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How do companies make money from sponsorship

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In exchange for free products the angler uses and promotes that brand, but I don't see how companies would make their money back and then some just from the angler promoting it.  How are companies making their money back from sponsorship?

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Just now, Glaucus said:

You would be wrong, else nobody would do it. 

I mean promotion does increase sales especially if an angler wins a major tournament, but does it double the companies money?

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Exchange for free products? Companies are making a ton of money as is. If they can get Ish, Skeet, Ike, EE, Lee or whoever to pimp their product, they aren't out any money. Companies like Nike and UA pay athletes millions of dollars to endorse their products instead of giving them free products. I think you are confused on how endorsements and advertising work.

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Famously, 50% of everyone's advertising budget is wasted. Trouble is, nobody knows which 50%. Like all promotional efforts, getting a product known to people gives them the opportunity to ask for it. 

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Brand equity. Like advertising - a company isn't making money when they run an ad on TV, radio, web, but the next time you go into a store and see their product, you recognize them. Repetition is the key. Repetition is the key.

 

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Every website, youtuber, person who is sponsored or runs advertisements is selling the product.

Just look right here at BR. In the descriptions of many of videos you will see recommended gear, and it will be all Kast King stuff when it's not what was used in the video. KK is a sponsor, so the brand can be pushed on this site.

It's all basic advertising, name recognition, people using it, and repetition of seeing the brand.

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7 hours ago, PLfishing said:

I mean promotion does increase sales especially if an angler wins a major tournament, but does it double the companies money?

If it's a black back chart. 1.5, then ye$$$$$!

7 hours ago, Glaucus said:

You would be wrong, else nobody would do it. 

Yup, someone needs to binge watch Mad Men...

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Everyone wants to be like Mike. Buy his shoes and you can play basketball just like him.

 

Fish like Ike, buy his stuff and you can.

 

We are conditioned through advertising to associate the gear and clothing, athletes, TV and movie stars use and wear with status and prestige. 

 

Companies bank on this and that’s how they make their money.

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There's a lot about marketing that the average Joe does not understand.  Marketing is more than just selling more product, it's about brand awareness.  Sponsoring the right people can help get your name out to more people which eventually leads to more sales.  It's not something you can always directly see although there are ways to see sales directly from an angler.  When an angler gives you a discount code to one of their sponsors it's usually so the company can track the amount of sales that angler is generating for them.

 

Don't forget, not all sponsored anglers are getting free product.  Some get a discount and some receive a certain amount of money to put towards their tourney season.

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Like the auto manufacturers used to say about their NASCAR sponsorships, win on Sunday, sell on Monday.  

Print or e-advertising is VERY expensive.  Rapala can sponsor dozens of guys for the cost of one ad.  IKE wacks them on BASS Live in the classic on a DT6 and yells “in the face!” and by lunchtime on Monday the shelves are empty.  A successful angler can turn numbers like nothing else.

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9 hours ago, jbsoonerfan said:

Exchange for free products? Companies are making a ton of money as is. If they can get Ish, Skeet, Ike, EE, Lee or whoever to pimp their product, they aren't out any money. Companies like Nike and UA pay athletes millions of dollars to endorse their products instead of giving them free products. I think you are confused on how endorsements and advertising work.

^This

1 hour ago, NYWayfarer said:

Everyone wants to be like Mike. Buy his shoes and you can play basketball just like him.

When people go nuts on the internet over how great the most expensive rod is, it sounds the same as needing the newest pair of jordans to me.....

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31 minutes ago, CrankFate said:

^This

When people go nuts on the internet over how great the most expensive rod is, it sounds the same as needing the newest pair of jordans to me.....

Yup, with the same results as if they tried to dunk from the foul line. (James Worthy should have had his own shoe).

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Because everyone wants to eat the Breakfast of Champions ! 

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Advertising and marketing are an expense, like wages, cost of materials, utilities, etc. $$$$$$$$ are built in the budget for expenses,and sales dollars cover that, and make the profit. Sponsor an angler, event, or use media, the folks with that budget responsibility make the decisions. If the result isn't satisfactory, you do something different next year . It is exposure, brand awareness, and sales. The question is how many of us made a purchase or ten because an angler used a particular item ? I plead the fifth.

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It's quite simple really. Case in point, my favorite soft plastic that I'd been using since the mid seventies, and still do, was always rather cheap compared to others. I use to be able to buy it bulk, 100 ct bag, from the company. Then some pro, who happens to be sponsored by the company, breaks some record down at Falcon Lake using this bait, and the price for a 20 ct bag jumps almost $2 overnight. Oh yeah, I can no longer buy the bait bulk. How many of you, I wonder, watch a pro win a tournament and you start searching for his winning baits. Oh yes, they make money off their sponsorships. On the other hand, it also promotes innovation, and that's always a good thing. 

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Quantum and Strike King have made a fortune sponsoring Kevin VanDam ..... bank on it ...

 

good fishing ...

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It is extremely good free advertisement. I know a guy that makes very specialized sinkers ( carp fishing ). His first year that he started selling them he gave a box of 100 sinkers to a guy that works at a tackle shop and told him "whenever you fish with someone give them a few, and if you need more let me know". He knows that guy fishes with a lot of the customers of the tackle store( that's how I fished with him, I was asking for some tips and he invited me to show me the ropes). I personally know of 10 person that now regularly use his sinkers simply from the word to mouth. That box of 100 sinkers was worth 300 dollars, he already made that money back and even more. 

 

Now give something to a pro that has a huge youtube channel, is on tv in tournaments all the time. That's millions of people seeing your product giving results.

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There's really different "tiers" of sponsorship. It's all about exposure and what YOU can do for them not the other way around. The handful of top pros will get a good deal as will guys with their own fishing show and I would imagine the Youtubers with a large following.

 

If you're talking about "pro-staff", this really isn't sponsorship at all but it's cleverly made out to appear to be sponsorship and mostly takes advantage of anglers who want to "play the part" of the big time sponsored pro.  In reality it's mostly a waste of time where you need to agree to purchase a certain amount of gear and promote the brand on social media in exchange for a paltry discount (10%).  But hey you get a patch for your jersey and a few free stickers!

 

 

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