How are you approaching pricing for virtual events and how does that compare to in-person?
For the most part we are pricing virtual events in similar fashion to in-person events.
We have kept our pricing the same, though we’ve moved from a percentage to a project-based fee structure.
We have kept our pricing the same, though we’ve moved from a percentage to a project-based fee structure. When in-person events have a $250,000 or $350,000 budget, a percentage of that for management fee works, but when the entire event budget is $20-30,000, a percentage is too hard for the client to understand why it costs that.
My entire team tracks their hours so we can adjust that project fee for future events as we need based on how long things are actually taking. Virtual is still a very time consuming process to plan, orchestrate and execute and you need more technology staffing roles than you did with in-person events, which costs. That’s additional management line items we have to factor in.
Contrary to what many people think, virtual events are not 'cheap'.
Now is not the time to be cutting corners, it's the time to surprise and delight your audience.
The beauty of virtual events is there are no additional expenses for the attendee.
In the future I will charge the same for a virtual event but right now so many “big” names are doing virtual events for free because they have huge sponsorship, I am charging less than normal and offering a VIP upgrade. The beauty of virtual events is there are no additional expenses for the attendee; no travel expenses, yet the content is still the same.
So I guess as far as pricing goes pertaining to online versus in person, event hosts and organizers do not make any money.
In my opinion, virtual events are not nearly as successful as having events where people can attend and interact in person. I personally haven’t heard of anyone having great success or the same turnout as an in person event. Which brings me to the cost and effects of online events.
First of all, the host for any online event is not able to really set a price for a vendor’s “spot” per say, because there is no venue to pay rent for. Generally, the vendor’s cost to attend a show, helps pay for the cost of the venue. Secondly, you cannot charge “admission” to anyone that would like to attend the show, which is basically an Event Planner’s bread and butter! If you can’t charge admission to try and make a living, then there is no living to make.
If you are small business owner, trying to sell or promote your products or services, your chances of success are limited to the people that are on Social Media and happen to come across your ads, and may or may not attend. People in general need face to face contact, they need real social interaction, it’s in our nature, They need to see your products, they need to see what services you provide, not online but in person!
Most professionals, including business owners, media, etc. just assume that everyone these days has some sort of connection to Social Media or the internet, including seniors and the like, when in fact they don’t. I happen to know a few people personally that don’t even have a cell phone! Therefore, there are a whole lot of people who enjoy attending different events, that can’t because the event is “online” and they aren’t even aware.
So I guess as far as pricing goes pertaining to online versus in person, event hosts and organizers do not make any money. That is my personal opinion and I’m sure others will agree! We need to get back to normal!