What to look for when researching potential sponsors
In principle, sponsorship research should be pretty easy. Discovering a bit more about a business helps you decide if a potential partnership would benefit both parties. The process however can feel overwhelming, especially if you’re unsure where to start or what exactly you need to look for.
Why all the research – can’t I just approach anyone?
Sure, you could approach anyone and everyone, sending out a generic email that shares your championship dreams, and the hopes you have for a sponsorship deal that will cover your racing, and get them prime ITV4 coverage. The more people you approach the better, right?
Sadly, no. It’s not that straightforward.
If firing off a ton of emails sounded easy – you’re right, it really is. But it absolutely isn’t the quick win you’re hoping for and the outright rejection is going to hit you hard.
More often than not, these generic emails won’t even get you a reply. When something is simple and easy, you can bet everyone else is doing it too. The result? No one stands out, companies feel targeted for money, and everyone misses out on something that truly could have potential.
Give them a reason to invest in you
When you take some time to understand a business, you’ll be able to work out if they're a good fit for what you offer, and you’ll understand the best way to approach them based on their goals. Then, when your email lands in their inbox, you’ll stand out as the right person, at the right time, with the right offering.
Imagine being asked for money several times a week, over and over again. How would it make you feel? Personally, I’d begin to lose trust and confidence that what my business does and what I stand for even matters to the sender, and that people seem to be targeting my business as having money to just give away.
You need to offer something in return and it has to be relevant. Your research will tell you exactly what you need to know in order to show that value.
What you need to know
It's all too easy to get caught up in research. If you love learning it's probably even harder. One fact leads to a tangent, which diverts you down a rabbit hole. Here is where researching with a framework in mind will help enormously.
When you commit to learning about what a business might want – within a framework of knowledge that has you ticking boxes and quantifying those online clues – that focus will provide you with a clear-cut conclusion. From there, you can swiftly decide how to proceed.
Here is a basic framework to get you started. Think about these six areas when looking online. Identifying commonalities between you and that potential sponsor is a great place to start.
Location
Are you both based in the same city or county? Is the founder from the same hometown/school/sports club as you?
Niche
Are they in the same industry or business sector as you? Do they supply products or services your audience would be interested in?
Values
Do they support the same charity or awareness cause as you? Are they fundraising for something you have a passion for? Could you help them support local communities? Are their CSR values the same as yours? Are they honest, playful, or edgy in the same way you are?
Expertise
Would your expertise be valuable to them? Can you teach their staff a skill, or could you bring them a new skill that would improve their business? Can you bring your expertise to their marketing, charity work, or customer service efforts?
Goals
Are they looking for new clients or to expand into new markets? Have they got a new product launching soon? Do they want to reward their staff? Where do they hope to be in a year's time? Look at their current activity and ask yourself why they’re doing those events/ads/social posts/etc.
Financial
Can they afford this? Are they spending on ads and marketing already? A news search can throw up the latest info on how well (or not) they are doing. Are they shouting about successful projects or have they reduced staffing recently?
Where should I look?
A business's online presence extends much further than its website, but it’s the best place to start. A company website will likely reveal:
Head office and other locations
Leadership team profiles
Mission statement or goals
Current products and services
Content and other marketing activity
Job opportunities (that describe the company culture and employee benefits)
Links to their social media
If you want to dig even deeper online, here are some ideas:
Google news search
Type the company name then click the news tab for insight into what's happening at the business currently. (Note: This might not work for very small businesses with minimal presence online or in the press.)
Google name search
Type the company name into the search bar then add another word, such as sponsor, fundraising, success, community, event, interview, or marketing.
Search for the business on LinkedIn to find the decision makers and connect with them professionally.
Social Media
Look at what the brand is posting and the type of people they’re trying to target.
Industry activity search
What's happening in their industry currently? What are their rivals doing? This gives you valuable information on what they might also be trying to achieve.
How do I recognise partnership potential (or not)?
Good research will answer that for you pretty quickly, giving you deal-maker or deal-breaker information that clearly indicates whether to take action or move on. For the most part, if you can’t see how you can provide value to a business, they’re likely not a good fit. There will also be occasions when it's almost right, but not quite.
Here are some examples of an almost-fit and what action to take.
They’re a great fit but don’t seem to be financially in a position to work with you yet
Make the connection and nurture it long-term. Keep talking, show your value, and don’t be afraid to bring up sponsorship further down the line when their financial situation has changed.
Their marketing efforts are already successful
Make the connection, then when it's appropriate, suggest a unique idea – try to think outside the box. They obviously enjoy reaching their audience, so if your idea excites them, why wouldn’t they say yes?
They’ve announced another sponsorship deal already or committed to another sport
Make the connection and watch how they work with their sportsperson this season. At the very least you’ll learn something, but if you’re low-key nurturing it into a mutual relationship too, they’ll see what you’re capable of.
Your values align, but the business is restructuring
Follow their progress, stay in contact, and nurture your commonality. They’ll remember your interest when they’re through the storm.
They seem out of your league
Let them make that decision! Go ahead and create a value-based relationship. Don’t say no to yourself on their behalf. If they like you and you like them, keep going.
How your research can influence your pitch
By defining what you discover within that six-point framework, this tick-box exercise can also influence the how, what, and why of your pitch.
News of an upcoming new product could help you tailor your pitch to include an exciting launch event idea, that requires your skill set. (Expertise, Goals)
Opening your cold pitch with a story about the hometown or university you have in common instantly connects you and your reader. While you’ll want to then back it up with a solid offering, you’ve demonstrated a relevant personal connection that ensures your email stands out. (Location)
Finding a business that makes the products you’re an expert in (like electrical installation tools and parts), or that your online audience is interested in (DIY supplies, fitness supplements, cookware) allows you to confidently pitch something you know you can ace. (Niche, Expertise)
If your competition series is local rather than national, researching advertisers in your local paper is a great place to start, since they’ve already proved they have a marketing budget and a desire to grow local awareness and revenue. (Location, Finances, Goals)
If you want to include employee reward track days in your pitch, look out for generous employee perks or benefit schemes in their job adverts. (Expertise, Values)
A company’s annual CSR report is likely to provide insight into the charities the business supports, which may align with a cause or value you already stand for. Your pitch could then be tailored to include charity event days or a cause-based promotional push. (Values)
As you research a company, don’t forget to do that Google news search. A successful round of investment means they’re going to move forward with projects and have the finances to back them up. This news nugget gives you a great opener (congrats!) and the confidence to pitch some exciting ideas for the projects they’re now able to green light. (Finances)
With discipline and practice, the research process should take no more than 30 minutes each time. In under 20 minutes, you can discover enough information to make a decision on what action (if any) to take next.
That final 10 minutes is your time to take an action step with confidence. Because you’ve done your homework, you can create an introductory email, LinkedIn message, or partnership offer that speaks to what the business actually does and what its goals might be.
When you execute your research stage well, you’ve got everything you need to create an offer or build a relationship that gives potential sponsors every reason to say yes.
Keep all your research activities in one place and track your progress with Racing Mentor’s free sponsorship research template. Sign up below with your email address and we’ll send over the template automatically.