"The Sport Management resource for volunteers in sports"

How to get sponsors in sports

During my work, both as a volunteer and as a professional in sports, the most frequent question I get is how a sports organization can get sponsors. Let me give a couple examples:

Soccer federation

This federation organizes a competition for amateur clubs. They didn’t write press releases and at that  moment they didn’t even publish schedules. The focus was on playing the game, making use of the resources that already were available. They had an audience though, but just didn’t know how to leverage that.

Aikido

My daughter (almost 8 years) has been practicing aikido for 6 months now. This is a pretty small club, with their own dojo, and they have lessons for adults and the youth. During a barbeque one of the instructors told me that they just are not succeeding in getting any new training mats. He said that it is very difficult to get sponsors.

I was thinking about this afterwards, and I found it strange as I saw some very dedicated and serious people involved in the club. They had nice publications on the bulletin board, they have a digital newsletter and recently they even had a school delegation participating in a clinic.

It was remarkable though that none of the school kids (that I saw) became a member. Personally I also didn’t read anything about the club in the press. I felt that a strategy to attract new members was missing.

Boxing club

I once had lunch with the president of a boxing association. He had problems with getting funding for his sport. He asked my opinion on an idea he had about raffling a car to generate funds. He had good contacts with some car dealerships, and even showed me the calculation of how he expected to make some money. My initial reaction was to just try the raffle to see if it would generate any income.

Looking at the context though, this association didn’t organize any local boxing championships, nor did they have any international boxers for at least the last 5 years. And there was no real board, but it was more 1 person running things.
I noticed that the raffle until now never took place…

Apart from the frequent question of asking how to get sponsors,  I am also hearing another common remark from many officials claiming that their sport is so different and specific, that general tips and advice will not work for them. I can’t count the times that I’ve heard

“But you have to understand that our situation is specific……”

So let me go back to the examples of Soccer, Aikido and Boxing. Can I compare these situations? My answer to that is YES and NO.

NO, you can’ compare these sports!

Of course you cannot compare a team sport like soccer with individual sports. The surroundings are completely different. Not only cost wise, but also due to the big difference in practicing the sport outdoors or indoors. Soccer is the most practiced sport around the world, so it goes without saying that getting attention should be easier.

Another reason for being very careful of comparing the mentioned sports is that martial arts/boxing can be perceived negative by certain persons/ organizations. A sport like boxing has to deal with prejudices that a sport like soccer simply doesn’t have (to not speak about the supporters’ violence).

YES, you can compare these sports!

On the other hand there are also reasons that justify any comparison between these sports. First of all they are sports, which are characterized by being a leisure activity, especially focused on younger people. They all take place in a structured way, by licensed instructors, governed by an association or club. Additionally, these sports have international bodies responsible for the overall regulation of the sports.  The international official definition of a sport (according to the umbrella organization Sportaccord) is:

  • The sport should have an element of competition.
  • The sport should in no way be harmful to any living creatures.
  • The sport should not rely on equipment that is provided by a single supplier.
  • The sport should not rely on any “luck” element specifically designed into the sport.

So based on this context my advice will be the same for the above mentioned sports, as they are in the beginning phase of marketing, and therefore need to have a strong basis.

What I mentioned before in another website article is that you NEED to start re-evaluating your internal organization. You simply need to have a strong internal organization, before you will make it out there in the sports marketing world. Does this mean that you cannot get any sponsors, if you just started your sport organization, or if you are internally not so strong yet?
No, of course you may have the luck of getting sponsors through a friend of a friend, or perhaps even based on a direct mailing. But I have my sincere doubts whether this sponsor will stay after they have become familiar with your sports organization.

My biggest advice to anyone is to give marketing time, and especially start asking yourselves some questions, like…

 

 1. What do you stand for?

Every sport club should have a constitution or bylaws that stipulates why the organization exists. This ‘core activity’ should be your number one priority. You’re whole organization should know this and also agree on this. Stick to your core activity, and DO IT GOOD!

I am not talking about having the best trainers and facilities of the world, but more about a healthy environment where the fun is clearly visible. The training sessions should be planned structurally, and there should be a BACKUP for each person active in your organization. If the trainer gets sick, who will step in?

This seems so simple but is often overlooked. Looking at the examples above boxing was definitely not covering this part.

 

2. Create a community

Whether you are in an individual sports or not, the social aspects between the members are important. It is a fact that most of your members are active because they like the sport. BUT THIS IS NOT ALWAYS THE CASE.

Some of your members are simply there because their friends are. Others because they want to identify themselves with the specific group participating in your sport.

So think of ways how your members and athletes can identify themselves as being part of the community. You can have your members write and publish a newsletter, or you can have a Facebook fan page only for your members. With the creation of a community you realize having a common goal, which goes further than just training together. Your members feel at home in your sports organization, and in the long run sponsors will aim to also be part of your community.

 

3. Communicate what you are doing

There are so many volunteers working their tales of, but outsiders just don’t know what they are doing. Without being cocky about it, you should communicate constantly what you are doing as a sport organization, and whether you are making small successes. This communication should be towards your (internal) members but also to (external) stakeholders. The newsletter mentioned before is an excellent tool for this, but don’t forget to send press releases at least once every 3 months. Email messages and sms text messages also are a frequent used way for communication.

 

4. What image do you have?

Have you ever thought about what image your sports organization has? How does the ‘outside world’ perceive your organization?
This is very important, as potential sponsors also see you this way. The best way to analyze this is to do a short survey once a year. Any student can do this for you, where he/she makes a short list with questions, and then approaches people (of course non-members).
You should make a strategy based on this survey, in order to either improve your image, or perhaps do some promotion so that people know of your existence.
And if you are part of a fighting sport/ martial arts, you already know that you need to take away the prejudice of your sport being aggressive.

 

5. Diversify

In the same scope as building your image, you can use diversification to get some attention. This means that you are actively looking for a group of new members. You could organize special training sessions for girls, deaf athletes, prisoners or perhaps even elderly people.

Yes, this takes extra time, but you will have different advantages. One of them is having more members, and supposedly more income from contribution. With these kinds of projects it will be easier to get press coverage, which then has a direct influence on your image building.

 

5. You’re colleagues are your competition!

Remember that whenever you approach a company, there are x other sport organizations who probably also approached them for sponsorship. So that means that your proposal has to compete with the ones of table tennis, archery or badminton. The one who has a combination of a clear core activity, a tight community, communication, a positive image and a diversified group of members will win!

These 5 tips are only the start and I am sure that many sport organizations are already doing this. But are they doing this strategically, planned and are they making conscious decisions?
What kind of tips do you have for sport organizations who want to make their first steps towards sports marketing? You can leave them in the comment box under this article.

 

Why Sports Sponsorship is better than Advertising

Sponsorship and advertising are both marketing tools that strategically apply to different situations. There are however usual times when a company is faced with choosing between both tools. These times usually are a point of exposure as to which tool can give more and help increase a brand’s visibility. This arena is where sponsorship takes over, and where you as sports manager should be stepping in.

What sponsorship accomplishes better than advertising is in the establishment of qualitative aspects. These aspects include brand image towards consumers, generating awareness, and consumer’s choice of such brand. On these aspects, sponsorship has much more influence than advertising.

There are other points that make sponsorship a winner and that are not available through advertising. The first of which is having a live audience for product and brand circulation. Sports Sponsorship provides opportunities for on-site sales and sampling, customer feedback, surveying, sales-force interaction and product testing – all of which involve the participation of an audience. Through live product presentations, the exposure is greater and the promotion of brand and product names is at a rapid pace.

 Dialogue

When we compare sponsorship and advertising, one mode to look into is how interaction is done. With advertising, interaction is one-way and generally a monologue. On the other hand, sponsorship is more like a dialogue where the opportunity of a company to have live exchange with its target customers is highly practiced.

Product sampling

As with interaction, product sampling is another plus to sponsorship. Sport events that are sponsored allow people to have on site trials on products. This way, awareness of a certain brand name or service is heightened. Examples on-site trials include food sampling, test driving, official clothes worn in the event, etc.

Awareness

With sponsorship, an organization’s name becomes associated into a sponsored event’s actions unlike that of advertising. This means that sponsorship is able to surpass the medium of media and place itself in the environment where everyone can see it, For example, when sponsorship is incorporated during competitions; the audience has no escape in seeing the brand or logo being promoted because it is part of the competition (on the car, uniform or scoreboard). They can’t just eliminate the sponsorship like changing a channel on TV; they have to sit through the whole competition and take in everything that comes with it.

Attention

Lastly, sponsorship provides entertainment to its potential client. How? This is done through the events that are sponsored. When the word ‘event’ comes to mind, it is always a happening that does not come every day. It is a break from the everyday routine that (potential) clients have and that draws special attention. With advertising, nothing is disrupted from normal life. Everyone is accustomed to see bill boards, ad placements and commercials on the television.

Networking

With sponsored sports events, the setting is different and the aim is to provide an avenue for people to interact with the business through a social activity. Events also make great places to have informal sales and networking; and with the chosen venue, which is most often a hospitable one, the event becomes desirable and unique to lounge in.

So be sure to mention these advantages of sponsorship during your next conversation with a potential sponsor!

 

Sponsorship – The sales process

We may not realize it, but most of our activities in our sport organization have something to do with selling. And you may have noticed that the ones, who are good in (verbal) communication, will also have the most success in selling their ideas to others.

Now before we analyze the general sales process, let’s look at some situations in sports, that clearly relate to selling.

Trainer – Athlete/Parents

A trainer has a technical trainings program, and wants his/her athletes to follow this plan as accurate as possible. Leadership capabilities are of big influence, but it comes down on how this program is being sold to the athletes. In some cases the parents also need to “buy” into the program of the trainer, as they may need special nutrition, sleeping hours or even training equipment.

Board/ management team

Every sports organization (for profit or not) has a board, or a management team who oversees the general management, the competitions, finances and other projects. Whenever one of the members of this team has an idea, they will need to bring this to the table. The one with the proposal will then try to sell the idea to the others.

Sponsorships

During the moments that sport organizations target companies for sponsorship, it also basically is the start of a selling process. Sometimes unfortunately, sport organizations position themselves as an underdog. This results automatically in a low negotiation power. The challenge for the sport organization is to identify their product (or service) that they want to sell to the company.

The process of selling has a basic structure, but it should be clear that the product or service focused on, depends on the “client” (athlete or company). In other words: the trainer uses other reasons for the athlete to buy the program, than the sports manager who targets a company for sponsorship.

Let’s apply the different phases to the process of sponsorship in sports. We assume hereby that the product or service is already clear. Generally speaking the selling process consists out of the following four phases.

Sponsorship - Sales process

1. Prospecting

What companies are you targeting, and why? Make sure that you identify the different business sector (banking, telecommunication, apparel), and that you target more than one competitor in the same business sector. Once you’ve identified prospects, you will want to learn all you can before you approach them. Contacting each prospect takes a lot of time and energy so look at each potential prospect carefully to see whether they are already sponsoring other sports organizations.

2. Initial Contact

In marketing there is the old “ Rule of Seven”. It says that a prospect needs to see or hear your “message” at least seven times before they take action and buy from you. Now whether the number 7 is exact or not… the message here is that you shouldn’t expect companies to accept your sponsorship proposal the first time you contact them. On the other hand, it is not to be advised neither to approach a company seven times with your same sponsorship proposal.

You should therefore make sure that the director, CEO or marketing manager of the company hears or sees in different ways about your sports organization or athletes. You can do this with flyers, social media or other creative ways.

3. Sales Presentation

Once you have an appointment with a company to elaborate on your proposal, you basically have come already a long way! The fact that they want to see your face and dedicate time to listen to you is a very positive sign. You should prepare this meeting or “sales presentation” very good, and know exactly what you are going to say. How much time do you have? Are you bringing a video or a PowerPoint presentation?

Don’t make the mistake of only talking, but listen well in the beginning to what the representatives of the company say. I advise anyone to bring along 1 or 2 athletes who have good communication skills. Let them talk about why they practice the specific sports, and how the company would help their development by becoming a sponsor.

4. Handling Objections

Companies will always doubt whether they should sponsor or not, so don’t be surprised if they seem hesitant. What you should do, is make a list of 10 possible objections the company might have, and how you would respond to these?

The most common objection is that the company doesn’t have sufficient funds to sponsor. Do you back down? Or do you ask what amount they are thinking of, or perhaps you could come back next year?

5. Closing the Sale

This is an important step. It would be expected that after the meeting, the company asks for some more time to think on the sponsorship proposal, which is fine.

But ask if you can call them within a couple of days or a week, to inform whether they have more questions. By being proactive and a bit aggressive (not too much!), you show them that you mean business!

6. Follow-Up

From this point there is the chance that the company decided not to sponsor. This doesn’t mean though that you shouldn’t try again next year. Make sure that you stay in close contact with this prospect, and keep sending them positive information about your sports organization.

If on the other hand the sponsor decided to agree with the sponsorship, then the process of follow up starts. In the next short period you should have close contact with the sponsor, to setup the sponsorship agreement, and maybe adjust some aspects in their favor. Don’t hesitate to give them a little bit more than the initial offer had. So “overperform” and to show “quality and professionalism”. You will then get your sponsors satisfied, which in the long run will give you loyal sponsors.