How to work out the cost of a Sponsorship deal?

[MMABetting]

Hey guys,

Hope you're having a good day.

Sorry to jump in with a big question for my first ever post, but I've just found this forum on Google and I think it's amazing! I've definitely got a lot to learn, but I also think I've got a lot of knowledge that I can share with others!

I was hoping to get some advice from you guys on an issue I am having right now...

I run one of the largest MMA Betting websites in the world. It's obviously not one of the largest in terms of competing with Bookmakers, but it is the largest in terms of content related to the sport of betting on MMA / the UFC.

The primary monetization method for the website is a monthly subscription payment that I get from members in exchange for access to my betting tips.

Affiliate advertising has never worked out that well for me because the primary purpose of my website is to help people make money, so I often found it very difficult to make money from affiliate deals. My account balances always seemed to be very low or in the negative. I think my lifetime affiliate account balance with Bet365 is something like -£22,000 right now. I've never received a single payment from them in over 3 years!!!

So here is my problem...

I regularly get contacted by Betting websites that want to advertise on my website.

I am now at the point where 3 major Bookies want to Sponsor the website and have exclusive advertising rights, but all 3 of them are asking me what I want in return for this deal and I have absolutely no idea what to go back to them with.

I have looked on Google Adwords and I know that the average cost per click of keywords is £18 per click because UFC betting is a very competitive niche. I rank on page 1 of Google for a lot of keywords relating to UFC / MMA Betting so I know that my website is of great value to the Bookmakers. Problem is, I have no idea how to proceed with these Sponsorship negotiations.

Could you guys give me any idea on how to handle these negotiations and work out a deal?

I don't want to insult the Bookies with an unrealistic offer, but I also don't want to sell myself short either.

I would really appreciate any help or advice you guys could give me.

Thanks a lot!

[ambergambler]

I would explain to them that while you don't know what the market rate is, there are 3 firms competing for the exclusive rights, so it is up for auction. Get them to make a best offer each and go for the highest bidder. Or tell the other two what the highest bid was and then ask if they want to make a counter-offer.

Like selling a house.

Good luck with this.