Relationships: Have One
Relationships; have one, know someone that has one, or build one. I have made this statement at least a 1,000 times and it is the fundamental that I base everything off of that I do at racesponsorships.net.
Relationships are the key to a successful sponsorship. Without one, your chances of successfully obtaining a marketing partnership goes down tremendously.
Relationships are so important, that I will stress again: Everything I do at racesponsorships.net with my clients is based around the status of a relationship.
I want to spend the next few months discussing relationships and the different types. In this article, I want to talk about when you already have a relationship and how-to bring value to that relationship.
You call me up and ask for a proposal because you want to approach a local parts shop about getting the oil and filters for the upcoming race season oil changes.
The first question I ask is: Do you have a relationship with them already?
In this scenario you tell me that you went to high school with the owner and your families get together often for supper, celebrate the kid’s birthdays together, and even take a vacation together once a year.
That is a perfect storm and should be a walk in the park for getting that proposal in front of them and some sort of marketing partnership deal done.
With an established relationship like this, it now comes down to what the ask is (the cost of the oil and filters for the year) and how-to bring value to the partnership.
We know we have a great relationship with the owner and let’s say the ask is $300 worth of oil and filters for the year. So now you have to find a way to bring a return on that investment of $900.
How do you get to $900 you ask? Take the ask, $300, and multiply it by 3 and you get $900. This a general rule of thumb and a common place to start with a product sponsorship. That changes some with different levels and amounts but it is a good general rule of thumb that I have found works well.
I would recommend in this situation a basic product sponsorship proposal that includes the company’s logo on media/marketing material, stickers on the car, social media posts, etc. These are all essential tools to the proposal/value strategy.
Notice I said tools, use these things to engage potential customers but don’t rely solely on them.
Add Value to the Relationship
With every basic product sponsorship, I encourage clients to think of one unique way they can add value to the proposal. One of my favorite things to bring added value over a basic product proposal is coupons.
Coupons not only bring value by getting customers in the store, they are traceable back to you and show proof that you brought value over the entire year.
Add to the proposal that at every event you attend, you will have coupons to give to racers/spectators. What type of coupon and to what value the coupon is, is up to the owner but here are a few ideas for this scenario:
- Spend $100 or more and receive 10% off entire order
- Buy a case of oil and get oil filter free
- Free shipping with an order of $100 or more (if they offer shipping)
Be creative in your thinking when adding value to a proposal with an established relationship. You have overcome the hard part because the relationship was already established.
The owner knows you, and his decision will be based mostly because of the relationship, but don’t stop at a sticker and few Facebook posts.
Think outside of the box and follow the golden rule of, under promise and over deliver!
About the author: Jeff Lambert is the President of Armed Forces Racing and founder of racesponsorships.net. Jeff has a passion to grow the sport of sportsman drag racing by helping grass roots racers improve their race programs through sponsorship’s. During the next 12 months Jeff will be sharing articles that will guide you to ways of funding your race program through sponsorship’s by obtaining marketing partners.
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