7+ Ways Your Startup Benefits from Sponsorships
Last Updated on December 25, 2022 by Selina Parker
Finding sponsorship opportunities can be difficult, but you have a competitive advantage if your company is a startup. Many large companies are willing to reach out and sponsor events, depending on your startup’s industry, and the sponsorship benefits your startup can get are immense.
Knowing the appropriate event sponsorship strategy will allow your startup to find sponsorship opportunities that will create the most significant return on investment for your company.
What is sponsorship?
Event sponsorship is affinity marketing that provides the buyer, or “sponsor,” with certain privileges and perks. It’s usually linked to a facility, venue, personality, or event.
It is more than just seeing the logo on the shirt of the person wearing it or the target audience. It is part of the sponsor company’s marketing strategies to have a mutually beneficial relationship between the sponsor and the sponsored party.
What are the benefits of sponsorship to your startup?
Promotional materials
Some sponsors donate materials and merchandise to the sponsored party. It can include signage, banners, product samples, giveaways, and other promotional materials.
It is an excellent way for an intelligent event sponsor to get free advertising for their company. You can put the sponsor’s logo on all donated materials and hand them out at events. The more exposure the sponsor gets, the more likely they will continue sponsorship.
Event and facility naming rights
It is a big one. Sponsors can often get their name on the event or the venue in which it’s taking place. This type of sponsorship gives your startup some serious credibility. It also allows the sponsor to develop business relationships with people who attend the event.
Access to resources
Many sponsors offer access to their resources as part of sponsorship deals. It can include things such as marketing, technical, or financial resources. Business sponsorships can be a massive help to your startup. It’s like getting free consulting from some of the best in the business.
Employment opportunities
Some sponsors offer employment opportunities to the sponsored party. It can include internships, apprenticeships, and full-time jobs.
It is beneficial, so your startup’s employees have some excellent experience. It also allows the sponsor to see how the employees work and interact with others. If things go well, they may be more likely to offer something more in the future.
Event planning and organization
Sponsors often help with event planning and organization. They can provide their expertise and resources to ensure that your event goes off without a hitch.
It is a great way to take some stress off your plate. It’s also a good opportunity for the sponsor to see how well your team works under pressure.
Media and PR exposure
Sponsors often provide media and PR exposure for the sponsored party. It can include interviews, articles, blog posts, social media posts, etc.
It is an advantage to get your startup in front of a larger audience, and it also helps to build credibility for your startup.
Reduced costs
Sponsorship can often lead to reduced costs for the sponsored party. Because you do not shoulder all of the event costs on your own, you can save a lot.
Keep your startup’s budget in check with sponsorship. It also allows you to put more money towards other things, such as marketing or product development.
Hospitality
It could be breakfast, lunch, or dinner in a private setting. It can also include VIP tickets and special parking at events or access to exclusive sponsorship discounts.
It could be the difference between having an event where people come to the event. If your startup hosts an event for potential clients, you should take advantage of this.
What do sponsors get in return for event sponsorships?
Sponsorship is a business, and the sponsors are likely expecting to get something in return for their sponsorship. What do they want? Does your event match their target market?
Increase brand awareness
Sponsorship is part of their marketing plan. Hence it is for brands to get their products and services seen. Instead of paying for social media marketing to build brand awareness, the sponsor will pay for sponsorship and get the exposure they need.
The audience will see their company at the events and venues attached to their sponsorship. They’ll also get mentions through any media exposure the sponsored party gets.
Drives sales and leads
The main goal of marketing, sponsorship or not, is always to drive leads and sales for a company.
Sponsorship sales mean they’re looking to have people attend that event and learn about their product or service. They’re also looking for people to remember their company long after the sponsorship is over and will eventually make a purchase.
Support a good cause
Many sponsors support good causes in community events as part of their sponsorship deals. It can be anything from donating money to a charity to helping out with an event that benefits a good cause.
It is an excellent way for the sponsor to show their community involvement. It also helps to build goodwill for the company.
Access to new markets
Sponsors often get access to new markets through sponsorship deals. It can be getting new customers or clients or expanding into new areas.
It is a massive advantage for the sponsor. It can help them to grow their business and reach new heights.
Build positive market perception
The audience will see them positively at sponsorship events, venues, and media coverage.
The sponsor will get mentions in articles about sponsorship deals or similar topics. The audience will perceive them as someone who supports their community through sponsorship. It makes them look good to others in the industry too.
Showcase products for trial use
They can showcase their products and services for trial use at sponsorship events.
It is an excellent opportunity for the sponsor to get feedback from potential customers about how they liked the product or service. It’s also a way to show off what they have to offer.
Final Words
Sponsors need you as much as you need them, so develop an airtight event strategy when negotiating with sponsors.
Taking the time to find sponsors and putting together sponsorship proposals can be tricky, but it’s well worth your time for all of the benefits you get from sponsorship. Try this strategy today and see what sponsorship opportunities you can find for your startup.
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“What began as a life and career coaching services company to aide entrepreneurs through the early-stage challenges and tough transformations of starting a social venture has evolved over the years to include mergers and acquisitions, organizational consulting, and business growth advisory services to mission-driven organizations that strive to improve access to basic physiological, safety, and security needs while increasing their profit margin. Clients include founders and organizations with the purpose of addressing deficiencies in delivering quality healthcare and mental health services, sufficient employment, access to clean water and air, safe shelter, adequate food, and more.”
