The sponsorship fee represents a small portion of the overall sponsorship expenditure.
Each company is different, but understanding the budgeting process is essential to creating viable contracts.
In addition to the fee, companies often invest in activation and promotion through traditional or digital media, hospitality, internal initiatives and contingencies.
The fee is the foundation for building a narrative through activation, which will be amplified with media.
Good teamwork leads to designing rights that allow savings on activation or media budgets.
For example, events for the sponsor’s clients or content integrations into media partners’ channels.
In particular, exclusive rights are what distinguish a good contract from an average one.
In addition to growing the business, sponsors also have budget goals.
Developing this skill is important to have greater chances of success in negotiations.
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