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Today’s question is a good one:  “Debbie, doesn’t it cost a lot to sponsor other people’s events?  Is it even worth it?”

I’d like to address this from a few different angles.

First of all, I’ve learned from some of you that you’re a bit unclear by what I even mean by sponsorships and paid speaking.  So allow me to clarify that here.  I am talking about paying a fee to someone who is hosting a live event in exchange for the opportunity to promote your business at their event, either by having booth space where you can interact with event attendees, or by a combination of booth space and speaking time.

Now that I’ve explained that, let’s address the specific question about cost.

There is a huge range of investment levels for sponsoring events.  Anywhere from a couple hundred dollars for booth space at a local event to $50,000 or more for main-stage speaking opportunities at events that draw people from all over the world.

So, sponsorship fees do vary widely.

Because of that, the more important part of the question is whether the fee is a good investment for your business.

Here are 3 things you’ll need to consider as you’re making this determination.

How much are you really paying for leads for your business now?

Sponsoring someone else’s event costs money because the event host has done all the work to fill the event with potential clients.  If you’ve chosen a sponsorship wisely, the event is filled with quality leads for your business.  So in order to determine whether the fee is a good investment for you, you must know how much you’re currently paying for quality leads.

Let’s say you’re currently finding leads by offering free or low-cost  workshops.  If so, how much time are you spending finding them/organizing them yourself, preparing, traveling to and from, and actually delivering  them? And how many people who attend are actually become paying customers? Assign a dollar amount to each of these and add them up to determine what you are paying for each new customer now.

Here’s another example.  Perhaps you are attending  “free” networking meetings to find leads for your business.  If so, how much total time are you spending doing that, including travel time, and how many actual sales are you making to the people you meet there?

By the way, when you’re determining the value of your time in these equations you need to value your time at the highest rate you make in your business.  For example, if you make $500/hour for private sessions with your clients, but only $100 an hour when you teach classes, you need to make the value of your time $500 in the above equations.

What is the lifetime value of a client in your business?

It’s really important for you to know this regardless of how you choose to market your business.  If you look at the clients in your business who have been with you the longest, how much do they actually end up investing with you in total?  For many of you, this figure could easily get into the 10s of thousands of dollars or even more.

So let me ask you – would investing five or ten thousand dollars be worth it to you if you connected with even just a few people who became long-term business clients?

Are the leads you’re getting in “cheaper” ways actually good ones?

When you’re using free networking or social media or offering free workshops to anyone who wants to attend, you have to sift through all the people who just want free stuff to get to the ones who are actually willing to pull out their wallets to invest in themselves.  And this can be like looking for a needle in a haystack.

The beauty of marketing by sponsoring events – and they do have to be events your ideal clients attend – is that you’ve got a roomful of ideal clients gathered for you – people who have already demonstrated a willingness to invest in themselves by paying to attend the event.

Yes, there are plenty of cheaper ways to market your business than by investing in sponsorships.  But are they giving you the same return on investment?

Your time is valuable.  In fact, you could even argue that it is the most valuable asset you have.  So you really need to know the facts about the return on investment of your current marketing strategies and the potential in using a strategy like sponsoring and speaking.

Once you’ve answered the above questions for your business, you can confidently answer the “Is it worth it” question for your situation!

Are you ready to stop making this so hard and make a quantum leap in your business income?  Apply for a Multiply Your Income & Impact Strategy call with Debbie!

You have my permission to use this article. All I ask is that you include the following at the end: Debbie Delgado’s mission is to help you transform your worry and frustration about your business into Money and Meaning! Ready to leave distraction behind and focus on what’s really important to you? Get started now! Don’t miss this chance to learn from Debbie absolutely FREE — Get FREE Access Now!