Contingency or Sponsorship for a business is all about ROI:
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.
Many don't realize that most companies do not donate money to events or drivers (most times neither are legal tax deductable charities) , they invest in them for a good ROI. The best local example of this is James Elterman. He knows his sponsors MUST get exposure and a return on their investment. I am always amazed at people who contact SPS and want money with no idea of what they can give back for their part of the ROI. We tell them what we need for this and many times are looked at like we are being unreasonable.
Janice Rick
www.soloperformance.com
We offer the autocross, track day, road racing, rally and rallycross products you need at the best prices on the internet.
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