Ways to generate revenue from your events

Lesson Details:

Video Transcription: In this video I want to talk to you about when to charge for your events and how much to charge this video is brought to you by Appy Pie’s Academy so let's talk about first free versus paid the benefit of free is that it gives you the biggest growth if you make your events free you'll grow the fastest no brainer you'll get the biggest audience so if your point goal is to grow fastest that's what you've got to do it first but the thing is that financial viability sustainability comes with making money and often having paid events so you have to eventually walk that tightrope between free and fastest growth and paid and financial viability and the maximum profit keep in mind is not the highest price you can get away with charging a lot of people think I'm gonna charge premium prices that's not how you make the most money it's basic economics 101 is you have to find the price at which most sales happen that generates the most revenue right the most what price gets the most demand that then equates to the highest revenue that's really make the most profit and we don't actually am there because revenue is not a one-time thing because if you can get someone to come to your event cheaply let's say for five dollars a ticket sale doesn't seem like a lot maybe you prefer to sell them like for $50.00 but for $50.00 they might not come back because it's a little expensive for them maybe but for five dollars which is almost free essentially well they can come a lot they can come often and if they come to 12 of your events well you know what they made you made $60 from them over time not to mention that over time as they keep coming they might buy some of your products they might buy some additional services so it's actually a complicated formula that you're going to end up working out over time of what's the maximum profit you're gonna be able to make at what price and profit is not all about ticket sales profit of ticket sales plus lifetime customer value so it is complex to get it right so in the beginning I general most of the time if you have the luxury recommend starting for free just to grow your audience because it's very sad and depressing to put on an event and do a lot of planning and preparation and have nobody show up so free at least gives you a little bit of that momentum and life to your events and three keep in mind does not mean you won't make money you can ask for donations.

You can sell products or services you can get people to come to future events that are paid events if the current free event is fun for them and they get value from it so free does not mean no money that's a misconception and in my experience I have faced a lot of second-guessing by people who don't know my friends and family they're like what your events are free and they give them they used to give me this like frown like I'm stupid or I'm telling myself short or I don't know what I'm doing but the truth is they don't know what they're doing they never put on an event the only some people like that because you understand the value of free is growth and upsells and it's the investment that you make to create the foundation for your event serious for future success so don't listen to people who might give you low confidence if you need to do something for free and hustle early on early on is about extra hustle on your part to lay the foundation for future success and once you grow and build up that engage the audience of people who like your events and you grow your marketing channels you're gonna grow your free events to a sizable audience and once you have a sizable audience then it's hard to manage it for free so you might switch to charging ticket prices to attend when you do that you can charge low prices and raise prices as demand grows and as you grow your event attendance even when it's paid versus free and you don't want to make big jumps for example if the event is free don't make the next one like fifty dollars it's a big mental jump for people but it's a much smaller mental jump to start asking more aggressively for instead of paying for donations and then later how about five dollars a ticket ten dollars a ticket those are acceptable mental jumps and it's easy people to digest those increases in price and once your price goes up you can then have an option of promoting open up which is incentivizing through discounting and scarcity right because you can give people discounts for signing up early all that whole deal will early bird pricing to build your attendance earlier you can give away like discount coupons to make people feel like they're getting a good deal all those kinds of things begin to open up and what I do also recommend is during the event you have a little time you can talk to the attendees about their fair opinion of what's the value they're getting and what's the fair price for them to pay that what's the ideal price and you know most people will be all over the place some people say you should charge a lot some people say it's too expensive and it reflects more on them than you but some opinions will recur and that's what you want to pay attention to is what.

What are people constantly repeating and you don't have to take everybody's advice but certainly you want to talk to a lot of people and synthesize their opinions and then form your own decisions later and also one thing I want to say is that if you're a new intrapreneur there's often this thing that we have and I had it to where you don't feel confident about charging for your events because like is it really worth paying for I don't know who knows but it's your time and it's your effort and you have to respect it and if you respect your time and effort people will respect it you just make sure that your job is every event you put on in your event serious just keep paying attention to the quality keep on improving quality from from event to event to event do something better each time and trust me over time you will have fantastic events that are worth paying for but even your time and your effort maybe your event is not like the best events in the world when you're starting but it's good it's pretty good still and that's worth people paying you money so that you can keep on putting the event on and keep improving it so that's the progression of free to paid to identifying the most ideal price not the highest price but most ideal price that will enable you to make biggest lifetime value from each attendee.