Four Reasons Free Events Fail :-(
Who in their right mind turns down something that’s free? You’re thinking, nobody. Right? Not so fast.
The answer depends on what is being offered for free. You may stand in line for a free iPad or maybe a free laptop, even if you already have one, you could gift it to someone. You may love using a site like Twitter free of charge, but you may be a little skeptical about a dating site that is free.
Small-business events are one of those things that should not be free.
Admittedly, I have a personal vendetta when a women in my office hosted a FREE lunch and networking event. 1000 invites went out, no RSVP but an assumption that at least 10-20 people would show up; yet not a single person came. She had space available for 60 people (in case someone showed up with a fleet of friends). Imagine her disappointment, because she could have had the room set up to look smaller.
Needless to say, she will think twice before offering an event of any type again.
So why is it that people like free, except when it comes to events? Here are my four reasons.
1. “What’s The Catch?” Once you host a free event, people always ask themselves that question. They call up a friend and say, “The event’s free … but …” and they both spend some time envisioning the potential scheme. While you’re hosting a free event because you’re trying to gain some trust: Instead, you could end up with the opposite.
2. There is no sense of urgency. When did you last feel some urgency toward something that was offered for free? People appear less likely to register for free events and, when they do, the percentage of no-shows is higher than that of paid events. In one of its online discussions, a small-business event host from Biz Nik admits that the average no-show rate for free events was 20 percent compared with 1 percent to 2 percent for paid events.
3. Value is questioned. Most free items are offered so that a potential client gets to know you better. You want them to test the waters. While some people may appreciate this when it comes to informational products, they may not value this when they’re forced to give up time to sit at an event. Some may even start wondering whether something is wrong with you or your business because you’re willing give up your time for free.
4. Attendees may not be real prospects. Let’s face it, people will pay for what they deem important. People who only attend an event when it’s free usually will not pay for a coach, expert, consultant or advisor, either. Most of the time, this group is sure it can do better on its own. These people are there for one thing only — free information — leaving you with a headache and no hopes of ever earning their business.