Sponsorship can be a great way to promote your business, build relationships and become part of the community. But not every sponsorship is worth your money.
A sponsorship should do more than put your logo on a banner. It should connect your business with an audience that matters, support an organisation you are happy to be associated with and give you something useful in return.
Before you commit, there are a few things worth considering.
1. Does the audience matter to your business?
The first question is simple: who will see your sponsorship?
If you run a local real estate agency, sponsoring a community organisation with hundreds of local families may be highly relevant. If you own a gym, a junior sports club could put your business in front of parents, players and other local residents.
The size of the audience isn’t everything. A smaller audience that closely matches your customers can be much more valuable than thousands of people who have little reason to buy from you.
Think about the people involved in the organisation and whether they are the kind of people you want to reach.
2. Does the organisation have a good reputation?
When you sponsor an organisation, your business becomes associated with it.
That makes reputation important.
Look at the organisation’s history, how it operates and how it presents itself publicly. Check its website and social media. Consider how it interacts with members, supporters and the wider community.
You don’t need to conduct a corporate due diligence exercise. But you should be comfortable having your business name alongside theirs.
3. What do you actually get?
A sponsorship package should give you something useful in return.
That might be signage, social media exposure, website placement, event tickets, newsletter promotion, access to events or opportunities to engage directly with the community.
Think beyond the number of inclusions in the package. Ask yourself whether those inclusions will actually help your business.
A logo on a sign might be nice. A sponsorship that also gives you the opportunity to meet potential customers at an event could be much more valuable.
4. Does the sponsorship make sense?
The best sponsorships feel natural.
A local café supporting a junior football club makes sense. A real estate agency supporting a local community event makes sense. A building company supporting a local sporting club can make sense.
There is a story behind the sponsorship.
That matters because people can tell the difference between a business that genuinely supports its community and a business that has simply bought advertising space.
Community sponsorship can help you build familiarity and trust because your business is showing up somewhere that matters to the people around you.
5. Can you make something of it?
Don’t expect the sponsorship to do all the work for you.
If you sponsor a local club, think about how you can use the opportunity. Share the partnership on your social channels. Attend events. Meet the people involved. Offer something useful to members. Tell customers why you chose to support the organisation.
A good sponsorship gives you an opportunity. What you do with it determines much of its value.
6. Is the price right?
Finally, consider what you are getting for your investment.
Don’t compare sponsorship packages purely on price. A $1,000 sponsorship that puts your business in front of the right local customers could be more valuable than a $500 package with an audience that has little relevance to you.
Consider the audience, the benefits, the organisation and the opportunities to get involved.
Then ask the most important question:
Would I still be happy with this sponsorship if my logo wasn’t the biggest thing on the package?
If the answer is yes, you’re probably looking at something more valuable than simple advertising.
The right sponsorship is about fit
There are plenty of organisations looking for sponsors. That doesn’t mean you should sponsor all of them.
The best opportunities are the ones where the business, the audience and the organisation fit together.
That’s particularly true for local businesses. Supporting something in your own community can give you a reason to be visible, build relationships with local people and demonstrate that your business is invested in the area it serves.
At Sponsor Exchange, we’re making it easier for businesses to discover sponsorship opportunities from schools, sporting clubs and community organisations.
Instead of relying on who you happen to know, you can explore opportunities and find sponsorships that make sense for your business.
Find a sponsorship opportunity that’s right for your business with Sponsor Exchange.