---
aliases: ["Increase Sponsorship Rates Q2"]
Is A: Project
Belongs to: "[[25q1]]"
Advances: "[[responsibility-sponsorships]]"
Status: Done
Owner: "[[person-luca-rossi]]"
---
# Increase Sponsorship Rates Q2

## Overview

With the subscriber base approaching 60K and click-through performance data showing consistent improvement through 2024, the sponsorship rates set during [[24q1-launch-sponsorship-packages]] were underpriced relative to the audience value delivered. This project prepared and executed a 25% rate increase across all sponsorship tiers, effective for Q2 2025 bookings.

The rate increase required careful preparation: assembling performance data, updating the media kit, communicating the changes to existing sponsors, and adjusting outreach messaging for new prospects. The goal was to increase [[measure-sponsorship-mrr]] without losing existing sponsors. [[person-matteo-cellini]] led the communication with current sponsors while [[person-luca-rossi]] handled the strategic positioning and media kit updates.

## Goals

- Analyze per-sponsor performance data to build the justification case (CTR, impressions, conversions)
- Update the media kit with current audience size, demographics, and performance benchmarks
- Communicate the rate increase to all existing sponsors with 60 days advance notice
- Update pricing across all three tiers: Logo ($625), Spotlight ($1,500), Deep Dive ($3,125)
- Retain at least 80% of existing sponsors through the transition

## Key decisions

- **25% increase, not 15% or 30%.** Benchmarked against similar-sized engineering newsletters and found the current rates were 20-35% below market. A 25% increase brings pricing to market rate while leaving room for another adjustment in 12-18 months as the audience continues to grow.
- **Grandfathered pricing for 90 days.** Offered existing sponsors who renewed before April 1 the option to lock in the old rate for one additional quarter. This rewarded loyalty and created urgency for renewals, which improved cash flow predictability.
- **Performance data as the lead message.** Rather than leading with "rates are going up," led with "here is how your sponsorship performed." Sharing concrete performance data first made the rate increase feel like a natural consequence of value delivered, not an arbitrary price hike.

## Notes

- Sponsor retention through the increase was 88% — above the 80% target. The two sponsors who did not renew cited budget constraints (not value concerns), which is a healthy signal. They indicated interest in returning at a future date.
- [[person-matteo-cellini]] handled the sponsor communication calls and reported that the response was overwhelmingly positive. Several sponsors said the previous rates felt "too cheap" and appreciated the transparency about pricing methodology.
- The rate increase translated to approximately $3,200/month in additional MRR, which was a significant contribution to [[2025-reach-22k-mrr]]. This was the highest-leverage revenue action of Q1 — no new sponsors needed, just better pricing for existing value.
- The updated media kit now includes a "Performance Highlights" section with anonymized case studies showing sponsor CTR and conversion data. This has become one of the most effective tools in the outreach process.
- Key lesson: rate increases should be proactive and regular (annually), not reactive and rare. Waiting too long to adjust pricing means leaving significant revenue on the table. The discomfort of raising prices is always greater in anticipation than in reality.
