How to calculate sponsorship fees

Determining the sponsorship fee you seek for an event is quite a balancing act. The fee being asked is usually best termed the ‘investment,’ which sounds better to a prospect. It is a crucial factor in the success of a sponsored event and can be difficult to calculate. In simple terms, a good formula is to calculate the cost of the sponsorship and double it. This may seem a rather crude way of working out a fee, but it is practical in reaching a starting point for a suitable asking price. The 100% margin should cover all the costs of running the event additional to the costs of seeking and servicing the sponsorship. The formula worked out on this basis is:

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