Mistake #1 – The Ultimatum Game
Boundaries are perfect in any situation, however are not the same as ultimatums. Have you ever stood a sales representative of a typical company offer you an ultimatum? If so, how’d it go?
Phrases with ultimatums won’t allow you to get too far in constructing a relationship using your potential sponsor. Well, they might allow you to get a “no”! Consider not by using these or similar phrases inside your sponsorship conversations…
“If you may not sign today… ”
or
“I have another buyer, but I think you are better fit and… ”
or
“We ask you to commit today or I’ll have to sell to… ”
Remember, Relationships Raise Money!
Instead of giving ultimatums, clearly present your timeline for the prospective sponsor plus ask about their process.
Mistake #2 – A Sponsorship “Sale” (Not charging enough)
Putting your sponsorship inventory on “sale” is usually a scary thing. In fact, it’s the most significant mistakes I see being made since it makes the assumption that has been your initial pricing has not been fair firstly.
Instead of offering a blanket “sale” or “Black Friday” type event with your sponsorships, consider locating a win/win pricing and benefits package with the negotiation process.
You MUST understand that there are no formula to pricing, so if you feel consulted on including the pricing of the benefits, your talking with the wrong person. Sponsorship is usually a marketing opportunity which could best be called the whole being worth over the sum of the parts. Create a win/win with the ideal sponsor so the experience you create together is worth over the money.
Mistake #3 – Not thinking long-term
Mistake # 3 is that I made a couple of times, and I share it last as it’s this cost me one of the most time and money in sponsorship.
Most sponsors are searhing for long-term or multi-year sponsorships, rather than a quick one-time deal. The mistake I used to make is merely offering sponsorships for example event, one webinar, or one product. While there have been great sponsorship opportunities regarding those properties plus the sponsors got great value… I missed the objective by not thinking long-term.
Instead of offering one-time or event specific sponsorships, consider multi-year deals together with your sponsors. These are often much better and your sponsor while you both reach build the partnership and are both in a position to maximize the sponsorship from year to year.