Valuation is when you attempt to determine how much should a sponsor pay for the sponsorship. Valuation and sponsorship tends to be where you roll up everything. The activations, benefits, the website, the views, all of these kinds of things get added up and then put into a quote valuation. This is not the same for every sponsor. Understanding the revenue model of the sponsor and what the upside is for them is critical to understanding valuation. If you’re performing an evaluation, you frame it for the particular sponsor prospect that you’re looking to acquire.
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Larry Weil is a nationally recognized sponsorship expert and thought leader with over $200 million in deals to his credit. TheSponsorshipGuy.com is the leading sponsorship marketing agency for Virtual and Destination Events. Media outlets, large corporations, and entrepreneurs all seek out his insights and opinions, which have been published in print, digital and broadcast.