Properties have come a long way in their sponsorship support and servicing as the relationships continue to evolve into more technical partnerships. They understand that come renewal time, they must deliver the value the sponsor needs in order to continue the relationship. Our agency has noticed there can still be a gap in these relationships, and here are some things to consider when your brand decides not to consult expertise beforehand.
1. You risk being sold only one, potentially narrow, solution
Often, you will be offered a portfolio of assets that the team wants to provide you, not what you actually might need, especially if it involves assets out of their complete control. The team is in business to make them successful and perform well, as it should be. Teams want to think that they can offer you everything a company would need to be successful, but how would they know?
They won't have the staff to provide you with 100% focus and do what’s always best for you, when in reality, the team must do what’s best for them. As it should be. If you are new to the sport, negotiating with a team may be difficult, since you are not sure what a good deal is or not and what assets are really usable for what you want to accomplish.
2. You might not get many options or much flexibility
One particular property will want you to spend your entire budget with them. That may seem convenient, but what you need is a mix of assets that are optimized from what a team, track or a sanctioning body can provide. Properties also do not consider the budget you need for proper brand activation, or the programs that are the real drivers of ROI.
Know what you are looking for to address your objectives, then put together a holistic motorsports sponsorship program that provides the best mix of useable assets to meet your goals. We always recommend to start small, and grow where you are seeing results.
3. You don’t know what you don’t know
If you go to only one property directly, they will tell you what they want and have to sell. In a presentation or introduction, it's a cordial and inviting environment that makes it all feel right. What is often missing is understanding the uniqueness of racing and the value equation for what is being presented and is part of the sponsorship. Some assets cost teams money, many do not, and that is where their perceived value can be boosted.
With a sanctioning body for example, they push hard to sell their logo rights, which although has value, really does not cost the sanctioning bodies to “provide” those rights. However, things like annual credentials, access to B2B meetings and introductions within the entire sport can generate exclusive value and therefore you push for more quantity in that category.
Learn the other top things you need to know in sponsorship:
Updated for added value.