Deal Flow

I have a smile on my face as I sit down to write this … because I know that just seeing the Blog title, it's going to make my staff laugh. You see, if they've heard this expression from me once … they've heard it a hundred times!

I'm always preaching the importance of having options. Fact is, you never want to find yourself in a position where you only have limited options – or worse, NO other options.
Having said that, I'm constantly surprised (…in conversations I have with sponsorship sales people…), when they start grousing about one or two of their prospects – expressing frustration that the potential sponsor hasn't responded …or they've responded but the conversations never seem to go anywhere…

"So who else are you talking to (…in the _____ category)?", I ask.
"(Pause…pause)…um, no one. They’re the only ones."

Why are they the ONLY ones? What are you doing? Unless your prospect is the ONLY one in a given category (…and I don't think I've seen that case yet…), why aren't you chasing after a number of companies in that category? If it makes sense for Company "x" to sponsor your event … why wouldn't it also make sense for companies "A", "B" and "C" to be talking to you about this?

Fact is, the more irons you have in the fire, the better. For one thing, if "Company X" senses that you're also talking to their competitors … they're that much more apt to get a move on and get your deal done.

So … when it comes to prospects … if "some" are good…. "more" are better!

Call Me

Every two years we (the National Sports Forum) conduct and present one of the most extensive surveys within the sponsorship industry -- The NSF Corporate & Industry Survey in conjunction with the Sports Business school at Ohio University. Under the direction of OU's Sports Management program's Executive Director, Jim Kahler – we interview fifty (50) of the industry's biggest sports sponsors and advertisers seeking their insights, advice and opinions.
As you might imagine, we get all kinds of input from our "Nifty 50" – some of it pretty involved, but most of it pretty basic.

Right now Jim 'n company are in the process of conducting our Nifty 50 interviews for the 2010 NSF Corporate & Industry Survey – which will be presented at the 2010 National Sports Forum coming up in Baltimore next February.

And as I think of the great input Jim's going to be getting in the months to come, I can't help but recall one of the best pieces of advice we received in putting together the last Corporate & Industry Survey. One of our "interview-ees" – a gentleman who works for one of the largest sports sponsors worldwide, said this: "You know what I wish sponsorship sales people would do? I wish, every now and then, they'd pick up the phone and call me! Not when they wanted something … not when they were trying to sell me something … but every now and then when they had no other agenda other than to say "hello".

Wow. That's pretty telling, don't you think? And you know what…? I'm guilty of that. I'm guilty of being caught up in my own little world and only reaching out to my sponsors when I wanted something.

One of the things that make sponsorship so unique is that it's a "relationship" business. It's about connecting the dots -- connecting companies with your clients. But here we all-too-often get so busy that we forget to connect up with our sponsors themselves!
So take a lesson from one of our "Nifty 50" … don't do that. After all -- it takes so little. Carve five minutes out of your day today, pick up the phone and give one of your sponsors a ring. Talk about their new ad campaign that you saw on TV, or the new product launch they're undertaking … or this weekend's big football game … or their kids entering Elementary School … just connect.

Call when you don't need anything – and then … when you do, you'll probably see a big difference in your relationship. Friends like doing business with friends. So be a friend!

What am I MISSING Here?

Just finished reading the inaugural issue of a new magazine called "Best Events- California" – a magazine targeted to California-focused meeting planners and special events promoters on evolving their business with the changing times. As magazine go, not a bad initial effort at all.
Best Events publisher, Sharon Kress, writes in a special box in the front of the magazine that: "Budgets are in flux, accountability is high and special events and meetings need to accomplish much more with much less. And they need to return value back to the bottom line. " I've got absolutely no problem with ANY of that. And in looking through their Table of Contents page, it seems the folks at Red 7 Media are sincere about wanting to help. Lots of stories on creative ways to save money – such as: "Rethink the Venue" (on using non-traditional locations to hold your events to help save money…), and "Designing on a Dime" ("Why cutting costs never had to mean sacrificing style"). Mixed in with these stories are a few "roundtable interview" recaps with meeting industry experts.

Again, all good stuff – but I can't help thinking … if you really want to explore ways in which readers can make more out of what they already have … what about tossing in a story or two about sponsorship? Fact is, I'd bet that most of Best Events reader's have tucked away within their very core attendee ranks everything they need to stem the tide of this lousy economy we find ourselves in. There are companies out there that would be more than interested in sponsoring your events in exchange for having the ability to tap into your attendees, exhibitors, readers or members. You don't have to spend hours scouring the countryside looking for discount meeting locals in order to meet your budget … you have only to look deeper into what you already have!

Not to put too big a knock on Best Events – again, in this critic's opinion, it's off to a very promising start. But here's hoping that it'll give its readers some sponsorship education and encouragement in upcoming issues. If not – they're missing a huge opportunity – and so too will their readers!

Addressing the "Elephant" in the Room

You know -- from all the discussions I have with clients, audience members and event planners in general about sponsorship – I'd have to say the biggest misconception I run into time-and-time again is that "….sponsorship is really hard work".

In fact, I just got an e-mail this morning from a gent that had recently finished listening to an interview I taped a couple weeks ago with James Malinchak (…for his "Inner Circle" members), and he was writing to thank me for "demystifying" sponsorship for him. (Demystify…good word!) He went on to explain that he'd always been of a mind that sponsorship would be a good thing to pursue, but that it was "… just a ton of work".

Well – I'm not going to lie to you and tell you that it's "…a breeze" – but it's not nearly as much work as people seem to think it is. (And I never cease being amazed by how many people who've never tackled sponsorship think sponsorship is: "a lot of extra work".
Fact is it's not. Sponsorship is pretty simple, basic stuff! It's doing what you're ALREADY doing and allowing another company (…or two…or five…) to come to your party.

As I explained to a golfer buddy of mine … think of sponsorship as playing a round of golf by yourself. You've just teed off … put it right down the fairway nice and straight … and now you hop back into your golf cart to go square up with the ball and put it on the green. Think of your sponsor as the other person riding along next to you in the golf cart!

You're already doing what you were already doing – you're just letting somebody ride along with you. That's what sponsors are – folks "piggy-backing" with you on what you're already doing.
Just take the time to learn how to do this right and you'll be richly rewarded. As Nike says: "Just DO it!".

Sponsorship and the Economy

As I mentioned in a previous blog entry, I had the privilege of being interviewed by my friend James Malinchak for his business. Since that time, we have gotten some great feedback from the interview, and also some questions. I want to take a few minutes to address one of the questions that seem to keep coming up, since it is obviously on a lot of our minds.

Sponsorship and the economy…how the poor economy has impacted sponsorship? The answer is some "good news ---- some less-than-great-news" insofar as the economy is concerned.

The good news is that while the economists are pointing out that for the first time since post-9/11 -- that overall spending on advertising will drop this year (...which is only like the third or fourth year since World War II that overall spending on advertising is down...). But for sponsorship -- spend in 2009 on sponsorship will go up yet again. Nothing radical.
According to IEG (the sponsorship clearning house out of Chicago...) overall spend on sponsorship this year will only go up between 1.1% to 2.2% overall -- it's still going up. (The less-than-great-news is that this is the first year in the last five years that sponsorship spend won't go up by double-digits! It's still going up, just not as sharply as it has so far every year in the 21st centure).

Now the question you should be asking is WHY is it going up when everything else is going down? Simple -- it's going up because only sponsorship can deliver the up-close and personal one-on-one experiences ("touches") that
companies are looking to create. A good sponsor-to-property match is worth
its weight in gold -- because you're customers/readers/audience members are exactly the kinds of customers that your sponsor is looking for. They want/need/value the products/services that your sponsors offer, and you're simply bringing the two parties together and tying a band around the wrists of both. They both believe in you ... and you believe in both of them.

Try to create that "connection" with a TV spot ... or a radio ad ... or a
quarter page in a newspaper? You can't.

So sponsorship will continue to thrive when others lag ... and when the others bounce back (... as they ultimately will...) sponsorships will continue to zoom ahead at it's double-digit growth pace.

Now -- about the economy today and it's impact on your sales cycle (and a company's ultimate decision to sponsor your
product/service/event). The downward spike in money being invested/spent out there on all things advertising-related is being adversely affected by the economy right now. What we're finding with sponsorships is that you're going to need to start the process earlier.

Which is to say that if your event is coming up next summer, start now....
don't wait. If your event is this October ... good luck! (I find, in
general, that people seriously underestimate the sales cycle in sponsorship ... tending not to think about getting sponsors until "the last minute" --
which is anything four months-in. In the best of economic times, you need
to start the wheels spinning on this six-eight months out, and with bigger companies, (more "layers" to wade through), you should be in front of them a
year out. Some of the top corporate sponsors are advising that we should
be in front of them 18 months out right now -- especially if you're a "first timer" with them (i.e. you're not a renewal, you'd be a new sponsor property for them).

As for getting their attention in today's economy ... again, always remember those three "magic" letters: R-O and I. ROI, Return on Investment. In short, if they agree to sponsor you, what kind of sales response can they expect to see in return? (If you're "sales strategy" is to sell the corporate partner "exposure" .... don't go there! They don't need "exposure" right now ... they need "sales". How can sponsoring your property bring them sales? The better the case you can make for that -- the easier it's going to be for you to get their attention ... and their sponsorship check.