Is our budget realistic and achievable?
I’ve seen so many sponsorship proposals from local sports clubs and local organisations with $20K Naming Rights or Premium Sponsorships and I think to myself, how on earth are you going to honour that sponsorship. In other words, how are you going to fulfil your offer to the sponsor?
The one thing I encourage each sponsorship manager to do before writing a price next to a sponsorship level is understand your demographic and geographic numbers.
I’m not talking just about the demographic of your organisation, e.g. how many members or players you have, I mean what is the total number of people that occupy your direct geographic area.
Here’s what I mean. Let’s say your local community is 10,000. Your organisations community is 250 members. Let’s also say that the total of Not for Profit organisations in your community is 125. That’s 125 other organisations who are all looking at the local business community for sponsorships or donations. If your local community is supported by 60 local businesses, the serviceability of each business would be to support 2 local organisations each.
Here’s what you need to consider when developing the investment into your sponsorship program. If your total sponsorship requirement is $50,000 and your local community is supported by 60 businesses, your expectation would be that every business would need to take a minimum of a $835 sponsorship package.
From this quick evaluation you can determine the following;
• Can your local community businesses support a sponsorship investment of $835?
• Do you have the resources to contact every local business? (EG enough volunteers)
• What can you offer local businesses in relation to value for their $835?
• What makes your organisation different from the other organisations in relation to exposure for your potential sponsors.
• You get to consider diversification rather than volume. More smaller sponsorships rather than fewer bigger ones. They are more manageable and create the opportunity for your sponsors to see a return on their investment.