The flash game market is simply terrible.
Admittedly we knew this a year or plus ago, and this is part of the reason we decided to leave it and go forward with M.I.N.T and ultimately move completely into the PC downloadable market.
We alas though had Gravitum, which was too beautiful of a game not to go ahead and finish, so we got dragged back into the flash games market. Unfortunately the market has only become worse.
Sponsorship prices have fallen greatly in general, and the money really tends to not be there for original games, but rather sequels to a game that performed really well on the market. Combine this with sponsors that will gladly place low bids (We were offered multiple times 100-200 dollars for full rights to Gravitum) and have no interest in increasing bids, as the fact simply is a lot of developers will end up taking one of these super low bids if they are forced to wait long enough. Case in point we ended up waiting and talking to tons of people for almost 4 months, before finally accepting a deal on Gravitum. A lot of flash/indie game devs wouldn't be able to afford to actually do that.
Also unfortunately though, is that just making the deal is only the first step of completing a sponsorship, you then need to deal with branding, possible APIs, and other sponsor requests. How time consuming this is, really is impossible to predict. The biggest problem with it though, is in many cases communication is very delayed, and support is often not available or of any great competence.
I'm currently working on 5 licensing deals involving Gravitum, and A.R.C.S, yet four of them all progress is blocked as I'm waiting for emails and support responses. The other one has been fantastic, but is with a USA based large flash games portal.
I'll be quite glad to be done with this market for once and all, and get back to M.I.N.T.