Revenue generation has been in the news a lot lately. The figures are staggering and very much a vital part of collegiate athletics today. While the Power Five conferences, and Group of Five to a lesser degree, pump up revenue through million-dollar TV contracts, the vast majority of universities can’t rely on giant media deals alone. For them, sponsorships and sales are a necessity.
If there is one unifying trend we’ve seen in our coverage of college athletics, it’s that departments across the country are understaffed and underfunded, yet still expected to produce. That’s why we were excited to get a firsthand account of how athletic departments make it happen every day.
We sat down with Doug Lipinski, (pictured left) the Associate Athletic Director for Marketing at Grand Valley State, for a Q&A on his department and how he keeps the revenue flowing. In the end, we learned that to find success, you need to focus on three key areas: relationships, revenue, and fulfilling your side of the deal.
On relationships:
College AD: How do you manage relationships with your sponsors?
Doug Lipinski: Our client relationships are some of our most important we have in the athletics department. A relationship is a two-way street; you treat your partners like you would want to be treated. I am very honest and direct with my clients. I know they appreciate that. Communication is a key to managing relationships.
CAD: There is never a hard fast rule, but what have you found to be the most effective way to communicate with your sponsors?
DL: The first thing is listening. If I understand what our client needs and what the decision makers job is, it allows me to communicate better. It comes down to the relationship. Rarely are marketing directors or vice presidents only dealing with collegiate sponsorships, they’re doing other things, so you communicate the way that is going to be the most effective for them. Everyone is different.
CAD: Are there any specific tools you use to assist you and your staff with communication? I imagine scheduling alone can be an issue.
DL: We recently began using a program called Sponsorship Buddy. The software has allowed us to fully integrate all of our sponsorship elements into one place which in return as made us more efficient. We are all short staffed and the ability to better organize all of our partnerships has provided new opportunities for us. Prior to Sponsorship Buddy all of our information was contained in excel worksheets.
On revenue:
CAD: Some of the top-end Division I programs are breaching the stratosphere with revenue from new TV contacts. How has Grand Valley State fared in the last three years? What are you doing to accomplish your revenue goals?
DL: Over the last three years, we’ve been able to grow revenue by 12.5%. It is important to stay focused and be realistic with your goals. Your objective is to over deliver. It’s not us versus them, we are in this together. I need the client to succeed for me to succeed. If you’re honest with the client and tell them what you can provide, they know you are going to do the best for them. That goes hand in hand when you are growing revenue.
CAD: How do you keep increasing revenue year to year?
DL: It takes work. Plan your work and work your plan. You need to have strategies in place to assist in shaping your goals. Timing is very important as well. Understanding sponsors’ business structure will provide greater success.
CAD: Do you rely more on sponsorship packages, or do you find a customized approach to be more effective?
DL: We are a very sponsor friendly shop. We customize all of our sponsorship packages suited to reach our clients’ needs. We work with our partners to create sponsorship elements that fit with their objectives. The packages have to bring value and return to our partners.
CAD: How do you move beyond local support? It must be difficult to reach out to people who just aren’t as familiar with the university?
DL: I think a few years back in the recession it really assisted in this process. Local support is always needed when it comes to sponsorship sales but there are less goodwill dollars. To survive in today’s sponsorship world you need to find ways to showcase value to your clients. Taking the time to find the correct decision maker and educating them about your organization is critical in this process.
On fulfilling your side of the deal:
CAD: A big issue we’ve noticed is the disconnect between client expectations and what is actually promised in the agreement. How do you make sure you are able to live up to expectations?
DL: You have to put yourself in the sponsors shoes. It goes back to remembering that you are in a partnership. What would you want if you were the sponsor? So for example if you set up a table way in the back, not by the entrance and think, well we set up a table like the agreement called for, you made the decision that was easier for you and what made sense for you. But now they aren’t happy because it doesn’t make sense for them and they aren’t getting as many impressions as they want. So, I’m very honest with the clients. If we can’t do something because we have someone else in that spot, we’re not going to do it and I think they appreciate that.
Being honest and upfront allows you to keep clients. For us, our job is to bring in revenue but it’s not all about the money. We have goals, but how we reach those goals is through people and relationships. Because if you sign someone to a $10,000 contract but don’t take care of them, next year you will be looking for that same $10,000 from someone else. It is easy to sell but tough to resell.
CAD: You mentioned that sometimes there is already someone in “that spot?” Do you ever find it difficult to keep up with all of your deliverables and expectations?
DL: Again, we use Sponsorship Buddy to accomplish this. It houses all of the information we have for every partner in one location.
CAD: I guess in an ideal world you would be able to offer every sponsor that prime table position. Are there any creative ways you’ve found to offer more value?
DL: For our sponsors and partners, students are hot. It’s the demographic they want, so putting them in the traffic flow of students is crucial. Grand Valley is unique in that we enter the football stadium from the north and south end zones only. The south side is typically where students enter because that is where they sit, so if you want to get in front of students we follow that path all the way back to where they tailgate. And if students aren’t their main target, we will put them on the other side. But demand is high for the south end zone, so this year will begin doing exit giveaways too. Understanding what you have and the demand for it will create value.
So concourse tables will be available an hour prior to kick off until the second quarter. Then we will bring in the folks with the exit giveaways at halftime. That is one example of how we’re slicing the pie. We have something that is valuable and everyone wants it. It takes a little more work, but the sponsors appreciate it. My responsibly is to declutter the market for them.
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