Increasing sponsorship impact

[tqj3]

From The Memphis Commercial Appeal:

"In general, for every $1 a company spends on sponsorships, it should spend two more to promote and advertise the NASCAR relationship. For that, it should get $4 in added revenues." Mel Poole, president of Sponsorlogic Inc., a Charlotte, N.C.-based research firm.

 

In other words, you can't just put your sponsor's name on the car and go racing. You have to figure out how to help get them those "extra revenues."

[racerjim2]

I thought that was pretty standard as far as any high dollar sponsorship was conserned.Any tips for the locals on getting sponsorship

[tqj3]

It's a lot easier if they know who you are when you walk in.

[zoom]

So let's say you are new in town, say about 4 years. Don't know that many people and certainly not that many business owners/decission makers. Plus this is your first year racing in the area. What then?

How do you approach the potential sponsor? How do you identify who can be a potential sponsor?

Who can give the answers to these and more questions?

How about you guys that are experienced at getting sponsors. I know I need help. My sponsor, who is backpocket sponsorship is about done for.

[tqj3]

Zoom-

You have two strikes against you because you are new to the area and even newer to racing in the area.

The first thing you need to do is figure out what you have to offer a sponsor, and how much that is worth to him. The days of finding a rich guy who likes to hang around racers are over; sponsors now want a return in terms of moving product, not just getting "exposure."

Forget how much it costs you to race. It's of no interest to the sponsor that you have 50 grand tied up in your car and it costs $20,000 a year to race it. He's looking at what it's worth to him.

You could figure out how many people will see you race, and then look for a way for a sponsor to make use of that. Setting up a booth at the track? Handing out coupons for discounts at a business that can't come to the track? Making a couple of appearances at the sponsor's business, or at other locations (malls, schools) that could also be used to promote the sponsor?

It depends on the sponsor. One company that should be in racing, but isn't, is Dell. Supposedly, everyone at Dell wants to be in racing except Michael Dell, but I don't know if that is true or not. Dell could demonstrate product and even take orders at the track.

Sound crazy? A small-time independent computer store in Killeen decided to get involved with the Texas Thunder dirt track a couple of years ago, coming out to the track and showing computers. They hoped to attract some interest, and sold five computers to race fans the first season.

Of course, if you aren't racing in front of many people, and the races aren't getting any press, you are restricted in what you can offer. I know people who want sponsors to pony up $50,000.00 for them to race ROMCO, but they are dreaming. How would a sponsor get 50 grand in value from a series of 15 or so races that draws a total crowd of maybe 30,000? (I know the TMS race has a larger crowd, but they aren't there to see ROMCO.) Any sponsor can buy an overpriced ad in any newspaper in the state and reach a lot more people than that for a lot less money.

If it sounds discouraging, it is. When tracks don't publicize themselves, and series don't publicize themselves, and teams don't publicize themselves, and drivers don't publicize themselves, then association with any of them isn't worth much. That's why the major sponsors spend more money on the publicity than on the team, because that's how you enhance the value.

You might be able to find a thousand dollars or so, maybe even a couple of thousand, to race in Texas, but that's about it. It's just not worth any more than that, and even the drivers with sponsors aren't publicizing themselves or their sponsors, so it's not likely to get any better. (Yes, there are a few with better sponsorship, but the sponsors are doing it for other reasons. What they get from the team isn't always worth what they spend.)

Any driver with a sponsor who isn't taking advantage of that sponsor to promote and publicize him or her self is missing the boat. Any driver who wants a sponsor, and isn't publicizing him or her self, hasn't even gotten as far as standing on the pier.

What can you offer a sponsor? Answer that question, and the rest follows.

[Chuckman]

tqj3

Dell had sponsored someone overseas in a road racing car.I am surprised that Dell

hasn't showed up in racing elsewere.

 

Zoom I am also sponsored by my backpocket.I've heard that backpocket is a big race

fan.

[Mel]

If you come to FASCAR, join up and come to the car shows you can get your car and sponsors in front of a lot of people. Potential sponsors can be at any of the shows. We have one tomorrow, a 4th of July parade. You and everyone else is welcome to come. Leon Valley's Annual "Picnic in the Park" off of Evers road at around 9:00 am. I go because I enjoy talking to people and getting kids interested in racing. I go to help promote my sponsors name and get it out in front of the public. But the biggest reason is my kids enjoy the parades and car shows. Heck, I guess you can say I'm just a big kid too. Come on out, Try it you'll like it!

 

Mel K.

[tqj3]

Chuckman-

Dell has sometimes been a sponsor of a guy named Bill Dollahite in a few minor road racing series here in the states; but he was a Dell employee when that deal started, and the effort was never very successful.