Alternative debt financing – sponsors and advertisers

When we think of sponsors and advertisers, we usually put it in the context because the business pays money for the opportunity to promote yourself or their products. But the side of advertising purchases is only half of the equation. Side-side side ads are an opportunity for your business to receive financing, and do it on an ongoing basis.

It might surprise you when you think about how many different organizations (profit and non-profit) use this type of financing. Take a small league team, for example. Most of them are financially supported by local businesses, who receive good advertising space and publicity in exchange for small amounts of funds. The same applies to most teenage sports.

Other non-profits also do this. Think of various charitable or philanthropic events that you might attend or witness. How many sponsors pay to put their names behind T-shirts?

Now apply these concepts to your business. Every media where you communicate, including a lot that you don’t realize you communicate, can be monetized. Even though they might sound strange, this technique is used and can generate funds for you. Restaurants sometimes sell advertising space on their menu, or on their plates. Companies that have toilets place eye level ads in front of the urinal or in stalls. The website sells banner advertisements or targeted advertisements to make sustainable cash flows from sponsors. To summarize, everything you do can be advertisements for others. Naturally, use wisdom in connection with whom you are looking for ads. It is not wise to direct your customers to competitors or substitutes.

This trend masters the personal lives of people too. A technique called “car wrapping” takes an ordinary car and turns it into a rolling ad that is fully redecorated for sponsors. Depending on various factors such as the type of car and drivers’ demographics, you can get up to $ 3,000 per month just to make your car painted – think NASCAR ads, on your camry.

The important principle here is that everything you do can be converted into a cash source without debt, interest, or equity involved. Think creatively about the ways your business is visible, and about who might be interested in utilizing that visibility.

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