Valuation Secrets Sponsorship Valuation Revealed! By Chris 2017-12-08¢  Valuation Secrets...

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Transcript of Valuation Secrets Sponsorship Valuation Revealed! By Chris 2017-12-08¢  Valuation Secrets...

  • Sponsorship Valuation Essentials

    Valuation Secrets Revealed!

    By Chris Baylis of The Sponsorship Collective

  • Chris Baylis Sponsorship Expert

    • Self proclaimed Sponsorship Geek

    • President and CEO of The Sponsorship Collective

    • Head Sponsorship Coach inside The Sponsorship Academy

    • On a mission to help sponsorship seekers to develop best in class sponsorship programs

    • Have helped properties across Canada and the US to raise millions of sponsorship dollars

  • I’m sorry…

    Valuations can be boring but…you asked for this!

  • When I say “sponsor” I mean people in these areas…

    • Brand management

    • Business development

    • Marketing

    • Product placement

    • Sales

    • Sponsorship

    • Communications

  • When I say “sponsor” I DO NOT mean people in these areas…

    • Foundation

    • Corporate Giving

    • CSR

    • Community Investment

    • Online forms

  • Valuation is a Process

     Property Identification

     Inventory Building

     Audience Identification

     Tangible Values

     Building Activation Ideas

  • Property Identification

  • What is a sponsorship property?

  • Sponsorship Property

    • Sometimes refers to the organization selling sponsorship (I prefer “rights holder”)

    • Events, programs, buildings, teams, parades etc. against which sponsorship is sold

    • Rights holders can have many properties, each with their own assets and audiences

  • Property Examples

    • Galas

    • Marathons/Races

    • Festivals

    • Peer to Peer fundraising events

    • Naming rights

  • Not Properties!

    • Logo on website

    • Eblasts

    • Giveaways/samples

    • Free product

    …these are assets

  • Property Identification

    • Outline all of your properties

    • Decide whether or not to combine similar properties into one large property

    • Properties need to have the same audience to be combined

    • Write the name of each property on a giant post it and get ready for inventory building!

    • Always do multiple properties

  • Inventory Building

  • Inventory Building Basics

    Get your entire team together:

    • List each property on its own page

    • Add everything you can sell to sponsors

    • List everything you give your audience, in kind sponsorship and buy for your property

  • Inventory Building Basics

    Give your team a stack of post it notes and ask:

    • Where can we put logos (5 minute timer)?

    • What do our sponsors want more of and what do they hate?

    • What does our audience want more of? • What can we do without ANY logos? • What do our sponsors want to achieve? • What actions do they want our audience

    to take? • What do they want us to measure to

    prove that we delivered?

  • Inventory Building Basics

    • List every single idea you have, without exception

    • Now look at your competitors and see what they offer to make sure you aren’t missing anything

    • Reach out to at least 5 prospects and interview them

    • Send a survey to your audience to find out what they want more of

    • Aim for 50 – 150 assets per property • Hold onto this list…you’re going to

    need it

  • Classify Your Assets Naming Rights (Name in Wordmark)

    Presenting Rights (No Wordmark) Sampling Rights

    Onsite Logo Placement Speaking Opportunities and Verbal Recognition

    Logo Placement/Physical Advertising Clothing

    Webpage and Content Marketing Database Marketing

    Earned and Paid Media Unique Experiences

    Employee Engagement

  • Audience Identification

  • Always This:

    Property Audience Prospect

  • Never This

    Property Audience Prospect

  • Always This:

    Sponsorship Opportunity

    Audience Prospect

    • Cause • Team • Event

    • 40 year old • High net worth • Mothers • Suburbs • 2+ kids • Prefer luxury cars

    • Luxury car sales • Goal is to sell 25

    cars this month

  • • The “general population” or “everyone” is code for “we don’t know our audience”

    • Gen pop = lowest value possible

    • Gen pop = requirement for a massive audience to extract value

    Finding Your Audience

  • • Do you value an asset for the same amount if your audience is students vs physicians?

    • B2B and VIP crowds are worth 200% - 1000% more than the general public (or more)

    • 50 attendees who control corporate budgets are worth so much more than a room full of high net worth people

    Why Audience Matters

  • “But we don’t have a big audience!”

  • “The rich is in the niches”

  • The solution is simple but counterintuitive: Stake out the smallest market you can imagine. This goes against everything you learned in capitalism school, but in fact, it's the simplest way to matter. When you have your eyes firmly focused on the minimum viable audience, you will double down on all the changes you seek to make. Your quality, your story and your impact will all get better.

    Source: sethgodin.typepad.com

    Don’t Take My Word For It…

  • 40 year old, high net worth moms, who live in suburban Chicago, with 2 or more kids who play baseball

    Now THIS is an Audience

  • 40 year old, high net worth moms, who live in suburban Chicago, with 2 or more kids who play baseball

    55 year old, partner track, corporate lawyers, who are responsible for bringing in new business and making purchasing decisions for their law firm

    Now THIS is an Audience

  • 40 year old, high net worth moms, who live in suburban Chicago, with 2 or more kids who play baseball

    55 year old, partner track, corporate lawyers, who are responsible for bringing in new business and making purchasing decisions for their law firm

    University of X grads, who studied X program, who in 5 years tend to work on Bay St in Toronto, making X salary, who buy houses in York Region and commute 2 hours daily

    Now THIS is an Audience

  • 40 year old, high net worth moms, who live in suburban Chicago, with 2 or more kids who play baseball

    55 year old, partner track, corporate lawyers, who are responsible for bringing in new business and making purchasing decisions for their law firm

    University of X grads, who studied X program, who in 5 years tend to work on Bay St in Toronto, making X salary, who buy houses in York Region and commute 2 hours daily

    Newly minted tradespeople who are trying to buy a house, work in X trade, need professional insurance, plan to spend $5000 on new tools

    Now THIS is an Audience

  • • 51% are aged 55 and older

    • 69% are female

    • 22% have participated in your event in the past 3 years

    • 27% make more than $150K/year

    • 76% have no children living at home (under the age of 18)

    • 21% bank with Royal Bank, 19% with TD, 17% with CIBC

    • 21% drive Toyota, 20% Ford, 18% Honda, 17% Chevrolet

    • 34% use Rogers, 23% Bell, 21% TELUS

    • 61% take 3 or more vacations per year (62% US, 30% Europe, 22% Caribbean, 61% Canada)

    • Respondents were most comfortable with pharma, retail and financial services as sponsors

    Now THIS is an Audience

  • In the Next 18 Months…

    • 36% will buy a new vehicle

    • 12% will switch banks

    • 10% will apply for a mortgage

    • 54% will renovate their home

    • 80% will stay in a hotel

    • 81% will buy airline tickets

    • 56% will buy insurance

    • 82% will book a vacation

  • When you know your audience…

    • Test drive a truck, free lift ticket

    • Tagged in sponsor’s database

    • 23 sales directly from this event

    • 23 X $30,000 = $690,000 in sales

    • Sponsor has no interest in “everyone” only their target customers

  • Case Study Alert!

    • Teaching students financial literacy

    • Do you think the big banks would be interested?

  • Case Study Alert!

    • $25,000 • Took a year to close • A dozen meetings and

    applications • Impact reporting and follow

    up • One year at a time • And then…

  • Then We found our REAL audience!

  • Our Volunteers!

    • Up and coming professionals • Controlled small budgets • Highly mobile, of interest to

    recruiters • Partner track, being groomed for

    leadership • 125 volunteers vs 10,000 students