9-29-14
10:00am
Okay. Let’s see, next I need to develop a Sponsorship Policy to guide my efforts — a bird’s eye view. It might seem that creating a policy would really only be necessary if there are more than one person involved in your sponsorship efforts, but I think it is important to set the boundaries for even just yourself, because there certainly will be challenges to those boundaries! I’m grateful to Kim Skildum-Reid and Anne-Marie Grey’s book The Sponsorship Seeker’s Toolkit. It was a helpful guide, as was Kim’s website, www.powersponsorship.com, though I had to be on the lookout for differences between US and Australia, and am constantly using my business development experience to adapt their concepts for my needs. I just wish this workbook was specific to music sponsorship, then I wouldn’t need to do any of this! Oh well, once we’ve gone on this journey, hopefully my efforts here can help other musicians — pay it forward, right?! Here we go!
Sponsorship Policy
History – (I will pull from my Music Sponsorship page to create the core concept of why I am choosing sponsorship as my primary revenue source): In the current entertainment industry landscape, I have chosen to reposition my success trajectory from label musician to sponsored musician with my music as sponsored content, applying the ancient model of artist-sponsor partnership and re-establishing that direct artist-audience relationship.
Definitions – (How I define sponsorship): Sponsorship originates from the Latin spondére – “to promise.” It originally meant a promise to provide financial support enabling an artist/athlete/author to create, in exchange for the prestige of acknowledgement. It then evolved to mean a promise to pay for an event or activity by a commercial interest in exchange for the right to advertise at that event. It now means so much more. In my case, with the goal of a brand adding visible value to an audience’s experience of interacting with me and my music, it is only limited by our imaginations, and is, therefore, situationally defined. Each sponsorship is tailored and unique, taking into account the brand’s product or service, and the audience, within the context of my music content & my performances. Sponsorships can include, but are not limited to (I’ve already put a lot of thought and work into my inventory, but it is constantly evolving.):
Sponsorship Inventory
Sponsorship types
Online Properties: (List is focused on Artist Channel on Ever Entertainment™, but also will include artist website, eliyora.com page, as well as all social media pages and any other online Artist presence.)
l Artist Presenting sponsorship on Artist Profile, Album, Song, Video, Lyric content
l Presenting sponsorship for Artist Channel content
l Presenting sponsorship of an Artist Channel section
l Presenting sponsorship of an Artist’s event-driven contest in Channel
l Presenting sponsorship of an Artist related or subordinated event – Artist widget
l Major sponsorship [customized selection]
l Supporting sponsorship [customized selection]
l Listed in content as official product status
l Listed in content as preferred supplier status
l Music Video Sponsorships
Artist Event: (I am currently only offering live online concerts, but have created an inventory for if and when I do live concerts at brick and mortar venues as well. Never say never, but touring is not high on my priority list as of now. In my ideal world, I would have a Supper Club “set” or production studio close by, where I could blend live online with a live audience. We’ll see.)
l Naming rights sponsorship (perceived ‘ownership’ of the event)
l Presenting sponsorship
l Naming rights or presenting sponsorship of a section
l Naming rights or presenting sponsorship of a time period at the event
l Naming rights or presenting sponsorship of an event-driven award, or donation
l Naming rights or presenting sponsorship of a related or subordinated event
l Major sponsorship
l Supporting sponsorship
l Official product status
l Preferred supplier status
Exclusivity
l Category exclusivity among sponsors at or above a given level
l Category exclusivity among sponsors at any level
l Category exclusivity in event-driven advertising or promotional media
l Category exclusivity as a supplier or seller at the event
License & Endorsements
l Use of Artist’s logo(s), images and/or trademark(s) for the sponsor’s promotion, advertising, or other leverage activities
l Merchandising rights (the right to create co-branded merchandise to sell)
l Product endorsement (Artist endorsing the sponsor’s product)
Contracts
l Value-Added for multi-year contracts
l First right of refusal for renewal at conclusion of contract
l Performance incentives
| Exclusive, added value ROI Pricing
Venue
l Input in venue, route and/or timing
l Use of sponsor venue[s] for launch, main event or supporting event
On-Site
l Sampling opportunities
l Demonstration/display opportunities
l Opportunity to sell product on-site (exclusive or non-exclusive)
l Coupon, information or premium (gift) distribution
l Merchandising (sponsor selling dual-branded products)
Signage
l Venue signage (full, partial or non-broadcast view)
l Inclusion in on-site event signage (exclusive or non-exclusive)
l Inclusion on pre-event banners, flags, etc.
l Press conference signage
l Vehicle signage (if applicable)
l Event staff shirts/caps/uniforms (if applicable)
Hospitality
l Tickets to the event (luxury boxes, preferred seating, reserved seating or general admission)
l VIP tickets/passes (backstage, sideline, pit passes, press box, etc.)
l Celebrity/participant meet-and-greets
l Event-related travel arrangements, administration, and chaperone (consumer prizes, VIP or trade incentives)
l Access to or creation of ‘what money cannot buy’ experiences
l Development of customised hospitality events to suit the interests of the target market
Information technology
l Provision of content for sponsor Website (eg, weekly Artist tidbits, Artist’s songwriting diary, etc)
l Provision of web ‘events’ for sponsor Website (e.g. chat with Artist, webcast)
l ‘Signage’ on Artist’s Website, Social Media pages
l Promotion or contest on Artist’s Website, Social Media pages
l Links to sponsor Internet site from Artist’s Website, Social Media pages
l Naming rights (perceived ‘ownership’) to Artist’s Website
Loyalty marketing
This section is about providing benefits that the sponsor can pass on to their target markets in order to reinforce their relationships.
l Access to event, parking or merchandise discounts for a specific customer group (e.g. frequent flyers, Gold Card holders)
l Access to event, parking or merchandise discounts or other perks for any customers (usually by showing proof of purchase)
l Exclusive access to an event, area, contest/prize, service, celebrity or experience for all or a specific group of consumers
l Early access to tickets (before they go on sale to the general public)
l Block of tickets, parking, etc. that the sponsor can provide to loyal consumers. Can be provided with or without naming rights to that section (e.g. the Sun Energy Best Seats in the House)
Database Marketing
l Unlimited access to Artist-generated database(s) (eg, member lists) for direct marketing follow-up – (be careful not to breach privacy laws)
l Opportunity to provide inserts in Artist event-oriented mailings
l Rental/loan of Artist’s database for one-off communication
l Opportunity to run database-generating drawing or contest on-site
l Opportunity to run database-generating drawing or contest on-site as a requirement for attendee admission
Employees/Shareholders
l Participation in the event by employees or shareholders
l Access to discounts, merchandise or other sponsorship-oriented perks
l ‘Ownership’ of part of the event by employees (e.g. creating an employee built and run merchandise station as part of a concert sponsorship)
l Provision of an Artist meet-and-greets for employee motivation
l Creation of an event, day or program specifically for employees
l Creation of an employee donation or volunteer program
l Opportunity to set up an employee recruitment station at event
l Distribution of employee recruitment information
Public Relations
l Inclusion in all press releases and other media activities
l Inclusion in sponsor-related and media activities
l Public relations campaign designed for sponsor’s market (consumer or trade)
Ancillary or Supporting Events
l Tickets or invitations to ancillary parties, receptions, shows, launches, etc.
l Signage, sampling and other benefits at ancillary parties, receptions, shows, launches, etc.
Other Promotional Opportunities
l Custom-design of a new Artist event, program, award or other activity that meets the sponsor’s specific needs
l Provision by sponsor of spokesperson/people, celebrity appearances, costumed character, etc. to enhance association
l Proofs of purchase for discount admission
l Proofs of purchase for discount or free parking
l Proofs of purchase for premium item (eg, people can trade three proofs of purchase for a free Artist event program)
l Opportunity to provide prizes for media or Artist event promotions
l Couponing/advertising on ticket backs
Media profile
l Inclusion in all print, outdoor, and/or broadcast advertising (logo or name)
l Inclusion on Artist event promotional pieces (posters, fliers, brochures, buttons, apparel, etc.—logo or name)
l Ad time during televised Artist event
l Artist event-driven promotional radio or television schedule (sponsor is provided with part of Artist’s advertising)
l Artist event-driven outdoor (billboards, vehicle, public transport)
l Sponsor/retailer share media (themed display ads, 30/30 or 15/15 broadcast)
l Ad space in Artist event program, catalogue, etc.
Research
l Access to pre- and/or post-event research
l Opportunity to provide sponsorship- or industry-oriented questions on Artist event research
Pass-through rights
l Right for sponsor to on-sell sponsorship benefits to another organization (this is always pending Artist’s approval). An example would be Optus on-selling part of a sponsorship to Nokia. They would then usually leverage the sponsorship jointly
l Right for retailer sponsor to on-sell sponsorship benefits to vendors in specific product categories
Contra
l Opportunity for sponsor to provide equipment, services, technology, expertise or personnel useful to the success of the Artist event in trade for part of sponsorship fee
l Opportunity for sponsor to provide media value, in-store/in-house promotion in trade for part of sponsorship fee
l Opportunity for sponsor to provide media sponsor-contracted discounted rates in trade for part of sponsorship fee
Production
l Design and/or production of key sponsor activities (hospitality, awards, etc.)
l Hiring and/or administration of temporary or contract personnel, services and vendors for above
l Logistical assistance, including technical or creative expertise Artist always retains final say in any creative matters)
Cause tie-in
l Opportunity to involve sponsor’s preferred charitable organization or cause
l Donation of a percentage of ticket or product sales to charity
(As I mentioned, this list is never set in stone — it is fluid and evolves with each sponsorship imagined.)
Issues – (What issues/challenges do I see in pursuing sponsorship): -The fact that the sponsorship team is me, myself, and I is an advantage as well as a disadvantage. It is a disadvantage because of the limited time and resources at hand. It is an advantage because it is a lean and decisive approach without the minutiae a group entails. - Pulling enough audience at this stage to attract a major brand. I may have to start small, even though I’m preparing to go big.
Exclusions – (Who will I not accept sponsorships from): Any company whose product, service or conduct cannot pass the Golden Rule. (Yes, I am aiming high.)
Processes and Procedures – (Basically creating my boundaries)
-A sponsor will never, ever, ever be allowed to have any creative control over my music, me or my performances — period. They must be willing to sponsor my music and myself as I am. I retain the right to final say regarding the creative boundaries of myself and my work always.
-With so many elements possible in imaginative sponsorships, a hierarchy of rights needs to be in place, and the primary sponsor must be identified, with their rights having precedence over secondary, in-kind and contra sponsors, second only to protecting the creative control of myself as the artist.
-We will seek out brands who not only are a match with my audience, and who respect my creative control, but whose products, services and practices are in line with the Golden Rule – we seek long-term partnerships that can stand the test of time.
-In the case that a brand’s ability to pass the Golden Rule changes, it is a breach of contract and we have the right to end the sponsorship and relationship at that time to maintain our credibility and integrity.
-With respect to exclusivity, it is a benefit that will be offered to select, top tier sponsorships. A brand cannot expect exclusivity unless they choose to participate at this level.
–Creating a Sponsorship Menu:
I will personally be creating an a la carte menu (using my inventory above), of potential sponsorship elements that can be used to tailor sponsorships, leaving open the possibility that the brand may also have ideas that will need to be added and priced. In order to create a price range for each element on the menu, cost of sales plus cost of fulfillment plus margin must be determined.
This menu is confidential and is never shared with a sponsor. As each tailored sponsorship is constructed, elements to be included are pulled from the menu and their individual pricing aggregated into the final sponsorship price.
This menu will be under constant revision as my potential offerings and audience increase.
I am also devising an added value pricing mechanism to measure actual audience awareness against projected audience awareness, with a brand discount built in if actual awareness does not meet projected awareness. It gives teeth to my sponsorships that no other sponsorship out there is offering. An actual measurable ROI.
–Selling Sponsorships:
I will personally be researching brand candidates, creating a CRM database, then reaching out to them via phone, email and social media.
–Sponsorship Contracting:
I will personally be tailoring, approving and signing contracts for each sponsorship, based on a standard sponsorship contract foundation obtained from an attorney.
If a sponsor chooses to use the automated sponsorship system on Ever Entertainment™ for print sponsor banners, the sponsor is also automatically contracted according to the contract contained on the site.
–Sponsorship Fulfillment:
I will personally be fulfilling sponsorship commitments, so I will under-promise and over-deliver.
–Sponsorship Payment:
I will personally be collecting payment for tailored sponsorships and accounting for all funds using accounting software and a CPA’s review.
If a sponsor chooses to use the automated sponsorship system on Ever Entertainment™, payment is collected automatically at the time of purchase and an accounting report is generated.
This Sponsorship Policy will be under constant review and revision as needed.
Okay. That is enough of a Sponsorship Policy to start with, since it is only me, myself and I being the Little Red Hen, doing everything. Of course, if there were any other people involved, a manager, for instance, then this policy would need to account for that, and the duties may be delegated differently. If there were even more involved, it could get quite complex. My music business needs to remain as simple as possible to protect the simple life I choose to live — so anything that needs done, it’s me and my mirror!
More later…time to record!
DIY Music Sponsorship Journal – 9-29-14. Eliyora Entertainment LLC. Ever Entertainment® © Paradunai LLC. All international rights reserved. All trademarks property of Paradunai LLC. All personas, concepts and original songs created and performed by Sherese Chrétien.
