Example of a Loss
Over the weekend one of my clients hosted an exclusive screening of an independent film. The film featured a local star and had mostly been filmed in the region (midwest). Unfortunately the film didn't sell itself. Not a lot of people had heard of it, the trailers didn't make it appealing, and overall it ended up being a major flop in terms of paying for itself.
On top of that, most of the people invited to the film by courtesy of the actor and organization decided not to show up. This is a major blow as they were expected to bring in major publicity for an organization suffering from the lack of public awareness.
Add all of that together and it's obvious that the event wasn't going to do great, however it could be successful. And it would have been, if equipment hadn't failed the week of the showing forcing the organization to go out and rent a new projector just to show the movie. Sure, they could have just decided to use a TV, but why? They promised to do something and they delivered on their part.
What's all of This Mean?
This example/situation is one that typically happens and is hard to plan for. What I've learned over the years is to accept the loss, but don't be happy about it. For one, as a public benefit organization sometimes taking the loss is ok. You've done your service and you delivered on your promise. Had you not done what you promised, you would have likely let those who did attend the showing down.
Not only that, but any event and any amount of publicity (even if it is small) is a huge help when you're trying to get people involved. I know it can be a tough pill to swallow, especially if you're anything like this organization and your budget is so small and depleting from all the work needing done. But don't worry, if you continue to deliver it will all eventually pay off.
Plan for a Loss
I know it sounds silly, but as a nonprofit or a business that plans to host an event you should expect to take a loss. Often events are your personal marketing strategies. You use these to bring publicity and knowledge to what you do and where you do it. Marketing in your own facility allows you to benefit greatly from your investment. The ROI of a personally hosted marketing event or program is far greater than that of an investment in a magazine, television channel, or radio promotion. ALWAYS REMEMBER THAT.
Planning for the loss also allows you to be ok with it when it does happen. There was a situation where I once expected to turn a profit on an event and I didn't. I had every reason to make a profit off of the event and it just flopped. There were countless reasons as to why it flopped, but none were on my side of it. We as an organization promoted it, put it on our websites, did radio interviews and delivered our promises. It just completely flopped and we took a big loss.
I wasn't prepared for that loss and I was extremely upset following the event. I decided not to do these kinds of events again until we could find alternative ways to make up our losses. I lost sight of the purpose of these events. I failed to remember the purpose of the organization, and I failed to remember what my job was.
Looking back on that today I realized my expectations were too high. The event wasn't a money maker, it was a community service and marketing based event. What we did was to interest people in our facility and bring light on what we can do. Much like Papa John's does when they offer free pizza for some promotion. Or how GoDaddy or other big organizations can take a loss on a promotion. You have to chalk it up as a promotional/marketing expense. That's what these events are, and that's why I must remind you that the ROI is greater than any other form of marketing you can produce.
The Lesson in All of This
"Less is more" was a saying my high school Art teacher loved to say. In fact, she annoyed me with it. However, it was a lesson I needed to remember. In life learning to love the little things makes you appreciate the big things more. Having less of something you love makes you love it more. Much like these events. The less you do, the more people come. The less you expect often leads to more results.
Think small, no matter how big your organization is. Over Deliver, Under Promise. Doing that will lead to great success, and remember to plan for the loss. You can take it because what you're doing is a greater service than not doing it.
Over the weekend one of my clients hosted an exclusive screening of an independent film. The film featured a local star and had mostly been filmed in the region (midwest). Unfortunately the film didn't sell itself. Not a lot of people had heard of it, the trailers didn't make it appealing, and overall it ended up being a major flop in terms of paying for itself.
On top of that, most of the people invited to the film by courtesy of the actor and organization decided not to show up. This is a major blow as they were expected to bring in major publicity for an organization suffering from the lack of public awareness.
Add all of that together and it's obvious that the event wasn't going to do great, however it could be successful. And it would have been, if equipment hadn't failed the week of the showing forcing the organization to go out and rent a new projector just to show the movie. Sure, they could have just decided to use a TV, but why? They promised to do something and they delivered on their part.
This example/situation is one that typically happens and is hard to plan for. What I've learned over the years is to accept the loss, but don't be happy about it. For one, as a public benefit organization sometimes taking the loss is ok. You've done your service and you delivered on your promise. Had you not done what you promised, you would have likely let those who did attend the showing down.
Not only that, but any event and any amount of publicity (even if it is small) is a huge help when you're trying to get people involved. I know it can be a tough pill to swallow, especially if you're anything like this organization and your budget is so small and depleting from all the work needing done. But don't worry, if you continue to deliver it will all eventually pay off.
Plan for a Loss
I know it sounds silly, but as a nonprofit or a business that plans to host an event you should expect to take a loss. Often events are your personal marketing strategies. You use these to bring publicity and knowledge to what you do and where you do it. Marketing in your own facility allows you to benefit greatly from your investment. The ROI of a personally hosted marketing event or program is far greater than that of an investment in a magazine, television channel, or radio promotion. ALWAYS REMEMBER THAT.
Planning for the loss also allows you to be ok with it when it does happen. There was a situation where I once expected to turn a profit on an event and I didn't. I had every reason to make a profit off of the event and it just flopped. There were countless reasons as to why it flopped, but none were on my side of it. We as an organization promoted it, put it on our websites, did radio interviews and delivered our promises. It just completely flopped and we took a big loss.
I wasn't prepared for that loss and I was extremely upset following the event. I decided not to do these kinds of events again until we could find alternative ways to make up our losses. I lost sight of the purpose of these events. I failed to remember the purpose of the organization, and I failed to remember what my job was.
Looking back on that today I realized my expectations were too high. The event wasn't a money maker, it was a community service and marketing based event. What we did was to interest people in our facility and bring light on what we can do. Much like Papa John's does when they offer free pizza for some promotion. Or how GoDaddy or other big organizations can take a loss on a promotion. You have to chalk it up as a promotional/marketing expense. That's what these events are, and that's why I must remind you that the ROI is greater than any other form of marketing you can produce.
The Lesson in All of This
"Less is more" was a saying my high school Art teacher loved to say. In fact, she annoyed me with it. However, it was a lesson I needed to remember. In life learning to love the little things makes you appreciate the big things more. Having less of something you love makes you love it more. Much like these events. The less you do, the more people come. The less you expect often leads to more results.
Think small, no matter how big your organization is. Over Deliver, Under Promise. Doing that will lead to great success, and remember to plan for the loss. You can take it because what you're doing is a greater service than not doing it.
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