Band Sponsorship from Large Company

jgroh · #1 03-29-2011, 06:32 AM

Hey all,

I play in a classic rock cover band, and my singer texted me yesterday that a regional rep from a large beer maker contacted her and wants to sponsor our band. They will pay us a fee each gig (nothing huge but still extra money in our pocket), and we have to promote their beer. Anyone else get something like this?

I dont have all the details, the singer's out of town and wont be back until tonight, but I am kind of...surprised I guess is the right word. We are building a nice following and playing alot of return gigs, but its still only a fun hobby for all of us. We all have small kids and full time jobs, so we can only play 2-3 times per month max, so I was a little surprised we would be approached for a sponsorship of any kind.

John

MNAirHead · #2 03-29-2011, 06:50 AM

They are not "endorsing you"

They're hiring you to put up posters and banners with their name on it.

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Every endorsement I have is from a company I love selling for.... I do this for the internal contacts and special serivice.

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Alcohol..
I'd really think this one through.

My hunch opinion is that unless every one of you is a fan of the liquor you should not do it.

1-The added money may not make up for the lost gigs. This may limit your coporate, social and wedding gigs.

2-Unless you all believe in it and would love to sell it, then it's not good for your marketing face.

3-Liquor cheapens your face (most of the time)... There are some exceptions.. if you were in your early 20s, playing only bars.. were a total party type band, it may add to your value to throw out cans of free beer to the crowd - the bar will then get ticked that they just lost a sale.

I love a good beer --- the reality is putting the Budwiser logo over my head will make at least 10% of the customers think I"m a drunk.

4-I've yet to read a liquor "endorsement" that included a bunch of free merchandise for you to hand out... when they do it normally has their name, not yours on it.

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I'd think it through... I've yet to see a booze agreement that was 2 sided.

MNAirHead · #3 03-29-2011, 06:53 AM

Looking at your visuals, the first one I'd think of would be Harley Davidson (your lead singer)... nothing wrong it's not being judgemental it's the image she's projecting.... not Miller

Reason I post this is it really looks as if the wrong agreement could dirty up your nice clean image.

Smokin' Toaster · #4 03-29-2011, 07:31 AM

Chances are the agreement will include rules about what you can be seen drinking at gigs, for example, nothing but their beer.

I'll ho myself out for money in a lot of ways, but I draw the line at doing it for tasteless macro-brews. Some things are just sacred. Beer is one of them.

bassbully · #5 03-29-2011, 11:46 AM

I have had been companys put our name and other bands on banners to hang in bars etc for the month. I see nothing wrong with this as long as you are using it in a bar or event that serves alcohol.

Richland123 · #6 03-29-2011, 12:17 PM

Since you are in Pennsylvania as I am, you might want to check with the PLCB (Pennsylvania Liquor Control Board) about advertising beer or any other alcoholic beverages at bars. If a bar does not sell the product you are promoting, you may have issues.

mcapote · #7 03-29-2011, 12:20 PM

i was thinking how are your clients gonna feel about you peddling something they may or may not carry? Good way to loose gigs imho.

**Freddels** · #8 03-29-2011, 12:22 PM

All these issues could be spelled out in the agreement. If it's a national company, they're going to know about the rules in the state regarding advertisements. You could also put that private parties (which weddings would fall into) would be exempt, etc.

StuartV · #9 03-29-2011, 12:29 PM

Timmy: He never said "endorse". He said sponsor. In my mind there is a distinction. However, I'm not sure that distinction matters, at least not for purposes of responding to the OP.

jgroh: My advice for you:

1) Make sure the contract allows you to still do gigs that are not sponsored. For those gigs, you don't promote their beer and they don't pay you the per-gig fee. Simple, as long as you're still allowed to do that. That will ensure you can still play places that don't allow alcohol advertising and places where the venue or event is sponsored by a competing brand.

2) Make sure the contract has a termination clause for the band that you all find acceptable. There should really be nothing to this if #1 is in place and there's nothing in the contract to prevent you from accepting sponsorship from a competitor. However, if there is a non-compete specified, you'll want to make sure you can terminate the contract easily.

3) Make sure the contract specifies that any costs associated with this are borne by the sponsor. A lot of things COULD need to be done by you, if you accept this sponsorship. Update your website, get a new banner, print handout materials, get new band merch made, sponsor logo on kick drum, etc.. Make sure if any of that has to be done, the cost of it is covered by the contract one way or another.

4) Establish very clearly what the scope is of the promotion you are expected to do. If they're paying you per-gig, they should only be expecting you to promote at the gig. E.g. you don't have to put it on your website. You don't have to talk about them if you're giving an interview (unless the interview is specifically related to a sponsored gig). You don't have to promote them before the band's actual start time at the gig or after the band is finished.

If they want the deal to include putting them on your website, putting their logo on your band shirts, etc. then that means you're going to be promoting them outside of actual sponsored gigs and you should structure the deal to compensate the band accordingly.

5) I would also angle for them to pony up advertising money and put that into the contract, too. I.e. if you're playing a sponsored, public gig, they will agree to spend $X per sponsored gig on advertising that mentions the event, the band's name, and the band's website URL. But, this part of the contract is really a "would be nice", not a requirement. If they don't include it, then just assume they won't do ANY advertising or promotion and determine what fee you'll accept for their sponsorship accordingly.

As long as you make sure the band can terminate the sponsorship arrangement at the convenience of the band, and there is nothing in the agreement that can obligate the band to spend any money or perform any work the band doesn't want to, you should be okay.

panama · #10 03-29-2011, 12:31 PM

Sounds like you're endorsing them. Not the other way around.

StuartV · #11 03-29-2011, 12:36 PM

ps. I would also angle for a per-gig merchandise budget. They agree to give you an additional $X per gig to pay for merchandise that you give away. The idea would be to get coozies, keychains, towels, t-shirts, whatever... made up that have the sponsor logo on them and the band info. They probably have a separate budget for promotional merchandise that they could use for this without affecting the sponsorship fee that the band gets.

I'm sure they can probably give you tons of stuff to give away at gigs, but that stuff won't have the band info on it. It's a lot better for you if you can get promo merch budget and get your own promo merch made up, so you can make sure it promotes the band AND the sponsor, not just the sponsor.

StuartV · #12 03-29-2011, 12:40 PM

I have never thought of seeking sponsorship for my band before, but I am very familiar with the general subject, after years of motorcycle roadracing.

Please keep us updated on how this goes for you. I'd like to try this and knowing how the sponsor's rep handles this would be very helpful.

Thanks!

DanAleks · #13 03-29-2011, 12:55 PM

@Stu - Excellent advice.

Also, have an attorney look at the contract before you sign.
Yeah, I know, I have a firm grasp of the obvious.

StuartV · #14 03-29-2011, 01:14 PM

Thanks, DanAleks.

pps to the OP: If they won't give you a promo merch budget, try to get them to include in the agreement where at least SOME of the promo merch that they provide (IF they provide any) will have your band info on it.

Also, ask for, if they do any other promotion of an event where you are performing as a sponsored band, they agree to include your band info (name, logo, website URL) on any other promo materials or ads they do for the event. E.g. say Bud is your sponsor and Bud is sponsoring a big party at the Iron Horse Saloon during Bike Week. You are playing at the Iron Horse during this party. You want them to mention your band in any radio or print ads they run about the Iron Horse party, etc.. Since they're sponsoring you and they're sponsoring the event you're playing at, this should not be a tough one for them to swallow and they'd probably do it anyway.

Michelob_64 · #15 03-29-2011, 01:29 PM

My former band had a sponsorship type of deal from a local beer distributor, there were no restrictions or limitations put on anything that we did. All they merely did was pay for our banner & put a beer logo on it. We never had to promote anything, sell, etc.

StuartV · #16 03-29-2011, 01:34 PM

They didn't pay you anything per gig after that?

Sounds like they got a pretty good deal! $100 or less for a banner and they get free advertising forevermore (or until you buy yourselves a new banner).

jgroh · #17 03-29-2011, 01:41 PM

Lots of good advice so far, thanks folks! Like I had said, I didnt talk to the person myself so I dont have alot of details. We only play bars and clubs that serve alcohol so Im not worried about the image it may portray in that sense. And this is a big beer maker (maybe the biggest...have to google that lol) so just about any and every bar will have some of their products in it.

I just got the feeling from the little that I know that it will be like Michelob 64 said above, they will have some merchandise with their name on it (maybe including ours) and pay us a small fee. Since Im in marketing for a living, Ill make sure we are careful with anything we get involved in.

MNAirHead · #18 03-30-2011, 02:16 AM

Stuart...

I totally understand your lexicon discussion..... in the marketing realm it only matters what the customer perceives.

I've received these relationship notes, much of what was offered did not have value.

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With booze many times they're just renting/borrowing space behind your faces.

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I'll add one - Control your artwork...

YOU Submit your own artwork in an .EPS or .TIF format

I can't tell you the number of jive looking banners I've seen with HUGE Budwiser bow ties on the right, left and header/footer...

The band name is then small and crooked with 1/8th notes around it in red

It's kind of trashy to see a band with a 2' x 8' banner... the customer sees "Budweiser" the band thinks they see "Haphazzardrocks.com"

MNAirHead · #19 03-30-2011, 02:22 AM

I've been blessed to have a few agreements that I have absolutely loved.

They were not easy/fast... I normally started the dialogue... they were thought through and very heart felt.

I'm working on one (personally - not band) - it's taken a few months and we're both still deciding if it's a wise mutual choice.

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Many times these are not really "sponsorships" or "endorsement" they are more akin to what some refers to as "street teams," "placements" or "field marketing"

jgroh · #20 03-30-2011, 06:41 AM

Quote:

Originally Posted by MNAirHead

I'll add one - Control your artwork...

YOU Submit your own artwork in an .EPS or .TIF format

I can't tell you the number of jive looking banners I've seen with HUGE Budwiser bow ties on the right, left and header/footer...

The band name is then small and crooked with 1/8th notes around it in red

It's kind of trashy to see a band with a 2' x 8' banner... the customer sees "Budweiser" the band thinks they see "Haphazardrocks.com"

Yes, good advice. Since Im the graphic designer for the band, I have decided to make sure I approve anything with our name on it. However, since this is just a hobby for all of us, Im not going to take anything too seriously. At this point the only thing I care about is the few extra bucks in my pocket at the end of the night.

I guess a couple of reps are coming to our gig on Friday night, so Ill make sure I am front and center and can talk to them or at least get their contact info.