking, "Hey, I'm not the Yankees or Cowboys-- why would a business be interested in underwriting what we do?")

That's a great question...and I'm here to tell you - it really doesn't matter that you're NOT the Yankees. In fact, you're going to be able to use that to your advantage. Companies, agencies, retailers and corporations ARE interested in what you do. In fact, it's estimated that Corporate America will be spending over half a billion dollars this year in sponsoring meetings and associations. It is one of the hottest new tends in the sponsorship area.

So let's start by asking ourselves.....

Do I sell a product or offer a service?

Do I have a core group of customers or prospects (a "herd" if you will)?

Do I send out a newsletter or regularly communicate with that herd?

Do I have customer gatherings?

If you answered yes to even just ONE of these questions, than you could be, (no wait ... you should be....), taking advantage of sponsorship -- an "invisible mountain of cash!"

Why Sponsors Sponsor

Now I know what you're thinking-because the response I usually get when I tell people about sponsorship is invariably: "Really? You mean there are companies out there that would pay me money to sponsor my event?"

And the answer is a loud and resounding YES!

And we're going to show you how. We're going to get into all kinds of things that will help you to attract corporate and retail underwriting for your group efforts. Whether you put on educational seminars... or publish an on-line newsletter to avid quilters-there's an excellent chance... once you know what you're doing, that there are businesses out there that would love to jump aboard as one of your sponsors. (And you know what-it's not NEARLY as hard as you might think it would be to get them either.) (In fact, if you do this right... there's an excellent chance they'll be coming to YOU!)

So let's start right off the bat here by looking at the first of THREE reasons....

WHY companies would want to sponsor your event, publication or property:

1. Because they need YOU just as badly as you need THEM. -Companies, corporations and retailers are no different than you in that they HAVE to get themselves "out there" if they want to have any hope of surviving in these tough economic and competitive times.

Think about it-if you want people to learn about your training seminars... hear about your newsletter... to learn about your association, you've got to get the word out there. You can't sit back and wait for the phone to ring-or just hope people will hear about you!

Well, companies, stores, restaurants and retailers are very much the same way. And most of these folks accomplish their "getting the word out there..." by advertising.

Combined, businesses spend literally billions (I mean billions!) of dollars each and every year buying advertising. All in the hopes that you'll stumble across their TV commercial, spot their quarter page newspaper ad, or run across their website. And almost ALL of that money is "un-trackable"-meaning that they have no way of knowing for sure if that $45,000 radio schedule they just ran generated any measurable business.

So why do they do it?

They do it because if they don't, they die. (I think it was the great promoter P.T. Barnum that put it best when he said: "A funny thing happens when you stop advertising. Nothing.")

But with so many people jockeying for advertising "exposure", this creates it's own set of unique problems. Such as...??

Well...we're going to get those in future posts because you need to know what your sponsors are "up against" as you start plotting your own sponsorship sales strategy.

But for now, I just wanted to welcome you to the "Wonderful...Wonderful...World of Sponsorship." I want to commend you for taking a long, hard look at injecting sponsorship into your property-because you're coming to the right place...at the right time.

In fact, let me leave you with this "nugget". It's estimated (...and I'll be getting into this in one of our upcoming issues), that in 2009, just here in the United States, companies, organizations, retailers and corporations will be spending $17-billion dollars on sponsoring properties, publications and programs.

Why not yours?