Unfortunately, there is no magic formula when it comes to putting a value against the partnership. The value of the sponsorship will vary depending on several factors.
Answering the below questions will help calculate a value.
- What products and services does the sponsor sell?
- Will this opportunity give the sponsor a new or existing target market?
- How much will a customer spends per year on the sponsor’s product/service?
- How long will someone remain a customer?
- How far is your reach?
- How engaged are your audience?
- How exclusive is the asset/opportunity? Do other sponsors have access to the asset?
- How much will it cost you to provide the benefit/asset to the sponsor?
- How will success be measured?
- What is the potential Return on Investment (ROI)?
It is recommended that the club keeps detailed records of past sponsorship agreements to help evaluate the worth of new agreements. A club will get a better idea of sponsorship worth as time goes on.