One of the biggest dilemmas race teams face each Fall when they begin their search for marketing partners is how much money to ask for.

Problem is, there is absolutely no exact science to any of it. I’ve known some four cylinder teams who’ve hustled and really gotten after it and have chalked up more marketing partners thus more sponsor $$$ than some super late model teams.

Let’s face it. Very few people are comfortable with asking for money. Unless you’re a tried and true advertising salesperson, it’s just something that most don’t like doing - at all. And what happens is teams will almost giveaway the space on their race cars and team transporters. Or ask for little to nothing in terms of sponsor dollars.

So how much is too much? Many teams (at least those here in the Midwest) fear that if they shoot with too high of a number that it may scare off a potential advertiser. And thus it’s an attitude of “I’ll take whatever they want to give me.”

I’m here to tell you that any legit business that takes it’s advertising and marketing seriously will consider any and all options. If they feel you can present a real “bang for their buck” they’ll spend the money on what they will perceive as an honest-to-goodness marketing campaign.

When considering what options you may have available I suggest this to many teams. For starters, offer a detailed projected budget for your upcoming season. Include EVERYTHING from motors, tires, fuel for both the car and team transporter, sanctioning fees and pit passes, spare parts, body parts, vinyl lettering, autographed cards, team apparel, food and beverages and hotels.

What’s more, it makes your presentation and sales pitch look that much more professional.

The main point I like to stress with this is many business owners or marketing and advertising managers have no real clue as to how expensive it is to go racing - no matter what the level is. Some think we’re still in the days of racing coupes and jalopies. I can tell you firsthand it is a true eye opener for most businesses who are new to motorsports. Most have no clue.

So the projected budget is an absolute MUST HAVE in any motorsports marketing proposal. And it just makes good business sense. Do keep in mind as well that those prices may not include any major crashes or terminal engine failure. You owe it to your sponsors (especially if they are new to motorsports) that they know just exactly where the ceiling is in terms of spending money to go racing. This sport is like a black hole - you can’t throw enough money at it.

There is one other advantage to doing this budget: A business may opt instead to purchase item(s) for the team. It could be tires. It could be fuel. Maybe the Autographed cards. If that happens it’s all the better - and one less thing you’ve got to pay for out of pocket.

From there, I see no problem at all with suggested prices on doors, hoods, quarter panels, sailfins, rear bumpers, etc. Fendered cards for example may have more sponsor room than an open wheeled machine like a modified or a sprint car, for example. Most go for the hood as the major sponsor and giving the most money. Seems to me a business’ name may be easier to read on a door or quarter panel. On dirt, especially with modifieds the sailfin behind the passenger side door is a popular spot, and is drawing more and more sponsor money each year.

It’s easy to read and it is less likely to get damaged like a quarter panel that can more easily get dinged up.

So what prices do you put down? Obviously someone who plans on running the ASA Midwest Tour, for example, may be asking for a bit more for a hood or a quarter panel than say somebody running their local track weekly. What’s too much? $1,000? $2,000? $10,000 for a hood?

My advice to you is to put out some feelers. Some teams remain very tight-lipped about what they get in terms of ad dollars. Others, are just the opposite and will sing like jaybirds and sometimes even “brag” about how much sponsorship money they are getting. That will give you an idea about what kind of money you should be asking for.

What about your enclosed trailer? Many teams are tempted to simply “slap on” some stickers on their hauler, sometimes for free. Keep in mind, however there is great value there, because that “rolling billboard” will be seen potentially be tens of thousand of motorists during the course of the year on interstate highways. That’s as important, if not more important than the fans at the track. But I would strongly caution throwing those stickers on for free. It’s a part of your package that can perhaps be negotiated.

What about the vinyl stickers? That’s not free, either. Make sure both parties clearly understand who’s paying for the vinyl stickers and make sure that cost is figured in when you are seeking marketing partners.

No matter what agreement you come to with your marketing partners, make sure a detailed contract is signed by both parties, laying out in detail what is expected by both sides.

(Joe Verdegan owns and operates Elite Sports Marketing of Green Bay,WI . He can be reached @ jverdegan2@new.rr.com)

Okay, so that big sponsor you were looking to land didn’t come through for you for 2011.  Unfortunately what  happens all too often is drivers and/or car owners simply throw in the towel when this occurs.   So what went wrong?

If you’re not already doing this in your marketing proposals, a direct comparison between other marketing/advertising venues can more clearly illustrate what a  creative bargain motorsports marketing truly is.

And it’s not real hard to do at all. It take a little legwork on your behalf, and in the process of gathering this information can make you fully realize just what a deal you are offering to these potential advertisers.  It can be as simple as a matter of a few phone calls and/or emails.

First off, take a look at where many of the businesses in your market are advertising.  What medium?  Television ads? Radio?  Highway billboards?  Internet banner ads?  Newspapers?

Call up an account executive at these places and ask them for ad rates.     Tell them what you’re doing.  The response I’ve gotten is more than half will give you the information.  Fortunately I assist a local race track with selling billboards and nights and also handle some of their advertising, so these sales folks are always more than eager to make a sale, and thus will give you everything you need.

If you are not comfortable doing this, I can imagine you can find a business owner or more aptly one of your existing marketing partners who may have this information available.

Check out what their rates are for say, five or six months, however long your racing season goes.  Break it down by the month or the week.  Use pie charts or bar graphs to illustrate your point.  (Most computers these days have even the most basic graphics packages which will allow for this.)

Then, simply break down the amount of nights you plan on running, whether it’s 20 or 50, and break down those numbers down to what it would cost per race (event).    If you can successfully get the point across to that potential advertiser just how incredibly affordable your unique and creative advertising medium really is, it can help seal the deal.
In terms of ad costs, obviously television is normally among the most expensive for obvious reasons.  But I can tell you (at least here in Wisconsin) that radio ads are not cheap, either.  The days of the radio ads for 5 or 10 dollars a holler are gone.  Companies are easily spending well into the five figures just on radio alone!  And I worked full time in radio for four years.  Advertising like that can sometimes be like throwing darts at a dart board.  Or throwing something up against a wall to see if it sticks.

If you are a racer who runs two or three nights a week,  this may also open your eyes as to what you are valuing your race team sponsors as.  I know of teams (too many) locally who will throw a sponsors name on the car and never see a dime.  Some do it with “hopes” of landing that big one.

Truth is, at least in the Midwest, most race teams are undervaluing the product they have to offer.  If you do crunch the numbers and present them in a professional matter in your portfolio, it may very well lend some credence to that fact you and your race team DO take this seriously and that you do offer another creative and unique form of advertising.

When you do this, make sure you include things such as production costs of a radio or tv ad, and construction costs of a billboard, etc.  With that, also illustrate the point that your vinyl also costs money, so bring that cost into play as well.

When talking about costs, I always advise drivers to provide a breakdown of what their estimated expenses will be for the upcoming racing season.  Include everything, from engines, tires, wheels, bodies, fuel for both the team transporter, race car, pit passes and sanctioning fees, the whole ball of wax.  Even if you don’t mark a specific price for different packages or certain areas of your car/team transporter, it gives the potential advertiser an idea of just how costly these things are.    Most businesses not involved with motorsports have no clue the tens of thousands teams spend annually.

And always remember,  we in racing are the poster children for a business thinking outside of the box!

Joe Verdegan owns and operates Elite Sports Marketing.  He can be reached via email at jverdegan2@new.rr.com.  His website is Verdeganelite.com.

As race teams hoist their racing chassis up on jackstands for the winter, or shove their machines behind the shed or tuck them away in the corner of the race shop, the time is NOW for you to being your search for marketing partners for the 2011 racing season.

With our country rebounding from one of the worst economic recessions since the 1970’s,  there are many reasons while race teams can be optimistic when they ponder what they’ll do for advertisers to keep their racing programs solvent in 2011.  Truth is, companies craft their advertising budgets for the upcoming fiscal year NOW rather than in Spring, when teams often decide to throw together a half-hearted attempt to secure ad dollars. (note we use the term ad dollars and refrain from using the term sponsorship whenever possible).

Going after businesses to support your racing effort is pretty much like going to the dentist.  Very few people like doing it, and put it off as long as possible.   Let’s face it - it’s tough work!  It really is.  In order to be successful you must “dig in” and stay persistent.  Get used to rejection.  It’s going to happen.  Use it as a motivator.  Because it’s time consuming and is akin to getting a tooth pulled, car owners and drivers often put off any serious marketing efforts until late winter/early Spring, if at all.

Back to what we said two paragraphs up as to one of many reasons why you can be optimistic.  Why can you?  I’ll tell you why.  First off, we must separate ourselves from NASCAR.  Short track racing, quite frankly, offers a much more exciting product at a much more affordable price than does NASCAR.  We are NOT NASCAR!   Whether it’s dirt or pavement, a weekly show or a touring series, open-wheeled or fendered racers, we’ve got a dynamite product!  We really do!

For what some people spend to go to one Cup race per year you can attend races at your weekly track darn near every night of the year, with a lot fewer headaches.  So what if you don’t have Jimmy Johnson or Dale Earnhardt Jr. at your track every week?  You don’t need them.  You’ve got your local track heroes and villains (EVERY track needs a villain.  Does yours have one?)  Get these potential sponsors to the track in 2011, if you didn’t at all this past summer.

Problem is, there are still many in the business community who look at racing as a whole as “NASCAR”.  Weekly racing is a totally different animal.  Therefore, we’ve got to paint the picture for the potential advertisers.

What’s more, we’ve got to separate ourselves from the word “sponsorship” and call
a spade a spade – it’s advertising.  Plain and simple.  What we in motorsports offer is
a creative and unique alternative to advertising.  A very different medium from television,
radio, billboard ads and newspaper advertising.  Provide cost comparisons in your area with regards to highway billboards, television and radio ad rates, along with newspapers
and the online ads on their respective web pages.

Break your estimated expenses for 2011.  You can put “suggested” prices for doors, quarter panels, sailfins, etc.  But stress that everything in your package is flexible.

In your marketing portfolio break down an estimated costs per event.  Consider each
track to have an average of at least three, if not four rainouts a year in weekly racing.  It’s
a steal and we know it.  Problem is getting that point across to that potential advertiser!

Don’t be afraid to drop us a line @ jverdegan2@new.rr.com.  Let us help you!