Here’s some good news and bad news about how to price sponsorship.
Bad news? You probably aren’t charging enough for your sponsorship opportunities.
The good news? You can change this.
Wimpy sponsorship pricing only hurts you.
You send the wrong messages to your sponsors. Low fees connote low value.
And something funny happens in the business of sponsorship. The less the company invests, the higher maintenance they are. It’s rarely the other way around.
Here’s what else happens when you use a wimpy pricing approach.
You create a poverty mentality internally.
You leave money on the table.
Years ago, I worked with a small organization in a small geographic market. The executive who engaged my services told me that no corporation would invest more than $5,000 in his organization’s sponsorship program. That was his core belief.
Because of our work, three months later, his organization generated $85,000 in brand new sponsorship revenue.
From just two sponsors.
By his math — two sponsors at $5000 each — he’d have $10,000 in the bank. He liked my math way better.
You can turn this around by:
- Getting clear on your value.
- Updating your pricing strategy.
- Identifying the variables that trigger value for your sponsors or clients.
- Practicing being bolder.
Or by asking for help from an outside resource. Need help with some spring cleaning? I can help.