Are Events Profitable for your Business?

Growing up in an Italian-American household, our kitchen became the most entertaining place in the house, and I was used to my parents and grandparents inviting friends and neighbors over for a piece of cake, a cup of coffee, or an entire meal. In fact, when my boyfriend and I first traveled home to New York from Montana for him to meet my parents, he was bombarded each night by a different bevvy of visitors (like those aunts and uncles that you’re not really related to, but you still call them your aunt and uncle?).

So, when I first had the idea to host an event in my community to help my potential audience meet each other, I wasn’t even worried about pulling it off. It seemed completely manageable because it’s in my blood.

What I didn’t know at the time, was that my business was about to blow up. Live events have been the single biggest factor to my business success since I started in 2013.

What I ALSO didn’t know, was that I completely missed out on dozens of potential clients, customers, and profit, even though I’d done the event 8+ times over the years.

Why?

Because live events can be extremely profitable, but only if you know how to get your clients to convert.

Want my event planning checklist?

Drop your email below and I'll send you a copy of the most important items to use to do when you're planning your event.

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The truth is, straight up, unless you have a pre-built community of potential clients, events themselves can be mildly to decently profitable. However, you’re only fitting into this category if you have a really established business, you work in a sector that has a higher price point, or you explicitly tailor your client work to extremely profitable businesses.

Profit margins can be anywhere from 0% - 50%, but lots of times, when looking at a singular event, people are less impressed with the effort to cost ratio than they are with other marketing efforts (that is to say, putting on a 1-day event vs. a 1-hour webinar is 100x the amount of work and expense).

However, if you’re only looking at ticket sales, you’re not looking in the right place.

Most events are profitable because they are the lead magnet FIRST.

Events are 15% informational (you talking at your people) and 85% relational (you encouraging OTHER people to talk to you or to each other).

OR you are doing some laser coaching in a group. Or, you’re hosting a happy hour and have fun networking activities.

Events do not work if you are not focusing on the relational aspect of them.

So instead of measuring event profitability by the tickets you sold vs. the money you spent, start thinking about how else you can engage the people who are on-site.

Can you have a conversation with someone and lead them to a free resource that you’ve created (with an email capture of course)?

Can you perform some laser coaching in the group, and then ask anyone who wants to do 1:1 coaching to touch base with you after the event?

Can you create some new content that digs to the core of what your attendees are struggling with, and have them work the problem through facilitated discussion?

The answer to “Are Events Profitable?” is a definite yes, but only if you’re considering the qualified leads you’re bringing in by simply creating more space to connect uniquely, 1:1.

Want my event planning checklist?

Drop your email below and I'll send you a copy of the most important items to use to do when you're planning your event.

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Lauren CaselliComment