There are many assemblies, carnivals, stores inauguration and celebrations that take place, but … who assumes the economic cost that it charges to carry out an event of these characteristics?
Such an event takes a long process of preparation and expenses amounting to very high figures. These costs, often impossible to assume by the organizing company, could not be supported without the support of sponsors or sponsors, who financially support these events in exchange for advertising their brand or company. We can see many ads showcasing events in Hong Kong, events in London, events in New York, etc.
So, if on many occasions we depend on “others” contributing to the financing of our event, should not we know when we should negotiate with a sponsor and when with a collaborating company? What makes them different? What is a sponsor and a sponsor doing? Once we know the difference between all these concepts, we can decide which is the most appropriate for each situation or activity.
Sponsorship profiles: Sponsor and Collaborator
The patronage agreement is one in which a company contributes to the financing of actions related to the arts, sciences or letters with the aim of associating the brand image with said action. Normally, it is a long-term value.
In the case of the sponsorship agreement, the sponsor looks for lucrative events and, in exchange for an economic contribution, the sponsored company must publicize it in the event. It is a short-term benefit.
It should be noted that the sponsorship is very similar to the collaboration agreement and therefore tends to be confused. The difference between the two is that while the sponsor contributes financial support, the collaborator contributes to the event in kind (products, services, materials …).
Finally, sponsorship is associated with sport and refers to the economic contribution made by a company to a team or professional in exchange for them carrying the brand image of the sponsor in their public appearances.
Negotiating the Financing of our Event
The most important factors that must be taken into account when negotiating with a sponsor are the following:
At first, we will have to conduct a search of the companies that use the sponsorship tool as an element of communication, so we have to see and ask ourselves the following question: which of the brands related to our event do these actions in their Strategic plan?
Another fundamental aspect will be to know how much it costs us to carry out the event. From here, we will decide the packages that we will offer to the companies to participate in the sponsorship. How much do we want a company to participate in your sponsorship, 25%, 50%, 75% or 100%?
Another factor will be determining how many and the type of sponsors we will need to reach our goal.
Finally, in order to attract the attention of the sponsoring companies, we will have to elaborate a memory of the event. We will talk about how to prepare this proposal document for sponsors in the coming weeks.
Benefits of the Sponsor for an Event
It is important to know the benefits that a sponsor looks for when financing an event to know what to offer them. Here we expose the main ones:
The sponsors seek to encourage research and development within the scope of the event being held, usually of a scientific nature.
The sponsors have to perceive some advantages and benefits that will be passed on to their sales from the participation in the event.
In this case, the sponsors hope to obtain a projection as leaders before their clients, invited to the event or assistants in general. In these events, companies see a clear opportunity to foster relationships with their suppliers or have a meeting point with their customers. In addition, they can also obtain a much more strategic vision and directly observe their competition.
As we can see, the choice of sponsors and the subsequent negotiation is very delicate. It has to be done taking into account the interests, benefits and advantages that the companies will be able to obtain in our event.
You have to follow some steps and maintain a previous schedule so that our event can be financed by external companies. This planning will always give the event an added value and an endorsement by the brands, an image of a leader in the sector and an importance that the attendees and professionals who attend the event will perceive.
As we have seen, many events involve negotiation. Therefore, we must know the existence of qualified professionals, event organization companies, which can be very useful when negotiating the financing of our event.