5 Tips to Grow your Business with NIL deals

Any size business can leverage NIL to find new customers

For most business owners, the idea of using Name, Image, and Likeness (NIL) rights to market their small business does make a lot of sense.  That’s because the spotlight has been on power five conference athletes who sign six and seven figure deals with major corporations. 

The fact of the matter is, only a small percentage of student athletes sign giant NIL deals.  The vast majority of NIL deals are much more modest in size, and NIL just might be a perfect way to help small businesses tap into new and profitable customers. 

NIL deals are similar to other types of social media marketing.  The most common approach is for athletes and business owners to work together to promote their products online.  Businesses can also bring in athletes for in-person autograph signings and meet-and-greet events for fans, or they can use them in print or TV ads. 

NIL agreements can be a highly effective tool for any small business.  Here are five tips to help you gets started:

1.   Don’t think like a fan:  Everyone turns into a fanboy once in a while.  But when it comes to NIL deals, the starting QB or the All Conference point guard might not be the right fit for your business.  Even at small schools, there are hundreds of student athletes in a variety of sports.  Your best bet is to look for athletes who align with your brand and values, maybe even already use your products or services.



2.  Define the target audience:  Are you trying to reach new types of customers?  Or bring in more of the most profitable customers you already have?  Asking these types of questions help business owners be specific about their goals and makes it easier to choose an athlete to work with.

3.  Social Media Presence:  This is important for both the business and the athlete.  If you already have an established social media marketing strategy, look for athletes who will fit well into your existing campaign.  Don’t get hung up on the number of followers – you should look for student athletes who are consistently active on social media, with strong engagement with their followers.  If you are trying to establish a social media presence for your business, you may want to look for an athlete with a larger following, who can drive new followers to your accounts.

4.  Think Local:  Businesses don’t have to be next door to campus to have success with NIL partnerships.  But it is important to think locally when you are deciding who to partner with.  Do they have ties to the community you serve?  Every town has the hometown hero – even if they left and went to school somewhere else, they can still have a lot of influence.  Don’t forget there are many different schools in a lot of cities.  There are D2, D3, NAIA schools that have very successful programs, and student athletes who tend to stay longer and build ties locally. 

5.  Set a budget:  Just like in any business, top talent is the most expensive.  Decide how much you want to spend on NIL deals, and look for athletes that fit everything we’ve already discussed.  And don’t get locked in on just a single athlete.  Schools and programs are open to NIL agreements that allow businesses to work with multiple students or even entire teams.

Important Considerations

NIL agreements are new, and depending on the size of the institution, student athletes may not have the same level of support and resources major universities provide.  This is still a binding contract, so both parties need to fully understand the expectations.  Also, there are various legal and institutional compliance requirements that can vary greatly from state to state, school to school.  It’s always wise to make sure everyone understands the state and local laws, as well as the NCAA regulations.  Some colleges have disclosure requirements when a student athlete enters into an NIL agreement, and new regulations from the NCAA set standardized requirements for NIL contracts above certain dollar levels. 

As a business owner, you should make sure and discuss any contract with your attorney prior to signing the agreement.  You should also consult with your CPA or tax professional to make sure both yourself and the athlete are aware of income reporting requirements. 

NIL deals can be a valuable tool for small business owners to tap into new markets, grow their existing customer base and generate more profit.  Not sure where to start?  Click the link below to book a free call with us at NIL Creator.  We will guide you through the process to find the solution that works best to grow your business.

https://www.nilcreator.com/book-a-call

About NIL Creator

NIL Creator is dedicated to empowering student athletes by providing comprehensive education and resources to capitalize on Name, Image, and Likeness opportunities. Founded by Sam Rotellini, an experienced executive and lifetime collegiate sports fan, NIL Creator is committed to leveling the playing field for all athletes and supporting them in building their personal brands.

For more information, visit nilcreator.com.