The events industry is constantly changing. With the rise of new technologies and business models, it can be difficult to stay on top of all that’s happening. But while these changes are happening, they’re also creating opportunities for event professionals to reach new audiences and grow their businesses. In this post, we’ll talk about some of those opportunities and detail four hybrid event business models that you should consider implementing in your next project:
Registration Revenue
Registration revenue is the money you generate from selling tickets to your event. It can be used to cover the cost of running an event and make a profit, or it can be reinvested into future events.
For example: If you charge $500 for general admission, your registration revenue would be $500 x the number of attendees = $50k (assuming all tickets are sold). This could be used as an additional source of income if needed or invested back into future events in order for them to grow organically over time–like we did at our first conference, where we had only 150 attendees but made enough money through registration fees that we were able to do another one two years later with 500 people!
Sponsorship Revenue
Sponsorships are a great way for event organizers to make money. Instead of charging attendees for tickets, the sponsor is the customer and pays for the event. In exchange, they can promote themselves or their products at the event and get a return on investment (ROI). This monetization model works well because it allows you to create content around your sponsors’ products or services (like when you create SEO content for your webpage) that can be used in other channels like social media and email marketing campaigns.
It’s important to note that sponsorships aren’t always sold directly by an organizer; sometimes companies sell them through brokers who represent multiple brands in one package deal at events like trade shows or conferences where there are multiple exhibitors with similar products/services available as part of one package deal offered by one company (e.g., “Buy three booths from us and we’ll give you another free booth”).
Sponsorships can also include product placement within an exhibit hall space if there are any available slots left over after selling out all available booth space; these types of deals typically cost less than straight-up booth sales but still generate some revenue for organizers because they allow companies access into spaces where customers might otherwise not see them–like behind closed doors where only employees work during business hours but open up into large meeting rooms when everyone leaves work each day.
Subscription Revenue
Subscription revenue is the practice of selling customers access to a product or service on an ongoing basis. For example, Netflix and Spotify are subscription-based services that users pay for on a monthly basis. In this model, event planners can charge attendees for full access to an event’s content–or even just certain parts–and then offer them the option to purchase additional products and services at the checkout.
For example, you have an annual conference that generates $500K in ticket sales yearly. You sell 25% of your seats as single-day passes (for about $300) and 75% as multi-day passes ($800). However, you notice that some attendees are not taking advantage of all the sessions available at the conference center because they don’t want to pay extra money for things like lunch or networking opportunities after hours.
So instead of charging these people more money when they sign up for future events, you could give them access through a subscription model where they pay once per year instead! This way, everyone gets what they need while also helping out businesses who cannot afford expensive tickets but still want valuable connections made while attending conferences like yours.”
Pipeline and ARR
The fourth hybrid event business model is Pipeline and ARR.
ARR stands for Annual Recurring Revenue, which is the total amount of money your company makes from its customers in a given year. It’s an important metric to track because it gives you insight into how well your company retains customers over time and how much money each customer generates when they stay with you longer (i.e., their lifetime value).
It also helps keep track of what kind of revenue stream each customer falls into–whether they’re paying monthly or annually, for example. That way, you know where to focus marketing efforts when acquiring new leads (or “pipeline”).
With Hybrid, Data is Doing All the Work
Data is the new king of marketing. It’s doing the work for you and driving revenue growth in a way that was never before possible. Data has become the new currency of business; it powers your marketing, sales, and operations teams to decide how to best allocate resources toward achieving your goals.
This level of insight has never been available to businesses at this scale because there wasn’t enough data collected from customers or prospects for companies like yours to make informed decisions about what works best when trying something new out (or improving upon an existing process).
Conclusion
I think it’s important to remember that no one business model is right for every type of event. The four we’ve covered here are just some examples, but there are many more. Regardless of the business model you select, interpreting and accessing the data you have at your disposal will enable you to demonstrate a return on investment and support your future budget and strategy suggestions.
The next step is to select a virtual event platform with sophisticated integrations that integrate with the rest of your event technology stack and native reporting once you’ve determined which business model is best for you.
The following are some important considerations for selecting the ideal business model in the hybrid event era:
- Tiered pricing models improve reach, which sponsors find appealing. Registration data is used to speed up prospects.
- Sponsorship Revenue uses data to demonstrate value to sponsors and get inventive when providing them with possibilities for brand-consistent activation.
- Establish yourself as an industry authority to increase revenue and reuse previously-captured content for an on-demand audience.
- ARR and Pipeline: Utilize the information you have available to expedite the pipeline and achieve a renewed and expanded ARR.
Author Bio
Sophie Douglas is a digital marketing specialist and a journalist based in Columbus, state of Ohio.
Her characters are passionate, innovative, and ambitious.
Before becoming a writer for DigitalStrategyOne, she was writing short stories, screenplays, and directing short films.
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