Together, you promote your organization, concerns, event or name, attract more attention and expand your reach. Their sponsors will have access to a captured audience that reflects their main targets. This is a win-win situation as long as the right partners are selected and the right conditions of the sponsorship contract are met. Since a sponsorship relationship requires investment, they are expected to have the opportunity to improve their image, promote their products, and use your customer relationships to earn their brand. Therefore, when concluding a sponsorship, a professional sponsorship contract is a must. Here are five things you should include in your sponsorship agreement to ensure that both parties are protected and expectations are met. Sponsorship offers credibility and financial support for your events. A well-thought-out sponsorship agreement will provide the necessary legal contract to make both parties happy. They avoid confusion, build stronger relationships, and look forward to continued support for future events.
Well-crafted agreements are the glue that keeps your sponsorships together and allows both parties to participate without worries. We have already mentioned the non-competition clause, but that advances exclusivity. It describes the particularities of your agreement and the exclusive rights to which a particular sponsor may be entitled as a result of the package it has acquired. For example, a sponsor might have exclusive rights to have their logo appear on stage for major events or be the only food vendor authorized to sell food at your event. The exclusivity clause defines the agreed conditions that impose special rights on a given sponsor. Due to the additional exposure, exclusivity is usually associated with a higher price for sponsors. Be sure to clearly define the types of businesses that your sponsor defines as a competitor, so that there is no confusion as to which companies you will be able to turn to in the future and which ones you will not be able to address in the future. The last thing you want is for a sponsor to break down at the last minute. You also want to be able to distance yourself from a sponsor if you discover something that conflicts with your ethics or brand. Therefore, you should make sure that your agreement describes how to end your relationship and what penalties both parties are incurred. The main details of termination would be the amount of dismissal required and the cost of termination. Sponsors usually insist on a clause that explains what is expected if your event does not bring the benefits you have announced, if an event is cancelled or if you do not meet certain benchmarks.
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