More control and less work. Even in your industry.
Fast and secure invoice processing for every organisation.
Fast and secure invoice processing for every organisation
For the past five years, Payt has proudly sponsored FC Groningen. From 2017 to 2019, we were the club’s main sponsor, and afterwards a committed shirt sponsor. But all good things come to an end. After this season, we will cease sponsoring the club. It has been a wonderful journey from which we have learnt a great deal.
In this article, I will share how our team approached the original decision and the lessons we discovered along the way.
In the ball pit with Luis Suárez and our children in Andorra, Spain
There had long been contact between Payt employees and FC Groningen. Personally, I invested savings in the players’ fund when Luis Suárez joined the club. Almost the entire founding team of Payt had previously worked for companies located in the Euroborg. We shared the same entrance as the players’ lounge, and I even placed a table tennis table in the hallway outside their door. Interaction was frequent.
In 2015, then-director Hans Nijland asked whether we were interested in having our name on the back of the shirt for the semi-final of the KNVB Cup—and potentially the final at De Kuip, including a skybox for 20 people. We thought beating Excelsior at home should be possible. Hans wanted € 40,000 for it, to be paid upfront, leaving the risk with us depending on whether the final was reached.
It was the first year the cup winner went directly into the group stage of the Europa League. Hans indicated that nearly one and a half million euros would be earned if FC Groningen won the cup. Payt was heading for a loss of nearly half a million euros and had a turnover of only € 300,000 in 2015. So, we decided to take the chance under the motto: no risk, no success. We negotiated that if FC Groningen won the cup, Payt would receive the full sponsorship amount back. After all, it was less vital for the club at that point, but crucial for us. The joy of celebrating the victory at De Kuip will stay with us forever.
At the end of 2016, FC Groningen was seeking a new main sponsor for the following season. It had not occurred to us to step in. Payt had by then grown into a small company with an annual turnover of just under € 700,000. Growth was steady, but to spend € 1.5 million per year on football sponsorship and associated costs? We did it, and we have no regrets. For two years, we were main sponsor, followed by three years as shirt sponsor
Of course, the total package of sponsorship was broader than just the shirt. We were also present on the shirts of all youth teams, had boards and flags around the stadium and training facilities, added LED boarding, and had a skybox with capacity for 45 people.
Payt provides software to improve cash flow for companies by ensuring invoices are paid faster and more easily. With a team of 40 people, we work on the best possible software, accessible to all businesses—multinationals, SMEs, and freelancers. The costs Payt incurs are largely fixed, mainly salaries and rent for software, hardware, and office space. Extra turnover is therefore far more valuable than when a gross margin on a product is, for example, 30%.
To recover the € 3 million investment, we aimed to achieve an additional turnover of € 100,000 per month after two years, thanks to sponsorship. In this way, we would recoup the investment within five years. That seemed to us a smart and achievable target.
We shall not soon forget the moments of celebration shared in a full skybox.
What we noticed after beginning sponsorship of FC Groningen is worth sharing with others considering something similar. Before the sponsorship, Payt regularly received questions about the reliability of the organisation: How big are you? Where are your servers located? How large is your support centre? Those questions stopped immediately. Suddenly, we were regarded as a serious player—here to stay.
But to fully realise the potential, a great deal had to be done. For Payt, companies around Groningen were low-hanging fruit, as many had ties to FC Groningen. Our main goal, however, was to make ourselves known throughout the Netherlands. To convert brand awareness into new customers, we also had to explain what we do, why it is valuable, and why it is worth trying—especially in key sectors.
First, the low-hanging fruit. That turned out to be disappointing. Companies in Groningen had less need for our software than those in other provinces. But in much of the rest of the Netherlands, we saw a surge in lead generation, requiring us to hire an inside sales representative to manage it all. Initially, this was mainly about scheduling meetings, but it quickly developed into demonstrating the software, drafting and signing contracts, and ultimately implementing the product.
In sectors where we also invested in content marketing, our sponsorship accelerated results considerably. Without a plan to actually meet organisations, shirt sponsorship may create momentum, but it will not deliver returns.
The skybox was also a valuable addition for offering hospitality to clients and prospects. After five years of having this skybox, we know that everything during the match is relaxed and enjoyable. But the entire organisation beforehand must be well managed. We underestimated that initially. We learnt that it is better to assign someone specifically to this task. Hosting 45 people almost every week, ensuring they leave with a positive experience, requires professionalism and commitment. But the results speak for themselves. Personal relationships are crucial for prospects when choosing a software partner. Over five years, the skybox helped us forge many strong, direct connections.
We took a significant risk by sponsoring FC Groningen. But after five years, our monthly revenue matched our annual revenue at the start. Additionally, we built warm relationships with FC Groningen staff and, of course, the personal connections made in the skybox. It has been a genuine pleasure.
FC Groningen has been instrumental in building our brand awareness. Now, we are going deeper, focusing even more on telling our “Cashflow Formula” story. Cashflow is such a vital part of business operations that every organisation should consider our software. We are now set to roll out that message in places where our target audience can be found.
