Partnerships between brands and sponsors are mutually beneficial and can mean exciting opportunities—but only if everyone is on board. That is where a good marketing sponsorship agreement comes in.
A well-drafted marketing sponsorship agreement not only defines the relationship but also serves to protect both parties and ensure smooth communication between them.
If you’re not sure where to start, this guide will teach you the essentials of a marketing sponsorship agreement template, starting with what to include in it and finishing on how best to draft one yourself.
Stay with us and you will soon have a very own draft of a win-win sponsorship agreement.
What You Should Be Aware of in Marketing Sponsorship Agreements
A marketing sponsorship agreement is an official written contract between the sponsor and the brand (or event organizer). Here’s why it gets used for all types of sponsorships such as these four kinds:
- Public event sponsors
- Private group or tent decorators
- Concert organizers with in-kind sponsors
- Half-day mini-seminars for string players during hotel luncheon breaks
1. Clearer Expectations
Both sides know exactly what they are supposed to do, reducing misunderstandings.
2. Legal Safeguard
If there is any disagreement, the agreement serves to protect them as a legal document.
3. Adds Professionalism
An agreement that is detailed and well-organized suggests a high level of professionalism on the part of both sides, thereby increasing trust in their totality.
4. KPIs Outline and Metrics
This defines what outcomes we hope to achieve in any partnership as well as measurement techniques for ascertaining just how successful it has been.
The Collection of a Marketing Sponsorship Agreement Template
When putting together an agreement you need to include several vital sections. Below we describe these elements in detail so that your template can be formed smoothly and easily.
1. Both Parties’ Basic Information
This section involves the name, address, and contact details of both the sponsor and the sponsored entity (e.g., individual, brand or organization). It defines the relationship and ensures legal clarity.
Example:
- Sponsor name and Info
- Details of sponsored entities
- Sign date of the agreement
Whether the sponsor is offering money, products, or services; and what the sponsored party is offering (examples include where brand names appear, will a logo be visible anywhere on the premises). Your choice. Be as specific as possible.
Example:
- The sum of sponsorship funding
- Sponsor advertising elements include:
- 5 social media posts per month
- Sponsor logo on all event backdrops/signs required by the conference management team (they should do a good job here!)
- Time span this marketing campaign will last
2. Responsibilities and Duties
Define the responsibilities and duties of both parties. For instance, if you decide to hold a corporate event with a deliberately sponsored theme, the contract should contain content or banners showing that it is these sponsors who provide everything directly related to visibility.
Pro Tip: Even though in the future they may cause contradictions to be brought up, meticulously plan now for all aspects large and small.
3. Deliverables and Key Performance Indicators (KPIs)
Deliverables are specific items or measurable goals agreed upon by the sponsor and should match directly to their objectives.
What are Deliverables?:
- Two million social media hits
- 1000 qualified lead acquisition just as good as organic create marketing leads in a quarter results
- Branding prominently in one area of a conference (repeated on every page or all at once)
4. Payment Details
Indicate the amount, methods, schedule and conditions for payments. Please provide full disclosure on whether sponsors are paying lump sum or installments.
A Few Clauses to Include:
- Sign deposit of 50%
- Balance after completion of campaign 50%
5. Cancellation Policy
Terms of Termination
Conditions under which the agreement can be terminated, including clauses for breaches of terms such as failure to deliver, default on payment or unauthorized modifications.
Pro Tip: Include a dispute resolution clause setting out how disagreements will be solved if they arise (for example through third-party arbitration).
6. Exclusivity and Conflicts of Interest
You can include exclusivity clauses that bind the sponsored party not to bring in other sponsors from the same industry, thereby eliminating competition or overlap between sponsors.
Example:
“If [Sponsored Party] allies with another sponsor in the same product category, [Sponsor] reserves the right to rescind funding.”
7. Intellectual Property Rights
Define in detail how branding materials and intellectual property (logos, slogans, hashtags, etc.) will be utilized and protected. Make sure ownership of content is stated explicitly.
Example:
“All branding materials supplied by [Sponsor] are its; no part of them may be employed for any purposes except within this sponsorship activation.”
8. End Signatures
To be legally binding, the agreement must be signed by an official representative from each party. Be sure to allocate spaces for the individuals’ printed names, dates, and titles.
How to Draw Up a Template for This Marketing Sponsorship Agreement
In order that your sponsorship contracts don’t become foolproof and manner less, tips to guide you:
Use Plain Language
Although the contract is a legal document, avoid jargon and overly difficult vocabulary that could confuse signatories. Keep it professional yet simple.
Stay Flexible
Every sponsorship deal is different. You should make your template able to be adapted to varying agreements.
Consult a Legal Specialist
A contract lawyer can ensure that your terms are legally sound and can stand up in court.
Match Deliverables to Sponsor Objectives
Fit your deliverables to what the sponsor wants, whether that’s visibility or reach from audience or ROI. For your good is also the partnership’s.
Regular Updates
As new sponsorship trends emerge or legal requirements change, get your template current with the times.
Marketing Sponsorship That Works
Well done, a marketing sponsorship agreement not just formalizes partnerships but acts as the foundation of success. Both parties gain mutual growth and increased visibility as well as seeing measurable outcomes.
You can create and adjust your own sponsorship templates with tools like [Suggested Tool Name].
Start making useful sponsorships today. First draft (which is basically just typed words for now). This clarity will pay off in good partnerships later on.
