If your goal is to raise 500,000 in a year, you can hire a full-time sponsorship professional with money. Or you can hire a broker and still be on the hook for activation, execution and refund in case of a problem. If you plan to raise $1 million, you can hire a fleet of in-house distribution professionals! I think brokerage caters to the risk shower, which is ironic, because it`s actually much riskier than hiring someone to manage your relationships internally. The false belief is that the broker is only paid if he finds money and therefore it is a safe and cheap thing. Broker intentionally undervalues your assets to move the product quickly. You will leave According to your low hanging fruits, which are likely to embark quickly. You spend 25 hours in total and sell your referral for 30K (although it`s worth 100K). If your goal is to increase 50K, any broker willing to work on your project should be avoided like the plague. First of all, I`m not a broker, so don`t ask. There are many industry directories in which you can find brokers (also known as « referral agencies »). Just go to Google and go for your life.
For less well-established real estate, you`re lucky to have a broker. If you want to have a chance to find someone who sells on your behalf, you need to budget for a editor. For well-established real estate, with a strong fan community and a good track record with sponsors, you may be can get a broker to work solely with commissions, but don`t count on that. The result is that you`re asking a broker to jeopardize their reputation for what you do, and they`ll only do so if they know they`re selling on behalf of a credible, professionally run, and financially stable business. If you fill out this invoice, you can get a broker and get it at a reasonable price. If you miss any of the above points, it will be much more difficult to get a broker, let alone at a reasonable price. When sponsorship first took place, it was entirely commission-based. There has been a trend towards a more pre-commission. Now, the norm has shifted to retainer plus commission, with no advance fees. Sponsorship sold for the value of 100K, broker receives 25K or $36/hour for his work Chris Baylis is an expert in rating and referral strategy.
Chris works with sponsorship brands and properties to define their sponsorship goals, determine the market value of their sponsorship assets, and develop strategies that work. It really comes down to the ease of selling. Large, well-established, sexy (in the marketing sense of the word) real estate are relatively easy to sell, and these are the properties that are of most interest to sponsorship brokers. The harder it is to sell, the more they charge for it, to the point where they think the sale is unlikely and not worth it. When a brokerage contract ends, there will often be a few interested people in the middle of negotiation. In general, a broker terminates all ongoing negotiations and receives a commission, even if theirtainer relationship is over. You should not sue new sponsors after the end of the contract, unless this has been mutually agreed. There is no guarantee that a broker will be as successful as you would hope. A guaranteed sponsorship offer would be a red flag.
Targets, yes. Guarantees, no. If a sponsorship offers a guarantee, it`s a huge red flag. With sponsorship-broker scams on the rise, you should be above these and other red flags. I advise you to read: « How to make a referral broker scam (and a broker you should avoid). » But wait, » you say! Isn`t sponsorship a marketing activity and not really fundraising? Yes! But the problem lies in the public perception and the spirit of the code of ethics of fundraisers.