I get asked a lot why sponsor valuations are so important. In one word, CONFIDENCE. In fact, most people who take my workshop tell me that it is the #1 benefit of having a formal, trusted valuation process.
A properly valuated property gives you confidence when you walk in to meet with a prospect, your pricing structure is in line with the marketplace and what it will bear. A prospect will undoubtedly compare your offering against other opportunities in the market and to ensure they feel confident that your sponsorship is priced fairly and provides great value for the dollar.
A properly valuated property also gives you the confidence to explain your value proposition and those elements that impact your pricing structure such as the value of exposures and visibility, the intangible value, and the activation components that make it unique.
Finally, when you know what your benefits (assets) are worth, you can mix and match sponsor deliverables easily and negotiate effective pricing based on what is included in the sponsor package. Additionally, when you provide that final benefit (s) to make the deal, you will know its value in the marketplace.
When I started in this business over 20 years ago, I used to do what 90% in the industry did; I guessed or had artificial targets imposed on me because they “sounded good”. Little did I know that I was setting myself up for failure!
Now that I know that there is a rationale for pricing, I am notably more successful in securing sponsorship dollars, whether it be for a naming of a community recreation facility or a once-a-year event. In other words, I am CONFIDENT that what I am putting before a sponsor is practical and demonstrates good value for the dollar. This process has helped me raise over $3 million in sponsorship this year alone!
At the Taking the Guesswork out of Sponsorship workshop (October 19, Ottawa) or the Sponsorship Boot Camp (October 24, Toronto), you will learn the basics behind the successful valuation of sponsor properties and how you can eliminate much of the guesswork. It’s not too late to register for these useful workshops. It will be more than worth the investment.