Getting contacted by a company for a sponsorship deal can be pretty exciting. It finally means that you or your brand is getting noticed by advertisers, which could only be the start. But before you say yes, it’s important that you have a sponsorship contract in place.
If you do not know how to create a sponsorship contract, this article will guide you through the process. Keep reading so you know how having a sponsorship contract in place can protect you and your brand.
Sponsorship Contract
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How To Write A Sponsorship Contract
When you are writing a sponsorship contract, it is important that you know what type of sponsorship you are getting from a business. This is because the legal contract you prepare may slightly differ between each.
The four main types include the following:
Media sponsorships
In a media sponsorship, a business owner will pay a TV channel, radio station, blogger, or any other media platform money for publicly advertising his company. The business owner provides the marketing material needed in the hopes of drastically expanding its audience reach.
In-kind sponsorships
There are some brand ambassador contracts that do not involve monetary payment. Instead, you can get free goods or services for promoting the business on your platform. This is a common practice for clubs and events.
Promotional sponsorships or collaborations
This type of sponsorship can include either monetary or in-kind payments with an influential person on social media. While there are some who pay per social media post, there are others who opt to pay for a fixed number of posts.
Financial sponsorship
Lastly, financial sponsorships include a monetary value that is directly paid to a company or individual for funding an event. This is an option for clubs looking to launch their venue and attract people.
By determining which type of sponsorship you need, you can easily draft your contract as deemed fit.
Sponsorship Contract
Download the Sponsorship Contract Form
Below is a preview of Sponsorship Contract Form. Use this form for free when you sign up for a Fill account.
5 Essential Elements of Sponsorship Contract
Now that you know the different types of sponsorship agreements, let’s talk about the process of drafting a sponsorship contract. Most importantly, you need to remember the five essential elements that your contract needs to have:
1. Term of sponsorship agreement
One of the most important details you need to include in the contract is the duration of the sponsorship. If you are having a fixed-term arrangement, make sure to detail if the contract automatically extends or if either party will have the option to extend or provide notice.
2. Exclusivity
Another important element you need to include in your contract is the exclusivity clause. This will let you know if you can still accept sponsorship from other brands, including competitors.
3. Payment
Clearly identify any information regarding the payment in your agreement. You can include certain information like payment schedule, terms, and how the payment should be made. Do you need an upfront payment or a lump sum? How often should you be paid?
If you won’t be getting monetary payment for the sponsorship, you can include more information on how the agreement can benefit you as well. Will you be renumerated in-kind with the company’s products and services? These are some examples that should be included in the agreement.
4. Intellectual property
The agreement should also include information regarding intellectual property and how it can be used. If you have a logo, the agreement will detail the duration when the company can use your logo as part of its marketing efforts.
5. Termination
Lastly, the contract needs to include information regarding termination as well as the notice period and consequences following this decision.
Recommended Strategies When Writing A Sponsorship Contract
If you’re ready to start the process of sponsorship contract creation, there are some practices you should follow. In doing so, you can create a well-crafted agreement without any fault.
Here are some things to remember:
- Use clear and concise language – The contract should be written in a clear and easily understandable manner. Don’t use complex legal jargon that may lead to potential misinterpretations.
- Be detailed and specific – Include specifics in your terms, deliverables, obligations, and expectations.
- Include definitions – Any key terms used in the contract should be clearly defined.
- Consider local laws and regulations – Make sure that your contract complies with local laws and regulations to avoid any issues or disputes in the future.
- Review with a legal professional – Have a legal professional review and revise your contract, as needed.
- Use a template to expedite the drafting process – A template can be a great way to help you create a contract without having to make one from scratch. You simply need to fill in the necessary information and you’ll be all set.
How To Use Fill to Write Sponsorship Contract
The process of writing your own sponsorship agreement can be difficult, especially for someone who is not well-versed in legal lingo. Thankfully, there are tools that you can use to help you learn how to write a sponsorship contract.
Fill offers various templates that you can use in writing a sponsorship contract. Once you’re done with the draft, you can send it over to the recipient for easy signing. Register for a free account to check out the available templates that you can use.
