Sponsorship

[Darrel Goheen]

I have someone interested in possibly sponsoring my racing. I have no idea what amount is fair. I'd like to hear from those have received sponsorship what kind of deal you do. Thanks.

[Bobby Fazio]

This is a great thread and I also have questions similar. Any help appreciated on this topic.

[Woodfin]

Darrel,

offering some thoughts and suggestions.;

Consider making a list of reoccurring expenses, [fuel, oil, entry fee's, tires, other parts] have pricing listed by these expenses.

Present the list to your potential sponsor and explain, "this is a list of expenses I have during a race season. What part of these expenses will you help me with and what do you expect in return" [or something like that]

Simply be open and honest and do what the sponsor expects.

[Myron Piatek]

In most cases, the sponsor expects a "return" of more value in exposure and business than what they give you. But it's complicated how they figure that out. Some may do it just to be involved or as a tax write-off as well. There are also product & service sponsorships where they provide you with their products and/or service, or a discount on them, in exchange for what you do for them. Financial support is the hardest to secure and keep.

Try to find out what they might expect and show them where you will race at, who and how many people may see the advertising you provide. This can not only include the race track, but also in magazines, live video race feeds, discussing their product/service in online forums when appropriate, YouTube, etc. Find connections between the sponsor product/service and the people you are exposed to. Open trailers can be a plus because many people see the car going to and from the races. But it get's complicated with an enclosed trailer because any advertising on the trailer can attract the attention of the DOT. Then you get into the debates surrounding you being a "business" and the associated CDL requirements, scales, etc. because you are working and advertising for a company for financial gain. It's best to stay low key in some respects. It's obvious that most of us may be trying to make a profit. But the reality is that most won't. That is irrelevant to some by-the-book, gung-ho enforcement officers. But there are understanding ones as well.

IHRA is much more "sponsored little guy" friendly than NHRA because NHRA has a lot of restrictions to what you can display in the pits and on your trailer.


There have been some discussions on these related subjects in the past here.

[Larry Hill]

We have the children's inheritance fund for our sponsorship.

[rod butcher]

Originally Posted by larry hill

we have the children's inheritance fund for our sponsorship.

x2

[Eric Merryfield]

Originally Posted by Darrel Goheen

I have someone interested in possibly sponsoring my racing. I have no idea what amount is fair. I'd like to hear from those have received sponsorship what kind of deal you do. Thanks.

Just like everything in business its all negotiable. Don't make the mistake of thinking its not business. There are three different types of sponsors:

#1 Most common, mom or dads checkbook. What they ask for in turn ranges from nothing to something more than nothing. Few think about what the ROI is for the parents. But if they did, they might approach things a bit differently.

#2 Local industry related business, ie speed shop, engine, etc. If they are approaching you, then that is as low hanging fruit as it gets. Figure out what the benefit is to them, if any and you can go from there. You know what your costs will be with entry, breakage, tow costs, etc. Can't put a $ figure on anything till you know what is wanted in return.

#3 National/global brand This isn't feasible or realistic except for the travelling pro's. Whats it cost in $ and life costs to HAVE to travel to compete to say 15 national events, 6 divisions races, X # of opens, its not a exciting proposition when its a contractual obligation and not your choice.

Do your homework on your possible sponsor and their business to make sure its appropriate, and has the financial ability to provide the sponsorship being discussed. Sponsor of course pays for any and all vinyl needed to do up the car, golf cart, dog, whatever. Of course, put it in writing, so both sides know the deal.

My take.

Eric

[Ok stocker]

I have had some sponsorship in the past from larger local companies. When we discussed it most wanted to plan it in their budget and came up with a dollar amount they were comfortable with. Smaller companies wanted to just do a hand shake deals and others wanted a simple contract. They all paid and enjoyed time at the races with us. The most important thing on your side is honor what you say you will do .
Good luck with it. Remember anything can grow if you handle it right.