By Paul Birdwell (paul@roaringforkagency.com)
In March of this year the leading sponsorship organization in America…
….published a great report on Best Practices for working with Sponsorship Sales Agencies and it is a great read for all events and venues that are considering working with a sponsorship sales agency.
Best Practices: Working With Sponsorship Sales Agencies, IEG
In the section of the above report that lays out how many sponsorship sales agencies get compensated for their work one can learn about how different that The Roaring Fork Agency’s “commission-only” approach is from other leading sponsorship agencies:
Breaking It Down: How Payment Structures Work
“Most agencies contacted by IEG SR work for a retainer plus commission.
Commissions typically range between 15 percent and 20 percent, although the number usually moves lower for six- and seven-figure deals. For example, an agency that sells a $1 million deal might receive a double-digit commission, while a $5 or $6 million deal may generate a commission in the single digits.
Retainers generally range from $5,000 to $15,000 a month based on the scope of services provided. A property that requires a soup-to-nuts overhaul of its sponsorship program will typically be charged at the higher end of the range.
From there, remuneration can work in a variety of ways. For example, Engage Marketing charges a retainer and commission, around which it reimburses clients 50 percent of the retainer after the first sale.
The agency uses the pricing structure to mitigate risk, said Kevin Alder, Engage president and chief engagement officer.
“If I’m asking a client to spend $10,000 or $120,000 with me, they inevitably ask ‘how much money will you guarantee me?’ The answer is zero. I can’t guarantee revenue back, but I can guarantee that we’ll take the best version of your offering to the right people.””
We here at The Roaring Fork Agency can get your sponsorship and naming rights opportunities in front of the right people and it will cost you event or venue NOTHING until a signed deal is in place and your event/venue have been paid first which is exactly the kind of outcome and Win-Win relationship we here at Roaring Fork would like to build with all of our clients.
If you have any questions about event sponsorship or venue naming rights contact the Roaring Fork Agency at:
paul@roaringforkagency.com
415 730 - 4854
Aspen, Colorado
Tiburon, California
Incline Village, Nevada
Santa Monica, California
Newport Beach, California
Twitter - @RoaringForkAgcy