Fundraising often has to be a particularly inventive process in event planning. Also increasing event income is a difficult task for an event organizer.
Depending on the type of event, it is likely that a combination of some or all of the income sources or streams will be required to realize your event objectives.
How do Events Increase Revenue?
1. Ticket Sales
Make sure you set a realistic ticket pricing structure.
Research similar events, look at their pricing structures, and be aware of the expectations of your audience. Consider the impact that concessionary pricing and special offers will have on your expected income targets.
If you are liable to pay TAX on ticket sales remember to calculate the net price for revenue purpose and also take into account any ticket agency commission is a third party is distributing tickets for you.
If appropriate, make sure that you have sensibly negotiated any box office splits with venue/ artists/ others and agreed on any guarantees against loss.
Of course, not every event has an entrance fee but you may wish to consider charging for certain elements of the event program.
If this is the case may clear on your event literature any ‘pay to enter‘ entertainment within an otherwise free event.
2. Entry Fees
As with setting ticket prices, it is important to ensure that any participant entry fees are set at a realistic level.
Research similar events to ensure that your entry fee is in keeping with the industry norms.
Consider the perception that your entry fee will create for your event, like, participants should feel they are getting the value of money.
Where applicable, remember to include any race levy or similar charges in the fee (and ensure this is accounted for in your overall event budget).
Whatever entry fee you decide to charge, it is important that you clearly state what it includes on all your event information.
3. Commercial Sponsorships
Put simply, when a company sponsors an event it usually means that it provides cash in exchange for several benefits. Trying to raise commercial sponsorship is likely to take up a lot of time.
You may elect to keep the process in house by allocating yourself or a member of the team to raise the sponsorship or you may decide to draft in the services of freelance sponsorship professionals with existing contacts.
If employed the latter, expect to pay a retainer fee plus a percentage of the revenue achieved.
These outgoings should be negotiated in advance, agreed in writing, and included in your event budget.
However, because the professional will have existing contacts, the process can be more effective than if facilitated in house.
4. Concessions and Franchises
Selling concession and franchise rights can be a very good way of raising revenue, particularly at well-attended events.
Foods and beverage rights are the most obvious but you may be able to include other products that fit with the ethics, the program, or the audience profile of your event.
If your event is receiving a grant from your local authority or other public sector funds you should check if it is necessary to put to tender any such opportunities.
This can also be a better way to achieve the best price. Invite companies to be bid for the opportunities to be a set deadline making sure you give realistic information about the event, expected audience and site position, etc.
Insist on no collusion and ask those that tender to set out their proposed product pricing structure to be used for the event.
Decide whether you will be using one or more companies and notify them of any product sampling or other companies that may have an impact on their sales.
If you plan to have a funfair at your event, consult with the showmen build in the first instance.
The showmen’s guild is the representative’s body for showmen and is a good reference point for guild rules.
It will be able to provide a list of companies that offer funfair and amusement rides for events.
If there is no history of a funfair at your event, but these elements out to tender but remember that the successful operator may have the rights to operate the funfair at the event in the future and may not need to offer you a greater fee than that which was offered in year one.
For certain events, the sale of event-specific merchandise such as branded clothing and gifts can have revenue-increasing potential.
However, merchandising is not appropriate for all events and, if it’s not planned properly, it can be a major draw on resources.
You may also end up with a lot of leftover stock that you cannot sell. A thorough assessment of the potential is therefore required.
You may decide to approach a professional merchandising company in the first instance.
They will immediately see any merchandising potential, tell you what service they think they can provide, and work out the revenue potential. Speak to more than one company for reassurance.
If you decide to use one of them you could license the merchandising rights for the event for a fixed fee or a percentage of profits.
Make sure you have a detailed contact with the merchandising company that includes clear detail about the agreed product range, the expected quality, where and when the merchandise can be sold, how the brand and any logos are to be used/portrayed, the length of time your agreement runs and an agreed system for monitoring sales.
Insist on full approval of all items.
If you decide to produce and sell merchandise independently don’t leaver yourself financially exposed by over-ordering.
If possible, test the market with the limited stock one year and build from that experience.
6. Showcase, Demonstration and Information Stands
Some companies like to sample their products direct to the target consumer at events.
Others, who have no product, but are promoting services or causes sometimes take information stands at events. Be careful to ensure that any product/ service on offer is in line with the event’s ethics and target market profile.
As a general rule, the higher the profits of the event and the larger the audience, the more you can charge.
Before targeting appropriate companies, make sure you clearly understand what you have to offer and how much you will charge for it.
Be careful that competing brands do not clash and any demonstrating companies do not end up getting more exposure at the event than your main sponsor (who is likely to have paid considerably more to be involved).
If a company is sampling, make it clear where their physical boundary is at the event and insist that the area they occupy is kept clean and rubbish success, locate traders in a visible spot that is close to the main event without compromising on safety or aesthetics.
If your event has a printed program, advertising space could be offered to local or relevant companies, or to those who have shown an interest during the sponsorship drive, etc.
Other advertising opportunities could include the sale of banner positions at the event and or on the event website.
If you have sponsors, ensure that no competing companies are advertising in your publications unless you have the agreement of your sponsor.
If you have a commercial sponsor, it may also have sister brands that may be interested in taking advertising with you.
8. In-Kind Sponsorship
Although no money changes hands with in-kind sponsorship, don’t underestimate its value.
An in-kind sponsor provides products or services in exchange for tangible benefits (such as product awareness opportunities, event tickets, future contract guarantees, etc.).
Often media sponsorship is an in-kind agreement.
As with cash sponsorship, make sure you have a written agreement as sudden withdrawal of in-kind help may have a major impact on the event budget.
9. Licensing & Broadcasting Rights
Your event may be attractive to media broadcasts (TV, radio), particularly if it features high profile acts or is a unique sporting event.
If you do manage to attract this kind of interest assistance will likely be in kind by way of broadcast value.
In general, it’s rare to be able to attract fees for broadcasting rights or licensing for events.
10. Raising Commercial Sponsorships
In the instance an event is sponsored, a transaction takes place whereby a company ‘buys into’ the event with cash or in-kind support in exchange for particular benefits that will assist the sponsoring company in meeting certain objectives.
A company will assess a proposal based on the target audience (profile and number), the content, and quality of the event, the benefits to the company, and cost.
Before you identify companies to target, decide what you can offer potential sponsors.
11. Government Grants
The government grant is a financial award given by the federal, state, or local government to an eligible grantee.
Typically less restrictive on what they will fund in a budget. Many private funders will pay for programs but not administrative or indirect costs.
It’s a very good source for an event planner.
Government grants are not expected to be repaid and do not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing.
12. Database Access
Asking different questions to attendee when they register, and you will be able to form a new image of your target to find new revenue streams.
Like, what they want and love, types of preferences, so you can set your products and services for those audiences.
13. Selling Accommodation
One of the good ideas to earn good money from the event is selling rooms.
Because everyone needs an accommodation for staying night or relaxation.
Though there are numerous factors, some of the most important and common factors that all hotels (be it big or small) need to look at areas listed below:
- Pricing based on occupancy.
- Pricing based on forecasting.
- Pricing based on market competition.
- Pricing based on the length of stay.
- Pricing based on your guest type.
Recommended: Why is Choosing of Technology Important for an Event.
Ask Yourself before Planning an Event
- Is there enough time to instigate a commercial sponsorship drive?
- Can sponsors be adequately serviced and supported?
- What is appealing about the event program?
- What is the audience profile?
- Which products and services might the audience use?
- Which companies supply these products and services?
- Could more than one element of the event be sponsored by different companies’ local, regional, and national basis?
- What period can the sponsorship be offered for (like, one, two, or three year period)?
- What benefits could be offered?
- How will you cost sponsorship?
- Does he represent value for money?
- Are there any ethical considerations?
- Are there any conflicts with other funding parties or stakeholders?
- Is it worth it to you?