Approaching places to get sponsors or advertising of them -

[krupt]

I have a question about marketing/advertising

If you have a product and let's say on the packaging or in the promotional material for it, you want to try and get some sponsors for it and advertisers.

The product is a beer mug with a cool design - aiming it at university students doe to its look and wording on it.

I want to go around to pubs & bars near to the university and show them it and say if they would like to advertise their bar on the packaging or the promotional material for it.

What is the best way to do this?

Like how do you approach the people? Obviously you have to have an outline as to WHY it will be good for them to have their advert on it but in general how do you approach such people

Thanks

[dfveteran]

I have a question about marketing/advertising

If you have a product and let's say on the packaging or in the promotional material for it, you want to try and get some sponsors for it and advertisers.

The product is a beer mug with a cool design - aiming it at university students doe to its look and wording on it.

I want to go around to pubs & bars near to the university and show them it and say if they would like to advertise their bar on the packaging or the promotional material for it.

What is the best way to do this?

Like how do you approach the people? Obviously you have to have an outline as to WHY it will be good for them to have their advert on it but in general how do you approach such people

Thanks

You already answered your question,lol...Just go to each bar you want to sponsor you. Make sure the owner or manager is in. Most pubs and bars like to sponsor, especially if it puts their name on something. Its free advertising, because sponsoring you is a tax write off deduction.

So go get dressed up and pitch your idea. It's that simple, just be professional and confident.

Goodluck!

[krupt]

How do you mean tax write off man?

[dfveteran]

It means free. At the end of the year the business will claim sponsors, contribution, and charity money given away in the name of the business. Then when tax time comes, they get that money back..


Thats why celebrities and sports stars always give away money to charity. Because they are doing a good thing and know they will get it back at the end of the year.

This is called a tax deduction or tax write off. If you are running a business you should get to know this term and use it....You can write off anything in the name of your business.

[BusinessAdviser]

Its free advertising, because sponsoring you is a tax write off deduction.

Whoa, whoa, whoa. I think you're off base in your advice a bit, and a quick way to kill credibility is to run around making statements that just aren't true. How do you figure that "it's free advertising, because sponsoring you is a tax write off deduction?"

[dfveteran]

Whoa, whoa, whoa. I think you're off base in your advice a bit, and a quick way to kill credibility is to run around making statements that just aren't true. How do you figure that "it's free advertising, because sponsoring you is a tax write off deduction?"

I never said that. I said it's a tax right off for the company sponsoring. Not for the person being sponsored.

Yes, if I put 5 grand down to sponsor you in the name of my business. When tax time comes I deduct that amount from my taxes owed. So I helped you for free. I was going to give that money to the irs anyway. That's what I meant.


By the way last year I wrote off over 65 thousand dollars towards my business. I needed a new car, so I got a logo made up and put it on my new car. Now its a tax write off. I got my car for free, because I was going to give that money to the irs anyway.

If the irs pays for it and I am not. To me that is free.
My husband does the taxes, so I may not know the lingo of the language yet. Sorry if I confused anyone.

[BusinessAdviser]

I never said that. I said it's a tax right off for the company sponsoring. Not for the person being sponsored.

Yes, if I put 5 grand down to sponsor you in the name of my business. When tax time comes I deduct that amount from my taxes owed. So I helped you for free. I was going to give that money to the irs anyway. That's what I meant.


By the way last year I wrote off over 65 thousand dollars towards my business. I needed a new car, so I got a logo made up and put it on my new car. Now its a tax write off. I got my car for free, because I was going to give that money to the irs anyway.

If the irs pays for it and I am not. To me that is free.
My husband does the taxes, so I may not know the lingo of the language yet. Sorry if I confused anyone.

Yeah, I think you're just wrong about that, and the fact that it's your HUSBAND, not you, that does the taxes shows that you don't have a full grasp on how taxes work.

I understand what you're saying about it being free advertising for the sponsor, not you, but that's incorrect. There's a difference between above-the-line and below-the-line. A write-off (not right-off) above the line means that your taxable income is reduced by the amount written off. A write-off below the line means that your taxes owed are reduced by the amount written off. Above the line items include advertising expenses, which this is, and an example of a below the line item would include a donation to a not-for-profit that has been approved for such below the line deductions (another term for write-offs).

Now that you have the basics (and you can ask your husband to explain if you don't quite understand still), let me now show you why telling sponsors that their advertisement amounts to "free advertising" is incorrect and will cause you to lose credibility with the sponsors and actually tread on the line of misrepresentation:

Say you are the advertiser, stand to have taxable income of $100,000 this year, and are in a 30% tax bracket (to simplify the explanation). Without advertising with this young entrepreneur, you will pay $30,000 in taxes ($100,000 taxable income x 30%) and have after-tax income of $70,000 for the year.

Now, if you decide to spend $10,000 advertising with the entrepreneur, you are permitted to write-off this amount. Because advertising expenses are above-the-line deductions, you would reduce your taxable income by $10,000, from $100,000 to $90,000. When it comes time to pay your taxes, you pay $27,000 in taxes ($90,000 taxable income x 30%) and have after-tax income of $63,000 ($100,000 - $10,000 advertising expense - $27,000 in taxes).

The result is that the advertising is NOT "free." The advantage is that by being able to write it off, the advertiser has an incentive to advertise, because he will be able to get $10,000 in advertising and it will only cost him $7,000 to do so ($70,000 - $63,000).

You have this confused with a below-the-line deduction, which would act as a credit against your tax liability.

The result of all this is that telling potential advertisers that advertising with you allows them to write-off the advertising expense, amounting to "free advertising," is MISREPRESENTATION (a legal term for, you screwed up and might owe a lot of money now) and is just plain WRONG.

To DFVet, if you still don't understand, check with your husband, who is actually the one who does the taxes, and I'm sure he can help explain it.

[jau4524]

Great information jmenq2! I never knew what the difference was between above-the-line and below-the-line deductions. I do now. Thanks again.

[BusinessAdviser]

Basically, it's the difference between a tax deduction (as in this case) and a tax credit. I hope this clears things up a bit for everyone, including DFVet.

Great information jmenq2! I never knew what the difference was between above-the-line and below-the-line deductions. I do now. Thanks again.

[dfveteran]

Basically, it's the difference between a tax deduction (as in this case) and a tax credit. I hope this clears things up a bit for everyone, including DFVet.

Sweet, now I know how screwed I would be without my hubby,lol! Thanks for the run down jmenq

[BusinessAdviser]

No problem. Give him some extra lovin' tonight for keeping you out of prison! Haha. Good luck.