How to make money running an event
Written by Amanda Rose, ESBWA Founder & CEO
Running an event that actually makes you money instead of leaving you in the red is all about strategy. Make sure you plan ahead well in advance. A last minute event can work but it is a lot more stress and you run the risk of not having all the moving pieces line up properly, so the longer the planning stage the better the result. Here are a few tips to help you plan out each aspect of your event and boost your profitability.
Purpose
First and foremost, you need to have a purpose for your event. Too often I have seen large corporates hold events with a generic title. When asked “why would someone go to your event?” they couldn’t really articulate its purpose. As a potential attendee (or potential partner) why would I invest money in an event that will merely empty my wallet and waste my time?
Be very clear about:
who it’s for
who will be speaking or attending
the benefits/outcomes of the event if you attend
Venue sponsor
A huge cost for any event is the venue. If you can secure a venue partner you are saving yourself money before you even begin.
If the venue can also provide food and beverages you are again starting out with a financial leg up. A good compromise would be free venue and discounted food and beverages. (Additionally you can look into securing an alcohol sponsor to keep the costs down.)
However in order for this to happen the venue will need to see value in this arrangement. Why would they want to sponsor your event? If it is a commercial event, consider offering a portion of the ticket sales to go towards a charity of the venue's choosing.
Event partners
Event sponsors or partners are a great way to take your event from breaking even to actually being profitable. Make this a priority!
For example: 6 event partners at $2,000 each adds up to $12,000, and that's before ticket sales. Double or triple that price and you are instantly increasing your profit margin.
Ticket sales
Are you pricing your tickets correctly? I have seen $30 events struggle to sell tickets, yet similar $150 events sell out.
You may not realise it but pricing helps create a perception of the value of your event. Do your research and make sure you are pricing the event according to its purpose and also its style.
Incentivise people to bulk buy tickets. This could take the form of table purchasing or group ticket purchases with a value add or discount thrown in to make this option more attractive.
Giveaways
Who doesn’t like free stuff! I think event giveaways are underutilised. It's very easy to secure (or even buy) some products or hampers for a giveaway, and it provides a perfect end for an event. Your guests will leave on a positive/celebratory note and not with the anticlimax of dessert and dancing.
Hybrid options
These days it's important to provide a hybrid option as back up and include this in the terms and conditions of the event for sponsors and ticket holders. A classic option is to hold your event with a livestream option for those who couldn't make it, or specifically sell tickets for online attendance as well as tickets for in-person attendance.
This option can open your event up to people in other cities, states or even countries - as long as you make sure you are properly prepared for it and the technology is working as intended!