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Sponsoring a Cycling Team: worth it?
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Learn
Oct 6, 08 8:02
Post #1 of 22 (675 views)
Sponsoring a Cycling Team: worth it?
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My firm is involved primarily in political work but half of the services are related to internet development. I've been thinking about expanding to general commercial clients for this service.
Anyway, the opportunity to be a sponsor of a relatively decent cycling team. It's not a whole helluva lot of money.
Looking it solely as a business decision, not an ego thing, do these investments make sense? If I get just one client out of it, the investment could more than pay for itself.
Given the relatively broad market for my service (it's not too nuanced and doesn't have distro issues - like private label granola), is it worth it?
SeattleTK
Oct 6, 08 8:13
Post #2 of 22 (644 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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Two questions:
1. In your world whats "
not a whole helluva lot of money"?
2. Whats the potential value of one new client?
Travis
dumb blog
(This post was
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by SeattleTK on Oct 6, 08 8:14)
Hid
Oct 6, 08 8:15
Post #3 of 22 (638 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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In Reply To
My firm
is involved primarily in political work but half of the services are related to internet development. I've been thinking about expanding to general commercial clients for this service.
Anyway, the opportunity to be a sponsor of a relatively decent cycling team. It's not a whole helluva lot of money.
Looking it solely as a business decision, not an ego thing, do these investments make sense? If I get just one client out of it, the investment could more than pay for itself.
Given the relatively broad market for my service (it's not too nuanced and doesn't have distro issues - like private label granola), is it worth it?
"My firm" as in you own or are a partner in the firm?
"it's like information without the facts." - Mr. Tibbs
"it's not posted to a triathlon forum, but to a lifestyle forum that happens to be inhabited by triathletes. all kinds of stuff gets posted here, and i'm grateful that it does. - Dan Empfield aka Slowman
http://forum.slowtwitch.com/...0what%20to%20;#65849
onabubble
Oct 6, 08 8:33
Post #4 of 22 (593 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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Not only do you need to ask "how much is a client worth?" But, what are the demographics of the clients that you already have? And, how do those match up to the demographics of those participating and those observing the team. How many clients do I need to pay for this? is also an important number to know.
In my experience, the lower the cost of sponsorship or advertising, the less desirable the demographic. I have sponsored everything from Little league to local 10k runs and the return on investment is not really strong. The problem is that to capture a client you usually need to be in a place that they are at, when they are thinking about the service or product that they are looking for. Or, be so prominent in an advertisement campaign that they have heard or seen your companies name 8 times in a 48 hour period.
I have not even brought up the fact that does the name of your firm explain what it is that you do? If not, how do you get that message across on a jersey with 5 other sponsors?
A lot depends on what your advertising budget and goals are.
I think it is cool, and would do it if my budget were ample enough. I have done things like this, totally out of ego and wanting to be involved with either a friend, family member, or a client. Just understand this is one of the least effective ways to market your business.
Hope this helps, or at least gets you to a point where you can analyze the situation with some more scrutiny.
david
Oct 6, 08 8:57
Post #5 of 22 (541 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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In addition to the other fine comments in this thread, it depends on your business and other marketing efforts. We have sponsored "pieces" of local cycling, including the university team, for quite a number of years. From a business analysis standpoint, it does not generate any sort of linear return. I do believe it does provide a collateral benefit to more traditional (and visible) marketing efforts. As for ego, you can say it all you want, but it does feel good to be on the jersey and have cycists think old guys like me are at least somewhat cool.
Best wishes,
david
www.daviddaggett.wordpress.com
David
Be satisfied with your very best, Never give up, Do unto others....
http://www.squidoo.com/daviddaggett/
(Includes My IM Blog )
http://www.lewisdaggett.com
Learn
Oct 6, 08 9:19
Post #6 of 22 (505 views)
Re: Sponsoring a Cycling Team: worth it? [SeattleTK]
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1) Between 1500 and 5000. They have higher level sponsorships though but I'm not that interested just yet. I don't need a front and center logo (see the referral mention in the post below).
2) Ranges between 2000 and 50000+ for most projects. We are modeled to have near zero ongoing pricing so all the expenses are up front.
Not a whole helluva lot. Less than most spend on their bikes.
(This post was
edited
by Learn on Oct 6, 08 9:23)
Learn
Oct 6, 08 9:19
Post #7 of 22 (503 views)
Re: Sponsoring a Cycling Team: worth it? [Hid]
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I am the owner.
Learn
Oct 6, 08 9:22
Post #8 of 22 (489 views)
Re: Sponsoring a Cycling Team: worth it? [onabubble]
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Well, my thinking is the need for the service is pretty ubiquitous for the demographics of the sport.
In terms of generating clients, it's a pretty large team, so my thinking was that referrals would come from people who are on the team or related to people on the team and work for a firms that needs the service - I can at least get a proposal in the door and we have perfect proposal acceptance rate (for projects that actually go forward).
KarlEtzel
Oct 6, 08 9:45
Post #9 of 22 (441 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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We are a very different kind of company but pondering a similar decision. One of the key questions you should ask - do they understand that racing, in and of itself, is of almost ZERO business value? Most racers harbor the illusion that the world cares about their podium finish in some local race AG category.
Since your business is not triathlon or cycling related, how do the racers participate in the broader business community? How articulate are they going to be at advocating for your business? Are they in contact regularly with your target customers?
If the team understands that these are the ways they can help you, and are articulating their value in these terms, you may have a winner.
Silicon Valley Cycling Center
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Shama
Oct 6, 08 9:45
Post #10 of 22 (440 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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That might all be fine then.
Having sponsored both, having the team race all over doesn't always work. Not alot of spectators at some races. Having the team ride in town in the kits for training is your best exposure. Making sure everyone on the team knows what you do.
An incentive (more sponsorship next year) if you actually do get refferals from the team. Having a relationship with the team and riding with them if possible will do alot of you. People talk about people they know, if they don't know you, it won't work as well.
If you are looking around to sponsor. Tri teams/clubs are usually larger, train infront of more people due to the three sports, and are usually infront of WAY more people at a local triathlon than a local crit. At least that is the way it is in Texas.
SeattleTK
Oct 6, 08 9:50
Post #11 of 22 (419 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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With my experience (marketing, advertising, sponsorships, endorsements, spokes persons) I say go for it with an open mind & low expectations.
Do it with the thought that your supporting something you love that could possibly bring in a new client. It should also be tax deductible so the investment is easier to justify.
I have a client that's a secondary sponsor of a cycling team. Their a high-end commercial contractor, while it would be tough to figure their return on investment they do get some good PR.
Have fun with it & you never know, you may get some new business out of it.
Travis
dumb blog
Learn
Oct 6, 08 9:55
Post #12 of 22 (397 views)
Re: Sponsoring a Cycling Team: worth it? [Shama]
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Yes, I was thinking about this. Just sponsoring the local tri team with 1000+ members or so.
I don't expect anyone to give me any business off seeing the name/logo. Just team-based referrals.
(Of course, I could always be a sponsor for ST, too.)
We will be retooling things after the election and getting new staff up to speed and getting operations re-organized. Right now I'm a soft 'yes' on sponsoring the team and the local tri club.
Shama
Oct 6, 08 9:57
Post #13 of 22 (392 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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Seattle says it well too.
It is good to see companys wanting to give to the sport.
We all thank you for that.
Learn
Oct 6, 08 10:04
Post #14 of 22 (374 views)
Re: Sponsoring a Cycling Team: worth it? [SeattleTK]
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Well, it's gotta get a better return than what the rest of their sponsors are getting. They include a chemical company, an 'info management' service (?), a cosmetic firm (?), and a bunch of other fitness related firms like massage/chiro/coaching/etc.
SeattleTK
Oct 6, 08 10:07
Post #15 of 22 (365 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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I would say most of them are sponsors because of their love of the sport or an emotional connection.
A board member has a kid on the team or always dreamed of being a Cat1 racer ;-)
Travis
dumb blog
onabubble
Oct 6, 08 10:11
Post #16 of 22 (345 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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It looks like a good fit then. From a totally impartial business view, it would be worth it to move forward. Just remember, sometimes it takes a while for these things to payoff, so as long as your expectation level is appropriate, you won't get burned.
Again, from where I sit, I try to sponsor as many things as my meager budget allows. Most of the time it is just for the fact that I am a supporter of my community and it is the right thing to do. I also like to get my "free" registration for events. And, I like to see my name in as many places as I can get it.....hmmm, I wonder if this has anything to do with being a Triathlete? The intraverted extravert thing?
Learn
Oct 6, 08 10:59
Post #17 of 22 (274 views)
Re: Sponsoring a Cycling Team: worth it? [SeattleTK]
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Well, my brother is going to be on the team, but this is strictly a business thing and mutually beneficial, just like advertising on the radio, etc.
They send referrals, I upgrade the sponsorship next year, rinse, repeat.
SeattleTK
Oct 6, 08 11:04
Post #18 of 22 (251 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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Well, my brother is going to be on the team, but this is strictly a business thing and mutually beneficial, just like advertising on the radio, etc.
They send referrals, I upgrade the sponsorship next year, rinse, repeat.
Man...I can call'em!
These types of deals almost always START with an emotional connection. I think you should do it, the investment is low & your brother will think it kicks ass! (Hopefully its your little brother)
Good luck,
Travis
dumb blog
(This post was
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by SeattleTK on Oct 6, 08 11:06)
Learn
Oct 6, 08 11:25
Post #19 of 22 (212 views)
Re: Sponsoring a Cycling Team: worth it? [SeattleTK]
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Yes, it started with my emotional connection to the dollar signs I saw when my brother sent me the sponsorship proposal and I saw all these rich upper-management guys with cat4/5 licenses on $9000 bikes.
=)
swift
Oct 6, 08 11:31
Post #20 of 22 (198 views)
Re: Sponsoring a Cycling Team: worth it? [Shama]
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That might all be fine then.
Having sponsored both, having the team race all over doesn't always work. Not alot of spectators at some races. Having the team ride in town in the kits for training is your best exposure. Making sure everyone on the team knows what you do.
An incentive (more sponsorship next year) if you actually do get refferals from the team. Having a relationship with the team and riding with them if possible will do alot of you.
People talk about people they know, if they don't know you, it won't work as well.
If you are looking around to sponsor. Tri teams/clubs are usually larger, train infront of more people due to the three sports, and are usually infront of WAY more people at a local triathlon than a local crit. At least that is the way it is in Texas.
That is probably the best idea i've seen so far. Tell them to think of it as their comission
-Jason
I believe cars are the new second hand smoke. -Dave Zabriske
LazyEP
Oct 6, 08 11:45
Post #21 of 22 (177 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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What are your metrics?
ROO?
ROI?
ROE?
There are several dozens of ways to value sponsorship.
You've got to figure out what it is you wish to accomplish. Being a good corporate citizen is light years away from wanting to strictly make $$$.
"It's not the age sweetheart. It's the mileage."
Dr. Henry "Indiana" Jones, Jr.
Sabrekitty
Oct 6, 08 11:54
Post #22 of 22 (170 views)
Re: Sponsoring a Cycling Team: worth it? [Learn]
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Right thought.
Especially if some of them are business owners or upper management.
There is no justice, there is only me. -- Death
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