How do I determine how much to charge potential sponsors?
 

How does one determine the price that they are to charge potential sponsors?

For Example...

I am holding an event and am allowing 1 main sponsor and 2 minor sponsors.

lets say the event will hold about 6,000 people. a combination of flyers, banners, radio ads, web ads, and newspaper ads will be used to advertise.

How does one go about determining the amount to charge sponsors?

Are you suposed to take into consideration the amount of money it will cost to run the event? Advertise the event? Is there an equation or is it more random?

Thanks.

You need to factor in all costs (venue, advertising, licenses, artists if applicable, staff, insurance in necessary, promotional materials, etc.)
then you
need to decide if you are doing it to make a profit or promote your own stuff (or both)

Once you've established that, then set your prices.

(that's the short version, I'll post the long version later)

Cool thanks alot. Looking forward to your next response. I know that sponsorship can't cover all costs but I'm interested in knowing what percentage of costs.