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Read/look past the single race investment if you are short sighted. Yeah $15k one race, whoa sticker shock eh? Besides the esposure at the race. Leib’s instagram alone will touch nearly the same amount of folks in the stands. Add the brand’s insta and other social outlets and boom, touches that many many more than those in attendance. Unfortunately, but fortunately thats the name of the games these days when it comes to exposure and ROI.
Great idea Michael and good luck! See you at A1, 2, SD and maybe a few others
It definitely adds flexibility to get sponsors aboard who mostly want to advertise in their local market, not everywhere across the country.
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First off, Happy Thanksgiving to all!
Second, a big WELL DONE to Michael Leib. People bitch and whine about how there is no sponsorship money, no rides, etc. ... and then when someone finally comes to the table with a SOLID idea it gets shot down. So much negativity in this sport when it comes to evolving it (or keeping it above water at this point).
Now, that is not directed to anyone directly in this thread. It's just how this sport/industry is.
I grew up in the glory days of MX. The mid-90s. Local guys were making six-figures in contingency money alone, with gear deals, etc. Why? Because the sport was booming. Local tracks had double gates just for qualifying. The cost to participate was lower thanks to 2-smokes (I will leave that to another time), but if we ever want to see the sport return to the glory days of thriving, then change an innovative ideas like these need to be embraced and encouraged ... not just shot down without any data to back it up, aside from just "thinking it won't work."
This will work, and I want to explain why, dollar-wise, in hopes that it will help some people understand, because from the outside looking in (with no experience in marketing or advertising) just seeing a $15K price tag is ultimate sticker shock.
I owned a large digital marketing agency for 10 years. That has since pivoted into a D2C brand development agency. I'm going to give an example of why this is a home run for consumer brands, dollar-wise.
TV, radio, print, etc. (old school) marketing is still great for brand awareness. Online, social media specifically, is great for immediate conversions. The most successful D2C brands use a combination.
If you are riding a trend (think fidget spinners, detox teas, some BS keto pill, etc.) then you aren't too concerned with the branding aspect. The trend will soon be replaced by something new. So, you focus 100% online, running paid ads across Facebook and Instagram, while also running Google and Bing paid ads.
But, as more D2C brands are being created with more long-term goals (being acquired by a major like P&G, J&J, etc.) they are realizing that you still need to allocate budget to branding plays. Anyone that has bought TV time, radio spots, billboards, print, etc. knows that it is mega expensive.
This opportunity that Michael Leib is presenting is a STEAL for D2C consumer brands.
Let me explain.
A brand could spend $15,000 on a Facebook ads campaign in a single day, pissing through that budget in a matter of hours. Anyone that is familiar with Facebook knows two things: it takes a lot of testing and optimizing to get a campaign up and performing well, and then when it hits peak performance you need to change creatives, duplicate ad sets, etc. Costs are getting out of hand as well and there is no sign of those leveling off anytime soon.
Let's assume there is a nutrition brand that makes "SUPER VITAMIN" - a multi-purpose super vitamin with a $29 retail price and cost of good sold of $6. You might have a conversion cost of $15 on Facebook and paid media, leaving the brand with $8. Oh, then you have to account for the warehouse, fulfillment, staff, etc.
Getting VERY competitive. So many knock-off brands popping up. So, run $15K in Facebook ads and push 1,000 units....or, put that money into a SX deal, and look what you get...4 takeaways to consider:
1) Possible TV time and a brand mention. This can be heard by hundreds of thousands, which then trigger Google searches, pushing traffic to your website and social media profiles. Possibility of day-of-event conversions and generated revenue? Yep. And guess what? The sport is so tight-knit that I bet if Michael talked to the announcing team they would make an effort to give that sponsor a plug. It's so new and different it's going to draw attention. "XXXX, who is this race's title sponsors" etc. gives them something to talk about.
2) Event activation. Brand presence in the pits is ideal to gather data (email addresses and social followers). A few iPads set up and a couple promo models handing out samples in exchange for an email address and a follow on social media. Brands can pay anywhere from $5 to $10+ to capture an email. This is added value, giving them an audience they can direct market to via email offers, engage with on social, and load up and re-market to via Facebook and Google.
3) CONTENT. This is honestly the real value here. Content is everything for a brand. It's what draws consumers to them. You can't just create boring and stale content if you want to win. Let's admit it...dirt bikes a fu#king cool. Being the title sponsor of a race bike with that much branding on the bike and gear looks like a BIG DEAL to the average consumer that doesn't know a thing about Supercross. It gives the brand instant credibility. They can post pictures of the bike and rider on social, send it to their email list, etc. They can also create race day content...vide clips, pictures, a vlog, etc. Brands are spending a lot of money on content as they all try to one-up each other. I can promise you many are dropping WAY more than $15,000 on content shoots and it's nothing as cool as SX. A smart brand will send a photographer and videographer to the event, and if done right will give them months worth of content that can be used across several different marketing channels.
4) Continued marketing partner/brand ambassador. Imagine if the brand and Michael hit it off and there was a great response...and they said, "Hey Michael, if you continue to act as a brand ambassador we can give you a cut. Anytime someone uses the discount code 'LEIB' we are going to give the customer a nice discount and you will receive a cut of the revenue" ...wouldn't it make sense for him to continue to plug them? Yep. Savvy SX fans will connect the brand to Michael as being one of the sponsors and that is a much stronger brand to consumer bridge than cold paid traffic.
Back to family time...but I am excited to see how this works out. It's a great idea, and something intelligent D2C brands should be all over. The value is there.
But I will be getting on the horn with some brands next week after the holiday. Happy to help connect with several. I’d love to see this succeed.
I could see it both ways, the photo's could be used for promotion for a long time that has value.
on the other hand doing 250k in business to pay for the advertisement wouldn't work for a small company.
like they say, want to make a million dollars racing, start with 2 million.
If you can’t pull $15,000 out of your company for marketing your company isn’t that amazing.......or is it hard for you to pull $15,000 for marketing that doesn’t really return much?
And the value depends on what you want to achieve. For my company i have taken a bunch of clients, potential clients and partners to MotoGP. For 15k i could take 15 clients to the British GP and offer great tickets and hospitality, and that includs the cost of flying them from Netherlands to the GP. For me that is way more valuable then having a rider plastered in my logo for 15k. For another it will be the other way around.
I posted to try to help explain that there IS value here, and to encourage Michael Lieb, as things like this are what the sport needs right now. Not people bashing it for no reason.
Also, what if they are D2C beauty brands targeting females 18-34? Not exactly the right fit, regardless of the cost.
My point with the post was simply trying to help point out why the cost can be justified for some D2C brands (that match the demo...that part should be common sense). Not saying it's a good match for every business type. But for the right demo/product, yes, there is value.
And while I will not personally be "pulling it off" I will (and have already started) reaching out to some brands and contacts I know that would be a good fit and see the value.
Personally, I want to see this kid succeed with this. It's one small solid brick in the sport's foundation that is needed to build it back up.
Pit Row
The company I work for sponsors an NHRA Promod car(the champion) and doesn't pay that for a full season. Albeit not the title sponsor but still 10x the exposure Leib will get on TV seeing as he barely make the mains.
I hope it works out for him. I just feel like he's going to need to find some people that really just love the sport because it doesn't seem like the ROI is there.
The reality is I will be shocked if he can pull 1 $15,000 night out of anyone. I have unloaded my check book to help many guys, still do. The return has been nothing from a business standpoint, maybe some employee moral boosting (there is some value in that to me)
Helping Lieb understand the realities of business to me is more important than blowing smoke up his butt! I challenge you to get him $2000 for 1 night from anyone, when you do, have Lieb post up a big thank you here! And I will sing yours or anyone’s praises.
But, one of the good things about social media is accessibility to decision makers.
When I get back from the holiday weekend I will email him a few warmed up leads along with a few add-ons that would literally cost no more time/money on his end, yet make it 10X more appealing to a brand.
Again, not a fit for a lot of businesses, but at the same time it can be a GREAT fit for some, especially from a content standpoint, and any brand that is going hard on social media competing against other similar offers (and knock-offs) need every edge/one-up to appeal cool and hip. SX has that appeal.
Hey, if anything this post got me to finally crack and join the madness called Vital lol
Enjoy the rest of the holiday weekend and hopefully that involves getting some laps in.
There is money out there.
I listened to a podcast about Start ups recently that said that Angel investors trying to find the next big thing are Giving these start ups 10 to 50 million and 9 times out of 10 are getting Nothing back. Yet it's a super common occurrence. Crazy to me but If you get the attention of the right people i could see it.
There are companies that drop way more than $15 for events on what seems to be silly advertising to potentially draw customers, way more.
Again, this advertising is for more than the 3 hr race if you have any comprehension skills of his advertisement. See the forest through the trees...
Pretty sure he would entertain a mom and pop or smaller company, but given his previews I think he is targeting larger companies that have throw away money. i.e. large budgets, very large budgets for marketing and everything it is comprised of.
Realized gains are hard to measure but they are real. Its a gamble and you can’t win if you don’t play...
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