lets discuss sponsorship, how it works, obtaining it and sponsors bennifits

[racer76j]

How does sponsorship work ? If some one wanted to sponsor my team and pay for advertising on my car what would be the guidlines on the accountants point of view. For example, if I wanted to charge x amount of dollars for x amount of space on my car. How would it work? Is there any need to sign any sort of contract? Does the sponsor have to have legal documents of everything they spent? Such as a check that states its for advertisng? Or receipts for purchases? I wonder this  because is it possible that sponsorship is a write off for taxes? Theer must be some sort of bennifit for the sponsor other than possible buisiness from the advertising.
 How does it usually work on the advertising team's end. I have never sought out sponsors in the past because I only raced for fun. Never wanted to be committed to showing up every event. I always raced when I felt like it. Having a sharp looking car every week and being there every week is the advertiser responsibility. I beleive your reputation reflects on your sponsors.
 How have some of you obtained your sponsors? I know a lot of people will say family or old freinds. But I want to hear from the people that obtained some from doing the foot work. How did you go about selling yourself? Did you do an essay on your self much like in the form of a resume ? Did you knock on business doors? whats your story ?
I am hoping to hear some good input that every driver in every class might be able to use.

[Oswegolkr]

I would write a letter of intent to potential sponsors like a cover letter for a resume. In the letter highlight where you are racing, what division and a quick year in review. Maybe have a picture of the car from last season and one from this year to show to potential sponsors. If possible bring your tablet or iPad or some kind of technology that you can show your Facebook fan page (just your racing page not personal) and also your website (if you have one). In today's world social media is very big and could help you potentially land a sponsor. You can post on your fan page for your team that you are looking for potential sponsors. I would call any potential sponsor to set up a meeting instead of going door to door and ask for whoever is in charge of their advertising.

To get sponsors on the car you can go for the "x amount of dollars x amount of space" or you can set one set price just to get the name on the car. If the sponsor can spend a good portion of money, you can make their space bigger than the others. About the sponsors getting a tax break they might but they know more about that (especially if they have done sponsorships for other events or drivers) but I would assume that they would like a receipt to see what they are paying for. The potential sponsors can also go for fuel or tires and pay for them for your season.

I hope this helps and answers your questions.

[racer76j]

thank you for the help and  responding Oswegolkr .
i had two possible sponsors ask me. How does it work?  They have never sponsored any one or any thing. Everytime I have asked the question most people can't seem to explain it from the sponsors perspective. I beleive part of my portfolio I come with should have a good reason in it of the benefits of the sponsor. Some small buisiness owners have never sponsored any one and will have that question when you propose your advertising opportunity to them.

[4b316]

This is a pretty good article to start with  http://www.goaheadtakethewheel.com/articles-and-driving-techniques/how-to-get-racing-sponsorship.php

[Big Al-VT]

Having been on both sides of the fence, these are some of the things potential sponsors look for that racers quite often fall short on.

1. Have a marketing plan that will show tangible benefits for the sponsor.
    This should include public appearances, both with and without the race car. Nothing sells a sponsor better or keeps them when they see their name all over the place. Make sure that the sponsor is listed in the roster and announced over the PA system. Hero cards or other handouts are pretty much mandatory in this day and age.

2. Keep the sponsor involved
    Make sure that you give the sponsor PERSONAL weekly updates. This can be either by phone or e-mail, depending on the sponsors preference.

3. DO NOT make unrealistic promises that you cannot keep. PERIOD!

4. Make sure that the sponsor has some framed photos for there place of business and publically thank them in the local paper (or whatever advertising medium that the sponsor uses and reads). Those ads do not cost much but go along way in goodwill.

5. Make sure that you get them "complimentary" tickets for a night at the track, even if ti means that you pay for them and leave them at the ticket window

6. Numbers-Call the track you race at and get an approximate number for attendance, That way the prospective sponsor has an idea how many people they will reach weekly. If you make occasional trips to other tracks, include those in your proposal.

7. Social Media-IF you do it DO IT RIGHT. Way too many drivers start websites & Facebook pages and don't update them.

8> Above All be professional and make a good impression, Dress cleanly and neatly and speak well.....


Many people think once you get a sponsor, the work is done until next year, that could not be farther from the truth. The better the relationship and communication with the sponsor, the better the chance they will stay on the car for a number of years and increase their involvement

[racer76j]

Thank you for the input guys ! I appreciate it.
That link was very informative . thank you 4b316.

[#2 Charger]

I Receive Around 15K A Year In Sponsor Money. On My Income Tax Form It Is Listed As "Hobby Income". You Can Write Off Any Tools, Parts, Travel Expenses Etc. Every Year I Either Make Or Lose A Little And Haven't Had Any Problems. 

[blackjackracing]

One piece of advice I can give you is that when you land a sponsor, treat them like gold. I can't tell you how many times I have approached a potential sponsor and been told that they were burned in a previous deal. Good luck in your efforts. it can be a lot of work.

[Hollandracer83]

writing a letter and asking for money is old school but drawing up sponsorship proposals is not. When I helped LAMOT I had 3 or 4 options on the different packages that you can offer. It also will help you with up selling your racing operation.

Here are some steps I used.

research the company first. Get contact names on who handles their sponsorship. Build a book of business.

Find out when the companies fiscal year ends/starts. (it is key to know this because they set sponsorship budgets at the end of the previous year on what they can use for the upcoming year for sponsorship).if  you start now your to late. Start in October put the bug in the owners ear.

If they are a small 1 person business structure your packages need to meet their financial needs. I would rather have 20 small businesses of 100 dollar sponsors than one big sponsor for 2k. If you lose that big sponsor your done starting from square one. Now picture this, one or two of your businesses grow into a bigger company you have the connection and rapport to ask if that company wants to upgrade their packages before the next season.

Also,  multiple payment options. Everyone has bills right? This makes it easier on the owner for managing their books.

Invite the owner or owners to the track for a race and inform track management on what your intent is with this potential owner. Maybe the track will give you free tickets.


One key question I would suggest asking to the owner/owners is How do you market your business? What obstacles are you having with your current marketing plans? Business owners always love to talk about their business. So get them talking. Always ask them if they have time to talk about the sponsorship opportunities.


If they say no at first send them tickets to an upcoming race. Thanking the owners for their time and say I hope to see you in the pits one day and here is my contact number in case you want to stop by. Helps a lot!  Trust me this step works and then reach out to them the next year.