Sponsorship can get very involved an perplexing, it varies from sponsor to sponsor, whether its full or partial must be concidered also. Money is given for a number of reasons, advertising-use of product-participation-public appearances,etc. As a car owner the money can be used for cars, motors, parts, tools, buildings, crew driver etc. The money for sponsorship can reach in the millions for one year, I know of a team who gets 30 million a year for 1 year of sponsorship and it can go much higher.
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The most important thing is to understand that sponsors don't care how much you want to race or the money you need. They want to know what exposure their sponsorship dollars are going to provide for their company, service or product to their target market.
And, in order to be sponsorable, you need to have a professional appearance, program and some sort of plan in place to show potential sponsors how serious you are about not only reaching your goals, but giving them a bang for their buck!
Start looking at sponsors as partners! Put together a professional detailed sponsor specific proposal reflecting that you understand their interests and how you will be able to deliver.
Also keep in mind that several smaller sponsors can add up to more dollars than one "big fish."
For more help, visit http://www.GetASponsor.com
Work Hard, Race Fast:
Rocky
GetASponsor.com
Basically, it is all about performance. Companies may spot an unsponsored car that is doing well and will try to negotiate a sponsorship deal. Sometimes if you have a great amount of poor finishes, your sponsor may leave you, because, of course, who would want to pay money to someone who can't get you on television? Larger companies will also give larger funds, but you have to earn their benefits through effort.
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And in the case of someone who isn't running well and isn't the most marketable, it may just come down to the racing mantra of "who you know and who you..." Well, I think you get the idea.
Steven Wallace, the son of Rusty Wallace, is a current prime example.
Sponsors give the NASCAR teams money (and possibly equipment depending on the nature of the company), and the team tries to help sell the sponsor's product(s) by displaying their logo(s) on their cars and uniforms and thanking them on television/radio.