How to structure your motorsport sponsorship packages
Before I go into detail on this, I want to answer a few questions because what you offer to a business doesn’t always need to be presented as a package.
Should I offer motorsport sponsorship packages?
The answer is, it depends. If you’re going for small businesses that have experience in motorsport sponsorship, they might expect to pick between a few different packages. If you’re going for a larger business, however, you’re often better off looking at ways to provide bespoke value without the constraints of a set package.
How do I show value in my sponsorship packages?
A well-thought-out sponsorship package should be more than just a list of what the business will get. There should be a clear value proposition attached to each that gives the business an idea of how you’ll help it meet its goals.
Do sponsorship packages need to be bespoke?
If you’re set on the idea of offering set packages, you need to make sure they resonate with the business you’re pitching to. Firstly, the business needs to know you’ve thought about their needs when offering them a package to choose from. While you can offer broadly the same activities to different businesses, it’s important you present these in a bespoke way that speaks to the business’s needs.
Should I base my packages around the spaces on the car?
No. Most sponsors won’t see the value in the space on the car. You might talk about premium space on the car for the top packages but you shouldn’t sell to a business based on this alone.
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A lot of people are still doing all the same things that once worked in motorsport without considering how fundamentally the landscape has changed in the last 10 years. Allowing a business to pick between package A, B, or C (or whatever you name them) is a slightly outdated method for securing sponsorship.
It still works, but only in some situations. These could include:
If the business is in motorsport or has experience in motorsport sponsorship, they may expect packages to choose from.
If they specifically ask to see your sponsorship packages.
They’re unsure and want an idea of what you’ll offer and how much it’ll cost.
Creating motorsport packages can also help you get your head around what you offer and what that might look like to a sponsor. Here are some things to consider when building your motorsport packages.
Make your motorsport sponsorship packages distinct
I’ve seen many drivers go into a pitch with three packages with prices such as £10k, £30k, and £50k. There’s nothing wrong with these prices but the way they’ve presented the offering means the only big differences between those packages is the location of a sticker on the car, a few extra hospitality passes, and a track day for the top level.
A business isn’t going to cough up £20k extra for those things. So let’s say you have a £10k package that’s the entry-level to working with you. This allows sponsors to benefit from the brand awareness/TV coverage etc. of being associated with you. Plus the usual stuff like tickets and hospitality.
Just adding more hospitality and a passenger ride to the next package isn’t enough. So maybe you add a networking event where they can meet potential clients, a point of sale for their products in the paddock, or a series of video content they can use on their own channels.
Then, for that top package, you need to go all out. A track day is a great experience but it’s probably not enough to sway them into another £20k. So on top of that event maybe you’ll also offer your presence at two trade shows (all included in the price) plus a sim racing competition for their employees as part of a team building day. In addition to this, you’ll also ensure they’re part of your PR campaign where you’ll be able to get them into top-tier publications in their niche.
Now that’s more compelling! But you need to make sure you sell the benefits of all these add-ons otherwise you’ll only ever get people going for your lowest package – if at all.
Align the packages with sponsor goals
Once you’ve got a rough idea of the packages you want to offer, think about how they serve each business on your hit list. For example, there might be no point offering tons of hospitality passes to a business made up of two people (unless they have clients to treat). Or maybe, that B2B business isn’t interested in a point of sale because they only sell high-ticket items or services to other businesses.
As you have your early conversations with potential partners, ask questions that will help you determine exactly what they need. Take a look at this article on sales tips for some qualifying questions you can ask.
Make sure your value is clear
Once you understand those sponsor goals, you need to make sure your value is clear. For example, if you know a business is trying to build awareness for a new soft drink, offering a point of sale (or samples) at the track makes a lot of sense, especially if you’re in a well-attended series. In your packages, you can position each one as a method for hitting that goal. With the bigger packages, they have the chance of reaching more people.
If you’re working with a B2B business in the property sector, however, a point of sale at the track won’t necessarily work. What would be more beneficial is running a competition at their next trade show that will help them get more leads from the event. This might be a sim racing competition or simply signing up to win a track day. This helps the business reach more of its target market and potentially convert more sales.
Use a technique called anchoring
One trick used in sales is a pricing strategy called anchoring. When you offer three price points with the largest package really giving the wow factor (with the price to match), a prospect might look at that and think it’s out of their budget but that mid-package seems like a bargain in comparison.
By having a top-tier package, you’re more likely to get people going for the middle of the road rather than defaulting to the lowest price. This doesn’t work every time, but it’s worth considering.
Present them in an easy-to-understand way
Complex tables and lists can be confusing, especially if a sponsor is trying to get a sense of what it might look like to work with you and how much it might cost.
Start with the high-level benefits of the package, then list the three key features that set it apart from the others. You can then use a smaller bulleted list to show what else is included.
Remember, a potential sponsor might not care about everything so always lead with the things that are most valuable to the business in question.
How to price your motorsport packages
There’s a whole other article in this but let me give you the quick version: you don’t need to base your prices on how much you need to go racing.
This might be a good start to help you think about price but there’s a more effective strategy. By all means, plan roughly how much you want to charge for a package – and make sure to include your costs for activating the sponsorship in the price – but the final cost you present to a sponsor should be based on value.
During your early meetings, get a sense of their budget, their average customer value, and the typical cost to acquire a customer. This will help you better define what to charge them based on the impact it’ll have on their business.
Racing on the BTCC or NASCAR packages? You’re going to have a ton of value to a soft drinks company that wants to get its products in front of lots of spectators on race day. Defining the value of this is tough but you could help that business get hundreds, maybe even thousands of new customers.
But introduce that same company to a big retailer, and you could earn them tens of thousands or more. In the first example, you might charge £10k for a package that focuses on brand awareness. But in the second example, you could charge much more because the outcome is so much more valuable.
Creating valuable motorsport sponsorship packages can be tough but with the right approach, you can make them work. If you’d like to get some advice from the RM team, book a discovery call here to chat about how we might be able to help you.