How to partner with someone

I know I always say the word "partner" is meaningless and maybe it is? I used it the other day on an organization that we are pitching to take over their 2010 series. Whether we get it or not I think this is a good example of a true "working partnership" - please tell me, if someone would offer this to you what would you think?

Also, how many of you would like an approach like this for your websites?

Xfuel is a small start-up company, we are less than one year old and we are funded privately with our personal money. We see a huge opportunity in the BMX field for our products which we did not realize until we came to the first race the other week and met some great people. The full size carbonated beverages that dominate the energy drink market are not well suited to the BMX racers and to be honest anything with massive amounts of sugar is not all that good to begin with. Even with limited riders taking the drinks we found a high degree acceptance for the product.

We would like to entertain partnering with you for the 2010 season and here is what we had in mind in instead of a traditional sponsor package. Xfuel would become the official “racers or riders” drink of XXX; the XXX through their website and other means would promote Xfuel and encourage its member riders to purchase Xfuel at one of two places.

The first place being on the web through the XXX website where there would be an affiliate widget on every page. The XXX would openly tell its membership that “The XXX has partnered with Xfuel and for every dollar spent with Xfuel some of that money goes directly back to helping the XXX support you the riders/racers”. Xfuel is prepared to pay a XX% commission to the XXX for every bottle sold through that site or their affiliate sites.

The second way we expect Xfuel to be purchased is through concessions stands at the XXX race tracks. The XXX would tell the tracks, “To please buy and re-sell Xfuel and that the XXX has a deal for the tracks to buy Xfuel at wholesale prices and YES, the XXX will make small commission off of every bottle sold as well to help support the organization in non-fixed rate sponsorship plan”. We will pay the XXX a X% broker fee on all BMX track side sales and the tracks will still be around a XX% margin which will be in-line with their normal margins on other products as well.

This is very simple approach and is no different than Cub Scouts or any school fund raiser. The BMX community is and will continue to buy and drink energy drinks just like people will buy cookie or candy bars. You need to pitch it to your members and tell them that by spending their dollars with Xfuel we the XXX gets money back to help keep you the riders, racing. We as Xfuel will come to some national events with the Xfuel trailer, give out some samples, shirts etc and show support. We will not be at every major event as we simply do not have to funds required to do these things. In time with this partnership and continued sales we will most certainly be able to give back more to the XXX in way of merchandising support.

I hope you will review my offer and take it under serious consideration, I know it is not what you traditionally look for in a sponsorship. However, we feel this type of sponsor / partnership will put you in a better position to have more money at the end of the year than a flat rate deal. As the sponsor since we do not have to examine whether or not this had a good enough return for us to continue it can stay in place as long as you want it.