Are You Asking Too Much or Too Little? How to Price Sponsorships Strategically.
Avoid the Common Pricing Traps That Undermine Your Sponsorship Success
When it comes to corporate sponsorships, pricing shapes perception—and the fear of getting it wrong creates more anxiety for nonprofit fundraisers.
Ask for too much, and you risk scaring sponsors away. Ask for too little, and you leave critical funding—and credibility—on the table.
So how do you find the right balance?
The truth is, strategic sponsorship pricing isn’t about guessing or hoping for the best. It’s about building value, doing your research, and presenting partnerships that feel like a smart investment for your sponsors.
In this article, we’ll walk through why pricing too high or too low can hurt your results, how to find your pricing sweet spot, and why perceived value matters more than the price tag itself.
The Real Risks of Pricing Sponsorships Too High or Too Low
Pricing too high without clear justification can be disastrous.
Even companies that believe in your mission still have budgets to manage and expectations to meet. If the benefits you offer don’t clearly match the investment you’re asking for, they’ll hesitate—or worse, walk away.
But pricing too low can be just as damaging.
Low prices might feel "safe" at first, but they can signal a lack of value. They can make sponsors wonder if your audience is small, if your event lacks professionalism, or if the return isn’t worth their time. Worse, once you set a low price, it’s hard to raise it later without pushback.
For example, one NPO we worked with set their sponsorship packages at very low rates, thinking it would make it easier to sell out. They filled their sponsor roster quickly—but when renewal season came, sponsors had little loyalty. They hadn’t invested much and didn’t perceive much value. Over time, the nonprofit struggled to build strong, long-term partnerships, ultimately stunting their sponsorship fundraising growth.
How to Find the Right Pricing Sweet Spot
Rather than guessing, smart organizations take a strategic approach to sponsorship pricing. Here’s how you can too:
1. Know Your Audience and Assets
Sponsors aren’t just buying ad space—they’re buying access to your audience. Understand the demographics, size, and engagement level of your community. Know what makes your audience valuable.
2. Benchmark Thoughtfully
Look at what similar organizations are charging, but don’t just copy. Use this information as one input among many. Your audience, your cause, and your engagement levels might offer a unique premium.
3. Talk to Sponsors
If you already have sponsors—or have had exploratory conversations with potential ones—ask about their goals, challenges, and what they look for in a partnership. What types of exposure and engagement matter most to them?
4. Match Deliverables to Investment
Every sponsorship level you offer should feel proportional to the visibility, engagement, and recognition provided. Create packages that look and feel valuable—not bloated lists of benefits, but curated experiences that align with sponsor goals.
For example, another organization we worked with realized their sponsorships were significantly undervalued after reviewing their assets and gathering feedback from past sponsors. They restructured their offers, repositioned the messaging around audience access and engagement, and increased sponsorship pricing by ~30% without losing a single sponsor—in fact, they gained new ones.
Why Perceived Value Matters More Than Just the Price
Ultimately, it's not just about the number. It's about what the sponsor believes they're getting for that investment.
When sponsors see clear, tangible benefits that align with their goals, pricing becomes less sensitive. A $10,000 sponsorship can feel like a bargain if it unlocks meaningful engagement, brand loyalty, and market exposure. Meanwhile, a $2,000 package can feel expensive if it's poorly presented, generic, or disconnected from their needs.
The way you position your sponsorships—the story you tell about the opportunities and impact—can be the difference between a "no thanks" and an enthusiastic "where do I sign?" Perceived value turns a price into an opportunity.
Ready to Strengthen Your Sponsorship Strategy?
If you’re serious about maximizing sponsorship revenue without second-guessing your pricing, you need to avoid the most common (and costly) mistakes nonprofits make.
Download our free "Sponsorship Package Pitfalls" eBook to learn:
- Why copying another organization’s sponsorship model can hurt you.
- How sticking with the same old packages year after year undermines growth.
- Why undervaluing your sponsorships leads to compound financial losses.
- How overcomplicated packages make it harder for sponsors to say "yes."\n\nSet your sponsorship strategy up for success\u2014starting with smart, strategic pricing.