Sponsorship has its own language, and it is important to be aware of the correct sponsorship terms as you approach potential sponsors and collaboration partners. Using incorrect terminology when connecting with sponsors not only shows you haven’t done your research, it could also lead to quick “NOs.”
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Why You Shouldn’t Ask Sponsors for “Donations”
The term “donation” is often used in the wrong context by sponsor-seekers. For example, entrepreneurs talking to a prospective sponsor often use the words “donate” or “donation” when they ask a brand to “donate to the swag bag.” The word “donate” triggers the potential sponsor to consider their philanthropic budget, which is generally for charities (and possibly non-profits). If you are a for-profit business or your project is profit-generating, the sponsorship decision-maker will likely give you a pretty fast “no”. Whereas, if you use the words “sponsorship” or “in-kind sponsorship”, the person you are speaking to starts to think about their marketing budget.
It's important to remember that sponsorship is a marketing relationship, not philanthropy (unless you are a charity seeking philanthropic support).
5 Sponsorship Terms to Know and Understand:
- In-Kind Sponsorship: In-kind sponsorship is where a brand/sponsor donates products or services rather than cash as their sponsorship offering.
- Sponsor-Seeker: That’s you (the person or organization seeking sponsorship).
- Sponsor: Think of the sponsor as a business, company, or organization that provides some sort of financial or in-kind support to a project, team, or event in exchange for different marketing and promotional opportunities such as logo placement, providing items for swag bags, or promotions in media and social media, to name a few.
- Leave Behinds: The brochure, samples, or other items you leave behind with the person you just met with about sponsorship.
- Category Exclusivity: We often see this term used in the context of events and conferences. This term refers to the rights that are provided to sponsors to be exclusive in its business category (for example, as the sole bank, telecommunications, insurance company, or sole provider of beverages). It is common to see “category exclusivity” applied to the banking and financial sector, telecoms, airlines, technology, and platforms.
When you use terminology that sponsorship decision-makers use every day in their profession, you will stand out. It's a powerful place to be standing out in the right way amongst the many sponsor-seekers that are approaching sponsorship decision-makers.
As you continue to learn more about sponsorship, jot down the language you see and let us know if you have questions.