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Sponsorship Proposal

Sponsorship is a popular arrangement where companies offer marketers money to widen the influence of their brand. Companies who desire to launch into new markets may want to use sponsorships to be recommended by influencers who have many followers. Athletes, social media celebrities, and public figures are just a few who can make a brand very popular in a short amount of time.

With sponsorships, you can capitalize on your followers as a leader and influencer. Brands and companies who want you to promote their products will stipulate specific scripts or advertisement requirements, and pay you, sometimes very generously.

You’ll need to do all of the proper research and homework first, but this template will give you a head-start and a useful framework. You should always consult a lawyer, though, before finalizing any contracts.

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Developing sponsorship is similar to developing any professional relationship. Although it's similar to many other contracts, there is a certain degree of flexibility, allowing companies to create unique agreements with equally abnormal roles and responsibilities on both sides. You should design a sponsorship agreement to provide the client with better marketing opportunities on the client’s side. As a brand marketer, your job is to offer the sponsors products to your unique market, create loyalty to the brand, and show the sponsors brand and a context that its customers are used to.

When correctly done, sponsorship can be a lucrative agreement for the brand ambassador, and I can also be very beneficial to the company which holds the brand. Typically, the company may not have access to the market that you provide access to, so you, as a brand ambassador, have plenty of negotiating power. The more subscribers or followers that you have with your market access channel stop it, such as a YouTube or Instagram channel, the more that you can negotiate for better benefits as a marketer.

This template contract will get you started, and although it may make sense for you to use it as is, you will most likely want to customize some elements of the agreement. Any sponsorship agreement must include the generic contract elements. These elements include the date and time that the parties are required to agree, the legal entities that are agreeing, the fees or amounts to be paid for the brand ambassador or contractor, and the contractor’s duties. You also need to include the governing law or the location for which the contract might be valid. It can be accurate in many different areas, so they should all be listed in that particular section. Last but not least, the contract needs to be signed and dated by both parties to be executed.

Now that your sponsorship agreement has the generic elements which are must-haves, you need to begin to consider which elements are necessary for your specific needs. Depending on your location, you might have different contract rules that stipulate particular laws or regulations you must follow when you need to have a sponsorship contract. These laws may include the specific information which you are allowed to disclose in the process of your marketing activities. Also, include marketers’ specific duties or number of times which they need to attend events. Even specific key performance indicators can be included, which marketers need to follow while under sponsorship.

Sponsorship Agreements are somewhat unique because they have qualifying criteria, leading to automatic termination if those criteria are not followed. Of course, to agree in the first place, you probably will need to be already following such measures. For example, you may need to maintain a certain number of new YouTube subscribers every month. Or, you may need to win a certain number of games for your Esports tournaments. In other words, you need to keep your performance up so that the sponsor knows that they're getting a consistent level of performance with their marketing.

A sponsorship agreement can be incredibly lucrative. For example, the person who is acting as the contractor may receive products or services for free from the sponsor. Sponsors also like to do giveaways, introducing more people to the brand who are not necessarily ‘contracted brand ambassadors,’ but rather, regular users. If you are entering into a sponsorship agreement with a large company or even a small company, don't initially expect you to get those products or services for free. You should ensure that the contract stipulates everything that you may be receiving. If you need to show something like a demo or do a giveaway, you want to make sure that the company pays for that, providing you with those products or services for you to demo.

Sponsorship Agreements can also contain Non-Disclosure Agreements or agreements about intellectual property. Often, as a sponsor, you may be exposed to Beta or Alpha Testing products, in other words, products that are not necessarily going to be delivered to the final users, still in the testing phase. These products are often covered by intellectual property agreements, requiring the non-disclosure of certain aspects of the development. For example, you may have an ‘embargo’ on reviewing specific elements of a product. That means that you can not talk about the work in a particular way on your marketing channels.

These embargo agreements can sometimes have dates in which they automatically lift, allowing you to post your videos then or talk about the product in the way that was restricted by the embargo agreement. The embargo agreement should be part of your sponsorship agreement, and probably not a separate contract if the timing is relatively similar.

When working with other intellectual property types, sponsorship agreements most likely will include some branding requirements, and brands can have particular rules regarding their logo. Logos are typically considered the company’s intellectual property. Many companies have trademark rules that define specific methodologies for displaying the logo and other trademarked elements. Keep in mind that although these trademark rules are generally relatively straightforward, if you, as a brand ambassador, fail to those trademark rules, you may be found in breach of a contract, and therefore subject to litigation.

When litigation does occur, there should be a section in the contract that deals with the preliminary actions taken during litigation. Filing a lawsuit is always generally not the first thing done when any dispute arises about the contract. First of all, the contract needs to stipulate that it is an independent contractor agreement, not an employee agreement, which allows the deal to stand alone without reference to very many other employment for regulation documents. Besides, a dispute clause should be included with the contract, which stipulates the methodology for handling disputes. When a sponsor and a contractor agree, they should make sure that the dispute section is tuned appropriately so that the sponsor and the contractor are both satisfied with the potential outcomes.

If you have received or desire to issue any legal document, you must consult a lawyer. Kdan Mobile provides this template for educational purposes only, and you are always responsible for creating any legal agreements you sign. By clicking "download," you agree to indemnify and hold harmless and inure Kdan Mobile for any damages incurred due to the use of the said template for commercial purposes.


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