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How you can use leverage to increase your sponsorship value

01 Jun, 2020 Sponsorship

The dollar amount a sponsor gives to an activity is only the starting point. Usually a sponsor will spend an amount over and above the sponsorship fee to maximize the return on their investment in the sponsorship property. This is called “leverage.” Widely accepted practice is for a sponsor to spend at least the equivalent value of their sponsorship fee in their own promotional activity relating to the sponsored activity.

Some people even advocate spending two or three times the fee in promotional activity in order to maximize the return on the sponsorship investment. Although this expenditure is not the sponsorship receiver’s responsibility, astute recipients certainly encourage it. The sponsor’s promotional activity would help the event as well as the sponsor.

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About the author Kim Harrison

Kim Harrison loves sharing actionable ideas and information about professional communication and business management. He has wide experience as a corporate affairs manager, consultant, author, lecturer, and CEO of a non-profit organization. Kim is a Fellow and former national board member of the Public Relations Institute of Australia, and he ran his State’s professional development program for 7 years, helping many practitioners to strengthen their communication skills. People from 115 countries benefit from the practical knowledge shared in his monthly newsletter and in the eBooks available from cuttingedgepr.com.

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