Key Factors to Consider When Deciding What Price to Charge for Virtual Events
So you have an event you’d also like to live stream or you are thinking about hosting a fully virtual online event. Congrats! You are helping to propel your event into the future and increasing your reach by live-streaming. According to a study done by Livestream and New York Magazine “67% of audiences who watched a Livestream purchased a ticket to a similar event the next time it occurred.”
You have also decided that you want to sell tickets to the live stream. Now comes the tricky task of determining the right price. When deciding what to price your tickets at, there are three factors to consider. How much the event costs to produce, the wealth profile of your target audience and the perceived value your event has are all factors to think about when determining the price of your live stream event.
How much does the event cost to produce?
The answer to this question will depend on what type of event you are hosting, what live stream software you utilize, how large your team is, the cost of marketing, and other factors.
Start with actual production. Breakdown the cost of equipment such as camera, lighting, and microphones, then the venue, and finally any talent costs. If you are hosting a yoga class where you teach in your backyard then this will cost less than a musician playing at a club.
Once you have determined the production cost then you can factor in how much it will cost to stream the event. Depending on what platform you choose this cost will vary. Choosing a platform like PromoStream gives you the benefit of fee-free ticketing and streaming starting as low as $20. Even better, you only need one login for both your streaming and ticketing software.
After you have the basics of the event priced out, you need to evaluate how much you plan to spend on marketing and how large of a team you will need. Then, think about any other costs that you will need to incur. Once you have the cost to produce the event then you can decide how much of a margin you want to make. Multiply that percentage by the cost and then you have your ticket price.
What is the wealth profile of your target audience?
When determining what price margin to charge, it is critical that you have a deep understanding of the wealth profile of your audience. Not only do you need to know basic demographic information about them but you also need to get an idea of their spending habits.
What is their education level? What is the average household income? How many children are in their household? How much disposable income do they have? What categories on average do they spend on? Knowing how much they have to spend will help you price your event within a range that is affordable for your target audience.
What is the perceived value of your event?
After you have determined the cost of production and decided on the margin based on your target audience, there is one more consideration before selecting your final price. What is the perceived value of your event? If you can position your event to appear as high value, then you can charge a higher price.
|“The power of reframing things cannot be overstated.” -Rory Sutherland|
This can be achieved through your marketing efforts and when done correctly can allow you to charge more for your live stream event. By positioning your event correctly you can increase the price of your tickets because the audience will perceive they are attending something of high value.
Once you have considered these key factors then you are ready to determine the price of your tickets. If you need help choosing which live stream software to use to host your virtual event then you may find our comparison chart useful. Download our FREE PDF COMPARISON CHART. We have gathered capabilities and pricing on the most popular platforms.