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Writer's pictureCGT Communications

Revenue-For-Recognition. The Simple Sponsorship Equation.

Updated: Nov 21

The ROI's of your P&L

Today’s Show is Brought to you by the letter “I”


First off, the least important Letter above is “L”. Loss. We are not at a time where many golf tournaments are Losing money in their efforts. It’s almost exclusively “P’s” on this front. And we’ll also ditch the “O” since it’s the simple connector in “Return on Investment”.


Let’s make this the mash-up it’s trying to become and call it:
Profit from Returns on Investment.

We’ll spend some time on each of these 3 Letters.

 

First, the “I”. Investment.

I love this word. It’s where many “expenses” reside. Such as:

The golf course Green Fee;

The delicious Shrimp Tree and Tapas Platters during the Cocktail Reception;

The High-Profile Guest speaker;

Lunch and dinner and beverage cart from the Course;

The A/V equipment rental….and on and on.

 


Mostly, the above costs are your responsibility to the golfers who paid to be in a golf tournament. They ponied up the entry fee and this is your end of that bargain. Great golf. Great food. Great fun. This is one of the 2 ROI DEALS you've brokered.

 

You could have skimped on the Beverage Cart inclusion or booked at a cheaper course or passed on the pre-golf meal. You didn’t though. You handled your responsibility and delivered your end of the bargain. Your Investment on that Return.


Expense discussions can't be independent of revenue

 

Here at CGT, we pay attention to the other bargain. We are an Investment toward the other Return. This isn’t entry fee revenue; this is sponsorship revenue. Your responsibility here is easier really. This bargain is one dimensional.


You offered a “REVENUE-FOR-RECOGNITION” bargain and they bought in.
You've cashed the cheque.

The Bargain? They give you money and you find many ways to tell everyone all about it.

 

When it comes to golf tournaments and the golf course setting itself, no one knows how to “tell everyone about it” better than us. Especially when it is being funneled through the semi-confusing language of GOLF.



Let the golf course support your 1st revenue bargain, and let us support your 2nd.

The returns speak for themselves. Give the golfers a good golf tournament and they will pay you again for future years. Give the sponsors great recognition and they’ll keep signing cheques for years to come.


All your “R’s” have their related “I’s”INVEST WISELY


 


NEXT ARTICLE – We compress the P & R together to evaluate how the cost of the Return is evaluated under the Bright Lights of the word PROFIT.




 
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