Event Business

We’ve all been to at least one, music Festivals have seen massive growth in the past decade. In England alone, the sector value was worth £2.8bn in 2018. 

Ticketmaster suggests that a third of the UK population have attended a festival since 2016. Despite the 2020 pandemic, this number is expected to rise into the 2020s. 

So, with the number of festivals growing, how do they make money?

Music festivals make most of their money through income generated from ticket sales, sponsorship, advertising, concession fees and merchandise. Additional revenue comes from things like database access, VIP areas, WIFI access, mobile phone charging and chillout areas.

Now let’s dig into how Festivals make that money in a little more detail. 

Ticket Sales

Ticket sales are a significant income for music festivals, and there are a variety of different strategies for pricing tickets correctly and for attracting customers to buy them.

There are several ways festivals will price their tickets.

Cost-based ticket pricing

Cost-based is the simplest way of pricing tickets. The festival works out the total cost of putting the festival on including any profit margin they want to make, then divide that number by the number of expected attendees. 

The advantages of this approach are that it simplifies the process and requires little research. On the flip side, not researching what competitors are charging could be risky. It also doesn’t allow for last-minute costs.

Competitor-based ticket pricing

Competitor-based ticket pricing is different to cost-based. A festival’s tickets price is based on the level of competition around the festival.

Competitor-based pricing may be a strategy that a festival considers when first starting. It would be challenging to remain competitive on reputation alone, so this is reflected with the price of the ticket admission.

Value-based ticket pricing

This approach uses market research of a target audience to determine what the pricing strategy will be. This means understanding what the target audience is prepared to pay for the festival.

Festivals will strategise their ticket sales in several ways. One of the most common ways is to offer tickets on a tiered basis, releasing batches in levels. Releasing batches usually involves cheaper tickets being sold very early on, perhaps straight after the previous event. 

The festival are open with the fact that after a given time or some tickets have been sold the price will increase. Batch-based releases encourages people to buy tickets earlier. 

Sponsorship

Sponsorship is an excellent way for festivals to increase their income and offer higher value to their attendees. 

Festivals will often use assets which they already have for sponsorship such as large TV screens, fencing covers or even the neck lanyards used for staff.

Usually, festivals like sponsorship because they don’t have to provide anything in advance. 

The sponsor gets involved because they see brand or marketing gain from the visibility the festival will afford them. In this respect, sponsorship can be a highly profitable activity for festivals.

When first starting out, however, it can be difficult to attract sponsorship if the festival is relatively unknown. Sponsors will expect to pay less and demand more in return for any agreement.  

Other examples of festival sponsorship ideas can be found in this post.

Advertising (Online and Offline)

Festivals make money from advertising in a number of different ways, and this is often a separate channel away from sponsorship.

With the majority of their marketing now focused on online channels such as social media and email, there are enormous opportunities for would-be advertisers to gain visibility across the festival audience.

Festivals will consider all of the digital assets they have and how they might be leveraged to include some advertising for additional income to the festival.

Digital assets could, for example, include sponsored posts on the festival Facebook group or Instagram, or it could be a specific email sent to all ticket holders mentioning the advertiser.

Many festivals now produce digital guides or brochures for their festival. These digital brochures are another opportunity to sell some advertising space.

Offline channels are still relevant to many markets and target audiences. While it might be that online advertising would return a higher profit. There are many opportunities offline such as physically printed brochures, lanyards, site plans, tickets, banners on fences (and some many more!) which offer opportunities for advertising space at a festival.

Concession Fees

Concession fees are those that charged to food vendors or traders that attend festivals. Depending on the size and reputation of the festival, these fees vary enormously. 

Festivals which are just starting will be unable to charge hefty fees as they cannot guarantee large amounts of football for the trader.

Those festivals that are well established and attract thousands of people will be able to charge extremely high concession fees to all traders attending.

Merchandise

Merchandise is a common way in which festivals make money and will usually be available online before and after the event, plus at one or more stalls dotted around the festival.

It is often split between the event’s own branded merchandise and then reselling stock from any performers for a fee.

The production costs of merchandise such as t-shirts, hoodies or caps are often low when a large number of them is ordered. Bulk buying is an opportunity for the festival to enjoy a healthy profit margin, but can carry a risk if the merchandise doesn’t sell.

Very popular festivals can make a lot of money from selling merchandise.

Database access

Database access is where the festival allows advertisers or partners access to email or mail information they have collected from their audience, usually from a mailing list or from ticket sales.

Database access has the potential to be quite profitable as there is little cost attached to it. It is important to remember that there are numerous pieces of legislation in regards to data protection (such as GDPR in Europe) that make significant regulation of this type of activity.

Smaller Add ons

There are numerous smaller way in which a festival can make money, many of which will largely depend on the type of festival (music, food, arts etc.)

Patreon

Patreon is a relatively new phenomenon and involves people donating to support a festival either as a one-off payment or regularly. The festival can set up payment tiers, (£5, £10, £25 etc.) and people receive something in return. 

For lower-tiers, it would be something as simple as a shoutout on their social media or right up to VIP access to the festival.

Brand new festivals that are looking for community support can use this to generate income to get started. For more information, check out the Patreon website.

VIP Areas 

Charging a premium price for the ultimate premium experience is another way festival can make money. 

VIA access could be an exclusive area that has specific access to some of the performers or activities. It could also just be access to high-quality toilets. People will often pay a premium price for this.

WiFi Access

People crave data access to share their experiences at Festivals, but this can often be let down by weak phone data caused by large crowds or a rural environment. Festivals can provide WiFi access to customers who will then pay for the privilege.

Mobile phone charging

Another common way to make money is to charge for access to phone battery charging facilities. 

In recent years some Festivals have started offering rented power banks so that customers don’t have to leave their phones in a locker while they charge.

So there are some of the ways in which festivals make money, of course, there are plenty of other ideas. Leave a comment below if you’d like to share one.

Having worked in and around events for the last 20 years, I understand the importance of having different kinds of events insurance to cover you for possible eventualities. Let me tell you; even with the best planning, things can go wrong and often they do!

This information covers the UK events industry, so while similarities exist with other countries, you should carry out due diligence for the region where your event operates. 

What is Event Insurance?

Event insurance covers things that go wrong with your event or operations, causing accidental loss or damage to persons and property, for example. The main types of event insurance that an event organiser will need to consider are: 

• Public Liability Insurance
• Employee Liability Insurance
• Professional Indemnity Insurance
• Event Cancellation Insurance

There are specific event insurances that can also be purchased. For example: 

• Christmas Lights Insurance
• Street Parties Insurance
• Exhibitions Insurance
• Conference Insurance
• Sports Event Insurances
• Stallholders Insurance
• Wedding Insurance
• Catering Insurance
• Festivals Insurance
• Firework Insurance

Claims services have notoriety (certainly in the UK) for an aggressively marketing their “where there is blame, there’s a claim” services. For this reason, it makes sense to ensure you have sufficient cover for all eventualities. 

There is a multitude of insurance companies offering insurance packages for events. These packages will likely have options for different types of insurance. So you need to understand what these types are and why they might be necessary for your event. 

Let’s look at the main types of insurance most events will need to include.

Public Liability Insurance

Public liability Insurance is not a legal requirement for UK events. Still, it covers the policyholder for things like:

• accidental damage to property,
• accidental loss of property,
• accidental bodily injury,
• accidental injury or death, 

… concerning members of the public attending your event, your client or other customers. 

Without this in place, the event organiser would find themselves liable for the costs incurred through any claim. Costs could turn out to rise very quickly with various legal and medical bills, so it is something to consider seriously. 

If any incident occurs at your event, this type of insurance covers your legal liability to pay for damages incurred. A typical example at events is people claiming for trips on uneven surfaces such as cables or uneven floors. 

If your event is taking place on a publicly owned site, such as a town square or park, then the local Government (as the landowner) may insist on you holding Public Liability Insurance.

Public Liability Insurance can be included to most event insurance policies, and you will need to determine what level you required. Competent insurance or financial advisors will be able to talk you through this. It can range from £1million to £20million depending on:

• the size of your event
• the nature of the event or activity
• the number of people attending. 

Employee Liability Insurance

In most circumstances, Employee Liability Insurance is a legal requirement in the UK, and it covers the cost of compensation claims due to employee injuries or work-related illness. 

Employer Liability insurance will cover any costs of settling and defending claims that employees bring against you. For example; compensation payouts and legal fees if a court is involved. 

In the UK, the Employer’s Liability (Compulsory Insurance) Act 1969 makes it a legal requirement to have a minimum cover of at least £5million. 

There are some exceptions to this, such as small businesses who employ close family members, however again it is best to practise to have it in place. 

From an employee perspective, it can be reassuring to know their employer takes safety seriously and has protections in place for when accidents happen. 

You should also consider how you are complying with Health and Safety legislation as this may invalidation any Employee Liability Insurance policy. 

As is common in the events industry, a policy must be in place to cover temporary, part-time or seasonal staff. This legal requirement also extends to volunteers who will be working at your event. 

If you are the sole employee of your business, like a freelancer, there isn’t a legal requirement to have Employers Liability Insurance in place. Still, some clients or customers you work for may request you have it. 

If you fail to have Employee Indemnity Insurance in place, you could incur a fine of £2,500 a day until you arrange the correct cover. 

Professional Indemnity Insurance 

Professional Indemnity Insurance or PI protects your business if a customer or client alleges that there are mistakes in your work. While you operate with no intention of doing so, mistakes can still happen, and you need to consider how to protect your business in these situations. 

PI covers legal costs and other expense that are involved in defending you against any claim brought from the customer of the client. They may allege that you have given inadequate advice, services or designs that cost them money. 

Without PI insurance, you could be liable for thousands of pounds of legal costs and compensation payments. You may also lose income from the time you have to spend defending any claim.

You should consider PI if:

• You provide professional services or advice (e.g. You work as a safety freelancer for various events).
• You provide designs to your client (e.g. you design site plans for events).
• You work as a contractor, consultant, or are self-employed, and your client requests it as part of any contract.

How much does PI cost? It can depend on several factors, including the amount and range of work you undertake. Insurance policies can start from just a few pounds per month, so it is worth considering to make sure you have the peace of mind in place. 

Event Cancellation Insurance

You’ve spent a year planning your event only for something out of your control to happen at the last minute, forcing you to cancel. Cancelling is every event managers worst nightmare and can be extremely costly to your event business and reputation. 

Event Cancellation insurance will cover irrecoverable costs and expenses that you incur through having to cancel your event. They compensate you for any financial loss for:

• cancellation of your event
• disruption of your event
• postponement of your event
• relocation of your event

…beyond your control. So it needs to be something that you had no role in controlling!

Event Cancellation insurance covers cancellations for things like:

• Terrorism
• National mourning
• Adverse weather
• Transport disruption
• Industrial disputes like strikes
• Non-attendance by guests or performers
• Ongoing or delayed building work
• Personal bereavement

NOTE: During the 2020 Coronavirus pandemic, many insurance providers took the stance that their event cancellation insurance policies did not cover contagious diseases. As the majority of events were cancelled during this time, organisers were left to cover the cost of their cancellation. Looking ahead, it may be worth asking your insurance provider if your policy covers cancellation specifically for contagious diseases.

When Should I buy Event Insurance?

Keep in mind that you should make event insurances one of the first things you buy when you start planning your event or committing funds towards the cost. There may be restrictions on how close to the event any insurer will allow you to purchase it so not worth delaying on. 

Further Infomation:

Here are some event insurance providers based in the UK who you can speak to about a quote for insuring your next event: 

• Hiscox Insurance
• Event Insurance
• Towergate Insurance
• Insure My Event

Are you thinking about setting up your own event business? Looking to find out what equipment you’ll need? keep reading!

Are you want to escape the daily grind of your commute, or you feel trapped in a corporate environment that isn’t meeting your creative needs?

Maybe you already involved with the events industry in some way, and you have ambitions to go it alone as a freelancer. Working as an event freelancer is diverse as no two days are the same. You can also enjoy a more flexible work-life balance be choosing when to work.

Disclosure: Some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase. These help keep this site running!

Introduction

I’ve been working as an event freelancer for nearly a decade following a ten-year career working in music venues. I have experience of working inside an event organisation but also setting myself up independently to work for others as a freelancer.

So what equipment do you need to be able to work as a freelancer in the events industry? This post is going to explore some of the necessary equipment options that you need to set yourself up in business to plan and deliver events.

It will also mention some of the service-based items you might want to consider when working as a freelance event manager. These will be non-physical items or services that you need to consider.

What does a freelance event manager do?

A freelance event manager plans events, usually working from home in a home office and for different clients for varying times and on various contracts depending on the particular sector of the events industry.

Some people might think of the glamourous side of events and being on-site dealing with VIPs and artistes, for example. However, the reality is, most of the hard work takes place in the weeks and months in advance, checking every part of the plan.

This hard work means days spent at a computer doing administrative tasks like checking paperwork, booking suppliers, signing off marking and many other different duties. Having the right equipment and services at your disposal will certainly help this process!

Here is my take on what equipment you need to think about, this list includes both physical items and services like software:

Equipment and services in the office:

So lets five in and talk about some of the key items you might need to start an event business. Some of these will be more relevent that others depending on which sector of the industry you are working in.

Laptop with a large monitor

You can use a desktop computer (i.e. traditional PC) for any office work. Still, in my experience, if you are going to spend money on buying new equipment, then you’re better off buying a laptop. A laptop gives you mobility for when you need to work on-site at an event but also the flexibility when you are working at home. A laptop computer can also be connected to a separate large monitor in your office. The larger screen helps when working on applications like spreadsheets or project plans, for example.

Depending on the sector that you work in, you might find that owning a tablet helps. It is only recently that tablets such as the iPad Pros have started to be able to match the power of laptops. I still prefer a tactile keyboard over touch screen for when I’m working on site.

Backups / Cloud storage

You’ll need to consider how you plan to store and back up data at home. The need to have a back up your data can’t be understated enough. There were two options here, both of which have value and both you may want to consider. You could use an external hard drive or network-attached storage (NAS) device this purpose. Network-attached storage can also be accessed when working away from home.

Techraders Reviews:

• Best external hard disks of 2020
• Best Network Attached Storage of 2020

Secondly, and in addition to having data storage at your home office, you may also want to consider using a cloud data storage service. The benefits of this are that you can access the data wherever you are.

Some of the major companies you might want to consider are Dropbox, Google Drive and Onedrive. I have used Dropbox Business (link) for my freelance work for nearly a decade without any issues.

I have occasionally fallen foul of not having data while on-site at an event; therefore, my laptop is unable to sync or access my cloud storage. Some providers (like Dropbox) allow a saved local copy onto your PC. One possible solution to this is a mobile WiFi hotspot, but again will this will be dependent on signal strength where you are working.

Multifunctional Laser printer

Ok, so a multifunctional laser printer is not the jazziest bits of equipment that you will ever buy, but having one in your home office is invaluable. You will need to print large volumes of materials such as handouts, access permits, stage passes, project plans and many more.

In my experience, a laser printer is preferable to an inkjet printer. The latter is excellent for personal use, but the cartridges are expensive, and this cost soon adds up if you are printing large quantities.

The multifunctions allow you to scan important documents and save them to your NAS or cloud storage which ensures you keep all of your paperwork in order!

Internet Connection

To communicate with clients and customers, you are are going to need a fast and reliable internet connection, both at home and on-site at events. Depending on where you live, you may have access to high-speed internet through a telephone line (less common in rural areas in the UK!).

You’ll want to ensure you have the fastest speed possible for when you are handling large files like photograph or video. This speed is becoming more and more critical as events use high definition video for promotional reasons.

Also, you may want to consider a mobile dongle or WiFi hotspot device that will allow you internet access when not at home. An alternative to this would be to use the tether option on your smartphone. In both of these cases, you should consider using unlimited data plans to prevent costly data charges when you need access the most.

Shredder

Again not a jazzy piece of equipment but having a shredder in the office makes disposing of sensitive information easier. In the world of heightened data protection laws such as GDPR, this is only one step. You should consider also employing third party services who will dispose of any sensitive waste in a safe uncertified way. The protection of client data is critical to your continued success.

Desk and chair

If you’re working from home, then you’ll need to invest in a suitable desk and comfortable office chair. Employers assess their employees through display screen equipment regulations, and these should apply to freelancers as well.

I can tell you from experience that trying to work for 8 hours a day at your kitchen table on a hard seat is not sustainable!

Consider how big a desk you’ll need, taking into account the size of your computer laptop and computer screen plus any other equipment that you need.

In terms of an office chair, consider a chair that is adjustable both in height and back support to enable you to get into a comfortable position to work. Your back will thank you!

Business cards/Brochure

Even though we now live in a very digital world, I’ve yet to see a strong argument against printing business cards. I still come home from industry conferences armed with a bag full of them from other suppliers.

They are still an excellent means for building networks between people. Business cards can cost very little, and it’s worth having a supply of them with you at all times. You never know when an opportunity to build a connection will present itself.

If you work in some sectors of the event industry such as weddings, conferences and exhibitions, you will from time to time have to pitch for work. Having a physical brochure can still be a useful means to promote your previous work and testimonials.

Website

You will need to set up an excellent website to showcase your previous work and to provide a sales platform to gain new customers and clients.

Setting up a simple website doesn’t have to be expensive, nor does it have to be very complicated. There are hundreds of guides on the internet, (in particular on YouTube) for how to do this. From my experience, I’ve always used WordPress as a basis for my website. It is straightforward to pick up and generally hosting costs can be found cheaply as well. I currently use a company called Siteground to host this website. Click here to find out more about Siteground*.

Equipment for on-site at your event

There will be a large amount of equipment that you’ll need to put any event on. Most of this you will hire in for individual events rather than buy it outright—things like fencing, portable toilets, linen etc.

There are a few items that you may want to consider purchasing that you will need and probably use at every event while on site so will serve you well for many years.

Powerbank

Powerbanks an invaluable piece of equipment for any event manager, you are always on the go running around the event, and you’ll need your phone with you at all times. Modern smartphones will only last around a day under regular use, and an event manager will use it frequently more. You will the power bank need to recharge and be mobile around the event.

Anemometer

What’s an Anemometer I hear you ask? Put simply it’s a little fan that measures wind speed. If you have any temporary structures such as marques or gazebo’s at your event, then you will need to be keeping an eye on how strong the wind is. And that’s where this little tool comes in.

Tape measure

Not the tape measure that you’ll use in any kind of DIY job but a good length tape measure of say, 20 metres. A good tape measure can be particularly useful on any site visits before the event then also helpful for setting up the event on the day.

Clipboard or folder

It does fit the cliche of an event planner to be walking around with a clipboard. Still, they are handy, and if you are managing a small event, you can keep all the information you need in there and have it to hand.

For more significant events, you may want to consider a plastic folder with plastic sleeves where you can easily access multiple important documents about your event.

Just don’t put it down and forget where you left it!

Gaffer tape

Also known as “duck tape” or “material tape”, this handy little item will get you out of many fixes. When I first started in the events industry someone once told me if you can’t fix it with gaffer tape then you haven’t used enough!

Conclusion

So setting up you’re of own event business is no easy task. Still, hopefully this article has helped you to understand some of the critical items and equipment that you need to make a success of your business. What do you think? Are you already an event freelancer and want to add something to this list let us know.