NG, who runs a nonprofit helping at-risk youth in the North Bay, connected with the Regional Marketing Director of a major soft drink company at a conference in Sacramento. He liked her work and expressed interest in supporting her. NG called me for advice on her presentation. She planned to ask for a modest donation of $2,500 to $3,000.
My immediate response was: That’s far too low!
Why You Must Think Bigger
I advised NG to shift her thinking from asking for a small donation to proposing a lasting sponsorship relationship. Since she was talking to a Marketing Director, she needed to make a business case for his company to support her long-term. This would allow him to justify the investment to his superiors as a smart business move that also does community good. The company needed to see measurable recognition for their investment, backed by clear data. This strategy is often called Halo Marketing: The big company's image is enhanced (gets a "halo") by associating with the positive work of the smaller nonprofit.
7 Steps to a Stronger Sponsorship Ask
Here were the steps I advised NG to take:
1. Reframe the ask: See the sponsorship as an advertising opportunity for the corporation.
2. Create a sheet showing the total number of people your can expose their brand to.
3. Justify your price by citing competitive advertising rates for what you deliver.
4. Highlight the Halo Effect as a premium benefit.
5. Ask for fair compensation based on advertising dollars (Return on Investment).
6. Propose a multi-year program for stability and sustained impact.
7. Ensure you deliver on the promised exposure and provide proof.
The key is to speak the language of advertising. I urged her to aim for at least 10 times her original ask because she had access to valuable assets: including roadside signs.
Calculating the Value of Road Signs
Road signs are powerful because you can easily quantify the traffic. NG had access to 5–6 sign locations in Sonoma County. For just one location on Hwy 116, California data shows over 4.1 million vehicles pass annually. Estimating 1.5 people per vehicle, that’s over 6.2 million impressions at a single spot! With access to five similar spots, the total comes to over 31 million Halo’d logo impressions for the soft drink company annually. And this was just for road signs, NG had others vehicles to get the word out.
This is what is looks like to access traffic patterns. (below)
To calculate the monetary value of this exposure, we can look at market advertising rates. Outdoor signs often cost $2.00 to $9.00 per thousand views (per M).
• At a conservative rate of $2.00 per M, those 31 million impressions are worth over $62,900.
• At an average rate of $3.65 per M, the value exceeds $115,000 per year.
(Image showing ad rates across different mediums)
This calculation provides a powerful starting point for negotiation, especially when the massive value of the Halo Effect (positive brand association) is added. I urged NG to speak realistically about her offering. On her down side was the fact that she had smaller, non-lighted signs, which needs to be factored in up front.
Replicate your sponsorship package.
If this situation appeals to one major corporation it may be of interest to others. After the work you put in to create this program how about multiplying it times 4?
Image of a roadside sign.
The Core Message:
To secure the lasting funding in the world of nonprofit sponsorships you must KNOW YOUR WORTH and SPEAK THE LANGUAGE OF ADVERTISING. Bargaining from this perspective ensures a fair and square deal for both your mission and the sponsoring company(s).