How to get sponsors for Drag Racing?? [Archive] - Corvette Forum : DigitalCorvettes.com Corvette Forums

: How to get sponsors for Drag Racing??


Pages : [1] 2

Braciole
02-08-2009, 11:07 PM
I was just wondering what it takes to get sponsoring for Drag racing?
What steps does one take? Has any here done it? I would appreciate any light
one could shed on this subject. Thanks in advance.
Mike

DreamRide
02-09-2009, 01:47 AM
Beg Beg Beg.

I have a couple of guys that I sponsor with graphics, but they were friends of mine before I became a sponsor. I get people in the shop all the time wanting sponsorship. While I'd like to help them all it's not financially possible. There's very little to no return for a small business.

I finally started telling everyone that asked "If you'll sponsor me in a Bass Pro Tournament, I'll sponsor you."

Best place to look is to your friends who own businesses or are higher ups in corporations who have an advertising budgets. Radio stations are a good source.

Good luck.

WickedWeasel
02-09-2009, 07:03 AM
You will need accomplishments and what you can do for the sponsor. Face it companies are not going to sponsor losers or sponsor just for shit and giggles. Make sure you can always answer why should we sponsor you. You best have a good reason and some sort of logical plan of action.

Remember personality is also important and you always need to be on your best behavior. You never know who knows who and that one slip up might be the difference of getting a sponsor or having the door shut in your face.

Finally get your name out there that way when you call someone they know who you are. Frequently visit the venues that you want to be sponsored in. Talk to the people that are major players. There is no better feeling than calling someone and they already know who you are and have heard good things about you.

Baldoracing
02-09-2009, 07:07 AM
My son and I have a few sponsors for our team. But I would have to tell you to start small. The big guys like to see someone else before they jump into it. We had our engine shop and the shop that made our roll gages first. Then it all kind of happened after that. And once you win a few with there names on your car. They all seem to talk to you then. Discount Tires is a big one for us. When we did the burnouts at Corvette's @ Carlisle in 06,07 both my son and I did the smoke with color. And once that happened we were aprroched by Tire Rack after that. We also have a stacker trailer that has kind become a billboard for the sponsors.
Try swaping for work and parts first. Its hard to get money from anyone in these times. I have one money sponsor and they didn't want there name on anything. Some companys have programs already set up for that. RadioHead has one RH2 NitroRadios.com. Check theres out. Take a look on RacingJunk.com. There are a few progams on there.

Good Luck, John

Ben Diss
02-09-2009, 05:51 PM
I was just wondering what it takes to get sponsoring for Drag racing?
What steps does one take? Has any here done it? I would appreciate any light
one could shed on this subject. Thanks in advance.
Mike

Mike- Are you looking to start racing competitively?

Braciole
02-10-2009, 01:19 PM
Mike- Are you looking to start racing competitively?

I am looking to get into it very slowly. Asking alot of questions.
Ive been racing at ATCO raceway for over 20 years. I dont want to run top fuel or anything. Having a Corvette team featuring a few Corvettes and a shop to help out would be a BIG help. I think Im a good driver and have worked on my own cars for years. I just wanted to ask the guys that do it all the time. It would be nice to know if I break I have the backing to get back up and running asap. instead of sweatin it out, knowing I cant break.
You drive the car differently I assure you. Thanks for all the replies.
Keep them coming!!!:thumbsup: :devil:

Patrick
02-10-2009, 01:24 PM
You will need accomplishments and what you can do for the sponsor. Face it companies are not going to sponsor losers or sponsor just for shit and giggles. Make sure you can always answer why should we sponsor you. You best have a good reason and some sort of logical plan of action.

Remember personality is also important and you always need to be on your best behavior. You never know who knows who and that one slip up might be the difference of getting a sponsor or having the door shut in your face.

:agree: Well stated. And, totally true.

Braciole
02-10-2009, 02:00 PM
You will need accomplishments and what you can do for the sponsor. Face it companies are not going to sponsor losers or sponsor just for shit and giggles. Make sure you can always answer why should we sponsor you. You best have a good reason and some sort of logical plan of action.

Remember personality is also important and you always need to be on your best behavior. You never know who knows who and that one slip up might be the difference of getting a sponsor or having the door shut in your face.

Finally get your name out there that way when you call someone they know who you are. Frequently visit the venues that you want to be sponsored in. Talk to the people that are major players. There is no better feeling than calling someone and they already know who you are and have heard good things about you.

It sounds like your speaking from experience. Thanks for the imput.

WickedWeasel
02-10-2009, 05:19 PM
It sounds like your speaking from experience. Thanks for the imput.

I made things happen. 5 years ago I owned a Porsche and a BMW and really didnt think of owning a vette. I didnt know one corvette performance shop from another, but today I work with one of the best shops in the area, I am asked to test parts from various vendors and get invited to places where people wish they could be invited.

It was not easy and it wasnt just handed to me, but I worked at being positive, promoting vettes and not making enemies. Those things go a long way when someone is deciding to give you anything for free....

:D

BAADC6
02-10-2009, 09:36 PM
From what I've seen, most guys that race have to shell out the $$ to get started and then supplement it with sponsor $$ if they get lucky. I don't think there is any "cheap" way to go racing. you probably need to come up with the initial money to get things moving and then try to convince sponsors to participate.

rtj
02-11-2009, 04:46 AM
I think a lot of sponsorships are people with successful businesses using the race car as a write-off/advertising, i.e., the business pays for their hobby. Wish I could do that.

midnite902
02-11-2009, 06:41 AM
Performance talks.

I am not sure it is still true today but when I was racing NHRA, we would look at the sponsor bonus money available for winning our class and put their stickers on our car. If we won B/Modified the sponsors would pay you for having a sticker on your car. If we went on and won Top Eliminator there would be additional sponsor money.

Read carefully placement is often specified.

:cheers:

WickedWeasel
02-11-2009, 06:56 AM
I think a lot of sponsorships are people with successful businesses using the race car as a write-off/advertising, i.e., the business pays for their hobby. Wish I could do that.

Not that easy. Irs watches over racing very close. There is a fine line between it being a business and being a hobby.

If you sponsor your own car and that car doesn't make money the irs will be there quickly.

On the other hand if owner x makes a deal with owner y to sponsor each other then there is a less chance of being audited.

DreamRide
02-11-2009, 07:06 AM
Forgot this. Don't know how it is where you are, but in TN if you get corporate sponsors you have to set yourself up as a business for the racing. One of the guys I sponsor does the Truck & Tractor pulls and just got a big corporate sponsor and had to do that.

BASSIST
02-11-2009, 12:25 PM
:agree: Well stated. And, totally true.

Did it work for you when you tried to find one for your Racing in Drag you were looking to do? :huh:

rtj
02-11-2009, 02:57 PM
Not that easy. Irs watches over racing very close. There is a fine line between it being a business and being a hobby.

If you sponsor your own car and that car doesn't make money the irs will be there quickly.

On the other hand if owner x makes a deal with owner y to sponsor each other then there is a less chance of being audited.

Are you sure? The business writes if off as advertising. Or, it is a shop car, and the owner drives it.

Maybe there are some accountants out there that can answer this.

I'm sure there is a loop hole if you have the cash.

rtj
02-11-2009, 03:02 PM
http://www.stockcarracing.com/featurestories/scrp_0603_racing_sponsorship/index.html

Chasing Those Racing Sponsorship Dollars
It's Good News When A Racer Secures Money To Support His Habit. It's Even Better When He Learns How To Cultivate A Relationship And Keep A SponsorBy John Hill


It is the simple things in life that are the sweetest, such as the smile of a small child or the coo of an infant. But to a racer, one of the sweetest sounds is when you hear the big "yes" to your sponsorship proposal. Among other bonuses, this may mean better, newer equipment, having the money to travel, and actually being able to buy new tires. No matter how the deal is structured, you now have to be able to contribute to that sponsor in some way.

Sponsorships can be separated into three broad categories.

1 The sponsor is a race fan who has a small business or is pretty well set from a financial perspective and wants to get involved in racing. They may view sponsorship as a way to become involved and become part of the team. This is a very common occurrence in the realm of the Saturday night race team. There is nothing wrong with this type of relationship. Everybody wins. But the risk is that the sponsor may lose interest in racing, and the sponsorship can leave as quickly as it arrived.

2 Friends and family. It is just what it implies. Your family and friends all contribute to your racing and help out as needed. Once again, not a bad thing, but the funds can stop or grow short unless you have some very resource-heavy (i.e., financially well-off) family and friends, and they want to get involved to maintain the level of help required to support your racing. The risk is that just like any other family and friend deal, sometimes very small and insignificant circumstances can topple the whole deal. Be wary.



3 The real deal! You are now part of a business's advertising program. The sponsorship of your racing is a component of that particular company's advertising program. Your racing is linked to its product or services. You are now viewed as an asset, a contributor to success or failure of the company's advertising dollars. The sponsorship is viewed from the company as a way to develop new customers and to better reach and maintain existing ones. You are now a tool to secure a greater share of the market in which the company competes. No pressure there!

Getting the sponsorship was your first hurdle. Now what do you have to do to keep the sponsorship? This is not a primary concern of many racers who actually get a sponsor, which is why they lose the sponsorship. They are focused on getting the sponsorship and going racing. You need to enter these words into your data bank: "I need to keep this sponsor."

What is your end of the bargain? What is the expectation? This should be covered in the initial presentation and discussed at length with the sponsor. Everybody needs to be on the same page. Of course, winning would be a good thing. But the expectation that you will now win every race you enter is not only an unreasonable expectation, it is fantasy. If that is the expectation from your sponsor, then give back the money now and look elsewhere for your sponsorship dollars.



One of the first things you need to do is learn more about your sponsor's business. You already know what the company does. If it is a service company, who are the customers? Does the company manufacture a product? What are the chances that your race fans are customers? Just the fact that the company is using your racing as an advertising medium means management thinks that some of its customers or potential customers are race fans. This is the point where you start. Out of all the people in the stands, who is a potential customer for your sponsor?

As part of this sponsorship, you need to enter into a relationship with the sponsor that is far beyond the "give me money" relationship many racers think a sponsorship involves. You need to help market the sponsor and its product or services. The car should be extremely presentable at every race; the crew should look and behave well at the track, too. Everything about your team should look and feel like a professional organization. That is step one.

What can you do to promote your sponsor at the track? Do you have any promotional material that you can hand out that describes the sponsor's business? Are you listing the sponsor in the weekly program that the track sells to the fans each week? Is the sponsor featured prominently on your T-shirt? You are selling T-shirts, aren't you? If not, you should be. You are missing a valuable revenue stream and sponsor promotion vehicle. That is step two.



Something most racers and their sponsors miss out on is the fact that the sponsorship of the racer and the race car is only one part of the equation. The sponsor needs to capitalize on the fact that it is involved in racing and sponsors a race car. Any other advertising should feature the race car to some extent, either by using the car in some form or the driver and/or the team. This lesson is played out every day in multiple television spots and ads. You see many NASCAR drivers, cars, and team members featured in a multiplicity of commercials. The sponsor is using its affiliation with the driver, car, and the team to boost its presence in the marketplace. This type of tie-in is just as critical on a local level. That is step three.

The question I hear from many racers is, "What can I do?" With the technology available today, you can do a good bit. Let's just say that your sponsor makes Bob's Local Ice Cream, and the ice cream is sold in most of the local stores in your area. Your job as a sponsored racer is to promote Bob's Local Ice Cream. Sound simple? Well it really is, and all it takes is a bit of planning and creativity. You could display the car and sign autographs during some personal appearances at some of the local grocery stores. That is a good start, but it is not that memorable or measurable. What does the casual shopper actually get from that type of activity? You could go one step further.

I would be willing to bet my next paycheck that either you or one of your crew has a digital camera. You probably have a computer or two at your disposal and, if you have a computer, you most likely have a printer. This gives you all of the necessary hardware to accomplish on-site photo opportunities. So, for the cost of some ink and some photo paper, you can give your fans both old and new something they can touch and hold. You take your shiny, polished-up car to a local store that sells Bob's Local Ice Cream. You set up in the front of the store or at a place in the store and offer to let customers sit in the car or stand next to it with the driver and have a photo taken-for free! I don't know about you, but when my kids were younger, my wife never missed an opportunity to have the kids' picture taken. So what do you have now? Well, you have a new fan, and just maybe Mom will be a bit more willing to purchase some of Bob's Local Ice Cream today. I'll be willing to bet the kids will want some of that racer ice cream. What do you think?



Let's go one or two steps farther. We could do some market research. This is where teaming with your sponsor is critical. Let's say Bob's Local Ice Cream sells X number of half-gallons of ice cream on an average Saturday. However, this Saturday we are going to have a special coupon for a small discount that we will give away with the picture or if someone asks for one. Now we have a way that Bob's Local Ice Cream can actually measure the effectiveness of the promotion. The best-case scenario is that Bob's Local Ice Cream sells more ice cream that day. We have marketed our sponsor and our car. Significantly, we will have provided a value to Bob's Local Ice Cream, and it's value he can fold up and put in his pocket.

The next step would be to start gathering names, addresses, and maybe the e-mail addresses of these new potential fans and place them on your team's mailing list. This is the same list that Bob could use to mail special race fan appreciation coupons. The coupons could be an e-mail attachment, so there are no postage or manufacturing costs to Bob. Sweet! You could promote your car through the development of a fan club. Again, using your sponsor, you could have a race-day special that allows all of your fans who are wearing their Bob's Local Ice Cream T-shirts to get some free ice cream at the track after the races. Bob wins, you win, and the local track wins because maybe some new fans came to the races for the show and the ice cream. This, of course, is another measurable promotion. The things you can do to promote your team and your sponsor are as limitless as your imagination.

The point is that you need to make the sponsor see a real value for his sponsorship dollar. This is all about value and perceived value. As you develop a greater value to your sponsor's overall marketing package, it will be easier to keep your sponsorship and possibly easier to increase the value of your sponsorship package as you develop your racing program.

WickedWeasel
02-11-2009, 05:03 PM
Are you sure? The business writes if off as advertising. Or, it is a shop car, and the owner drives it.

Maybe there are some accountants out there that can answer this.

I'm sure there is a loop hole if you have the cash.


Yes a business can write off sponsorship as advertising. There is nothing illegal about it assuming it is a legit business, it makes a profit and there is a reason to sponsor a racing team (remember you need to have a good reason to sponsor a team. I am sure your landscaping business in NY doesnt need to advertise in California). You also have to remember that it is illegal to use company money for personal use (google Dennis Kozlowski :spanked: ) so you best have a good reason to be running around a race track.

Of course you could always start a Racing company via a LLC and then it would be a legit expense except the LLC will need to make a profit 3 out of 5 years otherwise the IRS will start to ask questions (racing might be 2 out of 7 because winning at racing doesnt happen overnight). You will also need to prove to the IRS that your racing team has some realistic profit motive. They will not take to kindly to you saying you needed to invest $100K to sell $1K of t-shirts :down:

Here is the IRS page for Hobby or business.

http://www.irs.gov/newsroom/article/0,,id=169490,00.html

rtj
02-11-2009, 05:16 PM
Yes a business can write off sponsorship as advertising. There is nothing illegal about it assuming it is a legit business, it makes a profit and there is a reason to sponsor a racing team (remember you need to have a good reason to sponsor a team. I am sure your landscaping business in NY doesnt need to advertise in California). You also have to remember that it is illegal to use company money for personal use (google Dennis Kozlowski :spanked: ) so you best have a good reason to be running around a race track.

http://www.irs.gov/newsroom/article/0,,id=169490,00.html

Okay, thanks, good info. Wasn't trying to pick a fight. You can tell I have always worked for a paycheck, not run a business.

WickedWeasel
02-11-2009, 05:30 PM
Okay, thanks, good info. Wasn't trying to pick a fight. You can tell I have always worked for a paycheck, not run a business.

I didnt take it that way I was just pointing out the facts - I apologize if it came across wrong. I just wanted to point out that people think it is easy to just start a business and go write off shit towards their hobby. The IRS has been doing this for a long time and know most of the tricks. There are legit racing business and legit sponsorship. I am sure LG sponsors himself, but then again he races a corvette and sells corvette products.

Usually if you are making a profit and paying your fair share of taxes you have nothing to worry about :thumbsup: