Foolproof tactics to monetise your sponsorship strategy
Guest Blogger | 14 October 2013 | Blogs
Twenty odd years in the not for profit, association and conference sectors have taught me many things, and there’s one truth out there that sticks with me more than any other: In the modern world, not for profits need to commercialise in order to survive.
However, that’s a philosophy that can sit uncomfortably with not for profits and charities in particular. Understandably so. Tight regulations, public accountability and supporter perceptions can cause charities to shy away from commercialisation. Why? Because commercialisation implies the adoption of accepted for profit practices.
In fact, there doesn’t have to be a conflict here. Ultimately, if survival depends on commercialisation (and in my experience, in a competitive and crowded market, this is a no-brainer), then not only should not for profits embrace appropriate monetisation opportunities, they should pro-actively implement them with the end game in mind. Fundamentally, that end game is the survival and growth of the organisation, which translates to maintained and expanded delivery of services and benefits to members or beneficiaries. That’s important, so let’s take it seriously.
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Sponsorship: It’s a multi-faceted opportunity
Especially when monetising events, AGMs and conferences, traditional sponsorship is an obvious revenue source. But there’s a brave new world out there packed full of new demands and new expectations. So it’s important to be creative about driving sponsorship revenue and creating new revenue streams.
Think carefully about what you can offer as a not for profit. You offer credibility by association. You offer access to new targets. You offer new avenues to channel the sponsor’s brand. You offer potential, but in order to hook your sponsors you need to express and harness that potential comprehensively.
So you need to take a detailed look at your own market, your online and offline market presence, what your members or supporters are interested in, what services they need, and align them with the sponsorship offer. You can find specific ideas for revenue streams here.
Commercialisation starts with the right attitude
Before you jump into negotiations with sponsors, though, it’s important to get your overall approach spot on. It’s not just about getting out there and asking (although of course that’s vital). The best commercial strategies are built on good business practice and long lasting, mutually beneficial relationships. That means delivering exemplary service from day one. And that means planning a sound strategy in advance.
By a sound strategy, I mean a strategy that enables you to:
• Understand your organisation from the inside out
• Make plans that are specific, manageable, measurable and deliverable, backed up with realistic financials
• Implement the plans with efficiency and a best practice approach
• Analyse and measure the results and apply the lessons learned.
The process is important, but the attitude is equally as vital. In my experience, those not for profits that are highly effective behave in certain ways. They’re ambitious, disciplined, pro-active, and always act with the end game in mind. They accept the importance of commercialisation in their survival and growth and they embrace that approach with their heads held high.
I recently adapted a detailed model illustrating this concept of developing highly effective habits to drive commercial success. You can see the model in action here, adapted from an original model by Steve Covey for which I thank him. Take a look… get inspired, get out there and grab the opportunities with both hands.
For more resources and advice in this area visit www.michaelforeman.co.uk, where you can explore resources and thought leadership articles and contact Michael directly.
Michael Foreman is an independent specialist working with association boards and executives as well as conference stakeholders in a cross industry context. He has extensive expertise in every aspect of conference management from registration through to industry sales, systems implementation, business development and financial control. Michael sits on a number of industry advisory boards including Tourism Montreal, Confex and The UK Meetings Show. He also acts as an ACC Affiliate to the City of Liverpool. He has sat on the executive board of ABPCO since 2009 and assumed the role of Chairman between 2011 and January 2013.
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