Microsponsorship

[G$]

Bear with me here as I have NOT thought this through much...

You may be aware of microcredit, and microfinancing.

Essentially, microcredit is the issuing of VERY VERY small loans on favourable terms to very small enterprises in order to get them running in the most basic sense, usually in a "self employed" context. They are generally exclusive to very poor people in developing countries, who would normally not have access to credit because of a lack of credit history, no assets, or no traditional banking in the area. In their current form, a lot of microcredit is extended via on line transactions, or arrangements.

Why Am I talking about small loans to developing countries on a BBQ forum?

I see a lot of parallels between "amatuer" BBQ competitors and the benefactors of microcredit.

We all know that securing sponsorship funds can really help soften the financial burden we face as competitors. And we also know that in many ways, that financial burden is in and of itself a barrier to entry for competing in the first place. Understandably, most sponsors expect some sort of benefit or payback. They also know their paypack is much higher with a more succesful and established team. Therefore, sponsors will (again understandably) expect a track record of performance before committing significant funding. There is the Catch-22.

What I am trying to figure out is a way to translate the principles of microcredit to BBQ sponsorship.


As a competitor, would you be willing to pony up a few bucks, not for your own team, but for a fellow BBQer in return for a percent of their prize money?

• What is an appropriate microcredit amount per "share"? What would you be willing to give back for it?
• Is 10 or 25 bucks for a 6 month or year long % point fair?
• As a competitor, how much help would 250, 500, or 1000 dollars be in a season?
• Would you be willing to accept credit and sell shares, even if it could wipe out or nearly wipe out your chance for making money in a given year?

Like I said, and let me emphasize, again, I have not thought this through in detail and I am not proposing anything specific, but I did find it to be an interesting thought excercise. I wonder how many people would be required to make it work.


First Thoughts

• $20 cost for one microsponsorship.
• One microsponsorship entitles to a one percent Share
• Share entitles sponsor to 1% of GROSS winnings from KCBS sanctioned events in the 4 meats and overall categories.
• Team must compete in at least 2 (3?, 4?) contests or return full micro sponsorship.
• Sponsor will be recognized at each contest on 8x10 display card (at their discretion)

So, how far off my rocker am I?

 

[Divemaster]

I like the idea off the top of my head but I need to think about it... I guess my first issue is that it's going to take a bunch of $20 sponsorships to really make a dent in a $500-$750 contest bill.....

 

[G$]

I like the idea off the top of my head but I need to think about it... I guess my first issue is that it's going to take a bunch of $20 sponsorships to really make a dent in a $500-$750 contest bill.....

Thanks Jeff. I agree it would take a lot of micro-sponsors, but if you are indeed looking for just a 'dent', it might still be worth it. Perhaps the ratios need to change to 5% for $50. Just thinking out loud.

And as a reminder, the whole goal with a micro sponsorship is to soften the cost for a cooker that wants to get started in or be comfortable with committing to 3 or 4 contests. It might be enough to move someone from the "can't or won't" camp in to the "Sign me up for three" group.

I am a little suprised more people have not chimed in to say this is a weird/ridiculous/terrible idea.

 

[Divemaster]

Thanks Jeff. I agree it would take a lot of micro-sponsors, but if you are indeed looking for just a 'dent', it might still be worth it. Perhaps the ratios need to change to 5% for $50. Just thinking out loud.

I agree that the amounts would need a bit of 'Tweaking' and that the idea is a good one.

And as a reminder, the whole goal with a micro sponsorship is to soften the cost for a cooker that wants to get started in or be comfortable with committing to 3 or 4 contests. It might be enough to move someone from the "can't or won't" camp in to the "Sign me up for three" group.

I also agree that the start-up costs can at times be over whelming. For me, it took me a while to save up for not only my cooker, but also the trailer. To be able to off-set some of the actual comp costs would have helped alot.

I am a little suprised more people have not chimed in to say this is a weird/ridiculous/terrible idea.

I guess we are the only weird ones around... LOL

 

[TN_BBQ]

Just stop by my booth and for $10, I'll hook you up with a nice plate full of BBQ

And anything else that makes it's way back home with me, I'm selling to some co-workers and neighbors.

Oh...and then there's the issue of "how many teams are profitable?" Using Divemaster's example of $500 to $750 contest bill...you gotta get a lot of calls to make a profit and/or win Grand or Reserve Champ.

 

[G$]

Just stop by my booth and for $10, I'll hook you up with a nice plate full of BBQ

Hope you got yer permits, and if applicable have paid the vending fee. (Lots of small teams don't)

And anything else that makes it's way back home with me, I'm selling to some co-workers and neighbors.

Oh...and then there's the issue of "how many teams are profitable?" Using Divemaster's example of $500 to $750 contest bill...you gotta get a lot of calls to make a profit and/or win Grand or Reserve Champ.

In my scenario, you don't HAVE to be profitable to pay back the micro sponsorship. (Micro sponsors are paid back on GROSS walks). In fact, that is sort of the point. For the vast majority of competitiors, it will never be profitable. For those where it WILL be profittable, "real" sponsors are a tangible possibility. IF a micro sponsor is looking to 'get rich' .... aint gonna happen. But, you know what might happen, I might become a little more invested in how my Brethren across the country are doing each weekend, and add a few competitors to the cooking pool!
In the poker world, this is similar to having 'pieces' of other players.

 

[Divemaster]

I wish I could say that we are a break even team... We have a couple of sponsorships that are going to come in handy this season...

 

[Big Ugly's BBQ]

As a team, last year we did 7 contests, walking in 5, one RGC and one GC. If I understand it correctly and were to take the equation ($50 for a 5% share) in previous posts, the "sponsor" would have not only broke even, but almost tripled their initial investment.

Interesting idea, wonder how some of the other teams see this?

 

[G$]

As a team, last year we did 7 contests, walking in 5, one RGC and one GC. If I understand it correctly and were to take the equation ($50 for a 5% share) in previous posts, the "sponsor" would have not only broke even, but almost tripled their initial investment.

Interesting idea, wonder how some of the other teams see this?

Thanks for the feedback. I actually think the numbers are pretty good then, because my initial swag was this would be ideal for the "3 or 4 contests per year" team. Furthermore, you got an RGC and a GC, which is beyond the bounds of expectation for the typical team. (Great job!)

If it seems the payout is too micro sponsor heavy, there are ways to cap or neutralize it, but there should be a fundamental reard for sticking money out there on an 'unproven'.

 

[Big Ugly's BBQ]

Thanks! We're talking about Gross winnings here, it would be alot different if expenses, due outs were deducted from that winning total. I would be no where close to the break even level at that point.

Where it could get dicey, would be when you add more "sponsors" to the equation. Take my example for instance, I used only one. If you were to add 4 more, I would have to distribute 25% (5 sponsors) of my winnings, while only taking in $250, which is one entry fee. There would have to be some sort of balance.

 

[T.K.]

I think you're on the right track. I was thinking about something similar but offering the sponsor their choice of a percentage of gross winnings or a catered event worth a percentage of the contribution.

I haven't thought it out yet but need to.

 

[Divemaster]

I think you're on the right track. I was thinking about something similar but offering the sponsor their choice of a percentage of gross winnings or a catered event worth a percentage of the contribution.

I haven't thought it out yet but need to.

Again the thing to remember is if you don't have the correct licensing, you could really be opening yourself up for a law suit... I think it's better to go with the cold, hard, cash unless you can work out of their kitchen using their license....

 

[G$]

I think you're on the right track. I was thinking about something similar but offering the sponsor their choice of a percentage of gross winnings or a catered event worth a percentage of the contribution.

I haven't thought it out yet but need to.

TK, what you are describing (with the catered event) is aking to a "real" sponsorship, and is of course a good idea. However, the novelty of Microsponsorship is that it intended to bring smaller funding from many people, who are far away from each other or the competition team.