Funding - times are changing and we need to keep up

Recently news.com published an article about how a Corporate Deal Sees War Memorial Last Post Ceremony Sponsored. The article seems to be somewhat negative about the idea of companies supporting the War Memorial Last Post ceremony - favouring instead Federal Government funding. It seems to assume that the sponsors will "festoon the Australian War Memorial with logos". This seems a very narrow view that assumes a lack of consideration and respect by sponsors. Surely it would be logical to believe that a sponsor will publise its support of these kind of institutions in a manner that will not offend (otherwise it negates the purpose of the sponsorship).

I would suggest that the author of this article is living in the past and still believes that the national government will not only fund war memorials but also his pension. I'm here to tell you that times have changed and the goverment does not have endless funding. It is imperative that organisations wanting to secure their long term future look to private funding initiatives such as sponsorship.

What I also found interesting is that the article states that more than 87 companies including Qantas, Coles Myer, Commonwealth Bank, ANZ, News Limited, BHP, Boeing, Rio Tinto, Fosters and Telstra sponsor galleries and other displays at the national memorial in Canberra. They even quoted that the eternal flame is brought to visitors by the Australian Gas Association under a $50,000 deal. This suggests that there are still sponsorship funds to support these kind of institutions - but as always these will only be acquired and retained by those organisations who can provide value to their sponsors.

Why your sponsorships aren't selling

Sponsorship is hot right now - for those who are providing real value to their sponsors. If your sponsorships aren't selling following could be some of the reasons why:

• The Economic Downturn - Sponsors are still out there. But the economic climate means they are looking at proposals carefully to judge the return they are getting. Are you delivering a real return back to your sponsors?
• Wrong focus - Your proposals should NOT be about what the sponsorship income will help your organisation achieve. They should be about how sponsoring your organisation will help the sponsor achieve their objectives. Trying to guilt the sponsor into partnering with your organisation will only offend.
• All those other organisations competing for the same sponsorship dollar - There are a lot of organisations out there competing for sponsorship income. Competition is part of this industry. Get to work on ensuring that you deliver better value than the rest.
• Too much time in the office - Building relationships is an integral part of generating sponsorship. If you aren't out there networking and engaging with your existing and prospective sponsors then you are creating opportunites for your competitors to get the edge. Get out there!

Feel free to add any other reasons in the comments below.

How to acquire multiple high-value, long-term sponsors

Sending out mass emails for sponsors doesn't work. If you are serious about gaining and retaining long-term, high-value sponsors you can do so far more easily and cheaply through following this simple proven process:

1. Identify which industries you wish to seek sponsors - think about the people who would like to contact your members. Be creative.
2. Select the top three organisations in those industries you would like to partner with.
3. Identify who you need to talk to inside each of those organisations.
4. Identify the outcomes each organisation would be looking to achieve from partnering with your organisation (annual reports are great for this!).
5. Call the contact within each organisation and say "We've identified you as a key player in our industry. Our newly developed products have been designed to make you more successful. If we send a proposal through will you take the time to read it?" Generally about 80% of people will agree to read the proposal. Remember you aren't selling sponsorship on the phone (you wouldn't buy a new car on the phone). The purpose of this process is to get the meeting.
6. Produce a high quality proposal tailored specifically to their needs which demonstrates how you can help them achieve their outcomes. Send it through within three days of them agreeing to recieve the proposal.
7. Call them 7-10 days after sending in the proposal. Ask if they have any questions and if you can come in to discuss the proposal. If you get the meeting you know they are keen. It then comes down to negotiating the details.

We know this process works because we use it every day to generate sponsorship income for our clients in Australia, New Zealand and Europe. If you would like more information on how we can assist you please email me on julian@membershipsolutions.net.au or give me a call on +61 (0) 401 648 533.

Tips for those sending "Request For Proposals"

Elizabeth Weaver has put up an excellent post giving guidance on how to put together a good "request for proposal". Well worth a read if you are looking to maximise the effectiveness of this process ... read more.

Sponsorship Spending On Causes To Total $1.55 Billion In 2009

An interesting report has been released from IEG has shown that North American companies are expected to spend a total of $1.55 billion on cause partnerships in 2009. This is a 2.2 percent increase from the $1.52 billion invested in those programs in 2008. They also found that some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest. ... read more.

No longer sponsored by GM

Wow ... in the U.S. GM Motors was allowed to abruptly cancel 54 sponsorship contracts worth tens of millions (possibly more). While it was a necessary cost cutting measure it will make people very wary about dealing with them in the future. I'd certainly be asking for the money upfront! ... read more.

New research on the effectiveness of sponsorship

The Nielsen Global Online Consumer Survey research has been released and showed that 64% of consumers "completely" or "somewhat" trust sponsorship as a form of advertising. This is the fastest growing in trust as it is up from 49% only two years ago. Sponsorship was ranked ahead of traditional, mobile and digital advertising. The only medium ahead of sponsorship was brand Web sites (70% found trustworthy). Inerestingly 70% of people trusted opinions they read online. The basic result - that consumers trust real friends and virtual strangers the most. How does this impact on your marketing?

Member boycott of event due to drug company sponsorship

This was very interesting. The association seeks to provide a better conference by getting drug companies as sponsors. Some members boycott as they have concerns about pharmaceutical company sponsorship. It puts the poor association in a really tough position. Personally, I think the boycotting members should understand that, whether the drug companies sponsor or not, it will still be up them whether or not they choose to use the drug. Read the full article here. What do you think? There has been some discussion about this already on the Membership Solutions LinkedIn Group. Click here to read what's been said.