Part 2 : Sponsorship and Success

Should a site focus on its content strengths and try and find sponsors to match that content, or is it better to focus the content around potential and actual sponsors?
I love this question, because it raises an important point...my strong belief regarding content is that you must follow a three-step process, IN THIS ORDER:

1. Identify the content needs of your audience
2. Fill the content need (hire it, contract it, buy it, whatever...)
3. and THEN secure the sponsor.

Our experience has been that if we don't focus on filling audience needs, then the response from the audience will be poor...and ultimately, the sponsor will be unsatisfied. Focus on fulfilling your audience's needs, provide them with good content, then package and promote your service. Do this and you'll develop a loyal audience...and sponsors should line up at your door.

What are your views on exclusive arrangements and long-term (6 month - 1 year) agreements?
There are advantages to longer term arrangements...the sales cycle is easier to manage, and you have time to build a stronger relationship with the sponsor. The only caution is to factor in your opportunity costs.

For instance, what happens if your site traffic doubles or triples in six months or a year? Is the agreement structured to reward you for the growth of your business (and the value to the sponsor)?

There should also be a premium for "exclusivity", if you are restricted from entering new agreements with the sponsor's competitors during the term of your deal.

Now, AgInfoNet has been very successful in generating sponsorship revenues, and in an Internet market (agriculture) not traditionally regarded as pioneering. What's the secret of your success?
Any measure of success we've had can be attributed mainly to two things: the dedication and hard work of our people, and the vision and commitment of our sponsors. Firstly, the people here take great pride and personal "ownership" of Aginfonet.com. Our folks have knowledge of the agriculture industry and a strong desire to build Aginfonet.com into more than just a website; indeed, to build a strong and growing business.

Many of our sponsors share the vision of making an impact on the agriculture industry in Western Canada...we feel that giving farmers compelling reasons to conduct business on-line will help to make our industry more competitive in the global economy.

I believe there's a misconception that agriculture is "behind the curve" in terms of Internet adoption. In fact, 30% to 40% of farmers across North America are already accessing the Internet regularly, and soon they will shift from simple information-gathering activities to on-line buying and selling of commodities, crop inputs, farm supplies, equipment, etc.

What other sites do you see as being models of excellence in online sponsorships (and why)?
Here's a great example: Speed Stick Hockey Pool on Canoe.ca.

This one's neat. In Canada, hockey pools are very popular with men during NHL playoffs. Speed Stick (targeting men, obviously) sponsors an on-line hockey pool on Canoe.ca (a Canadian news portal). Users register on the site, create a team, track statistics and chat with other registrants. Speed Stick gets customer data and an opportunity to interact with users in a fun environment. In all, a much more effective strategy than trying to convince people to visit a website about deodorant!

Some other good examples - AltaVista Canada partners with several different sponsors to provide content on health, careers, finance, etc....Internet.com has many sponsors for their various information channels that promote good content.

Another neat example is this one - Ford of Canada feature one of their "off-line" sponsorships on their own site - Go to the site and you'll see a little pink ribbon at the bottom left corner, promoting their sponsorship of the Canadian Breast Cancer Foundation. Click on it, and you go to a page for the "Run for a Cure" campaign...you can even send an e-mail postcard from the site. You have sponsorship, corporate philanthropy and viral marketing, all in one!