Checkered Flag - Close the Deal and Get the Check
Show Me the Money!!
So we're on that white flag lap, almost ready to get the checkered flag and close the deal. Well, if you've answered all the potential sponsor's questions, then closing can be as simple as asking "So, Mr. Prospect, which one of our three race program packages makes the most sense for your company?" Once again I will refer you to the expert in this area, Mr. Tom Hopkins and his sales book we discussed earlier. His book goes into great detail on closing a deal and completing any kind of negotiations. The basics though are pretty much summarized above. When the timing feels right, you must simply ask for the sponsorship. If you don't ask, you will ever get. Don't Sell Too Cheap As far as final negotiations go, here is one key item to remember - don't sell too cheap! If you do, then you're going to end up being stuck at some point in the season with insufficient funds to either finish racing or meet your sponsorship obligations or both. If the prospect begins negotiating the price of your program downward, you must reduce the benefits that go along with it. You'll always come out ahead if you under promise and over deliver versus the other way around. Sign the Agreement Once you've come to terms on program options and price, it is time to sign an agreement or contract. The agreement can be as simple as a list of your program benefits for the sponsorship time along with the cost. Some businesses may want a formal contract drawn up by an attorney. If this is the case, have them sign a Letter of Intent. This will at least show a good-faith commitment on their part since you might have to wait a few days for the contract to be drafted. Get the Check Contract signed? Congratulations, you've finally crossed the finish line for the checkered flag! Now, it's time to get paid. You may end that with several options when it comes to receiving payment depending on the sponsor. Cash is king, of course, and it's hard to beat a lump-sum check right up front. Other companies may prefer to make installment payments over the course of the race season. Make sure the contract spells out the payment terms. Besides cash though, payment in products or services are very common. As long as it's something of an immediate benefit, or you've already got all the cash you could possibly know what to do with, products and services can be great. Businesses that provide stuff like racing parts, uniforms, fuel, printing and graphic services, race trailers, tire change services, etc... are just as good as cash. And typically it is a little easier to get sponsored for products or services than straight cash. Just make sure it's something you can use. You don't want to be stuck with a box of widgets that you have to spend time selling on eBay in order to get something useful out of the deal.
Now that you've gotten the check, its time to go racing! Coming up - all about what to do with your sponsor during the race season.  
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