Template for Sponsorship Partnership Success

Relationships can be complicated; that goes for sponsorship partnerships too. As I have sat on both sides of the desk and have represented properties and sponsors, I have a unique perspective and know what it takes to close mutually beneficial partnerships. This article provides a step-by-step plan for properties, regardless if you are a charity, non-profit, event, etc. to build mutually beneficial and long-lasting relationships.

Before I jump into the process I will provide an overview of philanthropy versus sponsorship as, unfortunately, there is still confusion in the industry. From my experience, the confusion does not always lie with the property, but is often due to lack of clarity regarding what the partner is hoping to gain from the partnership. Regardless of the source of confusion, it’s your job as the property to figure it out!

Philanthropy is a gift with no expectation of anything in return other than a feeling of ‘doing good’. Donors invest in philanthropy based on the cause and want an organization to achieve its stated outcomes. Philanthropic gifts are CRA compliant and a donation receipt is provided.

Sponsorship, on the other hand, is a cash or in-kind fee paid in return for the marketing and/or business potential association with property. This can come in the form of access to a target audience, media coverage, experiential opportunities, etc.

In my experience, there are often varying degrees to where partners sit on the philanthropy-sponsorship continuum. In fact, some companies have more than one channel to access funding. As I mentioned, it’s your job as the property to figure it out and build a partnership that allows the partner to achieve their unique objectives. 

While there are elements of this process that will work for philanthropic relationships, the focus of the article is on sponsorship relationships. Let’s begin.

Step 1: Research

This step takes place before you meet with a prospective partner and is crucial in prospecting new partners or prepping for a discovery meeting, which we will cover in step 3. To conduct research you will be searching for information gained from various sources, including a company’s website and social media, your personal network, events, or a competitors website and social media.

In this step, you are looking to gain a baseline understanding of the prospective partner, their strategy and the types of initiatives and organizations they support. You will want to document the information you collect, including:

• Focus, pillars and alignment with your organization
• Typical benefits and rights they may be interested in
• Examples of existing partnerships
• Key contacts

Step 2: Establish Alignment

This next step requires introspection. There is no point continuing to pursue a relationship if you do not believe there is an opportunity for a mutually beneficial relationship. For example, if you are a religious-based organization and the partner’s website explicitly states they do not support religious-based organizations, it is “game over”. On the other hand, you may not yet have enough information about the prospective partner to decide if a relationship is possible. 

This step requires processing and brainstorming, which you do not need to do alone. This is the perfect opportunity to reach out to others in your organization that has intimate knowledge of your programs, events, etc. Often, internal partners are the best source of ideas! This step is particularly important if you have already booked a discovery meeting with a prospective partner. 

In the same place you documented your research, outline a few ideas that you believe, based on what you know about the partner today, could create opportunities for continued discussions in the future. This will include programs and events you run, as well as ideas for rights and benefits they could receive.

Step 3: Discovery Meeting(s)

Like a date in intimate personal relationships, the discovery meeting (or date) is intended to identify if a partnership (marriage) is even possible.

Remember that depending on the partner, they may get hundreds and sometimes thousands of requests each year. If you are lucky enough to secure a discovery meeting, you need to be prepared!

At the discovery meeting, you will want to demonstrate that you did your research. For a prospective partner, there is nothing worse than wasting time answering questions about information that is easily obtained on their corporate website! Even worse is presenting the partner with a hasty proposal during a discovery meeting. Would you propose marriage on a first date?? Likely not!! Do not - I repeat, do not - present a partner with a proposal at a discovery meeting.

Instead, use this meeting to expand upon information you have already obtained in hopes of establishing a relationship. You will want to use probing questions like:

• Tell me a little more about your sponsorship focus and pillars. I read on your website…
• I read you recently sponsored X event. Tell me how that partnership aligns with your focus/pillars.
• In your opinion, what is your most successful sponsorship?

This is also your opportunity to tell the prospective partner about your organization, your partnership philosophy and demonstrate alignment between your organizations. (Remember, those are the ideas you captured in step 2)! Use these types of phrases:

• At “ABC”, we believe in creating mutually beneficial relationships. An example of that is…
• The reason why I reached is because we align nicely with your “XYZ” pillar, for these reasons…
• I’ve had this idea and I’ve been in search of the right partner...

Just like in a personal relationship, there are three possible outcomes at the end of a discovery meeting:

1. Continued courtship, which may mean another discovery meeting to continue the discussion; 
2. Break-up, one or both parties have decided there is no use continuing. This could be because the partner has no budget or does not see a partnership transpiring in the near future; or 
3. Proposal - congrats you may move to step 4!

Both parties need to be on the same page, and it is your job to establish next steps. For example, you may want to close with:

• It was really great to meet you and learn more about your organization and partnership strategy. If you agree, I’d like to go away, think about some of the things we discussed and come back with some additional ideas to share with you? What do you think?

Step 3 is complicated, so here’s a quick summary:

• Whether in person or on the phone, arrive prepared for the discovery meeting, and be on time!
• Demonstrate you have done your research
• Tell them about your organization and weave in ideas of alignment
• Give examples of similar partnerships and show your creativity 
• Secure the next meeting!

Step 4: (Draft) Proposal(s)

Congratulations on making it to step 4: the proposal! It’s now time to put pen to paper and draft a partnership proposal, outlining the potential partnership, including rights and benefits, etc. that were discussed over the course of the discovery meeting(s).

If you were lucky enough to attend the Western Sponsorship Congress in December 2019, you would have received my proposal template. If not, reach out to me and I’d be happy to send it to you! 

There are a few ways you can present the draft proposal, but ideally you will present it in person or over the phone. This way you have the partner’s undivided attention and there is opportunity for discussion. Even at this point, the relationship is still a courtship and there is room for negotiation. 

The partner may like parts of your proposal, but not others. They may also have other ideas or requirements that need to be incorporated. It also depends on who is in the meeting. Oftentimes, the partner may still need to ‘sell’ the partnership internally to get final approval, so anything you can do to support them will be beneficial.

Once both parties are happy with the details of the proposal, a contract will be drawn up, reviewed by legal and signed by both parties.

Step 5: The Partnership

Congratulations, all your hard work has paid off and you have a new partnership in execution! While this can be an exciting time, the real work has just started! Like any relationship, maintaining and nurturing a relationship is more important than the courting that led to the marriage. Fulfilling, activating, and reporting on sponsorship is a huge topic in itself, and is for another day.

Conclusion

Remember, this process is rarely linear and depending on the partnership, you may spend 6-12 month or longer in the discovery meeting phase before you are ready to proceed with a partnership. Do not get discouraged and stay the course. When that contract finally gets signed, you will have a partnership that will last for many years.

This process has worked well for me, but I am always open to hearing from others too. If you have additional information to share, please send me a message, I’d love to chat!