I am happy to note that brands and sponsors are seeing the light. As I mentioned at a recent workshop, for the most part, brands have moved beyond the “Hey, we just want to help.” The days of corporate philanthropy are gone. Brands, corporations, sponsors, or whatever you want to call them, are in it for ROI. Sure, they may still make a donation, but the focus of their dollars is on community investment (note the word investment), strategic partnerships, experiential marketing, sponsorship, etc. They want to see a return on what they give you. Yes, they want to see a benefit to the community, but the ROI is important to them as well).
They need to know that the $5,000, $500,000 or $5 million they spend with you will deliver a profitable ROI for them. They need to know that the exposure and outcomes they seek to achieve could not have been purchased elsewhere (pro sports versus a charity, a municipality versus a post-secondary institution or the local newspaper, TV, radio or the internet) for a lesser or equal amount and yielded better results. It is about the ROI.
Many brands, though, are still scared to negotiate. They work with the charity or non-profit and choose not to negotiate the same way they would with a local radio rep. They think they need to be “kinder and gentler” with the non-profit or charity. I say, “Hogwash!” When it comes to the business side, sponsors need to negotiate as they would with any other marketing investment. They need to get the best deal possible, to yield the best results for their businesses, while at the same time, ensuring that their partners (the organizations selling the sponsorships) will benefit also. There are lots of CEOs, development officers, and sponsorship managers making salaries in excess of those of many for-profit business people, but they get that money because they are good at what they do. So don’t be fooled by the “We are a charity or non-profit.” They are businesses too. And if they aren’t (and claim to be small and poor), they should be.
If the selling property feels it is getting “screwed,” then it is simple. Don’t do the deal. If the brand really wants you, it will negotiate in good faith. Sponsorship is about mutual benefit. It is about both parties winning, and if one gets the better of the other, the partnership won’t last.
So brands, negotiate as you would with your media buy or pro sport investment. You need to get what you deserve, but do it in good faith. It will help the properties you negotiate with. Educate them as to why you need things and why it is important. Together we can move the industry forward.
These are just one person’s thoughts. Yours are welcomed as well. Please add your comments below. Thank you for reading and your feedback.