SECURING MO ’MONEY Building Proposals that...

Monday March 30, 2015

SECURING MOSECURING MO’’ MONEYMONEY

Building Proposals that Sell

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Staying connected in the session

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#partnershipgrp

#sec2015

BRENT BAROOTESPresident and CEO

Toll Free: 888-588-9550

Email:

[email protected]

March 30 2015

4

Session Agenda

� Industry trending and background

� Defining the proposal and its importance

� Essentials of a sponsorship package

� Building the package

� Wrap-Up

Get Inspired -Get Insight

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THANKS TO ALL OUR SPONSORS

Copies available throughout today and tomorrow with 10% going to Rotary projects

Three Studies

1. 2014 Canadian Sponsorship Landscape Study

2. 2014 Consumer Sponsorship Rankings

3. 2014 Canadian Youth Sports Report


Get IN!CANADIAN SPONSORSHIP LANDSCAPE STUDY 2014

• Ohio University – Norm O’Reilly

• Sponsorship Marketing Council of Canada

• TrojanOne

• Canadian Sponsorship Forum


Get IN!•Since 2006 the industry has grown over 60%

•Now $1.78 billion – 18% to Amateur Sport

•16% is spent on local sponsorships

•75% of decisions come from Marketing and Communications Departments

•29% of brands marketing budgets last year were spent in sponsorship and experiential marketing


Get IN!CANADIAN SPONSORSHIP LANDSCAPE STUDY

• From the property side reporting –sponsorships ranged from $2K to $2.1M

• Average largest sponsorship to the properties was $178,000

• Average overall was $45,000 per agreement

@SMCC_CCC

#SMCCBF

Research Secrets – The Why and How Behind Sponsorship2014 Consumer Sponsorship Rankings

Canada’s Foremost Consumer


Get IN!2014 CONSUMER SPONSORSHIP RANKINGS

(CSR 2014)

• Study conducted in April / May 2014

• 2005 completed interviews

• 12-15 minute average interview

• English and French

• National representation (age, province, gender)

• +/- 2.2% at the 95% confidence level

MOST ACTIVE SPONSORS IN CANADA

TOP PERCEIVED SPONSOR BY INDUSTRY

INDUSTRY RANKINGSTOP SPONSORS – INSURANCE COMPANIES

Manulife scored highest in Ontario, and slightly higher with those with HHI over $100K

INDUSTRY RANKINGSTOP SPONSORS – MEDIA COMPANIES

Rogers scored highest in Ontario (almost nothing in Quebec), and with those aged 30-49

INDUSTRY RANKINGSTOP SPONSORS – TRAVEL COMPANIES & AIRLINES

Air Canada was the top travel sponsor across all demographic breaks and scored highest in Ontario

and Quebec

WHO SHOULD SEEK SPONSORSHIP?

% of people who believe the following entities should seek corporate sponsorship as a source of revenue

2014 CANADIAN YOUTH SPORT REPORT


Get IN!


Get IN!Canadian Youth Sport Report

Really important, 84% of the parents interviewed could name at least 1 brand associated to sport

Defining Proposals

Definition

� The ask

� The recap

� The overview

� The investment

� The legal

� The partnership

Definition

& The Importance of “The Proposal”

� The list of benefits and assets

� The summation of all that has come before

� The blueprint for fulfillment and activation

� Can be “passed up the ladder” to be sold

� Can be leveraged in-house where necessary

� The insurance if people change

Traditional Proposals

� Handshake and try to recall

� Document about you and why you needmoney and an ask “the warm and fuzzy appeal document”

� Letter of agreement / donation letter

� Stock produced glossy package with folder

� Gold – Silver – Bronze “packages”

� Direct Mail / Email blitz version

Customized Proposals

Why customize:

� BMO deluge

� Pepsi vs. Coke with

Canada Games

� Are Reitman’s and

RONA looking for the

same benefits?

� Semi template

� Save on printing costs and

design

Customized Proposals

Why customize:

� Deliver what the sponsor needs in the budget they have to spend – what if they have $7,500 and your packages are $5000 and $10,000?

� Feels like a partnership and they appreciate the personalization

Proposal Contents

What You Have To Sell

� Are you aware of what you have to sell?

� Do you have an inventory of assets?

� Your benefits must be “beneficial”

� Select the appropriate benefits that will

assist the sponsor in achieving their goals

� Define how each will actually benefit

the sponsor

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Can you build a proposal for $20,000 or $2,000 of real value and show them how this will deliver better results for the $20,000 or $2,000 than what they are spending on TV, radio, out of home, newspaper?

What You Have To Sell – Bundling or Packaging

� Often sponsors do not know what they need or what you have so they go to the lowest common denominator… less dollars

� You know your property (hopefully) better than anyone and can bundle the right inventory items to meet the sponsor’s objectives

What You Have To Sell

� Selling “a la carte”

� If you do this you minimize your revenue

� Sponsors often do not see tangible results – you are selling a product, not being a “partner”

� You sell product for its market value though you might / or should get more money for it (through tiered inventory for bundling)


Get IN!GAME CHANGERS

Proposal Contents

Discovery Sessions

�What are they?

� Meetings with prospect

� Must determine needs, budget and objectives

� Build the relationship

Proposal Contents

Discovery Sessions

�Why are they essential to building a proposal

� You cannot customize without a discovery

� Takes longer but gives you better success short and long term

Building the Proposal

� Cover Page – What goes here?

� Your logo

� Their logo

� Title of proposal

� Presented to

� Presented by

� Date presented

Table of Contents

� Pretty basic

� Outline what is included in the documentby page number

� Make it neat and clean

� Not essential but suggested

Proposal Contents

About You…The Sponsor

�This is the first page of your proposal (after cover/table of contents)

�It is all about them

�Everything you learned about them in the discovery

�Essential section, focus on them

�May be several pages long

About You…The Sponsor

� Talk about their objectives, their reasons for interest

� Discuss how you propose in general terms how to achieve these goals

� Outline budgets figures

� They are the focus!

About You… The Property - Seller

� This is one page about you



� Understand, overall it is NOT about you…it is about the sponsor

About You… The Property - Seller

� Cover off how you have customized this program for them based on the area you are presenting

� Must be customized to outline what they receive

� Remember – one page

� Each benefit should be extrapolated upon as to why it will benefit them…why do they want this benefit… coach them

The Offer of Benefits

Should be grouped if possible into benefit groups such as:

� Hospitality

� At event

� Outside of event

� Employee engagement

� Media exposure

� Unique benefits

� Signage

� Tickets

The Offer of Benefits

� Should be numbered for ease of reference

� Start and end with hot button benefits

� Be explicit about what they get with the benefit and what they don’t (activation costs such as they must produce the banners to your specs, food and beverage is above and beyond etc.)

The Investment

� The total value of the bundled list of benefits should be shown…this package is worth $27,256.97

� The investment should be 85% (rounded) of the value… your investment is $23,200.00 + GST

� Note the GST element

� Why 85% of value?

The Legal and Closing

� Important to have a sign off section

� To be legal and binding, both need to sign

� This is your security


� If you have a lawyer, consult with them, possible use a sponsorship specific lawyer

� Make sure the value and the investment are clear

� Review the format we sometimes recommend


� Include terms of payment such as:

� Total amount paid annually on March 1

� Equal monthly payments

� Staggered payment schedule

Value Added Elements

Glitz and glamour…

� on site

� “dressing room”

� celebrities

� mocked up signage

� pizza box presentation

Wrap Up

The 10 Take Aways

1. Know what you have to sell

2. Know the value of your assets

3. Ensure a discovery session is done prior

4. Customize the proposal

Wrap Up

The 10 Take Aways

5. Do not sell / pitch a stock package

6. Make the proposal about the sponsor not about your organization

7. Ensure the benefits you offer will assist them to meet their goals, not yours

Wrap Up

The 10 Take Aways

8. Show the value in dollars and the investment

in dollars

9. Ensure it is detailed and covers all

parties legally

10.Deliver in format the sponsor needs/wants


Get IN!

THANKS TO ALL OUR SPONSORS

Copies - $45 online… today:

$25 cash copies from me during SEC 2015 while supplies last

Questions?

Thank you!

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