October 14, 2015 by Dave Lutz
Lots of conference organizers want a magic formula for pricing sponsorships.
Sadly, there isn’t one.
To grow this critical revenue line, sponsorship seekers must do the following:
Most conference organizers use one or more of these pricing methods:
These are in-kind or cash investments that you would otherwise be paying out of pocket for.
(Cost to deliver benefits + Cost of Sales + Cost of Servicing) times three. These should never be discounted by more than 30%. To calculate labor, multiply the adjusted net hourly wage by two to cover benefits, taxes, etc.
This pricing strategy is based on intelligence gained from competitive research…what the market will bear.
This is the holy grail of sponsorship pricing. Sponsor seekers usually can only achieve this with a combination of exclusivity and strong alignment with the sponsors target market. Attendee mattering must also be high.
Beyond these four, sponsor seekers get creative with bundling of various properties and assets. Some apply discounts for first year sponsors to get them in the door.
Conference sponsorship programs are not created equal. After analyzing dozens of them, there are seven key attributes that must be present for a thriving program:
Does your Sponsorship program put your attendees’ needs above those of your sponsors? What are some ways you’re focusing on sponsorship strategy first?
Adapted from Dave’s Forward Thinking column in PCMA’s Convene. Reprinted with permission of Convene, the magazine of the Professional Convention Management Association. ©2015.
Filed Under: Business Model, Sponsorship & Exhibits
Excellent article! I love the line “If the attendee doesn’t win, nobody wins. Never sell your attendees out!”. Personally, this is the biggest barrier to finding ideal sponsors for events. Constructing a relationship with sponsors that can benefit the attendees should be priority #1.
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