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Thread: The Sponsorship Game...

  1. #1
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    Default The Sponsorship Game...

    Some of you may remember me growing up always trying to get sponsors, I've had a lot of luck and haven't changed much but the way I go about doing it has.

    So who here tries to get sponsors for IT racing or any club racing? Obviously it's extremely hard to get real funding for a series that's for fun and has no real media coverage.

    I personally try to think of fun and beneficial items for a program that businesses may be interested in.

    Here are a few things I've recently done and how they turned out.

    First I had an idea based off of a program a Le Mans Dome was running years ago. My idea was "Racing for Athens" (my town) and basically would sell individual squares on the car to local businesses only for $50.00 (included two squares, one on each side). The idea was to help advertise Athens as a whole as well as its individual businesses in the city. My home track is Road Atlanta and is under an hour from Athens so it could benefit the city. Sadly it never took off, I had a few interested people but the rest kind of looked away. The mayor even liked the idea but it wasn't in her power to do anything about it.

    So I basically gave up on it, at least for now.

    My other idea came up from that and I just started working with it. It's "Ten Dollar Sponsorship" and is the same square type selling but it's $10.00 versus $50.00 in hopes of having more interested parties. I mean ten bucks for two logos on a car isn't that bad in my opinion. lol

    Special things I try to do are offer ride alongs at track days, I am big in social networking sites so I update those frequently and often post any supporters info/news updates there, etc.

    I haven't ran an IT race yet but just track days. So it's also hard to promote yourself when you haven't raced in that series but my primary wheel to wheel experience is karts, unless you count open passing track days.

    Anyway, what do you all do, if anything? I do everything motorsport related because I have a HUGE passion for it but it's expensive so I have always been forced the business route, not to mention I still have that small dream in my head of going somewhere.

  2. #2
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    Default

    I learned long ago that for Club Racing it's better to get a second job than to spend the time, effort, and money to cultivate and support any kind of reasonable sponsorship. When you decide to take on sponsors you've added a level of responsibility that takes far more work than you think.

    In the end, a second job makes you more money and costs you less time and effort.

    GA

  3. #3
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    Quote Originally Posted by Greg Amy View Post
    I learned long ago that for Club Racing it's better to get a second job than to spend the time, effort, and money to cultivate and support any kind of reasonable sponsorship. When you decide to take on sponsors you've added a level of responsibility that takes far more work than you think.

    In the end, a second job makes you more money and costs you less time and effort.

    GA
    Kind of true, I enjoy the responsibility and all though. A year ago I did a full year of track days and MADE a profit. I enjoyed helping out businesses and just that type of lifestyle.

  4. #4
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    As a general rule I agree with Greg. There are a few I've seen land some pretty amazing sponsors, but that sure isn't the norm. I think selling space for $10 to a business makes it seem like you don't see the true value in it and won't attract enough businesses to make a difference. IF I were going to try something, I'd go after something a bit more unique. Maybe something along the lines of a "$10 to a Dream" campaign and go for large numbers on Facebook, MySpace. Play up your youth and passion. Depending upon costs, $15 then fill your car with people's names in vinyl or whatever. I've seen a GrandAm car where people by a vinyl decal that has a dog paw (for a charity) and it gets placed on the car.

    Either way, networking is KEY. Get in good with people who like racing and might have the backing to give you that golden egg. A friend of mine is going after something but isn't starting low and going for the gusto. I'm extremely impressed that some doors are opening even if at first I thought she was nuts and wouldn't have a shot. It's all about networking and getting to know the people who can help you. Oh yeah, then what Greg has said in the past - ASK. As hard as it was for me, I gave that a shot for something that helped me get out on track and they said "sure, we can do that of you." What? Really? Shoot. I sure am glad I asked. (Thanks Greg for that that extra motivation.)
    Dave Gran
    Real Roads, Real Car Guys – Real World Road Tests
    Go Ahead - Take the Wheel's Free Guide to Racing

  5. #5
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    VERY hard to get someone to write you a check for any amount for Club Racing. I agree with the above posts, network yourself and then ask for help. Maybe it's just the owner of a car repair shop who mounts your tires and kicks in a free alignment once in awhile. Although not hard cash in your hand, it's a service you didn't have to pay for. Keep them up to date on how your season is going, where you're racing next, etc.
    Milwaukee Region
    Member 289368
    #09 HP VW Golf

  6. #6
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    As a person/company who has sponsored racers in the past, you just need to answer one question for me:

    How SPECIFICALLY are you going to make me money?

    As soon as I read or hear words like "market exposure", "eyeball impressions", and other meaningless marketing terms I toss the proposal in the trash or end the presentation. If you, as a racer, don't take the time to understand my business and figure out how you're going to SPECIFICALLY increase my sales then you're not worth the ink on the check.

    In essence, your sponsors are your customers and you must spend time understanding your customer's SPECIFIC needs before you try to sell them something.

  7. #7

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    Sponsorship is tough. A few years back, we at Flatout put together a proposal package that was, I daresay, more sophisticated and better targeted than those most club racers concoct. Moreover, we tempted prospects with 15 cars (at least); our 80-foot rig; and even a part-time Grand-Am operation.

    What did we get? Crickets. And this was before the economy imploded.

    Northeasterners: if you ever want the ugly truth about sub-NASCAR sponsorship, buy a beer for Brian Bagnall and listen to his stories. Back in the day, Brian was part of some damn serious pro roadrace teams, and even at that level nearly all sponsorship involved ... oil that you either used or sold; outdated cell phones you sold door to door (I kid you not) for whatever you could get; and other such highly glamorous opportunities.

    Steve

  8. #8
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    Quote Originally Posted by betamotorsports View Post
    As a person/company who has sponsored racers in the past, you just need to answer one question for me:

    How SPECIFICALLY are you going to make me money?

    As soon as I read or hear words like "market exposure", "eyeball impressions", and other meaningless marketing terms I toss the proposal in the trash or end the presentation. If you, as a racer, don't take the time to understand my business and figure out how you're going to SPECIFICALLY increase my sales then you're not worth the ink on the check.

    In essence, your sponsors are your customers and you must spend time understanding your customer's SPECIFIC needs before you try to sell them something.
    I love it, good stuff! I do need to focus more on the things you are mentioning, I've always tried to avoid the typical "logo on the car, people see it, there you have an advertisement" type of deal in exchange for more detailed "what I will do" answers. I need to work more on those type of things.

    I can say one sponsor a while back I personally was able to sell at events around fifteen of their products (around $400-1000 each). When I have a sponsor I try to market myself as a moving salesman with a moving billboard and sales program for them. I try to go a LOT further then just accepting a check and putting a logo on the car if that makes sense.

  9. #9
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    Sponsorship is in the approach. Racing is advertising, period. Anyone who sees your car and any labels displayed is impacted. That is why I refuse to expose manufacturer's labels if I purchase the product for retail pricing. So everyone sporting their Sparco, OMP, Schroth, Recaro, etc. labels is free advertising. Sure you look cool, but in the end you're giving it away. With that being the case it is difficult for companies associated directly with racing to give product and/or money to racers. So you should look outside of the racing industry for sponsors. Racing folks are considered to have some level of disposable income, what companies are looking for that demographic? What companies deal with the automotive and transporation industries directly? Set your sites on those areas.

    Now for your billboard. Start with a well prepared clean car that is decently competitive. Make sure the car is clean. While you're at it clean the car (can't emphasize that enough as Andre Agassi via Canon taught you: "Image is everything"). No one likes a dirty billboard, so appearance is crucial. Operate both on and off the track like you represent someone's product. Provide feedback on your racing with post event reports to make your Sponsors or prospects feel a part of the team/action. Always thank your sponsors, first privately and then publicly when given the opportunity.

    All of that takes effort and the resulting benefit might be less than similar effort spent on a second job as Greg Amy mentioned. You'll have to figure that out on your own. Regardless the above worked for a friend of mine who received free wheels (Bogart), tires (Goodyear), dampers (Ohlins), spark plugs (Bosch Motorsport), oil (Mobil 1), race suit (Flamecrusher), and a host of other bits along with some money from local dealerships and a tuner. In the end he didn't make money, but he was able to offset his operating costs. So I'd say it was succesful at the club level.
    David Russell
    IT Volvo 242

  10. #10
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    Ultimately your a spokesman for the sponsor both at the track and away from it. If Mobil 1 gives you free oil, you tell your family and friends to use that oil and make sure whomever they purchase the oil from knows they are there because of you, the Mobil 1 spokesperson.

  11. #11
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    How SPECIFICALLY are you going to make me money?
    Yes and no. I can tell you without a doubt it's not all about the money. It's getting to know the right people, have them like you, show your passion, want to help them, and there is a good chance they'll help you.

    The billboard on the car? Eh. Don't try to sell that. Look at how many (extremely few!) fans come to SCCA events. Unless they're in motorsports, having their name at the track usually isn't all that big of a bait for companies. And then they don't want to give it to one racer and not another one of their customers.

    I'm not saying that companies don't want to know what you will do for them by any means. Sometimes it's more personal though.

    Tire mounting, no biggie. Painting your car on their schedule, not out of the realm. Maybe some free service on your race car. Getting to the next level is where it becomes more of a challenge and time consuming.

    For what it sounds like you're looking for, here's some additional information that might help you.

    http://www.goaheadtakethewheel.com/a...ponsorship.php
    Last edited by gran racing; 09-07-2010 at 08:54 PM.
    Dave Gran
    Real Roads, Real Car Guys – Real World Road Tests
    Go Ahead - Take the Wheel's Free Guide to Racing

  12. #12
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    Quote Originally Posted by gran racing View Post
    The billboard on the car? Eh. Don't try to sell that. Look at how many (extremely few!) fans come to SCCA events. Unless they're in motorsports, having their name at the track usually isn't all that big of a bait for companies. And then they don't want to give it to one racer and not another one of their customers.
    The car is the billboard, not a NYC taxi setup. You run their livery or graphics and the level of exposure is proportional to their support. Just my take.
    David Russell
    IT Volvo 242

  13. #13
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    But if no one sees the billboard... What's that saying Greg? SCCA is where the racers know the fans.
    Dave Gran
    Real Roads, Real Car Guys – Real World Road Tests
    Go Ahead - Take the Wheel's Free Guide to Racing

  14. #14
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    Quote Originally Posted by gran racing View Post
    What's that saying Greg?
    Difference between NASCAR and SCCA? In NASCAR the spectators know all the drivers' names; in SCCA the drivers know all the spectators' names.

  15. #15
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    Quote Originally Posted by Greg Amy View Post
    Difference between NASCAR and SCCA? In NASCAR the spectators know all the drivers' names; in SCCA the drivers know all the spectators' names.
    LOLOl I literally laughed out loud at that one.

    So true, however there are other ways to advertise other than just to fans at the event. You can use the car as a tool for any media advertising, car shows, advertising on the trailer, etc.

    Drive the car on the street and advertise to a lot of people.

  16. #16
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    Quote Originally Posted by gran racing View Post
    Yes and no. I can tell you without a doubt it's not all about the money. It's getting to know the right people, have them like you, show your passion, want to help them, and there is a good chance they'll help you.
    Dave nailed it.

    My 3 smaller yet most important/biggest sticker, (ie no cash, just other stuff) sponsors, have led to me getting products/cash/support/special 1 off products.

    These 3 smaller companies/sponsors Know what type of person i am and what i do. Also i help them out.

    They need help on a weekend? I come in and work. They need to borrow/use a truck and trailer? We work out the timing and they use mine.

    Really these people/companies are some of my best friends. And they pass deals along to me, introduce me to the right people, and help with networking big time.


    I will say what Greg and others have touched on. I make it VERY clear that i do this with 98% my own money, and while i REALLY appreciate what they want to do for me i can NOT make promises about what i will do. Because life happens, and shit gets in the way of racing. I never over promise, in fact i make it a point to 'under commit", and usually do more.

    They appreciate the honesty. But it SUCKS when you start taking a decent junk of money for racing because then you are OBLIGATED to make it. IE breach of contract...

    It's tuff... And at times can be more headache then its worth.

  17. #17
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    What Greg said.

    Been there, done that, learned the hard way. Stay in school, get a good job, and spend what you want on your racing. Maximize your earning potential and you will earn more $$ in an hour the old-fashioned way - working - than you are ever likely to generate for club racing in the same amount of time.

    K

  18. #18
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    We get sponsors for the circle track car real easy. Maybe $ 400-500 per season. Cost about 100-$150 per night to run. make around $85-$100 per night return. Run well, run clean,pass on the outside, every one likes your car.
    Same 18yr old kid driving .,nochance for the SCCA car. "What is SCCA club racing?"
    It is facing the facts that SCCA is invisable.
    We have money help for the "Chumpcar". That is a 1 year old thing and already has SCCA beat for interest and coverage.
    If you want sponsors, take the clean car to the business with a well penned Bio of the driver and team. Set the car there while talking, telling why you should get some of the persons' money... how you will show the product or service in the good light. Be honest and tell that it is a gift, nothing will come back but good faith and maybe some pictures or trophies.
    Get a calender of your car with the sponsor well in view. Get a few copies, etc.
    Make up a "thank you" note about the race results, thanking everyone. Give out a reciept for money payed to you. It may be a right off.
    I gave away about 9of 10 win trophies from my early years in the circle tracker. Those people paid me with parts and labor.
    There is no money in club racing. If it is not on TV, or up at the fair, nobody cares. IMHO. MM
    Mike Ogren , FWDracingguide.com, 352.4288.983 ,http://www.ogren-engineering.com/

  19. #19

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    Quote Originally Posted by Greg Amy View Post
    Difference between NASCAR and SCCA? In NASCAR the spectators know all the drivers' names; in SCCA the drivers know all the spectators' names.
    Best line in the history of IT.com. I solemnly vow to steal it and make it my own.

  20. #20
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    Biggest thing to push for a potential sponsor isn't the ontrack advertising , but more the trip to & from the track where ALOT of eyeballs can see the car , assuming you have an open trailer. Always make sure you stop on the way too & also from the track , you almost always get someone walking up and asking questions. Is a great time to hand them a biz card with a pic of the car on it as well as the sponsors phone number , prehaps mention to thm you would appreciate it if they called them and tell them what a nice appearing car they sponsor. At least then the sponsor KNOWS it is being seen.

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