TIPSY TUESDAY | The Importance of Contracts for Sponsorship Work - Bud + Bloom
Photo | Nicole Constante
So you’ve started your own business and you’re excited. You’re out there hustling to establish yourself and before you know it, people are excited about your business too! This is all fantastic until you notice a trend – people are excited enough to try your product or service but have a good understanding of the way the saturated entrepreneurial world works so they’re asking you to provide your expertise for exposure rather than income. At this point you need to do three things.
1) Research the heck out of this client. What kind of exposure are they offering? Will this exposure reach your target market? Is that reach going to create new leads or direct people to your sales funnel?
2) Figure out what it will take to balance the value of your product/service with the value of their exposure.
3) Put it all into a contract.
Like most entrepreneurs, this is a lesson I had to learn the hard way. When I first started up my boutique floral design studio, Bud + Bloom, I was thrilled when I was asked to do a number of centrepieces for a private outdoor event. The client stated their needs and wanted to keep everything local so I foraged for four hours the day before the event, processed all the materials for two, drove out an hour and a half to where the event was being held, and spent another two hours assembling the centrepieces on site. They were big, beautiful, and an excellent addition to my portfolio. They were also taken down about twenty minutes into the event because the weather turned and they had to disassemble everything to put up tents. I was devastated. It was the first time I had put in a day’s work and had nothing to show for it. Including no contract. Why? Because the clients were my friends.
Photo | Corinne Kutz
Read this and re-read this, then re-read it again:
FRIENDS AND FAMILY SHOULD NOT BE EXEMPT FROM CONTRACTS
While it may feel a bit awkward to get into the practice at first, it will get easier with time and you will gain a better understanding of your worth and your targets as a result. Plus, it doesn’t compare to the awkwardness you may feel when it comes to negotiating that contract.
If you do the above steps and hit a wall at step two because you realize the value just does not balance out, you have two options.
Adjust what you’re offering to better match the exposure value.
Ask for more. Whether that’s more social media mentions, tickets to the event so you can network (I always include this), better recognition/signage, accommodation coverage etc.
The awkwardness you may feel is likely stemming from fear and self-doubt because you don’t want to offend anyone, be rejected, or potentially lose a client down the line. However, knowing your worth and being able to assert it does not do that. To the contrary, it makes people take you more seriously because you’re showing that you take yourself and your business seriously.
Photo | Jessica Storm Photography
If you do end up losing them and your requests were reasonable, don’t stress! Instead, ask yourself what the likelihood of them paying for your product/service later on would be? Unfortunately, some people really do want something for nothing. The good news is, those are not your people.
Which brings me to my final point:
only provide sponsorship services once per client
I think this speaks for itself. Within the first year of business, exposure is incredibly valuable. However, if you continue to do things for exchanges other than adequate pay, you are unintentionally defining your value as such.
As far as what that contract actually looks like, or if you have any questions, please feel free to email me at budandbloom.yeg@gmail.com. I truly hope this helps all the business babes out there better realize their worth and better claim their boss title.
Nora Salem
When you’re a busy entrepreneur juggling work and family life, it can be overwhelming to add holiday shopping into the mix.