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Make the Sponsorship Deal into a Business By Robert Villegas New Century Marketing Concepts Sponsors are becoming more sophisticated as they learn what works and what does not; all over the world, they are demanding more than just logo impressions on race day.  The idea is to leverage the relationship with the sports team or athlete in order to attract more customers and to strengthen their business relationships with suppliers and clients.  Toward this purpose, they look at every sponsorship property and try to project the value that the property will bring in return for the investment.  The days of throwing dollars down the competition abyss are over and a new day has dawned; a new day of expecting high sponsorship returns.  Sponsorships are becoming partnerships and the bottom line is not winning on-track finishes but bottom line dollar winnings. If you are having a difficult time getting a sponsor, it may be because you aren’t offering your prospects enough.  A cool driver and a cool car, even some television coverage, are sometimes not enough.  You may be competing well on the track, but you may be failing in the boardroom because your package is not coming up strong.  Some racers are pioneering a new way of bringing more value to their sponsors; and that is by making the sponsorship deal into a business. Joe Ladik and his 17-year old son Elliott are running the 2006 Suzuki Swift Cup at the Hungaroring F1 Grand Prix track in Hungary.  Elliott has received a lot of interest in Europe among the press and media – partly because he is Hungarian-American but also because he is extremely competitive.  Elliott and Joe have been doing the sponsor search and though Elliott is extremely marketable with an excellent future, it has been an uphill climb.  I consulted with Joe a few months back and we discussed a number of different ideas.  Joe was looking for ways to attract sponsorship for Elliott and we talked about going to work for a sponsor, in effect, starting with a sponsor as a business partner, offering to bring sales by becoming a factory rep or sales agent for the company.  For every sale gained for the sponsor, there would be a commission to the team. Why is a sales partnership a good approach?  First of all, what company is not interested in new business?  Secondly, if it works, great – if it doesn’t, there has been little lost.  Thirdly, it is great sales experience and gets you closer to the sponsor, makes you a more direct part of his business and teaches you how to represent the company from a business foundation.  Needless to say, if the sponsor can front some money to help the team compete that would be great but some companies are just too small to pay primary sponsorship.  But many companies are willing to invest in successful partnerships by giving back a percentage for money in hand.  And as the business grows and becomes a larger player in the sport, then a sponsorship deal could materialize. Before, you decide to present this idea to a potential sponsor, ask yourself a few questions: §         Is this a product you would enjoy selling? §         Do you have enough product knowledge from past experience with this product or similar products? §         Is this a product you feel comfortable endorsing? §         Are there opportunities to help in product development in real time situations such as racing? (This could result in a consulting or product development paycheck) §         If the product is successful through your efforts, might the team be willing to pay more in the future? §         Do you have business relationships with other companies that might be willing to purchase this company’s products for use or resale? Regarding the last question, you might want to contact these companies in advance to see if the product is indeed something in which they might be interested.  You may be able to work out a cooperative marketing agreement where they help you sell the product by providing good shelf positioning or they could introduce you to other associate companies that might be interested in the product.  There is nothing wrong with knowing in advance whether your commission deal will actually earn you a good commission. Joe and Elliott became a distributor of the SportVue product, and they use Elliott’s racing as a marketing tool that ultimately provides more visibility to SportVue, brings new business to the company and provides an opportunity for Elliott and Joe to determine how much commission they make.  SportVue makes wireless Helmet Mounted Displays that are useful for any form of competition that requires a helmet. It enables drivers and motorcycle riders to see lap times without taking their eyes off the track.   When other drivers see the SportVue on Elliott’s helmet, they ask what it is and how they can get one.  If you visit the SportVue website at http://www.sportvue.com/racing/LT1.php you are treated to stunning pictures of Elliott driving, his podium finishes and pictures of him wearing the SportVue device on his helmet.  In essence, selling SportVue products has become a business for Elliott and Joe that they develop and nurture; one that makes Elliott and his driving an asset for SportVue and provides additional marketing benefits that pay off in other ways.  Joe says, “The bottom line is: we are marketing a product and in return we are generating business. The SportVue product was mainly designed for street applications for motorcycle riders. The company developed a model that is now used for motor racing called the LT1 model. We just started with the marketing\advertising three months ago, and I have to say, we are generating a lot of interest due to Elliott’s racing.” Elliott’s team is run by Dominic Dobson, a well-known motorsport professional from Germany who lives in Seattle, Washington, USA.  Dominic has competed in seven consecutive Indy 500’s and earned the "Fastest Rookie in History" honors in 1988 at his first Indy 500.  As a businessman and motorsport professional, Dominic has been instrumental in Elliott’s racing career.  Check his website at http://dobsonmotorsport.com/. Now, as sales people for the SportVue product, Joe and Elliott are looking to expand their markets in Europe. Though motorsport will be their primary method of advertising, they are considering investing in other forms of advertising in order to spur awareness and interest in the product – as well as sales that will help pay for the racing effort. So in answer to the question, “How do I get a sponsor?” one answer is make the deal into a business. To learn how your company can support the career of Elliott Ladik, contact Robert Villegas New Century Marketing Concepts http://www.i-sponsor.com sponsorship123@aol.com 1-317-881-3826 USA About New Century Marketing Concepts New Century Marketing Concepts is a marketing consultancy firm specializing in helping sports teams develop sponsorship proposals, websites and communication materials.  The company also provides services for sponsors seeking to enhance their sports partnerships for better ROI.  Check http://www.insmkt.com/
We also provide other business services to help your company succeed such as Custom Content Creation, Search Engine Optimization, Banner and Web Design and Computer Based Training Products.  Check our testimonials below. Click Here to Learn about The Principles of Sport Sponsorship Call us at 317-881-3826 Have a Question?  Click here: Chat Live: Instant Message
Our clients say: "All of the organizations under the Tony Stewart umbrella place a great deal of emphasis on hard work, attention to detail, and customer service.  As such, we expect the same attributes from our partners and business relationships.  We recently engaged New Century Marketing Concepts to prepare our sponsorship presentation for Eldora Speedway and they far surpassed all expectations.  It was a pleasure working with a staff so accommodating to our tight time-tables and focused demands.  Robert worked diligently to deliver a final product that we are extremely proud to put on the desks of corporate America."                                                                     Brett Frood, COO of Tony Stewart Enterprises "Great business with unsurpassed people skills! After talking to New Century Marketing Concepts on the phone, I felt I had known them all my life.  They really know how to talk to people and have a ton of insight on marketing and how to help businesses get noticed!"                                                                                             - Website Owner   "After Working non stop on our Car for 5 years the time came to move to the next level.  After contacting a few Marketing Companies I found NCMC.  Soon after reading the qualifications and company background there was no doubt in my mind that this was the Company that I wanted to prepare us and help us to find a sponsor.  The services and attention that I received were second to none. Not only did I hire their services, I also feel that I made a new friend, I have all the confidence in the world that hiring NCMC was one of the best decisions that we have made."                                                                                              - Race Team   "When I first approached NCMC , I thought that they were just another Marketing firm that will throw together a portfolio for your team, and be done with you.  Boy was I wrong!!!!!!  They not only put together the best portfolio I have ever seen in my industry, but also set up my power point presentation that provided all the impactful numbers that will sell my program.  The graphics that were added to the presentation made it, hands down, one of the more professional looking documents that I have ever run across.  I was treated with the utmost respect, courtesy, and professionalism.  NCMC went out of their way to make sure I was satisfied with all of my materials.  This was the best investment to take my career to the next level!!!"                                              - Jimmy Ward - Professional BASS Fisherman                       "I am writing to inform you that I received $700,000 in grant money from the Louisiana Family Recovery Corps to provide summer camp tuition assistance to families in need post Hurricanes Katrina and Rita.  Your work on the grant proposal to the LFRC was the primary reason my company received the award.  You have an incredible way of taking thoughts and ideas and putting them into a meaningful, organized, and clear document.  I thank you for all of your hard work.                                                                                             M. Bazile - Kidcam     EMAIL US ©2006 New Century Marketing Concepts 1243 Priority Place Indianapolis, IN 46227   [ Business Resources ] [ Helping Racers Race ] [ Contact Us ] [ Pricing Guidelines ]