How to Figure Out Your Sponsorship Pricing Through Your Competition
The big challenge you must face in the world of sponsorships is determining your price. How much are you going to charge for your sponsorship packages?
Figuring out how much you need to charge for a sponsorship doesn’t have to be difficult. Chances are you aren’t the first person to create a sponsorship for what you’re doing. Whether it’s a blog post, podcast, or an event.
Your competition can offer many valuable insights into how much you charge. All you have to do is a little research. Find out what your competitors are doing to point you in the right direction.
How To Research Your Competition
There are many people looking for sponsorship for companies. Just because they’re doing the same thing, doesn’t make them your direct competitor.
Examine those companies and individuals in your niche. Determine who’s doing something close to what you’re doing. Once you find someone, check if they offer sponsorships. Look at the bottom or main navigation of their website for an “advertise” or “sponsor” link. Even a “contact” link will do.
Here are 3 ways you can find your competitors:
- Google keywords that you use to describe your own company. Look in the ads section for local ones.
- Search those same keywords on Twitter and LinkedIn.
- Ask on social media.
Examine Their Sponsorship Packages
Now that you have identified who your competitors are, it’s time to get down to business. Take a look at their sponsorship packages. Take note of what they offer potential sponsors and how much they charge for each package.
I use Evernote to keep track of all my competitor’s packages. I download any PDF media kits I find, or copy and paste their info into Notes.
Here are some key things to look for:
- What tangible items are they offering to sponsors?
- What is their “stats” and how are they framing them?
- Are they charging more or less than you are offering?
- How much do they charge for each package? How do they charge? CPM, CPC, a flat rate?
These are questions you should be ask yourself as you browse your competitors’ packages. Take notes on each one so you can identify them later.
It’s a good idea to start fleshing out your pricing. The goal is to either offer more at the same or higher price or charge less for the same offer.
At the end of the day, your offers should feel good and help you sleep at night.
Consider Making a Connection
Be friendly with your competitors. You could end up starting a new relationship that could benefit you and your competitor.
Some competitors may be anxious to make a connection with you. It’s understandable. Don’t get discouraged if you fail to get the response you were hoping for.
If they’re willing to chat and open a dialogue, then pick their brain about sponsorships. Find out what has worked for them and what hasn’t. Be honest with them about what you are trying to do so they don’t feel like you are trying to take advantage of them.
One of my mentors started as my direct competitor. I worked for him to get my feet wet in the industry and sell sponsorships for it. I learned so much and eventually set out on my own, with no hard feelings. We still talk every month.
Even after you have gleaned all you can from them, keep that dialogue open and share information. Tell them about your results and what is working for you. In the end, you could help each other increase sponsorship sales.
How to Compare Yourself to Your Competition
I don’t like to compare myself to others. But, when you’re starting, this is a great way to learn about sponsorship pricing.
Look at what your competitors are offering and what they’re charging. Compare it to what you’re going to offer. This should allow you to gauge how much you should charge for each of your packages.
Your competitior’s packages won’t be identical. But you should determine your prices are too high, or too low, for what you’re offering.
This isn’t an exact science. When starting out, you may have to tweak your prices and change your packages. It might be way different from your competitor’s when you’re done. That’s ok!
Pricing is a new sponsorship program is hard. By checking out the competition, you can get a jump start on what you offer and what you charge.
You Don’t Have to Sell Sponsorships Alone
Someone out there is doing what you’re trying to do. They may have already been through what you’re going through. Use them to your advantage.
Research their sponsorship packages reach out to them. Learn more about what they charge and what value the sponsors get for their investment.
You’ll discover your competition can be your best source of research. You can take what they’ve done, alter it, and kick it up a notch to set yourself apart. You’ll gain valuable intel on what they’re charging sponsors.
The result will be a set of attractive sponsorships with competitive prices. It’ll help you attract potential sponsors while providing you revenue to meet your goals.