Sponsees sign-up with us (KleinHaus, LLC and its Brands).
We find a Title Sponsor and design kits and merchandise.
We find people to sell to Sponsors.
After all the Sponsors are collected, we place an order for the kits and gifts for Sponsees and Sponsors.
We cut checks to the Sponsees and Sales Affiliates from the profits.
Then we pre-sell merchandise, place the order, and payout the Sponsees from profits.
Finally, we deliver all the products to Sponsees, Sponsors, and purchasers.
Also, throughout the process/system, we help manage the legal stuff, delivery of promises, project/service/admin/customer-service help, and more.
If you're more of a visual person, we have the information drawn out below. Just scroll down.
We (KleinHaus, LLC and our Brands) sign a Brand Licensing Agreement with an organization that wants sponsorships (Sponsee). Then we ask their network who is willing to sell Sponsorship Packages. Meanwhile, we try to find a Title Sponsor to get the project started. While we secure a Title Sponsor for the Sponsee, KleinHaus Media starts designing the Kits and Merchandise, and KleinHaus/SponsorSociety/OurOrg start building the digital interfaces (websites, payments portals, automation, etc). Once we have a Title Sponsor and Sponsee members are willing to sell Sponsorship Packages, we get the Sales Affiliates set up with info and access to sell. We reach out to the Sponsee's current Sponsors to ask if they want to feel awesome, and are willing, by purchasing a Sponsorship Package (this takes out hard feelings inside the Sponsee community by removing the affiliate commissions for selling). When a Sales Affiliate sells a Sponsorship Package to a Sponsor, SponsorSociety passes the income, after transaction fees, to KleinHaus and records the commission amount. If the income comes through a non-Sales Affiliate path (direct link, invoice, or payment plan), the same thing happens, but a lesser commission is recorded for KleinHaus. SponsorSociety then asks the Sponsor for a vector logo file, an URL, and information that can be shared about the Sponsor; which is then shared with the Sponsee and KleinHaus Media to put into designs and start fulfilling the Sponsorship Package (this Sponsorship Agreement). They also share the information with the other KleinHaus Brands to build out the merchandise store through OurOrg and promote/market. The information is never shared with anyone outside of the Sponsor, Sponsee, or KleinHaus Brands (payment processors will maintain their own information as is recorded in their terms). Once all the Sponsorship Packages are sold, KleinHaus Media will finish the designs and place the order for the Sponsee Kits and Supporter Jerseys for the Sponsors, SponsorSociety will close the payment portal, and KleinHaus will pay the Sales Affiliates. KleinHaus Media will give OurOrg the design files to open a pre-order website portal for merchandise sales. The merchandise pre-sales will be open and marketed to the Sponsee network for a limited time. After the time has passed, the store will be closed and the order to the vendor will be placed. After all the kits, supporter jerseys, and merchandise have been received by KleinHaus (at different times), the kits will be delivered to the Sponsee, the supporter jerseys will be framed and delivered/shipped to the Sponsors, and the merchandise will be delivered/shipped to the purchasers. Finally, the Sponsee, with the KleinHaus Brands, will continue to fulfill the Sponsorship Package requirements for the remainder of the year term, and the final profits will be sent to the Sponsee.
These numbers are not binding as the markets, costs, and fees change without our control. That said, these are our best attempts at being transparent on the system, process, and financials.
The Sponsee will receive 50-60% of all Sponsorship Package income after system taxes, material costs, and transaction/admin/service fees. A W9, 1099, and Brand Licensing Agreement are required.
KleinHaus, LLC will distribute 95% of income after system taxes, material costs, and transaction/admin/service fees to its Brands for operational costs, where 5% is saved for growth. This accounts for approximately 20-30% of all Sponsorship Package income.
Sales Affiliates will receive a flat commission per Sponsorship Package sale (depends on prices, but typically $200, $400, or $600).
So, where does the money go? (Title Sponsor Package, and merchandise sales are different)
100% Sponsorship Package income through SponsorSociety to KleinHaus
-2.6-3.1% + $0.30 processor fee per transaction
~15% Sales Affiliate commission or 10% TCC admin fee if a direct sale
-6% state taxes
-5% TCC admin fee + processor fee per transaction
~5% KleinHaus Media for design work
-10-20% material, shipping, and service costs to vendors
In short, this agreement is between an organization, or club, working to grow and get better (the Sponsee), an organization, or person, interested in supporting the Sponsee and/or getting advertising space, and KleinHaus, LLC with its brands (SponsorSociety.com, KleinHaus Media, TheClubCRM.io, OurOrg.shop, and its sales affiliates, collectively the Broker); Collectively, the Party( or Parties). The Sponsee has agreed to this Sponsorship Agreement with the Broker through a Brand Licensing Agreement and has agreed to enter this Sponsorship Agreement with the Sponsor under no other special terms unless written terms and conditions are agreed on, and signed, by the Sponsee and the Sponsor.
This is a friendly agreement by the Broker between the Sponsor and Sponsee for financial support in exchange for promotional and marketing rights and opportunities. This agreement starts on the date that the Sponsor purchases a Sponsorship Package (described below) and ends one (1) year later... unless we get a better offer... just kidding... it lasts for 1 year from the date of purchase.
The Sponsor will provide the Broker with the monetary amount of the Sponsorship Package for the Sponsor in exchange for the Sponsorship Package. Payment to the Broker will be made at the time of the sale of the Sponsorship Package (described below). Payment from the Broker to the Sponsee will occur after the merchandise campaign (described below) has ended.
The Sponsee can use the Sponsor's name, logo, URLs, and granted info in promotional materials as long as they look good and reflect positively on the Sponsor. The Sponsor grants the Sponsee, and Broker, the ability to use these globally and without restriction through print, digital, or physical means, including, but not limited to, merchandise, emails, websites, social media, and flyers as long as it is related to the Sponsee or Broker. This agreement is confidential unless any of the Parties want to brag to their friends. Any party can terminate the agreement if another party breaches any terms or if we just don't vibe anymore. Upon termination, The Sponsee, or Broker, must stop using The Sponsor's name, logo, URLs, and the granted Sponsor info.
This agreement is governed by Kentucky laws and can't be modified except in writing signed by the Party.
This is the entire agreement between us and supersedes all prior agreements or understandings.
All terms in this Sponsorship Agreement are agreed to by the Sponsor, Broker, and Sponsee, based on the Sponsorship package purchased, on the date the Sponsor agrees to the terms and signs their signature during the Sponsorship Package purchase process. Signed with a hearty handshake and a smile on the date the Sponsor purchases a Sponsorship Package by the Sponsor, January 1st 2023 by the Broker, and January 1st 2023 by the Sponsee.