Sponsorship Tips

I recently attended a great class on sponsorship tips led by Brad Lacy, IOM, CCE, President and CEO, Conway Area Chamber of Commerce.

The following comments below are from my notes during this great two hour session.  He started with:

Trouble Signs of Sponsorship Programs

• Nobody's buying;
• We need your support (never use this line).  You are not a charity; and
• Nobody's attending.

Successful Sponsorship Programs

• Events sold out;
• You exceeded your goals;
• Renewed sponsorships at a high number for same event last year;
• You're communicating the value; and
• You're customizing based on each sponsors needs.

He went on to talk about how your pitch to a potential sponsor should be focused on showing the value of the program or event.  You must understand your target audience, and understand your product.

What documents are your sponsors/investors receiving, a follow-up collateral piece with their logo, pictures of event and list of speakers?

Show how they are supporting the community while getting branding recognition w/logo placement.  Follow-up with a collateral piece to show your event and sponsor participation.

And that collateral can be used for recruiting new sponsors as well as showing the value to those sponsors who attended the event.  Your collateral piece might include:

• Pictures;
• Content;
• Community connection; and
• Showcasing the leaders at the event.

It’s never about supporting an entity (i.e. chamber, YPG, etc.).  It’s about showing value - access to XXX number of people that they could do business with in the future.

He went on to talk about creating an event/program that works for your sponsors (i.e. time wise)?  Think about the small business member whose office opens at 10:00 a.m.  Are you creating opportunities for them to sponsor an event on their off hours?

That's a great way to take any barriers away from participating as a sponsor at one of your events.

Good luck recruiting sponsors for your next event!

Managing Your Sponsorship Opportunities

I recently participated in a webinar on sponsorships hosted by ACCE and conducted by Sydney Doctor and Alana Turner of Greater Louisville, Inc.

Here are my notes from their talk in no specific order.

Centralize - think about centralizing your sponsorship activities under one person so you can provide a consistent customer experience throughout the conversation with all potential sponsors.

It’s more than an event, it’s a revenue generator and you need to think about it that way.

Less is more!  Focus on what events work best for your chamber and has a positive revenue impact on the bottom line.  Get rid of the rest.

A couple of thoughts on the process:

Do you offer a first right of refusal to those sponsors from the previous year?  If not, you must.  That’s just good business.  And you should ask that question right after the event is done when they are riding high.

Do you have an investor pool - create a list of possible companies who might want to sponsor an event?  Please know that not all investors will take that additional step to sponsor an event in addition to their normal support.  That’s ok, but let them know they always have the opportunity to do so in the future.

Do you have a brochure with a list of sponsorship opportunities with dates, times, and a description of the audience that will attend?  This packet of information needs to be digestible for any potential sponsor.  And you must share it with your members and non-members alike.

When to ask?  I’m a fan of working on a calendar year vs a fiscal year basis.  Start asking in October for the following year and this will allow you to finalize any sponsorship deals by January.

Once you’re in the new year you can always backfill at each event with possible new sponsors to meet or exceed budget.

Alignment:

Do you promote your events around themes?  Technology, Leadership, Finance, B2B just to name a few!

You can pitch sponsorship deals to companies who care about that subject matter and are thought of as thought leaders in those sectors.  That’s a win win!

How about content generation from potential sponsors?  It allows you to showcase your sponsor as an expert in the field and create content for the newsletter, magazine, website for the coming months.

They mentioned that your sponsorship fee should at least cover the cost of the event.  Registration fees should be all profit.  And remember, always load all your costs, not just the price of food/beverage and the rental of the room.  You must include staffing, marketing, etc.  It’s called program-based budgeting.

For a previous blog post on that subject matter go HERE.

And don’t forget about trade-outs for your bigger events.  Think AV costs that could run into the tens of thousands of dollars that you could trade for a sponsorship.

Final thoughts and suggestions:

Ask your potential sponsors what they are looking for from the sponsorship. Make a list.  Delivering on that promise will help you retain that sponsor for next year and the years ahead.

Don’t be afraid to customize your opportunities to get that sponsor.

Do you recap your events with pictures to showcase your event and sponsors on social media?  That’s a great way to also promote the sponsor at the same time.

At the end of the day, the sponsorship should work for both of you. Think partnership not just a transaction.

Good luck!

Tips for Creating Programs with a Strategic Purpose

When you're creating a program or event, are you thinking about how it relates to your strategic plan?

Or are you just worried about whether it's promoted properly?

Or are you hitting your numbers for the amount of attendees you budgeted for?

At the end of the day, that's the wrong way to look at this process.

Instead, think about whether this program or event directly relates to your strategic plan/mission and does it make money?  For more information on a blog post I did about program-based budgeting go HERE or about making money go HERE.

The reality is that only 15% - 20% of your members actually attend your events.

As stated in the Horizon Initiative: Chambers 2025 report you need to base your recruiting on the mission and not your organizations events.

Bottom line, let's get out of the special event business and get into the advocacy business.  I know, I take hits all the time when I mention this concept at different venues across the country, but at the end of the day, you need to be the advocate for your members not the special events coordinator.

Consider getting out of the ribbon cutting business, the golf tournaments or the fireworks shows!

For more information on the Horizons Initiative: Chambers 2025 report by the Association of Chamber of Commerce Executives (ACCE) go HERE.

Good luck in changing the focus of your chamber from one of events to one of being the leader in the community through advocacy and community development programs.

Until next time!

Killing Sacred Cows - Just do it!

How many of you are still doing the same programs, year after year, and you don't know why or you've been told we've always done them?

Are they well attended?

Are you making money?

If not, let's kick those programs to the curb. For a blog post talking about program based budgeting go HERE.

Are you loading all costs towards your program? In other words are you counting the:

• Staff costs;
• Marketing costs (printing, postage); and
• Food and beverage costs or meeting space fees in your final calculation?

...or are you just comparing the receipts at the door (registration fees) vs. food and beverage and room rental at the venue?

Do the full arithmetic and if it's not making money -- kick it to the curb!

Remember, we can't be running chambers that lose money.

We need to run our chambers like a business and run it in the black. Identify your core programs and make them better.

For a blog post on the Hedgehog Theory go HERE.

The theory suggests you should focus on:

• What you have passion for;
• What you do best or can be the best in; and
• Where you make money.

Where those three meet are the programs you should be doing.

Now that's a recipe for success!

Are You Still Running Programs That Lose Money?

If you are, stop!

Those are resources you could be spending on programs that make money, and could potentially make more money.

For a previous blog post on How To Stay Ahead of the Competition go HERE.

While it can be tough to drop programs that have a sentimental value, it's time to move on to bigger and better things.

Technology has made us change the way we communicate with our members.

Have you done a complete review of your program of work since this new technology has hit your chamber?

There's nothing wrong with an annual review of your program of work.

You may even consciously decide to keep a program that is losing money. But, you've made that decision for a reason and it's defensible if anyone asks why the chamber continues to do it.

Never forget to run your chamber like a business. Because if you don't, you run the risk of being out of business.

Your members should expect nothing less from you and their chamber!

For a previous blog post on program based budgeting go HERE.

Have You Kicked That Sacred Cow to the Curb Yet?

It's been a couple of years since I last talked about kicking sacred cows to the curb.

Have you had any success in dropping your sacred cows?

The past four years, with the economy and our chamber budgets, has given us the perfect opportunity to review our program of work and drop those programs that don't make sense anymore.

And the reasons could be:

• No value to members;
• Nobody attends; or
• It loses money.

Let's get back to focusing on what our boards want us to do and get rid of those losers that just drain the resources of our chamber.

I strongly suggest that you look at all your programs at your next annual retreat and prioritize your program of work and kick those sacred cows to the curb.

Stop trying to be all things to all people, nobody benefits from that strategy!

For a previous blog post on sacred cows go HERE.

What's The Top Reason Your Members Join?

We’re all busy running our chambers in an effort to deliver value to our members.

What’s your priority?

What do your members want?

I suspect new business opportunities and a friendly business environment.

As reported in a September 2012 toolkit by Western Association of Chamber Executives (W.A.C.E.), there are five main areas where chambers focus their resources:

• Advocacy
• Networking
• Business education
• Support the local community
• Economic development

I talked recently about staying focused when recruiting new members. You should equally stay focused on determining what your member’s want.

Ask them what they want, what they’re willing to pay for and then deliver on their answers.

Don’t be afraid to drop a program or two!

For more information on how to conduct a needs assessment and links to survey tools go to this previous blog post HERE.

Just Say No!

Easier said than done!

Agreed, but you need to find a way to say no or your chamber will try and be all things to all people.

We can’t be all things to all people. Let me repeat that, we can’t be all things to all people.

Successful chambers figured that out a long time ago. Decide what kind of chamber you want to be and live it every day.

Read previous post HERE on the Hedgehog Theory from Jim Collin’s book, Good to Great. Through your strategic planning process you should have the road map to success.

Are you an advocacy chamber, economic development chamber or a networking chamber?

I’d suggest you should be known for one and live that brand. I’m not suggesting which you should be, just the fact that you should focus on one of them as your brand.

Your brand on the street should be:

• The chamber that advocates;
• The chamber that brings jobs to the community; or
• The chamber where you can network for business opportunities.

I’ll grant you that you may be doing all three, but pick one to plant your stake in the ground.

That’s your marker. That’s your brand!

Kicking Sacred Cows To The Curb

Sacred Cows. We all have them in our organizations.

What do we call programs that lose money? A member benefit! Do not get caught in that cycle.

I speak with chamber execs all the time that share their frustration of that new project initiated by the new chairman. We’ve all been there.

When we add new programs, do we delete a program? No. Use these economic times to shed those losers.

I wrote about scorecards in a previous post. Creating a scorecard can be very effective in sun-setting those programs, products or services that: don’t make money; members don’t value anymore, or have become a sacred cow of the organization.

A scorecard to measure the value of your programs, products or services should track at least the following items as a starting point:

• Revenue
• Costs - direct and indirect (i.e., staffing costs)
• Stated goal of program, product or service
• Evaluation of program, product or service by members
• Measure the results

As a sidebar, we should be reminded of the “Hedgehog Theory” stated by Jim Collins in his book titled, Good to Great, and include the theories’ three criteria in the final analysis:

1. Do we have passion for this program, product, or service?
2. Are we, or can we be the best in delivering this program, product or service?
3. Do we make money on this program, product or service?

After you’ve implemented this assessment tool in your yearly review process, it should provide a strong argument on whether to continue a program, product, or service in the coming years – or kick that sacred cow to the curb!

For a previous blog post on program based budgeting go HERE.

Golden Handcuff: Do You Have One?

If you’re not familiar with the term, a “Golden Handcuff” is essentially a program, product or service that your member can’t do without.

It compels them to send in their dues check year after year after year.

If you are familiar with the term, the attached list is nothing new.

What program, product or service are you providing that is your golden handcuff?

• Insurance Programs (Workman’s Comp, D&O, etc)
• Credit Cards
• Certification
• Affinity deals with office supply stores
• Etc.

Let me give you one that you’ve probably never thought of – “Your Board of Directors.”

By show of hands, how many of your board members are non-dues paying members. That’s right, they’re all dues paying members. That goes for all your volunteers – committees, task forces, etc.

So the next time you’re asked if you have a "Golden Handcuff" – you can proudly say, YES, we have one, it’s my board.

15+ Bright New Membership Ideas

The following is a list of potential ideas you may want to try for your organization as it relates to your:

- Recruitment;
- Retention; or
- Engagement campaigns.

The second set of ideas were collected in small groups representing professional societies and trade associations.

The following were identified strategies that they they were employing or planned to employ in membership.

Recruitment

• Membership is everybody’s business (staff and volunteers).
• Create a fact sheet.
• Know why people join: Advocacy, publications, affinity programs, recognition, training & development, etc.
• Fine-tune your message (you don’t have time to tell all).
• Sell your brand.

Retention

• Communicate (not just at renewal time).
• Show dollar value of each service for membership.
• Show the value (Benefits – Costs = Value).
• Mini surveys to monitor satisfaction.
• Office visits.

Engagement

• Orientation programs (in person, virtual).
• Reference guide.
• Volunteer opportunities.
• Personal contact.
• Rewards programs.

Professional Society Ideas

Recruitment

• Go directly to the college or university.
• Work closely with graduates or soon to be graduated students.
• Get member volunteer to work with each campus.
• Conduct some events for non-members (non-student members and non-society members).
• Use these public events as a “look” at what the society can do for you.
• For non-member conference attendees, offer 30-day window to join at special conference attendee rates.
• Follow up with mailing and phone contacts.
• New member discount on first event attended.
• Obtain letterhead and envelopes from members and send “invitation letter” to join to prospects as a personal endorsement over member signature.
• Use “endorsement partners” to assist with or sponsor membership marketing program.

Retention

• Ask lapsed members why they have not continued.
• Get local members more involved in retention work.
• Offer deferred dues for displaced members (hardship) category.
• Job board for free to keep members involved (retains members if it is free to them.)
• Have volunteers make calls to non-renewals - there is usually a higher response rate because their peers are asking.

Engagement

• Conduct regular “Needs Assessment Survey’s.”
• Ask them to be on a committee.
• Ask for expressions of interest.
• Add new volunteer positions (in each committee).
• Show appreciation for membership and volunteering.

Trade Association Ideas

Recruitment

• Personal visits.
• Business/members to bring in a new member.
• Use phone-a-thon, with a runner to deliver membership packet.
• Changes in staff offer opportunities to meet again with prospects.
• Ask board members to write why they are a member and use these statements as testimonials.
• Focus on core group.
• Work on strategic relationships and alliances with allied associations so that there are opportunities to share information.
• Membership and involvement in umbrella organizations to add credibility and to foster relationships and raise industry profile.
• Make sure that the Web site draws prospective members to the “How to Join” site easily and logically.

Retention

• Calling program—list those not on ‘involved’ status.
• Mentor/ambassador program to adopt new members.
• Reenergize membership committee: 1) give them high visibility at convention and other events; 2) provide distinctive polo shirts, ask them to greet members at trade show, convention; and ask membership committee members to make follow-up calls, visit after staff contact.
• Press releases to industry of association developments, and copies sent to members to show what the association is doing to raise visibility, credibility of industry.
• Press releases to announce member accomplishments.

Engagement

• Use mentors or hosts for each new member.
• Organize a mentoring program.
• Some groups are offering a “tour’ of membership programs.