Corporate sponsorships are a proven way to maximize brand exposure, amplify marketing initiatives, and associate your company with the excitement and energy of sports, concerts, and other live events. This is why the global sports sponsorships market alone is predicted to grow by $5.33 Billion between 2021 and 2024.
As live events open up once more, there are plenty of event managers, teams, and stadiums vying for your corporate sponsorship spend. Event attendance is also at an all-time high, meaning more people seeing your branding and more potential customers.
If your brand is the sponsor of an event, team or venue, this is a pretty good place to be. You’re the belle of the ball.
But, just because you have the advantage, it doesn’t mean you’ll walk away with the top prize. More specifically, it doesn’t mean your business will automatically get the best-possible deal from your contract negotiations.
When you’ve got the upper hand and the freedom to choose who gets your sponsorship dollars, you actually should feel more pressure to negotiate strongly and maximize value. You can afford to be more discerning and selective about who you work with. After all, if you end up shelling out money and see little tangible value or disappointing ROI – you’ll only have yourself to blame.
In this article, we’ll share a few tips for corporate sponsorship contract negotiations that you can use to get more favorable deals.
Have clearly defined goals
Going into the contract negotiation, be clear about what exactly your business is looking to gain. This will make it considerably easier to get what you want, while avoiding any fluff that won’t bring any real value. For example, if client entertainment opportunities are a top priority, you can ensure a high number of premium tickets are part of the terms.
With clear goals and a desired outcome in mind, you will be in a better position to make trades. If you manage information strategically, the other party won’t be aware of your key objectives – so you can “reluctantly” concede items of low value in exchange for those of high value.
Clearly defined goals are also essential to determine whether any corporate sponsorship is worth the investment. They provide a benchmark for success in areas such as increased market share, business performance, and brand recognition. Knowing what to look for will equip your team with the information you need to make better and more lucrative corporate sponsorship decisions in the future.
Know who’s worth sponsoring
With events and venues competing for your attention, you can significantly raise your expectations around what the other party is bringing to the table. A simple tiered list of bronze, silver, gold, and platinum sponsorship packages used to be pretty standard. These days, you should expect a far more tailored approach. For example, how is the other party helping you ensure that your brand name is getting in front of the right attendees?
Corporate sponsorships are all about reaching specific market segments, so sponsors should expect numbers on expected attendee demographics and a game plan on how to hone in on specific segments. If they’re arriving with clear data justifying why you should select them – like social engagement, conversion rates, and projected reach – then they’re likely worth consideration. Look for indications that the other party understands your business and is willing to work with you as a partner to achieve your goals.
Maximize value once the deal is made
Once you’ve signed the dotted line, the hard work is far from over. That’s because your team now has to ensure everything you’ve received in the sponsorship deal delivers maximum value. Take the complimentary tickets, suites and hospitality passes, for instance. Each ticket is a valuable asset; but if you don’t have a system in place to track and manage how those tickets are distributed, then a lot of that value will be going to waste.
With a Ticket Management System like TicketOS, you gain full control over how tickets are managed in your organization. If you’d like to see it in action, schedule your free demo today.