Zoom virtual meeting

How much will a virtual business event cost? A guide for business first-timers

Virtual events are taking over for businesses, including those who have to stay at home. Accounting departments must find a way to budget such events while helping organizers achieve success. They need to identify the differences between budgeting for an in-person event and virtual means. To find out how a business determines the cost of a virtual event, here are some steps you should take:

The cost and how to budget for a virtual event

Fun virtual events for work are not the same as the others. Consider the kind of virtual event you want to host and the number of people you require to attend. Some virtual events are only a meeting of 25 people. Others have a hundred attendees with a high production value. You need to materialize to give you an idea of what a successful event looks like, knowing the kind of virtual event.

The cost of the event will depend on the uniqueness of the plan. Below is the breakdown of the cost:

  • USD$2,500 to USD$10,000

The price range covers using a video conferencing program to host an event or an organized webinar. It’s appropriate for smaller events with minimum production value.

  • USD$10,000 to USD$20,000

It is the estimated price range for single-day events if managed by a virtual event company. It includes breakout rooms, speakers, and panels, among others.

  • USD20,000 to $USD50,000

A virtual event company manages events that take more than a day. The event is more in-depth with panel discussions and entertainment. You can add interactive elements and pre-recorded live videos.

To get an insight into how much you’ll possibly spend, you can turn to records of past events. Compare them and see what costs need adjustment and where and how to allocate them for your next virtual event. It would help if you were looking into pre-planning, pre-production, and more.

Considerations when planning the virtual event

In planning for a virtual business event, you have to consider important things to experience a successful start in your new business. To begin with, here are the things to look for:

1. Look at the big picture

Take a good look at the event’s goals and how much you’ll reasonably spend to achieve them. Whether the event is solely for fun or the introduction or marketing of digital products, new services, or updates in the company, the goal will help you identify exactly what needs to be included in your event plans. It means knowing the following:

  • The reason for holding the virtual event
  • What you’re expecting to get out of the event
  • Who the event is for
  • What the event will provide employees
  • The reason for hosting the event now instead of postponing it for a different schedule
  • Your expected profit from the event

After seeing what a successful event would look like, now is the time to determine how you’ll measure it. What key point indicator matters to you the most regarding the organization, the marketing team, and your goals. And here are popular metrics:

  • Overall revenue
  • Total profit
  • Number of new leads
  • Number of prospects
  • Number of event impressions
  • Number of ticket sales or registrations
  • The ROI

2. Test a variety of pricing options

Virtual events are changing every year, so it doesn’t make sense to think that expenses will stay the same. There are pricing options you have to consider.

  • Registration sets the standard ticket pricing and is your baseline. It is also what you deem your event is worth.
  • Membership discounts offer an annual or monthly membership where your members also receive a discount. Also, if classes or workshops are included in the membership, you should be offering virtual ones.
  • The pay-what-you-want model is a considerable strategy that allows them to pay what they can in exchange for the event. Some registrants will be allowed to attend at no cost in some cases. You can set a minimum price, and this payment method can work if you’re hosting an event for the first time.
  • Early bird or VIP can be offered as a limited option. It encourages event-goers to attend earlier. If the option is set for a limited-time offer and with a lower price, it can build up excitement and a sense of urgency for your event.

3. Consider appropriate venue

One of the big-ticket items you’ll be spending time on is the venue. The estimated cost can range from USD$950 to USD$1,250 per hour. The price range will vary because of some factors such as the location, venue type, size, and inclusions. When you can get a good place, those who work with event organizers will plan on managing the venue next.

It’s also worth mentioning that having a reserved budget for unexpected expenses is crucial. If there happen to be potential revenue issues, you’ll need to be able to choose another venue that might cost more than the previous one.

4. Food and beverage

Depending on the venue you choose, you might or might not estimate the cost of food and drinks. You will need to determine how many people will be attending the event and how much food you’ll need. Another factor to consider is when these food stations will be ready or if the guests can feed themselves before the actual event.

In conclusion

The cost of holding an event is determined by the venue, the attendees, and other items you may need for the occasion. Having an event could be stress-free when you consider these factors and choose affordable alternatives so that many people can attend. And creating a budgeting plan will allow you to hold an event for your growing business successfully.