I get asked a lot why sponsor valuations are so important. In one word, CONFIDENCE. In fact, most people who take my workshop tell me that it is the #1 benefit of having a formal, trusted valuation process.
In our work as sponsorship strategy specialists, we are often asked why we put so much effort into determining the value of a property’s sponsorship assets. The answer is really simple – if you don’t have a clear rationale for sponsorship pricing, how can you possibly articulate the value of the sponsorship opportunity to a prospect?
Here are 7 reasons why a professional sponsorship valuation is so important:
1. A valuation helps you to identify all of your assets – Most organizations don’t undergo a strategic review of their assets and as a result, only scratch the surface when it comes to leveraging potential benefits. A fresh set of eyes can help uncover all of those “hidden benefits” that can add real value to a sponsorship package such as year-round profile opportunities and unique ways to demonstrate the “brand experience”.
2. A valuation establishes a baseline value for your Tangible Asse – Like it or not, most companies will likely compare the value of your sponsorship opportunity against other traditional marketing alternatives, so you need to know the value of those core offerings that are quantifiable (i.e. target audiences reach, number of exposure or impressions, etc.) and most often compared. While tangible assets do not usually represent the total value that comes with any sponsorship, at the least they provide a baseline opportunity for comparing “apples to apples”.
3. A valuation helps you determine the Intangible Value of your sponsorship property – The real value of a sponsorship is the associative value or “image transfer” that is gained by a company being linked strategically with your property and your audience as well as other intangibles such as level of exclusivity and audience desirability. This is what separates your opportunity from any other marketing alternative. A assessment of your property will allow you to clearly articulate your unique selling proposition and more importantly, the associative value that comes with being strategically linked with your organization or event.
4. A valuation helps build your credibility with potential sponsors – Sponsorships are a legitimate marketing medium that should be supported by a clear value proposition. When you understand and are able to articulate the value that you bring to the table, you are sending a clear message to prospects that you are serious about your trade and how you can help them achieve their business objectives.
5. A valuation makes it easy for you to add value or customize your sponsorship packages – By understanding the unique value of individual benefits and intangibles, you are able to easily mix and match these benefits to create and negotiate customized sponsorship packages that respond to specific marketing objectives.
6. A valuation gives you the tools to handle the “value” objection – Most organizations struggle when it comes to articulating the value of their sponsorship offerings. By demonstrating a clear rationale for the pricing your sponsorship, you are making it easier for the prospect to rationalize his / her decision to invest in your property.
7. A valuation gives you the confidence to speak to prospects – This is probably the most important benefit that comes from a professional valuation. Information is power. Most of our clients who undergo our valuation process, report a higher level of confidence when it comes to approaching and presenting their sponsorship offerings to prospects. And in today’s economically challenged environment, you need to be confident that your solution offers good value for dollar and can help a potential sponsor achieve their objectives.
For more information on our Sponsorship Assessment and Valuation Service, please contact Kensel Tracy at (613) 731-9851 ext. 22 or at firstname.lastname@example.org.