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Have you ever organized a free event? Or do you consider hosting a free of charge event? These events can be a nice way to increase brand recognition, draw attention or promote something. Nevertheless, in many cases, they are associated with relatively big organizational expenses, but the absence of noticeable result. Continue reading to get to know the disadvantages of hosting a free event and why businesses should avoid organizing their events for free.
The cons of free events
- High no-show rate
Did you know that the no-show rate at free events goes up to 40%, sometimes even 50%? Surprisingly, such a high no-show rate can be explained easily. The event registration process is usually quick and effortless, whereas actual event attendance takes time and energy. Keeping in mind that modern people are always busy and short of time, the chance that they come to a free event decreases.
Everybody has their list of priorities and tends to do things with high priority first. When people pay even a small sum of money for the event, they prioritize it over other activities for this day. In contrast, when they don’t pay anything, they come to the event only if they have some spare time in addition to the interest. - No value
From the potential attendee perspective, free events seem to have no value that is, of course, not true. Customers might think that event organizers didn’t put enough effort into event organization and worried that no one would show up, so they make an event free of charge to ensure that at least somebody comes.
On the contrary, spending some money on the ticket increases the attendees’ commitment. Customers start to expect more value from the event, high-quality organization and stress-free experience. All in all, they are likely to go to the event rather than missing it. - No development
Instead of organizing a free event, it’s recommended to set up at least a minimal ticket price starting from the very first edition of it. In case of success, the event becomes more popular and attracts more visitors year by year. Consequently, the ticket price should rise. The event organizer can spend more money on better organization and continuously increase the overall quality of the event.
All events, including free events, have organizational costs. Charging ticket fees allows to cover these costs or make a profit. It also enables event organizers to invest more in promotion and marketing activities and attract more newcomers.
Last but not least, remember that if your event is free at first, it might be challenging to set up an appropriate ticket fee afterwards because people would get used to paying nothing. So, why should they spend money the next time? For event organizers, convincing them to pay and come may become a difficult task.
Liveto's team is always ready to help if you want to increase your event sales. With Liveto’s platform you can sell tickets, but also merchandise, parking and other services straight from your website.
Any questions? Contact us here. You can also check out our YouTube-channel for more helpful material. We help your event sales succeed!
