This week, Tyler Cooke has graciously contributed his thoughts on 5 sponsorship insights that every racer needs to know based on his personal experience.
Tyler Cooke is a dedicated racing driver with over a decade of experience in motorsports. He has achieved success in prestigious races globally, such as the 24 Hours of Nürburgring and 24 Hours of Spa. Beyond his racing career, he also contributes to brand growth and B2B relationships. Born in the United States and rooted in Bamberg, Germany, his diverse cultural exposure has shaped him into a global ambassador for multiple brands.
1. The Importance of a Personalized Deck
Personalized decks play a crucial role as every partner is unique. Partnerships can take various forms, such as B2B or B2C partnerships, and occasionally, companies may aim to increase their brand presence.
After a meeting with a potential partner, it’s essential to proactively inquire about their specific needs and the metrics they are focused on. Utilizing series metric numbers throughout or at the end of the season can significantly enhance your deck.
To make a lasting impression, crafting a compelling message followed by the deck is essential to avoid ending up in a spam folder. When submitting a deck, it’s vital to emphasize the return on the partner’s investment in you, focusing on driving sales and increasing brand exposure by engaging with fans and potential clients.
2. The Importance of Networking
Networking is absolutely essential for establishing partnerships and finding a drive. I’ve dedicated countless hours and days to walking around the track without a ride or a partner, but this effort has allowed me to cultivate strong relationships within the paddock. You never know who knows who, and that’s the beauty of networking.
For example, at the SEMA show, I made the effort to walk 40 thousand steps a day, meeting people and gathering valuable information. This has provided me with invaluable insights into the world of partnerships in motorsports and how it can contribute significantly to the sport’s growth.
Networking isn’t always easy, and often requires stepping out of your comfort zone, but when you look back, you realize how much it has advanced your career. Consider this scenario: meeting someone at a race who is an employee of a company, and that person admiring your passion and skills. This could lead to them speaking highly of you to their manager, who in turn approaches someone like the Chief Marketing OIicer (CMO) about the partnership you are seeking. If the CMO expresses interest and you follow up with the person you met, they might provide you with the email of the person you need to talk to, which marks the beginning of the connection you need.
If you had tried to reach the CMO on your own, it could have taken much longer or may not have happened at all due to the overwhelming number of requests they receive. However, by leveraging your network, you can gain access to the right contacts and opportunities to pursue successful partnerships.
3. Determining How to Price Your Sponsorship
Determining your price is easier than you might think. When you contact a team, they will provide you with the cost of the car for the season and the additional expenses for test days. Write that number down, but many people make the mistake of not including the crash damage costs. For example, if the car costs X for the season and the deductible for the car is 50 thousand per race, then you should include the deductible for almost every race in your budget. Let’s face it, crashing is a part of racing, and many times drivers have to stop due to not having a crash budget. With the high cost of racecars nowadays, it’s easy to spend 150 thousand in a season just on damage budgets. It’s always smart to have this as part of your partnership agreement.
Another thing I have always heard is that if the seat costs X, then I need to find X. Unfortunately, X doesn’t cover living expenses, and at the end of the day, this is a job. In a partnership agreement, you should always have in the budget what you would like to make so you can live, and also remember to consider travel costs. Many times, travel expenses come out of your pocket, so what I like to do is have a travel budget. These are all included in the amount you are looking for.
What I also do is list three different prices and what the partner would get with each one. Each price has a pay and crash damage associated with it, but usually with the lower ones, another partner is needed to seal the deal. It’s a very tough process, and you will get a lot of “no’s,” but you can work with a company to see what would work for them. They may have a partner company that can join in and secure the remainder to make the deal happen.
4. Determining Who to Approach and Why
Selecting the right partners and sponsors is a critical yet rewarding process. It’s essential to carefully evaluate potential companies to ensure a strong fit and mutual benefit.
When vetting potential partners, prioritize their ability to integrate into the racing environment and connect with fans. For instance, partnering with oil companies can offer unique opportunities for product testing on the track, driving interest among fans and within the paddock. This type of collaboration has proven to be highly effective in the racing industry.
In your pursuit of partnerships, be committed to identifying opportunities that can be leveraged to enhance clientele and revenue. It’s not just about showcasing a logo on a car; rather, it’s about creating value for your partners and driving revenue growth for both parties.
5. The Differences Between Sponsorship in North America and Europe
Based on my experience, I’ve noticed a distinct focus on the “Gentleman driver” in U.S. motorsport, while in Europe, partnerships, particularly in classes like the pro class, are the driving force.
The key disparity lies in cost and exposure. For instance, a partnership in a series like IMSA in the U.S. holds immense potential for growth, with 86% of fans willing to try a product seen on a car, and an average fan income of $115,000. However, such a partnership comes with a higher price tag.
Similarly, in Europe, a partnership has a strong potential for growth alongside the driver and team, even with a smaller fan presence at the track. European racing also offers a lower buy-in for a partnership, while still providing equal exposure.
Both regions present outstanding partnership opportunities, as sportscar racing is swiftly gaining popularity both on and off the track. Aligning with a driver or team can result in substantial business growth and a significant return on investment.
