Gaining Sponsors

[Shaman]

Anyone got any feedback for me about attracting sponsorship, and how to protect yourself from the taxman a bit?

I'm curious to know what other people do.

Next year when I start campaigning a Mod car, I'll need all the help I can get with the cost of building the car.

[tigeraid]

Go up to a business, preferably where someone you know works, and ask... simple as that.

Approach them with a package of paperwork detailing you, your team, the car(s), and your accomplishments in racing. Never, EVER quote a price. The meeting should end by saying "provide whatever support you can"... then remind them that the more support they provide, the more advertisement they get. Bigger name on the car, more plugs during interviews, more plugs during P.R., etc... IF they give you $1000, put 'em on the hood in big lettering. If they give you $50, put em on the sidewall of a tire ;).

[Shaman]

LoL... the inside of the tire, so that it doesn't look so cheesy? :)

[tigeraid]

Our biggest sponsors have been Canadian Tire, Barracuda Billiards and Sands Karaoke Bar, all three well about $2000 a season. They get front fender or rear quarter. Swayne Racing Engines gets the hood cuz, well, the engine is worth the most ;). Smallest sponsor I think we ever had was $200 from Gateway Motors, a small used car dealer. He got the very bottom of the door under the scrub rail ;).

[Chris P]

"Never, EVER quote a price. The meeting should end by saying "provide whatever support you can"... then remind them that the more support they provide, the more advertisement they get. "

I'm a little concerned with that statement. If you are in the position where sponsorship is needed and you are looking for more then $50-500 then you shouldn't say "provide with whatever support you can". I've read many articles on this subject and they all have said to outline different levels of financing and what comes with each one. You need to figure EXACTLY how much money you are going to need, add up all you costs. Give the potential sponsor a few options. So let's say $20,000 for a primary spot on the car, $10,000 for a secondary etc... They need to know how much you want/need. Yes you do need to be flexible but you must give guidelines to your potential sponsor. You also have to be able to do more for the sponsor then just put a sticker on the car....It is your job to promote there product.

There is no point for me to explain this when many other people have written good articles.

Here’s one:

http://www.kartracer.com/kart-tech/sponsorship101-part1.html

GRM wrote a very good article on this subject about 6 months ago. I would suggest you look at that. There are many sites on the Net with articles on this subject aswell.

[Chris P]

Oh and setting up a company for your racing is not such a great idea. It seems Gov. Canada doesn't like to see company's loosing money. They will catch up and investigate the legitimacy of your business.

[Shaman]

That's a great article. I'll read the rest of it when I get home from work.

And, my accountant told me that GOC wouldn't allow me to set up a racing company without all kinds of pre-requisites. It's one of those businesses that sets up immediate klaxons, bloodhounds and the rest when it comes up in the computer.

[tigeraid]

Well I haven't read any damn articles on it, I'm just talking from 6 years of successful sponsorship relations. And yes we are a legit business that pays taxes and the whole deal.

Perhaps my wording was a bit off about asking for money. All I meant is to not go up to your very first sponsor and say "okay, we do this, and we need this much money". Outline to the sponsor how much it costs for this team to run a season, and what other sponsors have provided (this is included in my team's portfolio that is given to each potential sponsor). Mention any particulars you need payed at the start of this season (like a new engine or something). Let them know how much money is required, but don't force them to choose between xxx dollars or NO sponsorship at all. That's how you lose sponsors.

[Chris P]

"but don't force them to choose between xxx dollars or NO sponsorship at all"

That's why you give them a cheaper option. And be flexible.

"Outline to the sponsor how much it costs for this team to run a season, and what other sponsors have provided (this is included in my team's portfolio that is given to each potential sponsor). Mention any particulars you need payed at the start of this season (like a new engine or something)"

Also let them know about EVERY other company that sponsers a car in the series.

i guess what we are saying is pretty close :)

Coming from the son of a driver with who's been getting sponsers for 20+ years. You learn something from living in this type of atmosphere.

Cheers All!!

Chris P (a guy trying to help) :)