Guest post by Bruce Rosenthal, Partnership Professionals Network
Many associations are taking a big “hit” as a result of COVID-19: cancelled conferences resulting in loss of conference registration and expo fees; possible decreases in membership dues; etc.
Corporate sponsors can be a valuable source of revenue. Unfortunately, there are some myths about the feasibility and propriety of seeking sponsorship revenue during the pandemic.
By understanding the truth behind these myths, organizations can increase revenue and member value with the support of corporate sponsors:
Myth #1: When an association’s conference is cancelled, sponsors want their money back.
Truth: Many companies still value your members as an audience and as a market. Most companies are more interested in having their sponsorship goals fulfilled than in receiving a refund … even if your conference is cancelled. They’ve already budgeted the money and maybe already paid the sponsorship fee. These companies prefer “replacement value” to a refund.
Myth #2: Sponsors are too busy to talk with associations during the pandemic.
Truth: Some companies are will not be able to talk about sponsorship opportunities at this time. However, many companies have sales goals they hope to meet this year. While it might take some effort and some empathy, many companies would be interested in scheduling a conversation. The topic of discussion should be about mutual goals and partnering, not your association’s interest in “selling sponsorships”.
Myth #3: Associations should wait until late 2020 to talk with companies about 2021 sponsorships.
Truth: Some companies develop their fiscal year budgets May – August for the upcoming year; contacting these companies in the fall might be too late for your organization to be included in their marketing budget cycle for next year. Organizations should ask their contact at each company when they will be marketing budget for the upcoming year.
Myth #4: Since many associations and their members have financial challenges due to the pandemic, sponsors will be interested in making a contribution.
Truth: Some sponsors might be interested in providing philanthropic support, however, many sponsors have their own challenges due to the pandemic. Companies might be even more careful about which associations they decide to sponsor. Companies are probably more interested in a discussion about achieving their business goals and partnering with the association to support members than in making a contribution.
Myth #5: Due to the uncertainties of COVID-19, it’s important to take the time to think through new sponsorship opportunities before contacting companies.
Truth: Sponsors – especially top-tier sponsors – appreciate being treated like partners. As your association considers various strategies and scenarios, involve your sponsors in the discussion. Overall, don’t let perfection be the enemy of progress. Now is a great time to explore new ways to add value to your association’s sponsorship relationships …. for the benefit of your members, your association, and your sponsors.
In conclusion: Companies that are “up and running” now …. and have fewer marketing outlets due to cancelled conferences …. might be very interested in talking with you about sponsorship opportunities. This is going to vary company to company depending on their circumstances, however, it could be a real opportunity for associations and not-for-profit organizations.
See more information about corporate sponsorship strategies from the Partnership Professionals Network.
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