Business owners: Do the math when putting on a promotional event

I ran across a couple of whining news stories recently that talked about paying celebrities like Paris Hilton or Donald Trump $10000 to $20000 to appear at a party or other event for 2 hours. In Trump’s case, it’s more like $250k per appearance, but it doesn’t really matter.

The news reporters don’t get the big picture because they aren’t looking at the economics. The bright shiny celebrities distract them from the business that is going on.

What Time Is It ??
photo credit: 708718

Let’s consider for a moment that you are having a small business seminar in Seattle, Dallas or Chicago. You plan to charge $3000 and you know for a fact that you are going to deliver far more value than that.

Your problem is this: demonstrating that you’re going to deliver $3000 worth of value.

Certainly you can do that, but look at what it might take to allow you to get Trump at your event – for free.

If his price is $250k, then you need to get an extra 83 people to show up at your event. In a city of 3-5 million people, are there 83 business owners, real estate people or entrepreneurs who would be interested in hearing Donald Trump speak, get a photo with him and have a brief word with him?

Sure there are. 83 people gets Trump at your business event for nothing out of your pocket.

People line up to pay $25k to have lunch with Warren Buffett every year. He donates that money to charity, but the concept is the same – and in fact, you could do this at your event with Trump (or whoever).

So when you read these celebrity stories (regardless of where they are – even in the WSJ), don’t gloss over them and think those people live in another world. Business-wise, they don’t. They are making hay while the sun shines. They know that you only need to get (for example) another 83 people there to pay their fee and they know what that does for you, your business and your event.

You simply have to do the math to make it easy to get someone like that for your promotional event.

What does this have to do with your small business? Lots.

Local businesses have promotional store events all the time. Anyone can do a live radio spot. Do the people in your market really want to talk to the DJ? Who in your market can you get at your store for a big event that will blow away your local market and position you as the only place to do business with?

For example, if you’re an attorney and you held a private event for your best clients, what would it cost you to get George Ross (Trump’s attorney) there? On the other hand, what positive can come of it? Be sure that you think that part through. Your guest needs to be strategic to your long term business goal, not just someone to ooh and ah over.

Think bigger and do the math to make amazing things happen when you hold a local promotional event.

PS: Don’t forget to record the event on digital video and put pieces of it (drip, drip, drip) out there on all the social media sites you use to promote and position your business (ie: Facebook, YouTube, and so on). Your event isn’t a one time thing. It should pay dividends for a long time.