Oooo! The next "this will save rally" is almost here!
Posted by Anders Green
Banned Professional Moderator Location: Calgary, AB Join Date: 03/27/2009 Age: Ancient Posts: 1,798 Rally Car: (ex)86 RX-7(built), (ex)2.5RS (bought) |
It is a paraphrase of what you said. That happens sometimes when you agree with someone. Six figures, but that's for a series not for individual teams. I've helped teams get low 5 or high 4 figure deals. In all of those cases there were costs associated with getting the sponsorships. In the case of the team, it meant having the car in car shows and at a company function or two. 'ROI' is much more of a nonsense word than 'value' is. What is really important is figuring out how the prospective sponsor measures their return and make sure you deliver better than promised in that measure. The only way that happens is by talking to your prospects and asking what is important to them before you put the deals together. Not all pie is the same. For example, take me as a potential Pie buyer. If the hypothetical you offered me two of the best Pecan Pies ever made for the same cost as one mediocre apple pie, I wouldn't accept and I'd probably ask them to take their pies and leave. Truth is I'd spend money for a mediocre apple pie before taking a free piece of the best pecan pie ever made. But, I'm deathly allergic to nuts. I'd probably have bought an apple pie from you after some discussion about what was in it. (hint, if you don't know if there are or aren't nuts in the pie answer I'm not buying. If you lie and say there isn't when there really is, I'll find out the hard way.) That's the long way of saying there is no standard measure of ROI in the real world and what is measured will change from project to project. Success comes from having the discussion with the sponsor about what they want and how they measure success of the program. First Rally: 2001 Driver (7), Co-Driver (44) Drivers (16) Clerk (10), Official (7), Volunteer (4) Cars Built (1), Engines Built (0) Cages Built (0) Last Updated, January 4, 2015 
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Tim Patrick Mega Moderator Location: Raleigh, NC Join Date: 01/26/2011 Age: Midlife Crisis Posts: 175 Rally Car: Galant VR-4 |
Banned Professional Moderator Location: Calgary, AB Join Date: 03/27/2009 Age: Ancient Posts: 1,798 Rally Car: (ex)86 RX-7(built), (ex)2.5RS (bought) |
Sponsorships are far from simple, and not knowing the business you're in it is hard for me to draw meaningful hypothetical comparisons. But... You've got a staff member who races at the local circle track and he's struggling to get the car out to the events. He comes to you and says 'can you help me with my entry fee or my fuel costs' and because he works hard for you and is a good employee you say 'sure, if you put the company name on the car.' You cut the cheque, put it in the accounts as promotional spend, so it comes off your books before tax and the $500 sponsorship is really only $300 (or whatever you'd get after taxes.) Or... You are a distributor for a product and one of the retailers you sell to comes to you looking for sponsorship. You know that he races in the woods with no series exposure and the spectators aren't they type of people who would buy your product. But, you pay his entry fees for the season - about 20% of what you net from him - if he hosts a day at his store where he shows off the car re branded with your logo prominently on it and features your products on display. Truth is, you probably don't even care if the car has your logo on it at events. If 'Some Guy' walked through the door and offered either deal you'd probably tell him to take a hike. First Rally: 2001 Driver (7), Co-Driver (44) Drivers (16) Clerk (10), Official (7), Volunteer (4) Cars Built (1), Engines Built (0) Cages Built (0) Last Updated, January 4, 2015
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Banned Professional Moderator Location: Calgary, AB Join Date: 03/27/2009 Age: Ancient Posts: 1,798 Rally Car: (ex)86 RX-7(built), (ex)2.5RS (bought) |
Kinda. The point of what I was saying was much more that most rally sponsor deals wouldn't fly on their own merit and rely on a personal connection to get them together. The bigger the deal, the more legit it needs to be but even the biggest deals come together with some 'history' and good will. First Rally: 2001 Driver (7), Co-Driver (44) Drivers (16) Clerk (10), Official (7), Volunteer (4) Cars Built (1), Engines Built (0) Cages Built (0) Last Updated, January 4, 2015
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I like to think of ROI as "cute pictures of kittens" that way SMALLER kittens have even MORE ROI to me.
 Grassroots rally. It's what I think about. |
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