So you have this awesome event idea, that you absolutely need to put into practice. Of course, the very first question that you need to answer is: how will you get the money? There are multiple strategies that you can use for financing an event and this post will explain the options you got.
Financing an event: the options
It seems like the most obvious option. If you can charge attendants for entry to your event, the best thing you can do is to put them for sale as soon as possible, and create a price mix that goes from “early bird” cheaper tickets and increase price as the date of the event approaches. This way you can quickly get your first attendees and your first available funds to start working on the planning process. Having already sold some tickets also shows your event’s potential for success and increases your chances to get further sources of financing.
You can also have a combination of free and paid tickets if your event encompasses smaller events, this way you can give people a feel of your event with free activities and they will then be more likely to want to pay for the more important ones. Another thing you can do is have an open donation as the entry price (each participant pays an amount of their choice). This is more specific to charity events but it can work for other kinds of events as well.
Did you know that if you use Metooo as your event platform, you can set up various types of tickets (free tickets, paid tickets with various prices, and open donation tickets) on the same event page? Moreover, processing fees for paid tickets are the lowest on the market, and your funds are available immediately, the moment the attendees make the payments.
Sponsorship is a popular option for financing an event. The way it works is that you offer some kind of visibility to the brand/company (sponsor) that offers the funding. This visibility may take various forms. One of them is name association (the event takes the name of the sponsor). Another is exclusivity of sales of products of said brand at the event. Furthermore, you can brand all event materials with the sponsor’s logo, mention the sponsor in all advertising, etc. Before approaching potential sponsors, you must be able to prove that your event has potential of attracting a large and relevant audience. You would have ideally already sold some tickets, and you can present sponsors an event program and marketing plan.
Vendor booth sales
Your event doesn’t necessarily have to be a fair, a market or a trade show (in which case, booth sales are a large part of your financing) to feature vendors. Vendors can be caterers, or a cocktail bar, or vendors of products related to the event.
Crowdfunding can be a risk free attempt at raising the initial amount you need to kickstart the event planning process. You can ask backers to pledge for advance sale tickets and if for any reason the event ends up not happening, their tickets will be refunded.
If you’re a company and the event is part of the marketing plan, high chances are that you have already allocated a budget for it when the plan was developed, to cover at least part of the costs of the event. If you intend to get sponsors or investors, showing that you already were willing to cover some of the risks yourself increases the chances to get external funding.
Getting the loan from a bank for the event itself is an improbable option, but if you’re a company with a proven track record of good credit history, a general business loan is something you can consider.
You might feel that this item doesn’t belong in the list, but in the end, what you need money for when organizing an event is most of the times physical items. You can team up with other companies/brands that would offer products for the event, in exchange for products or services that you can supply to them. In this case these companies become partners for the event. For example, the caterer can become a partner in exchange for advertising space.
Did you find any unusual sources of funding for your event? We want to hear about them!