Writing a Sponsor Proposal: STOP Nickel and Diming Customers, Start Using Marketing Units

I've seen a lot of proposals come my way and they tend to nickel and dime customers. So, for example, they state that sponsoring the team and branding the equipment and such will cost $20M... as an example. Then, in the same proposal, these people have the nerve to say if the customer wants more they have to pay x for this and y for that. Don't Nickel and Dime. Do something like this instead

• Base Sponsorship - $22M
• Includes
• Car branding
• Trailer branding
• Driver branding
• Merchandise branding
• etc. etc. etc.
• 300 Marketing units (This is the great part)
• Packages available with additional units
• Same package with 500 units - $24 M
• Same package with 750 unites - $26 M
• UPGRADES NOT AVAILABLE

Marketing units take the place of dollars. Instead of charging them a separate amount for each thing they want to do, commit to doing some things right up front. Give them a list of things that you can do and how much they will cost in marketing units. Whatever their sponsorship level, they can use their units however they want to develop programs that meet their needs. For example,

• Car on site - 20 units
• Driver autograph session - 4 units
• 12 standard racing tickets - 4-6 units depending on track
• 6 VIP tickets - 10 units
• etc. etc.

You get the idea. This accomplishes a couple of things. Marketing units gives the customers flexibility. They also mean no nickel and  diming. They also are a way for teams to make even more money because the dollar value of each item isn't based on the cost to the team but rather the value to the customer. So, as an example, it might cost $5,000 for the driver to go out to an autograph session. But, to the customer, that is worth $50,000 because of the value they get from it ( e.g. they land 1 deal at that autograph signing worth $1M... then that session was valued at $1M... funny huh). Anyway, it makes negotiation easier. Customers don't like having to go back to the well every time they want to do something. They'd rather pay up front and have a balance to work with. It gives you and them incentive to use those marketing units so that they see the value of the sponsorship and so that you can get them to sponsor at a higher value the next year.

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Vinny Sosa