What is Sponsy?
Sponsy is a one-stop solution for sponsorship assets tokenization and management of sponsorship deals.
Sponsorship is the fastest growing and most effective marketing segment. The industry’s annual investment will exceed $90Bn by 2019. The market today is concentrated in hands of the small number of influential agencies – intermediaries. As a result, the industry is heavily biased towards AAA-sized brands and events, such as McDonalds, FIFA, and NASCAR. Small and medium businesses, which are well aware of all the benefits that sponsorship brings, are constantly overlooked by agencies. These agencies are notoriously known for being terribly slow (a deal can take more than 12 months to complete) and charging large fees (up to 35%). Non-transparent pricing, fraud, lengthy due diligence processes and manual approaches used today are a few key issues that hamper industry development.
We enable sponsees to tokenize their sponsorship assets and sell them to sponsors by issuing custom SPONS-backed tokens. This presents ample possibilities for sponsees, including an ability to flexibly sell parts of their assets to various sponsors, a capacity to raise sponsorship funding from their own customers, and secondary market opportunities. All the sponsorship-related information, including previous deals, other sponsors’ reviews, intellectual property rights and licenses, is stored on Ethereum blockchain, thus enabling potential sponsors to track the history of each sponsorship asset. Sponsy intends to cater to the untapped market of SME sponsorships by imposing no restrictions on companies that are willing to join.
How Sponsy Works
We propose a Net Sponsorship Asset (NSA) as a unit that sponsors are willing to pay for in sponsorship business. This unit is backed by sponsee’s audience/clients attention. Sponsorship assets are desirable for sponsors to be purchased as they can feature anything sponsors may wish (logos or branding in its simplest implementation). Sponsorship assets are to be defined broadly and can imply both a physical object (banners, stands, musical pieces and their likes) and virtual opportunities (getting mentioned in an online app or website, playing a sponsored video, mentioning the sponsor in an introductory talk).
Simplification of Sponsorship Procedures
By listing tokenized sponsorship assets on Sponsy platform, sponsees automatically offer them to hundreds and thousands of potential sponsors. There is no need for the manual search of sponsors and exhausting deals conclusion.
Secondary Market Opportunities
Creation of ecosystem allowing for free trading of sponsorship assets will give rise to a whole variety of sponsorship derivatives – secondary sponsorship products. Assets can be placed in tranches structured by a wide range of factors: physical or virtual sponsorship assets, geographical location, sponsees genres and business type, sponsees’ audience size, etc.
Attracting sponsorship capital backed by future sponsorship assets
Sponsy can be used by the business that is currently short of sponsorship assets that could be sold to sponsors but seeks to attract sponsorship funding in order to build these very sponsorship assets in the nearest future. This represents an alternative to a business loan for mid-sized businesses that aim to raise sponsorship capital.
Sourcing sponsorship capital from own customers
Sponsees are free to source sponsorship financing from their own clients, while offering certain rights, discounts and benefits in return. For example, a sponsee can sell his/her Signature Tokens to customers, granting them a 1-year free of charge access to property or event.
Decentralization of decision-making
Sponsy decentralizes decision-making by allowing token holders to vote on the appropriateness of potential sponsorship deals. As end-consumers, these people tend to witness the results of multiple sponsorship campaigns and recognize the affinity between brands and events. Leveraging independent opinions of the target audience may prove beneficial in building truly comprehensive events.
Sponsorship assets on the blockchain
Each Net Sponsorship Asset ever created by sponsee, as well as all the info pertaining to the manipulations that it has been subject to, is stored in Ethereum network. The info includes:
- The price it has been sold for previously
- ROI and asset’s performance
- Intellectual property rights & trademarks
- Other sponsors involved
Our competitors are traditional sponsorship agencies, such as CAA, Wasserman Media Group, and others, as they are deeply involved in offline sponsorship business. In addition, we closely follow the development of Internet-based solutions, like SponsorMyEvent, GetSponsoredFast, OpenSponsorship, Sponsia. We observe no competitors in the blockchain space that are engaged in the sponsorship industry. This is our first mover advantage.
The major competitive advantage behind Sponsy lies in the fact that we are building a one-stop solution for businesses to not only discover new partners but also manage their sponsorship deals. We put sponsorship-related data on the blockchain, thus making the information equally available to every party. By automating the work and rendering the industry an online-enabled one, we open the world of sponsorship opportunities to SME.