Are free social media events devalued?

Mon, Apr 11, 2011

Events, Other

As an event organizer (on the verge of organizing the second Minnesota Blogger Conference and knee-deep in BlogWorld planning at the moment), I’m highly sensitive to the debate among attendees and planners around the paid vs. free event models.

Recently, this issue came to the forefront locally here in Minneapolis around the wildly popular Ignite event–one of my favorite local events.

Here in Minneapolis, Ignite has always been a free event. They’ve been fortunate to have wonderful sponsors to keep it that way. But, as a result, tickets can be hard to come by.

This year, that’s proven to be an extreme understatement.

Three times the Ignite folks release tickets–once even via the email distribution list (the other two times I believe were on Twitter). Each time the round of tickets sold out in under 5 minutes.

So, basically, if you’re not sitting directly by your computer the moment they release the tickets, you’re out of luck.

I found myself out of luck all three times.

To be clear, this isn’t a sob story. I’m not writing this post as a way to get a ticket to Ignite (although I would love to go). I’m writing this post because I think this brings up the paid vs. free issue once again.

I can see the debate from both sides, but as an event organizer, I see a number of pros and cons:

Pros:

* Access to a wider audience. No fee means no barrier to entry. Anyone can attend free events. It’s an all-access pass. So, your reach is extremely wide. Result: Better chances of a sold out event that creates additional momentum for future events.

* Access to more speakers. Let’s face it, free events don’t usually draw speakers who command $20,000 a pop. You’re not going to see Seth Godin at many, if any, free events. But, that also opens up the speaker pool a bit, too. You may have the opportunity to secure speakers that many people haven’t heard from. Slight advantage here.

Cons:

* The conundrum of the no-show. The big disadvantage from the planning perspective for free events is the no-show. We saw this first-hand with the Minnesota Blogger Conference last year. People snatched up tickets quickly when we announced the event. But a week out, we probably got upwards of 30+ cancellations. The result? More admin work on the planner side to coordinate with the waiting list–not fun and not productive.

* No money for professional speakers. By not charging for the event, you’re losing out on funds you could use to pay for big-name speakers that will often-times fill rooms–and add tremendous value to your event (locally, think MIMA Summit).

So, from a planning standpoint, I think there’s probably more value in charging for events–even if it is a nominal amount. After all, who can’t afford $10 for an event? That’s usually enough to ward off the tire-kickers–that is, the folks who just grab tickets to “reserve” them, and then oftentimes won’t show up.

But, what does this whole issue look and feel like from an attendee perspective?

Meghan Seawell drew up a nice ven diagram that I think raises some interesting points. Take a peek.

While I don’t agree with all the conclusions Meghan drew here, I think it does get at the larger point. There aren’t really absolutes–but instead shades of gray when it comes to this discussion.

Often, the biggest question is pretty simple: Does the event provide value?

But, I think there’s a larger question at play here: Does the perception of a free event override the answer to that question?

In other words, when people see the event is free, does that immediately put it in a bucket that devalues the event before the attendee even checks it out?

Very interested to hear your thoughts–both as a event organizer and as an attendee.

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That's a hilarious diagram!

OK: my experience. As an organizer, last year I organized a half-day business "boot camp" for a client, which was free to attendees, and we even got the space & refreshments sponsored. The speakers were mostly regular contributors to a business-related blog I manage for said client, and all pretty respected in their fields. The content of the boot camp was terrific, if I do say so myself. With the event being free, we had a fairly long waiting list, and with the event being free, there were several no-shows (and I know some of that can't be helped, but let's face it, there are always people who RSVP to free events and then don't show up because it's too early, too late, whatever).

The boot camp itself was tremendous; you could literally feel the energy in the room, and attendee feedback was amazing. If we do the event again this year, I think there will be serious consideration as to whether to charge this year; so that we get people who are serious about the event, and also because good content *is* valuable... and we now have a good reputation/base to build on.

Also last year, I organized a half-day writing workshop for my local IABC chapter with a very well-known writing coach. Now, the speaker was not "free," so in order to recoup our costs, we had to charge for the event, and charge significantly more than we usually do. But you know what? We filled up, even though this was not a "cheap" event, and, in fact, people came from pretty far to participate. Again the content was terrific and the speaker has a tremendous reputation; feedback was great. People didn't mind paying the registration fees at all.

For the most part, I do think that charging a fee is a good idea, particularly with name speakers. I think the speaker's (or speakers') reputation and promotion are also critical, though; you could have a speaker providing great value, but if no one's heard of them, they're probably not going to cough up even $10 or $15. That is why perception matters if the content is still valuable (to answer Meghan's question).

Does that mean free events aren't valuable? No, not at all. They'll just be different types of events. For example, Guy Kawasaki is speaking at a free event here in DC in May, that I registered for as soon as I heard about it (except now I'm going to miss it because of BWE!). In that case, the fact that it was "free" only added to the value for me, because I'd get a chance to hear from someone who's done tremendous things in our world.

I guess it comes back to the end goals. What do we want to achieve, and how will charging a fee/not charging a fee make a difference? That's the question to answer, IMHO.

Sorry for the essay-length comment!

One piece I'd still like to hear from you: Why does the perception matter if the content is still valuable? I think you know Ignite has good content and is, if nothing else, entertaining. My point with the (tongue in cheek) diagram is that the only people to whom the "free" perception makes a difference are those who use the price tag of an event to determine its value. Most of us decide value based on many criteria, and "free" is only a piece of the puzzle. But it's still unclear to me how that in any way devalues the event.

That said, I believe that putting a nominal fee on an event has the benefit of eliminating attendees who only go because it's free. It forces people to ask whether they still think it's valuable $10 later. Social Media Breakfast adopted this model, and it seems to have been successful.

However, I don't think that $10 in any way speaks to the value of the content. In fact, I almost feel like an even that is able to feed beer to hundreds of people for free because it can garner that level of sponsorship probably has more value than event that needs my $10 to function.

It's more of a pre-event decision than post-event. With Ignite, you're right, I already know the drill. I know they vet the content. I trust the organizers. Hence, I want to go every year no matter the price (or lack thereof, in this case). I'm talking about vetting those events you HAVEN'T attended before. That's where I think perceptions enters in. If you haven't been to the event before (or it's a new event) and it's free, for some people, that might be a dealbreaker right there (i.e., it's a free event, I don't fully trust it). Not saying this is how I think (although free does factor in for me), but I think it's an accurate assessment of how people view and make decisions about conferences and local events now. Does that make sense?

First, apologies for the lengthy first post on your blog - I found myself intrigued by your question and wanted to share my thoughts (as an attendee).

I agree with your point that a nominal fee is a good thing to reduce no-shows and prevent logistical difficulties. For me personally, a free event doesn't have any less of a value expectation than a paid event. I've been to plenty of great free events and (fewer, but still some) terrible paid events.

One of the great advantages of a free event, though, is that it lowers the barrier to speculative attendees - people who aren't sure if they'll like it or not, and who are willing to dedicate the time but not necessarily the money to find out. As someone a couple years out of school and with limited resources, If I heard about a potentially interesting event one evening for free, I might want to stop by and check it out, but if I had to start out by committing a decent sum of money, I have to have a much higher expectation that it will be good.

So I can see two potential effective models coming out of this. First, and this only likely works for larger events, you could have tiers of admission. For example, there could be free admission to the larger event, and a nominal fee (as you say, $10 or $25) for admission to several of the talks with more big-name speakers. It introduces more organizational challenges on the day of, but it does allow for both those who want to just stop by and see what the event is like and those who are engaged and committed to hearing the major speakers. It also ensures even more that those who pay will show, because they've already decided that they care enough to skip the free attendance for paid.

The second thought would be to start with a free model for a new event and move to a nominal-fee one. Free, I imagine, would boost attendance for an event with little name recognition, and then as the number of interested people increases, you could raise prices so that you could bring in more big-name speakers and to keep attendees down at least to the point that the ticketing isn't a mad rush.

Thanks for raising the question!

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