19 replies to this topic

[Ethan Nichols]

So due to me being a broke 22 year old chasing my dreams on the tightest of budgets, I'm trying to get creative with funding my build.

I came up with the idea to recruit sponsorship or "ad space", depending on how you look at it. I would wrap or sticker my car with a company/business livery that meshes well with racing/going fast.

I've been WHIPPING that little thing on the streets a lot lately, probably 400 miles a week or more. That cop might not have cared that I clipped apex and slid my car through a left turn at 45mph But I'm hoping with a hot livery, and lots of zipping around I can really guarantee someone a lot of good advertising (before it even hits the track).

I'm curious if anyone else has done this, and if so, what is that space worth on your car to advertisers? I realize sponsorships don't usually work like that, but it just so happens that I'm currently an independent contractor with a cool startup food delivery company. I want to pitch the idea to the owner of sponsoring the car, and possibly even running a dedicated "company x" racing team.

The ultimate luxury would be to get cash up front to complete my build, but I want to provide value for my company and not ask too much of them. I think $7,500 would be a hard pitch without some serious numbers in hand.

Am I nuts to ask about this? Another option would be to ask several businesses to help me fund the project for sticker space. But I don't think that will have the same effect of a black car with a giant yellow checkered cab livery flying around town. (actually a serving dish on wheels haha) I can just see people saying "holy crap they deliver fast!"

Take care guys, hope all is well!

Ethan N.

[Erik Hardy]

I think you are very naive into thinking driving your Miata around will produce any valuable attention & profits from any potential company. 

 

I suggest focusing on two main things for amateurs: 

1. Increasing your earnings is a helluva lot easier than convincing some bloke who used to race decades ago that he wants to show up and watch you race.
2. Convince some bloke who used to race decades ago that he wants to show up and watch you race. They are out there. With a nice smile, a picture of you and your car for the office and some stickers, its amazing what you can talk your way into if you are well liked. 

Plenty of similar readings online:1

http://corksport.com...ship-look-like/

 

In case you are fresh out of college and in debt, don't make the same mistake I did. Hoosiers are not more important than SallieMae.

 

-Cheers

[Martinracing98]

A few years ago I read about people being paid to wrap their cars. On Google I looked up "getting paid to wrap your car" and their are some sites. I do not know if any are legit and if they are how much they pay. . 

[callumhay]

Really hard sell to any business that an ad on one car will recoup investment. As someone who is way better at making money than racing I can tell you that possessing a skill that people will pay you for is the safer bet. Education, embracing the mundane, flexibility and having a marketable skill/business plan are things that come to mind. Simplicity is also helpful and most often the hardest to figure out. I don't want to sound like I'm down on your goal, but if you are strapped for cash I would look at track days instead of racing. More bang for your buck, highly unlikely to wreck, and a lot less money on safety equipment and car parts....and you get to practice your skills in a great lil car.

[OrangeCrush86]

My opinion is that you would be better of selling your start up company to an investor than your car "ad space". When your company generates profits you can sponsor yourself and get some tax write offs.

 

Also, I highly recommend you purchase a car that is race ready if you really want to go racing. Don't build one. It will not be cheaper.

[FTodaro]

it hard enough for those who are on the top of the class to get a sponsor of any kind. Mid packers impossible. New racers to the sport need a sugar daddy or Mama

[Martinracing98]

This story on CBS identifies some links for companies that have been verified as legit for helping find companies that will pay to use your car as a billboard. It also identifies that many if not most sites are fraudulent. This story is from 2010. This may be a trend that came and went in business. 

 

https://www.cbsnews....pping-your-car/

[Danica Davison]

Okay, I have a short term plan for you until you make more money. I have thought about doing this myself.

 

Create an LLC and call it "Ethan Nichols Motorsports".  Put all of your racing expenses to this "business", get a buddy to be a "customer" of yours at the track (to try and prove you are a business). 

 

You can use your Net Operating Losses as tax deductions which can be carried forward for 20 years.

 

Only problem is, after three years of operating at a loss, your business will probably be labeled as a hobby instead of a business ... in which you wont get any tax benefit out of it.  You can only deduct your hobby losses from your hobby gains, which will be non existent because we don't make any money in SM.  Well, except for the top 1% ! 

 

If after three years, you haven't started making real money in your life ... just start a new company called "Ethan Nichols Racing" and start the process over again

[dstevens]

You aren't going to make any money wrapping your car.  The fastest way is to get another job and save that money to use for your build.  Using a passthrough as a way to write off your expenses isn't a good idea either.  First, if you don't have any money now you aren't going to be able to spend enough to make it worthwhile let alone get enough for a carry forward loss.  Those losses are only going to offset the tax liability for your other income, it's not dollar for dollar.  That means if you lose a grand and your effective Fed tax rate is 20% (not the bracket rate) you can potentially save a $200 tax bill.  IOW you don't reduce your taxes by the exact amount of the loss, only by the tax rate applied to the loss. 

 

A carry forward loss isn't automatic and needs to be calculated against your adjusted gross income.  It's likely you won't be able to because you have no money to begin with.  Like most all tax incentives/loopholes you need the money to spend before you can write it off.  And that's not counting the cost of the filing fees and licenses of starting the LLC (though you could do this as a sole proprietor as well).  In my case it's just south of a grand a year for my LLC member list filing, state and local biz licenses.  In NV we don't have any corp or franchise fees (or state income tax) and my local license is the single most expensive part.

 

At this point you need to get a part time job.  Flip burgers, deliver pizzas, mow yards, dig ditches, whatever.  Save that money and start your build from that.

[Chris Lefferdink]

You've already received some good advice, which I agree with:

• You are more likely to make money through your actual career:  Check
• Buying a car is cheaper than building: Check  - (there are some fast 1.6s for sale in Florida for very reasonable amounts right now)
• Getting someone to pay you to put advertising on your car will be difficult: Check
• Try to find ways to be tax efficient: Check

 

Regarding someone paying you to put ads on your car, you need an audience.   Have you looked at the stands in an SCCA race?  Even our significant others rarely watch this silly spectacle.

 

If you are hell-bent on trying to generate ad revenue from your racing, your best bet is through a social media presence (blogs, videos, etc...).  You will need to be a great writer, video editor, promoter, etc...  Even then, your chances of generating enough interest to generate some revenue are very slim.

[Danica Davison]

You aren't going to make any money wrapping your car.  The fastest way is to get another job and save that money to use for your build.  Using a passthrough as a way to write off your expenses isn't a good idea either.  First, if you don't have any money now you aren't going to be able to spend enough to make it worthwhile let alone get enough for a carry forward loss.  Those losses are only going to offset the tax liability for your other income, it's not dollar for dollar.  That means if you lose a grand and your effective Fed tax rate is 20% (not the bracket rate) you can potentially save a $200 tax bill.  IOW you don't reduce your taxes by the exact amount of the loss, only by the tax rate applied to the loss. 
 
A carry forward loss isn't automatic and needs to be calculated against your adjusted gross income.  It's likely you won't be able to because you have no money to begin with.  Like most all tax incentives/loopholes you need the money to spend before you can write it off.  And that's not counting the cost of the filing fees and licenses of starting the LLC (though you could do this as a sole proprietor as well).  In my case it's just south of a grand a year for my LLC member list filing, state and local biz licenses.  In NV we don't have any corp or franchise fees (or state income tax) and my local license is the single most expensive part.
 
At this point you need to get a part time job.  Flip burgers, deliver pizzas, mow yards, dig ditches, whatever.  Save that money and start your build from that.

 

Ugh ... you just had to point out all the flaws in my joke

[Ethan Nichols]

Hmm good points folks, though I'm kind of surprised some of you seem so turned off by the idea. Please dont get the wrong idea, i'm not begging anyone for money. If the ad space isnt worth it for the investor, then I wouldnt want to do the deal either. I just figured if ad companies are supposedly paying 1k a month for wrap advertisements on street cars, maybe this would be a creative solution to funding my project; *if* its worth it to the company.

But FTodoro, you bring up a good point, it would be tough to get exposure with all the other ads flying around out there. I hadn't considered that.

Oh well, maybe i'll check wrapify out.

[Danica Davison]

I don't necessarily think people are turned off by the idea. I think most are like me and think "You do you boo-boo. But here is the reality".  I will point out that it may be difficult to find someone to pay for ad space etc with no experience already.  Touching on what Chris said ... take a look at Preston Pardus', Danny Steyn's, and Tyler Kicera's YouTube channels.  They have hundreds of subscribers, post race videos with great edits with tens of thousands of views, have their "sponsors" all over their videos, and all run up front and do very well.  If I were a company that wanted to put my name on someone else's race car ... I would go to those guys first because I know my name will be mentioned EVERY weekend in front of a large social media audience and everyone in this little amateur racing world knows who they are. The only way that I would support a new guy entering the sport is if I was a family member or best friend of that person.  I think that is just the way it is for most.

 

I don't think anyone is getting turned off by it ... but trying to bring in a sense of reality to the idea.  But, if you get something like that .. and it works out .. that is totally cool and I will be the first to applaud you for doing it the right way instead of starting a GoFundMe account asking for money like others have done in the past for this hobby.

[LarryKing]

I don't think anyone here wants to be a dream-buster, but this is amateur racing. As someone pointed out the audience is family and friends, i.e., not much exposure. Most sponsorships on this level are what might be called "vanity" sponsorship - a business buys you some tires, or pays your entry, to see their company name on a race car, and because they like you - no real ROI.

 

Also, their are many professional drivers going without a ride because they can't arrange a sponsor package.

 

One thing I didn't learn until much later in life than would have really benefitted me is the concept of valuation.

 

And please, don't fly around on the street.

[Martinracing98]

Hmm good points folks, though I'm kind of surprised some of you seem so turned off by the idea. Please dont get the wrong idea, i'm not begging anyone for money. If the ad space isnt worth it for the investor, then I wouldnt want to do the deal either. I just figured if ad companies are supposedly paying 1k a month for wrap advertisements on street cars, maybe this would be a creative solution to funding my project; *if* its worth it to the company.

But FTodoro, you bring up a good point, it would be tough to get exposure with all the other ads flying around out there. I hadn't considered that.

Oh well, maybe i'll check wrapify out.

No one is actually paying $1000 a month. Those are scam sites. Some places are paying $50 to $100 maybe. To get that opportunity is real spotty. If you live in the right place with enough people like New York, Chicago, Los Angeles and drive your car a lot you have a chance of getting paid to wrap a car and make a little money. Someone that drives for Uber or as courier or something like that has the best chance. If your lucky in a year you will make a little more than a set of tires.

 

The only person I knew personally that made real money on sponsorship was a dirt racer. He started by having an inside track with a large company. Still he had to put together a proposal of how sponsoring him helped them. He identified, using DOT information, how many people would see his wrapped trailer to and from the track. Then identified how many times his sponsor would be named at a race. Then he identified how many magazines the race results end up in. Then he agreed to help open 3 grocery stores a year and do a couple of other sponsor deals. That required him to have a second car for promotion purposes at all times. Finally he identified how much the exposure he would provide would cost if the company used a billboard, radio, or print. He was able to show he was a better method for the company to advertise.

 

He was only an average driver and he was able to pay for all his racing out of sponsorship and winnings. I think he even made money. I do not know if he made minimum wage. He is not sponsored by the company any longer. I do not know if they did not think they were getting the value they needed, or he decided it was too much work for the money.

[dstevens]

Best Answer

Wrapify is legit though given your location I don't know if you are going to be able to log enough miles and eyeballs.  They track your mileage via an app and pay from that.  There are some people on Reddit that have worked with Wrapify.  If you hit the jackpot you can make $500 a month in a big city like LA.  Most I saw there were in the sub $100 a month if they were able to get anything at all.

 

Here's a real part time gig that will probably earn enough through the holiday season to get a build started.

https://www.jobs-ups...12085/6252001/2

 

Remember gang he's not trying to get a race car wrapped.  He's trying to get his street car that I ASSume he uses to deliver for this startup food delivery company and use that dough to get the race car.

[Ethan Nichols]

Thats intriguing Martin, I love hearing about people getting creative with financing! I also happen to be a courier for a day job.

But anyways, yeah, I'm pretty convinced at this point that the exposure at the track is worth nill.

I'm not even sure how I can wrap the miata and make it a viable advertisement.

[Ethan Nichols]

Wrapify is legit though given your location I don't know if you are going to be able to log enough miles and eyeballs. They track your mileage via an app and pay from that. There are some people on Reddit that have worked with Wrapify. If you hit the jackpot you can make $500 a month in a big city like LA. Most I saw there were in the sub $100 a month if they were able to get anything at all.

Here's a real part time gig that will probably earn enough through the holiday season to get a build started.
https://www.jobs-ups...12085/6252001/2

Remember gang he's not trying to get a race car wrapped. He's trying to get his street car that I ASSume he uses to deliver for this startup food delivery company and use that dough to get the race car.

I'd take either or, but it seems that the general consensus is: street would be better money.

[Erik Hardy]

Ethan I'm still thinking you are being naive in your strategies, which nobody is going to stop you from doing. However, an old miata on the street is a dime a dozen, the general population doesn't care about it, and at best you might attract the attention of an autocrosser. 

 

If you are set on driving around the street, get something that actually pops out to the general population. Like this:

 

Drive that around town for awhile after you convince a business there will be an ROI with some market research skewed in your favor. Then once you get bored of driving a truck around, hire a friend you don't like that much to drive the truck while you go rumble up new business.

 

Do that for a couple years successfully. Then you can splurge on a big Toterhome plastered with EN ADVERTISING Co. on your way to the track so you can finally write off the cost of a sticker.

[38bfast]

There is not much money to be made in this country turning left and right. Now if you just want to turn left there are more opportunities