Balancing your revenue needs against what sponsors are willing to pay can be complicated. Find out how to make both sides happy. Also: Why Instagram triumphs over Snapchat when it comes to marketing dollars.
Working with sponsors is a big part of the event industry, but figuring out how much to charge them can get complicated. There are a lot of different components to sponsorship, including social media mentions, logo placements, or speakers—the monetary value of which all depends on a particular sponsor.
So how do you thread the sponsorship valuation needle? Eventbrite shares a few tips for maximizing revenue.
First, determine market rate. “Instead of blindly assigning value to your sponsorship opportunities, conduct research to find the market rate for your assets,” writes Chris Baylis, the president and CEO of The Sponsorship Collective. “Start by looking at what your competitors charge sponsors.”
Your next step is to determine the perceived value for the sponsor. “Sponsorship is a business investment, and sponsors need to see a tangible outcome before they’ll meet with you, much less commit,” says Baylis.
“If your sponsor’s perceived value is higher than your activation price, then they’ll decide to sponsor. And if your cost for activation is lower than that price, you’ll make money,” he says.
Picking the Right Platform
— Entrepreneur (@Entrepreneur) May 31, 2017
Despite having a ton of product features in common, Instagram and Snapchat have more differences than you might think. And those differences mean marketing dollars are spent way more with Instagram than with cool kid Snapchat.
A recent Entrepreneur article details why marketers prefer Instagram.
Simply put: Instagram is easier to use than Snapchat. It’s more permanent than the temporary nature of Snapchat. And Instagram is easier to navigate with hashtags. “People don’t find it as easy to ‘discover’ on [Snapchat], which can be an immense barricade for businesses,” writes John Boitnott.
Other Links of Note
Don’t mask your failures. Know Your Own Bone makes the case for being more upfront with your misses.
Are you always on the road? Business.com recommends 10 travel apps to make your next business trip a little easier.
Twitter may be getting rounder. According to TechCrunch, the social giant is testing round profile images and buttons on its mobile app.