The FIVE BIGGEST CHANGES that the “New Economy” will be making on Sponsorship in 2010

Continuing on with our series of blogs illustrating what this year's "Nifty 50" had to say about sponsorships in the coming year --- today, I'm going to start on a "series-within-the-series" on what the sponsor's had to say about sponsorships in the coming year. I'm going to focus on the what fifty (50) of the country's biggest sponsors had to say are the FIVE BIGGEST CHANGES that will be occurring in/with their sponsorships in the coming year. That said, for today, let's start on the FIRST of the five biggest changes…

1. Corporations will be ASKING FOR MORE "Bang for the Buck" for the same amount of money. If you're one of our reader's who's a "seasoned pro" in the world of sponsorship selling and you're starting to feel a bit "beat up" out there in selling your sponsorships – you're not alone! Based on the comments we heard back on this year's Corporate Survey – there're no shortages of sponsors out there "…ready …willing … and able…" to take full advantage of a "down economy." They're asking for "added value" for the same amount of money – and they're getting it.

Here's an example of what some of our "Nifty 50" had to say about this…
o "We're taking advantage of a down market and getting more for less – we're squeezing every deal we can to secure more benefits."

o "We are asking our partners to provide more added value and letting them know that the ROI will be more important than ever as we get closer to renewal time."

o "The economy has allowed us to do things we might not have been able to do because prices are low now. Some media is cheaper this year – but sponsorship possibilities are also cheaper than last year."

Forewarned is forearmed – and this is the kind of information that you're going to need to keep in mind when you're out "on the street" marketing your sponsorships and partnerships. The operative word here is "flexibility". You HAVE to be flexible when you sit down at the table these days. We're definitely in a BUYER's market (… and BOY do they KNOW IT!!).

But that's okay --- keep in mind that you're in this for the long haul. Over time, things always even out. The key is to stay alive with your sponsors. You're going to run into sponsor's that are going to "grind you" right now – but that's okay … you're going to grin 'n bear it … and give them the best service you possibly can in return. That's how you ride out the tide and come out of it on top.

Three Steps to Beat the Trend

So the economy has made the traction on the field a bit tougher. True enough.

But the wheels of business have got to continue to turn. It's not like companies out there can just "sit this recession out", right? Wish that that were true, eh? But honestly, who can afford to roll up into a ball and hide away until the economic skies become sunny again? Not many. (Hmmm… not any?)

(Remember the old saw: "The tough get going when the going gets tough?" – well here it is, folks.)

As I mentioned in my last blog – one of the top take-always from our interviews with fifty of the top corporate sponsor and advertisers in America is that 75% of 'em are planning on spending AS MUCH … or MORE … on their sponsorships in the coming year. So it's out there.

Now -- how do YOU get yourself noticed and move up in the line? Well… here are three ideas, three strategies that you can (and should) be thinking about as you start to think about bringing sponsors into your world.

1) You've GOT to be able to quickly and clearly explain and demonstrate to your potential sponsor how YOUR EVENT, your GROUP, your PUBLICATION, your BUSINESS are able to help your potential sponsor grow THEIR business.

2) Don't sell "exposure" – sell results. The three letters we heard time-after-time this year (in doing the Nifty 50 one-on-one interviews) are the letters "R-O-I" – which stands for Return on Investment. Your mission is to be able to clearly explain how if they give you "x" (as your sponsor), you'll be able to return them "2x" …. Or better yet … "4x"!

3) Can you GURARANATEE results? I know that sounds improbable, but you know… in some cases you can. In certain cases it's possible that (… in return for their sponsorship), you can offer up (or direct to your potential sponsor…) sufficient enough business to off-set their sponsorship investment with you.

For instance, let's say, as part of your business, you put on a meeting (or meetings). Well, this meeting (or meetings) has got be put on somewhere, right? A hotel meeting room perhaps?

Okay – there's a start. Will there be any sleeping rooms blocked as a result of your meeting? (Members, students, attendees flying in staying over for the meeting…?) If so, you've now got some guaranteed business to offer up in return for a hotel's sponsorship.

(NOTE: It's fairly standard in the lodging industry that most hotels will "trade" you the cost of your meeting room in exchange for the income that property will get from selling room nights to your participants. Which is certainly fine, but could you do better? In today's economic environment, you'd be wise to shop your business around.

There are a lot of hotels out there – and the hotel/meeting industry has been slow to rebound from the economic downdraft. So if you've got a decent room night block to be able to offer up … find out who's hungry. When you put your bid out – let prospective hotels know right up front what you looking for not only complimentary meeting space but an event sponsorship (… or "hosting fee") of "$x".

I don't know – maybe 8 out of the 10 hotels you put the bid out to will turn their noses up at your offer. But two very well could be looking at floors of empty hotels over the dates of your event and would be willing to sit down and discuss this. (And all you need is ONE, right?!)

Now maybe you can't guarantee a complete return on their investment --- but can you certify that they'll at least get part of their sponsorship investment back … with the potential of tapping into an audience that gives them every reasonable expectation of being able to seize a profit from the incremental business that comes as a result of being a central part of your business?

Well – that's a start. And you know what … even being able to show your prospect that you can guarantee that they'll get at least a part of their investment back puts you ahead of the vast majority of the other folks soliciting their sponsorship business. (Fact is – even the organizations that have been selling sponsorship for YEARS get caught up in selling "exposure". Selling "touches" --- when they should be selling "dollars".

So sell "dollars" – it's a language just about EVERY business out there understands!

Half Full….Half Empty – You Decide

In my last blog, I kicked off a "series" on what our 2010 "Nifty 50" had to say about their sponsorship spending budgets for the coming year, and as you'll recall – the news wasn't good. In fact, as I noted – in the fifteen years since we started the bi-annual NSF Corporate & Industry Survey, this is the worst forecast we've ever seen. Fully 25% of our "Nifty 50" (fifty of the top corporate sponsors in the US…), flatly admitted that they'll be investing less in their sponsorships in 2010 than they did last year. (And we know that last year was a sobering stretch…)

So if you're a doom 'n gloomer – than we've given you fodder for saying that the glass is half-full. However, for the optimists out there – that means that 75% of our "Nifty 50" are planning on spending "As Much … or More" on sponsorship in the coming twelve months.

The one point that came out time-and-time again is that there is money out there to be spent on sponsorship. The corporates clearly recognize that sponsorship is a great way to present, promote and tie their product/services into their key, target market.

So next up --- on Thursday's blog, I'm going to start giving you the "inside edge" – tips from our Nifty 50 on how you can stand apart from the others and get the deal.

See you back here on Thursday….

And the Sponsors Say...

Hard to believe, but almost a month has gone by since I met up with Professor Jim Kahler, the Executive Director of the Center for Sports Administration at Ohio University in Las Vegas. Jim and I will be teaming up again … as we have several times already, on the presentation of the biannual NSF Corporate & Industry Survey and we were getting together in Vegas to go over this year's findings and drafting this coming year's Report.

This is the survey we present every other year at the Forum in which we reveal and discuss the thoughts, recommendations and observations of fifty of the top corporate sports sponsors and advertisers in the country. We refer to them affectionately as our "Nifty 50' and believe me, if you're in the business of selling sponsorships – you need to know what they have to say.

And that noted, I thought you might find it interesting to learn a bit about what it is they're saying now – about their sponsorships, about how the recent economic slow-down is affecting their businesses and about what the future is holding for their companies.

The first question we ask of all of our "Nifty 50" is whether they're planning on spending more money (…on sponsorships/advertising) in the coming year …. Less money … or the Same Amount of money as they have in the prior year.

There's a little "Good News … Bad News" in our "Nifty 50’s" collective responses, and first the Bad News.

There's no two ways about it, the economy is planning havoc with the concept of "business as usual"! As we've discussed in prior blogs, sponsorships have proven to be one of the best consistent means of connecting companies with their prime customers and prospects. As a result, sponsorship growth has been running in the double-digits for the last four years.

Well, not now it's not. As evidenced by the fact that 25% of our "Nifty 50" were planning on spending LESS in 2010 on their sponsorships and advertising than they did last year. (By the way – not to "sugar-coat" this … for it's significant to note that this is the HIGHEST percentage of Corporate Sponsors planning on spending LESS in the coming year than in any time in the 15 years we've been conducting the Corporate & Industry Survey.) The previous high was 20% -- predicted right around the time of 9/11/2001 – a time when all businesses immediately clamped down.

Now on the flip-side, before you start thinking that "all is lost" – it’s not. Fully 75% of our "Nifty 50" are planning on spending as much … or more … in 2010 on their sponsorships than they did last year. Times are indeed tough – or so America's top corporate sponsors have told us … but they're having no qualms about investing in programs that work.

We'll be sharing some of these thoughts in greater detail in upcoming blogs. But for now – just know that while other areas are getting stripped down to the bare bones, sponsorships --- at least those that are effective and produce results, aren't.

Welcome to 2010...

Welcome to the New Year --- hope things have started off well for you … and that 2010 will see you landing some truly significant sponsorships!

We're heading into the final month leading into our annual event, the National Sports Forum. This year we'll be taking the show to Baltimore – with an expected audience of somewhere in the 600-700 range. This is, as you might imagine, a crazy month for all of us at the Forum as we do our best to tend to all of the final details. You have to be extra careful as this is when things can start to slip through the cracks.

For us – most of our sponsorship selling for the coming Forum is finished. Now it's time for us to focus on the activation of our sponsorship programs. We'll re-check all of our sponsorship agreements – make sure we haven't forgotten anything or left anything out. Our goal is to always deliver more than what the sponsor was hoping for – but at the very worst, you don't want to overlook delivering all the things you promised.

We'll be covering the final steps leading up to the 2010 NSF in this month's blogs. Things are coming together nicely – should be a lot of fun!

Auld Lang Syne

And then there was one (week) left standing! Hard to believe that we're already to the tail-end of 2009, but as we start to put the "wraps" on this year --- here's wishing you and yours a very wonderful New Year!

This is a time of year when a lot of folks sit down to set goals for themselves in the coming year. So while you're at it … why not add a sponsorship sales goal to that list?

There's no time like the present to set your course for your desired destination. And nothing says you have to make that journey alone. So definitely -- why not make plans to bring a sponsor (…or two … or three…) with you as you teach to, write to, speak to … and market to … your readers, customers and audiences?

Godspeed to you in 2010 --- and farewell to a wonderful 2009. Happy New Year!

LinkedIn Groups

In my blog a couple weeks ago, I wrote about the benefits to be gained by joining one (…or more…) of the many sponsorship groups that LinkedIn offers up on the web. (I hope you took me up on that advice? You won't regret it.)

However, in my follow-up here to my recommendation, I also wanted to point out that while there are a lot of GOOD things to be "S&D'd" (stolen-and-duplicated) from the postings you'll see, there are also some classic philosophical mistakes being made there as well.

For example --- I was just reading one of the Group Member postings on LinkedIn's "Sponsorship Sales Professionals" membership site. It was one of those "Hey … does anyone know anyone that would be interested in sponsoring ‘xyz’?" – types of postings.

I'm not a big fan on those generic kinds of postings anyways – but today I saw a particular one that I thought was even a bit more "out" there. The writer of this blanket solicitation was asking his/her fellow members if they knew of any companies that would be interested in "Saving High School Music Programs"?

I dun'no, call me a cynic … but I've got to think that there aren't too many CEO's out there opening their Board Meetings with: "You know what we need to do? We need to save High School Music Programs!"

Not that corporates are bad guys … but frankly, the only things they want to save are their jobs! They want to stimulate their bottom lines. They want to keep their stockholders from coming after them with pitchforks! The vast majority of them lack the "fiscal latitude" that would enable them to take their eye off of their ball (their problems…) so that they can focus it on yours!

The better question to ask is, "Does anyone know anyone out there that wants to gain center-stage presence and access to 70,000 heavily-involved High School music students from coast-to-coast with a combined disposable income of $17-million dollars and a passion for buying _______?"

Now you're cooking! Almost every corporation out there is wholly fixated on what THEY need. They could care less about what YOU need! So – knowing that, put your "feelers" (…and definitely the focus of your proposals…) on how your organization, program, event, etc. can HELP THEM to accomplish THEIR objectives. (Do that well enough and it won't be long before they're helping you to accomplish YOUR objectives!)

Happy Holidays

With these past hectic days leading up to and following Christmas, I just wanted to take this opportunity to stop… take a breath … and wish all of our readers a very happy and healthy Holiday season! We really appreciate your "checking us out" a couple times a week and being a part of our "Brought to you By…" sponsorship family.

Here's hoping you got everything you put on your list this year (…including a couple sponsors for your program, event, newsletter, speaking tour or seminar!)

All the best!!

Think Again...

Hey everyone! Ron's assistant Kerri here... while Ron's recuperating from Vegas and getting back on track with the forum, I decided to post an article from IEG that I found really interesting...

A lot of people tend to have the misconception that sponsorship is just for sports teams, events, or people who put on meetings... Well, this just simply isn't true!

In this article "snippet", IEG features a European retailer, Axfood, using sponsorship designed to build goodwill and drive people into their stores. Take a look!

Axfood Enters Corporate Sponsorship Agreement With Save The Children Sweden

December 9, 2009:

STOCKHOLM – The partnership involves activities at a large number of Axfood's stores. Among other things, recycling machines will be fitted with buttons that give customers the option to donate their bottle and can deposits to Save the Children. In addition, Save the Children Christmas calendars will be sold at selected stores during the month of December.

"Working across the Group with this type of partnership is in line with Axfood's values, and our goal is to take greater social responsibility," says Camilla Weiner, Head of Corporate Communications at Axfood. "In partnership with Save the Children we can work to strengthen the rights of and improve the living conditions for children – and in such way achieve a decisive and sustainable change."

Recycling machines at Willys stores will soon be refitted to allow customers to donate their bottle and can deposits to Save the Children's activities. In December, Axfood's Tempo stores will be selling Save the Children's Christmas calendars.

"We are thrilled about our partnership with Axfood," comments Marie Johansson, head of corporate activities at Save the Children Sweden. "The funds generated by the activities will spent on education projects in Ivory Coast. The money will help more children gain access to a good education in a safe and secure school."

As one of the leading independent child advocacy organisations, Save the Children works to ensure and protect children's rights to food, housing, healthcare, education and an existence free from violence, assault and exploitation.

Axfood AB conducts food retail and wholesale trade in Sweden. The Group’s retail operations are conducted through the wholly owned Willys, Hemköp and PrisXtra chains, comprising 226 stores in all. In addition, Axfood collaborates with a large number of proprietorrun stores that are tied to Axfood through agreements. These include stores within the Hemköp and Willys chains as well as stores run under the Handlar’n and Tempo profiles. In all, Axfood collaborates with some 650 proprietor-run stores. Wholesale business is conducted via Dagab and Axfood Närlivs. Axfood is listed on Nasdaq OMX Stockholm AB’s Large Cap list. Axel Johnson AB is the principal owner with approximately 46% of the shares. *

So I don't know about you... but a retail business definitely isn't the first thing that comes to mind when I think of who uses sponsorship...

But when you do think about it, why can't a retailer capitalize on the BILLIONS of dollars being spent every year on sponsorship... They have a herd, they know who's in their herd, and they know who wants to get in front of their herd! Seems like a match made in heaven to me :)

Well just goes to show... sponsorship truly is for everyone! So to all of you who thought sponsorship was just for sports teams, events, or meetings... think again!


Have a great Tuesday night everyone!



Source: IEG (http://www.sponsorship.com/news---information/news/2009/12-december/axfood-enters-corporate-sponsorship-agreement-with.aspx)

Off to "Viva Las Vegas"

This is going to be a VERY sponsorship analytical weekend coming up for me this weekend --- as I depart for Las Vegas and a meet-up with my friend and research partner-in-crime, Jim Kahler of Ohio University.

Every two years since we first began the National Sports Forum some 15 years ago, the NSF has presented (at the conference...) the findings culled from the information-packed interviews with fifty (50) of the top sponsors in America. We reach out to all KINDS of "household names" – from Bank of America ... to Anheuser-Busch ... to Pepsi-Cola ... Giant Eagle and Sharp Electronics... to name just a small handful.

Under the direction of Mr. Kahler, who is Ohio University's Executive Director of their Center for Sports Administration, we'll wall ourselves off from humanity for three days and dissect the findings of all fifty of these surveys.

When finished, we'll have one of the most current and up-to-date recaps of what sponsors like ... what they don't like ... what they really would like to see you putting in their sponsorship proposals ... and how the "new economy" is impacting their business moving into 2010 and beyond.

The findings of all this will be presented at the 2010 National Sports Forum coming up in Baltimore, MD in February. (www.sports-forum.com) However, in the coming weeks, I'll be sure to share with you some special findings (...give you all a "sneak peak" of what the sponsors are thinking (...and spending money on...) out there.

Stay tuned!

Linkedin Groups

As those who know me would attest -- I can't exactly say that I'm one of the MORE "technologically-savvy" guys out there. And I'm borderline stone-age when it comes to all things Social Media-involved. But of the various vehicles out there that are now at our disposal, I tend to gravitate to Linkedin. It's proven to be a great tool so far for me to use to "reach out" and meet selected individuals on-line.

One of the things that I find especially useful is (are) all the Linkedin Groups that are continuously popping up. What I've especially found interesting and often insightful are some of the Groups that pertain to Sponsorship. (Two that I belong to are "Sponsorship Insights" and "Sponsorship Sales Professionals") I'm sure there are others, but those are two that I've joined.

Take a look-see for yourself. You're going to find that it's a great way to network in with and gain insights from people in situations similar to yours. People with ideas, experience, contacts and insights to share. I've enjoyed it --- and so will you.

A Word About Sponsor Referrals

Nothing "sells" your sponsorships better than a happy sponsor. And of course nothing makes a sponsor happier than having their expectations met.

So first order of business here is to make sure that you're taking great care of your existing sponsors. (Let me ask you – do you even know what their "expectations" are? Hmmm… good question, eh? Well ... there's not time like this moment to have a sit-down with your existing sponsors and ASK them!)

And speaking of "...ASK them..." --- that's my word today (...well, actually ... that's two words…), on getting Sponsor Referrals. You've got to ASK for them!

Of course the best time to ASK for them is when you're successfully delivering results for your existing sponsors. You've worked hard to build a strong rapport with your sponsor --- which means that you're there for their success, and they're there for your success. If you've done a good job, it's a good partnership. So why not mention to your sponsor that your event (...program, publication, speaking business, etc.) is really taking off thanks to sponsors like them. ("Thank you!") And your plan is to continue growing your sponsorship family with companies just like them.

That said, you'd sure appreciate it if they would feel free to recommend your event to any of their co-horts that are looking to grow their profile within your industry.

Sometimes that'll be enough to have them bringing up a couple potentials. But more times than not, they'll just smile, nod and say they'd be happy to. That's okay – you’re now "on record" with them that you're looking to add a couple additional sponsors and you've "deputized" them to help you in your search.

Now that you've got their verbal "buy-in" ... see if how, moving forward, you can't start helping them to help you.

What do I mean by that?

Easy – keep an eye out for any particular sponsorship "candidates" that you might have an interest in tapping into that are coming into contact with your current sponsor.

For example – let's say you notice that your current sponsor is also a sponsor of "XYZ" conference. (This conference attracts similar "types" of attendees as you do…) That said, are there any OTHER sponsors to this "XYZ" conference that you think might be a great fit for your event?

Great! Simply put the bug into your existing sponsor's ear that you'd welcome an introduction into one of the decision-maker's at this other sponsor's company. Ask your sponsor if they wouldn’t mind grabbing you a name, or better yet ... a business card into this potential sponsor's decision-maker.

In short – help your existing sponsor's keep their antenna up for you with other potential sponsors. (Now don’t forget ... the key here is to be sure that you're making your existing sponsors "deliriously happy"! Do that and no doubt they'll be more than happy to spread a little love your way!)

Good luck!

Why YOU Might Want to Consider Becoming a Sponsor...

You know ...before I completely "unplug" from my little mini-series here spinning off of my recent GKIC InfoSUMMIT "experience", I wanted to put together a few paragraphs about why YOU might want to consider sponsoring an event, conference, trade association, newsletter or other such suitable-match event, program or speaking tour...

For one thing --- keep forefront in mind that event/conference sponsoring is still very much virgin territory.

I say that after fully acknowledging that – according to IEG (www.sponsorship.com), (...the international clearinghouse of all things sponsorship-related), meeting and event sponsorship is one of the hottest new categories in the sponsorship-world. While I have no doubt that this is true ... meetings/events are still a relatively untapped component of the sponsorship world.

That said, it's not very likely that you'll be running into a NASCAR-type wall of competing sponsors when you consider sponsoring a meeting, event or newsletter. (In fact, it's FAR more likely that you'll be the only sponsor of the targeted meeting or group!)

Reason being that most folks putting on meetings, events, association gatherings, teleseminars, sales retreats ...you name it... haven't even considered looking for sponsors. They're oblivious to the wonderful world of sponsorship!

Fortunately for you, their lack of sponsorship sophistication can easily be put to your great advantage...

Advantage #1 – they won't have any idea what to charge you. If you walked up to your average meeting planner and told them that you'd have an interest in sponsoring their group's event – they'd probably look at you as if you were speaking some sort of a foreign language! They'd probably stammer around a bit and then ask you what you thought a sponsorship of their event would be worth. So beat them to the punch – come up with your own price and put it right up front in your offer. Aim low. To them, every dime you give them is "found money" ... so anything you offer them is a bonus!

Advantage #2 – they won't have any idea what to GIVE you. Going hand-in-glove with the first advantage, most meeting planners have no idea what's expected of them in return for your investment. So tell them what you want. And be specific. The less difficult you make it for them to understand the "transaction", the easier it will be for them to agree.

I could go on ... but hopefully you get the idea? We spend so much of our time here at the "Brought to you By…" System discussing how you can sell sponsorships ... I wanted to make sure that I didn't overlook how downright reasonable it's going to be for the next few years to BUY sponsorships to the right meetings, events & publications out there that ideally target your market.

Good luck!

There's No Place Like Home!

I'm just getting back into the office from having spent the better part of a week down in Atlanta, GA. (Coming as it did on the heels of trips to Baltimore and Cleveland in the last couple of weeks, I'm feeling a bit like a "road warrior" of late! :)

But I'd been invited to deliver a presentation at this year's Glazer-Kennedy InfoSUMMIT and there's no way I'd want to pass that up. This is a great organization and I was truly honored to have been invited to go down there and speak.

There's something so special ... not to mention invaluable ... to spending time with like-minded entrepreneurs. It re-energizes your batteries and you can't help but come away with so many interesting new ideas.

I just want to take this opportunity to thank all of you that purchased our "Brought to you By..." sponsorship sales system. You've made a really wise investment – and I'm looking forward to working with you and watching your success!