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Sponsorship Strategy

How to Price Sponsorship Packages: A Method With Worked Examples

A step-by-step method for pricing sponsorship packages from your own costs, your own price list and your budget, with worked examples you can replace with your own figures.

Start From Your Own Numbers

Most sponsorship price lists start by copying another event. That rarely works, because another event's prices reflect its audience, its costs and its history with sponsors, none of which you share. A price you can defend comes from your own numbers, and there are three of them.

The three numbers behind a sponsorship price
NumberWhat it tells youWhere it comes from
Cost to deliverThe floor: below this, the package loses moneyQuotes for signage, food, AV and printing, plus staff time
Value of the partsThe ceiling: above this, sponsors are better off buying items one by oneYour own booth price list and a la carte prices
Revenue targetWhether the whole ladder pays for what the budget expects from sponsorsYour event budget
The three numbers behind a sponsorship price

Every package price should sit between its floor and its ceiling, and the ladder as a whole should reach the target with room to spare. The sections below take each number in turn, then put them together in a worked example.

Step 1: Cost Every Benefit

List every benefit in the package and what it costs you to provide. Include the obvious costs, such as banner printing, hosted food and drink, and AV for a sponsored session, and the hidden ones: a booth you could otherwise sell, staff time for artwork approvals, and the cost of an email slot you would otherwise use for your own registration push.

  • Physical items: signage, printing, branded giveaways, furniture and power for a sponsor lounge
  • Hospitality: meals, drinks, reception space and passes that carry a catering cost
  • Space: a booth or activation area included in the package, at the price you would have sold it for
  • Media: email sends, app ads and social posts, which cost little in cash but use limited slots
  • Staff time: artwork chasing, fulfillment checks and the post-event recap

Step 2: Value Each Benefit

Sponsorship valuation puts a price on each benefit as if the sponsor bought it on its own. The most reliable reference is your own price list: what a booth of that size and location costs, what you charge for a single a la carte item such as the lanyard or the coffee break, and what an exhibitor pays for extra passes.

  1. 1

    Use Prices You Already Charge

    Booths, extra passes and a la carte items already have prices. Use them as they are, including premiums for corner or front-row spaces.

  2. 2

    Value Reach Against the Alternative

    For logos, emails and app ads, ask what the sponsor would spend to reach the same number of your attendees another way, using figures from their own media plans or from your past sponsors. Use your real attendance and email list sizes, not estimates you cannot show.

  3. 3

    Add a Premium for What Is Scarce

    Category exclusivity, a speaking slot and a name on a stage or the event cannot be bought anywhere else. Price them as a premium on top of the parts, not as a line with a cost.

The table below values a Gold package for a regional home show. Every figure is an example to show the arithmetic, not a market rate: replace each one with your own price list and quotes.

Worked example: valuing a Gold package (example figures only)
BenefitCost to deliverValue if bought separately
Premium 10x20 booth in the entrance row$300$3,200 (the booth price on your own list)
Logo on four entrance banners$480$1,000
One sponsored email to attendees$50$750
Six passes with lunch$270$600
Introduction of one session$0$500
Total$1,100$6,050
Worked example: valuing a Gold package (example figures only)

Here the floor is $1,100 and the ceiling is $6,050. Pricing the package at about 85 percent of its parts gives roughly $5,140; rounded to $5,000, it is clearly better value than buying the items one by one, and fulfillment is 22 percent of the price, inside a quarter.

Step 3: Set an Even Tier Ladder

Once one package is priced, build the others around it so each step up is a similar multiple of the one below. An even ladder keeps any one level from looking like the bargain or the overcharge. Our guide to event sponsorship levels covers which benefits belong at each tier.

Worked example: a four-level ladder doubling at each step (example figures only)
LevelPriceAvailableRevenue if all sell
Platinum$10,0002$20,000
Gold$5,0006$30,000
Silver$2,50010$25,000
Bronze$1,25020$25,000
Total38$100,000
Worked example: a four-level ladder doubling at each step (example figures only)

Check each level against its own floor and ceiling the same way as Gold. If Platinum's parts are only worth $7,000, the step from Gold needs a benefit worth paying for, such as category exclusivity or a welcome address, not a higher price on the same items.

Step 4: Test the Ladder Against Your Budget

A ladder that only works if every package sells is a risk. Take the revenue your budget needs from sponsors and see what share of the ladder has to sell to reach it. In the example above, a budget that needs $60,000 from sponsorship is covered if 60 percent of the ladder's value sells.

  • Compare that share with last year's sell-through. If you sold half your packages last year, a plan that needs 90 percent this year is a hope, not a budget
  • Ask which level each of last year's sponsors would buy at the new prices. If most land on one level, the levels around it are probably mispriced
  • Decide your discount policy before you start selling: early commitment, multi-year terms and non-profit rates, each with a limit
  • Keep a la carte items for sponsors whose budget sits below your entry level, priced so they do not undercut a tier

Pricing booths and sponsorships together helps here. A package that includes a booth should be priced from the same booth list exhibitors see, and the booth revenue calculator shows what the floor earns at different prices and sell-through rates before you decide how many booths to fold into packages.

Discounts, In-Kind and Renewals

Common sponsorship pricing questions and how to handle them
SituationHow to price it
In-kind sponsorsValue what they give at what you would otherwise pay for it, and give benefits from the level that value matches
Multi-year dealsOffer a lower yearly price for a two or three year commitment, with a set increase or an annual review
Sold out early last yearRaise the price, or add a second level above it, before you add more inventory
Sold slowly last yearChange the benefits before you cut the price; a discount teaches sponsors to wait
A sponsor asks for a custom packagePrice it from the same parts and the same discount as your tiers, so it is never cheaper than an equal tier
Common sponsorship pricing questions and how to handle them

For examples of how other events bundle packages, see event sponsorship packages: examples and pricing, and for the top of the ladder, our guide to the title sponsor.

Sell and Track the Packages

A price on paper only holds if inventory is tracked as it sells. Publish the ladder in your sponsorship prospectus, sell packages and booths from one list so an included booth cannot also be sold to an exhibitor, and keep a count of every limited item. Sponsorship management software handles the counts at checkout, and booth sales software keeps the booths in those packages on the same floor plan.

After the event, send each sponsor a sponsorship recap report with what was delivered. It is the evidence behind next year's price.

How Map D Helps

Sell Priced Sponsorship Packages With Map D

Map D does not set your prices. It sells and tracks the packages once you have: sponsorship items with a price, tied to a sponsor level, with limited inventory so an exclusive cannot sell twice, sold next to booth space on the same floor plan. The floor plan editor is free for one event; publishing, the app and online sales need a paid plan.

  • Sponsorship items tied to sponsor levels, with price, description and category
  • Limited inventory, with checkout showing how many are left
  • Includes a booth, for packages that cover the sponsor's booth
  • Booths set to Reserved and held back from online sale for sponsors
  • Sponsor logos on Homebase and a sponsor bar in the app, filtered by level
  • Mobile app ads with views, taps and tap rate for each one, for the recap that supports next year's price
See it on your own floor plan

Stop reading about it. Build one.

Upload the floor plan you already have and place your booths on it yourself, in Map D’s editor. Free to build, no contract, and nothing to install.

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· Director, International Trade and Development @ Maine Insurance Agents Association
FAQ

Questions Organizers Ask

How much should I charge for a sponsorship?

There is no market rate that fits every event. Work out what each package costs you to deliver, value its benefits against your own price list for booths and a la carte items, and price the package between the two. Then check the total against the sponsorship revenue your budget needs, assuming not everything sells.

Should a sponsorship package cost less than its benefits bought separately?

Usually less than the parts bought separately, so the bundle is the better buy, but not so much less that your a la carte items look overpriced. A practical starting point is 80 to 90 percent of the separate prices; test it against your own sell-through rather than treating it as a rule.

What is sponsorship valuation?

Sponsorship valuation means putting a number on each thing a sponsor receives: a booth, a logo placement, an email, passes, a speaking slot, exclusivity. Organizers value those items from their own price list and from what the sponsor would pay to reach the same people another way, then add a premium for anything that cannot be bought elsewhere, such as category exclusivity or a name on the event.

How do I raise sponsorship prices for next year?

Raise prices on levels that sold out early last year, hold them on levels that sold steadily, and fix the benefits, not just the price, on levels that sold slowly. Give returning sponsors the new price with a reason, and early enough to budget for it.