Decentralizing the way brands and events do sponsorships
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1. About Sponsy
Sponsy is a platform that makes use of today’s revolutionary technology, including blockchain, to disrupt the way brands and events do sponsorships. Thanks to decentralization of decision-making and automation of operational processes, we not only reduce costs, but also make sponsorships available to every business.
Our goal is to create a whole world of sponsorships with Sponsy, which will eventually become de facto and de jure standard for doing sponsorships.
2. Sponsorship market
Sponsorship is currently considered one of the fastest growing marketing segments not only in the USA but worldwide. Everybody today has probably been exposed to a sponsorship deal in one form or another – be it a sports championship like FIFA partnering with McDonalds, some athlete making arrangements with Nike or musical festival affiliated with Heineken.
The market of sponsorship deals has already exceeded $60Bn of annual investment and is poised to reach $90Bn by 2019. This incredible growth is happening because of popularization of large sponsorships deals and the performance of previous transactions.
3. What’s wrong with the sponsorships industry today?
Despite its size and significance, the whole sponsorships industry, with 40% of dissatisfied sponsors and sponsored parties, begs for improvement.
Sponsorship industry is heavily biased towards big and influential AAA-sized corporations
Sponsorships today are mostly done with the help of intermediaries, which are called sponsorship agencies or brokers. Main problems of the industry arise from an incredible centralization of the market. A number of very large brokers, like Creative Artist Agency, Boras Corporation, etc., have captured a significant market share, which now allows them to dictate their own terms. There brokers tend to favor big deals between prominent brands and properties over affairs between smaller companies and venues. This is a huge disaster for yet-to-grow brands struggling to find ways to promote themselves.
Quality of services is not good enough
The history of sponsorship deals is full of examples of multimillion-dollar litigations, which occurred because of the inability of some lawyer to conclude the contract in a correct way.
Fees are insane
The average fee charged by a sponsorships agency nowadays can reach astonishing 35% of a funding amount!
Small local events are overlooked by traditional sponsorships agencies as being unable to provide substantial financial return
4. Our Solution
We are making sponsorships available to everyone! We present a distributed solution, which unites companies from all over the world that are willing to get involved into sponsorships.
Decentralizing decision-making
One of our biggest advantages lies in the ability of thousands of independent consumers - our tokenholders - to express opinion on the upcoming sponsorship deal. These people are sure not experienced in doing sponsorships, but they represent the target audience, whose positive impression is so desperately desired by brands and events. The analysis of the votes of token holders allows looking at the sponsorship transaction through the eyes of end-consumers and making correct decision.
Abandoning full-time workforce
Traditional brokers conduct sponsorship deals with use of their limited circle of employees. This does not allow them to reliably estimate the advantages and disadvantages of a potential sponsorship deal. We are not going to hire hundreds of full-time employees, such as designers, lawyers, etc., because then we will constrain our collective intelligence to the people we have hired.
Instead, we will allow experts distributed across the world to participate in the implementation of every transaction. This would eliminate errors and speed up the process. By introducing a truly innovative proof-of-work-done concept, we can ensure trust and verifiability of the work executed by our experts.
Unprecedented discount on experts’ services
The experts’ services marketplace, present in Sponsy, resembles a typical freelance exchange. As we do not plan to profit from the services rendered by experts within our network, we do not charge experts any fees. This effectively results in prices 20-25% lower than market average. By charging such low prices for high quality services, we expect to receive heightened attention from companies interested in sponsorships.
Speed of work
The sponsorship industry today is notorious for being terribly time-consuming and unpredictable. The average sponsorship deal can take up to a year to complete! Sponsy can handle it in 1 month.
5. SPONS Tokens
SPONS is an ERC20 compatible token. SPONS token is implemented as a combination of a token-as-currency, a token-as-discount, and a token-as-membership. SPONS token is utility token and is not a security.
Serving as an inner currency
In order to stimulate the usage of SPONS tokens, all platform’s members are incentivized to use SPONS tokens for mutual financial settlements.
Carrying a voting right
Possession of SPONS tokens allows for voting about potential future sponsorship deals.
Acting as discount
Relying on SPONS tokens to pay for the services rendered by experts within our network is the basis for obtaining a discount of 9-25% of the amounts charged by experts.
We burn a part of our net profits
We burn 65% of net profit we make after each sponsorship transaction
6. Team
Members of our team have worked at Microsoft, Credit Suisse, Experian, J.P. Morgan.
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