Motorsports Team Takes VIK To To A Whole New Level With 'Barter' Sponsor
Sponsorship negotiations can get sticky when it comes to placing the value into "value-in-kind." Afterall, most sponsorship deals involve at least some hard costs for the property, which makes straight barter deals a rarity. Nevertheless, bartering, often referred to as value-in-kind, in certain cases can make a lot of sense if it gives properties the opportunity to manage cash more efficiently, while opening up the prospect of sponsorship to a whole new set of small and mid-sized prospects that might have been previously priced out of the market for the opportunity.
So it make perfect sense that one smart motorsports team has added an exclusive 'barter' sponsor with over 25 years experience brokering all kinds of "cashless" business deals. The way it works is, products and services of every business in the network are exchanged for a special currency called T$, which businesses can then use to buy the services of others. By creating a "exclusive barter" sponsorship category, the team is hoping to open up Nascar sponsorship as a possibility to businesses that may not have previously been able to afford cash-heavy deals, but could instead provide valuable products and services.
As a result of the JD Motorsports partnership, Tradebank will be featured on both the No. 4 and the No. 01 car in every race throughout the rest of the 2012 Nationwide series and the team will use TradeBank to bring additional sponsors to the JD Motorsports team.
Tradebank International, headquartered in Lawrenceville, Georgia, has franchised and company owned barter outlets in over 50 locations throughout North America. By outsourcing responsibility for bartered transactions, Tradebank says it frees up the client's staff to focus on more important things like client retention and cash sales.
“In racing, the difference between first place and 43rd place can boil down to two seconds and $100,000,” explained Tony Priscaro, vice president of sales and Marketing for JD Motorsports. “Like all businesses, we recognize the value in attracting new customers and maximizing our cash flow. Our drivers and race engineering team have the technical ability and expertise to consistently win races. Our challenge is to obtain the revenue needed to allow our team to operate at peak performance. The extensive opportunities available through Tradebank assist us in building and maintaining solid sponsorships. Tradebank also helps provide us the additional revenue sources along with the products and services we need to excel.”
"Tradebank’s partnership with JD Motorsports brings an affordable and cost effective way for Tradebank clients, prospective clients and others to experience the benefits and excitement of NASCAR,” said TradeBank CEO John Davis, Jr. “Sponsorship opportunities are no longer limited only to those with multi-million dollar advertising budgets. JD Motorsports and Tradebank assist companies to expand and accelerate their marketing objectives through creative and effective advertising campaigns with distinct ROI.”
The deal with JD Motorsports is the second NASCAR sponsorship that Tradebank has signed. Back in March, the company agreed to a similar deal with Tommy Baldwin Racing.
“Tradebank’s business model is predicated on creating win-win relationships which is certainly the case with our partnership with TBR,” stated Todd Gerry, Senior Vice President of Marketing of Tradebank at the time.” Our partnership will allow Tradebank to enhance its brand awareness with the loyal fans of NASCAR Nation while providing TBR with the many resources required, through our vast barter network, to pursue its goal of competing at the highest levels of the NSCS.”