What does it typically cost to produce a LIVE events vs a REMOTE (aka Virtual) event?
- ~ 1. Determine the cost to produce your 5K?
- ~ 2. Top 10 Tips
- ~ 3. Determine your Event Name and Theme – ( Ideas Here)
- ~ 4. Place your Event online (FREE!)
- ~ 5. Create your Race Registration Platform
- ~ 6. Secure Timing Services
- ~ 7. Sponsorship Acquisition
- ~ 8. Event Promotion
5Kevents provides all of our clients an “Event Planning Dashboard” that will allow you to monitor your event progress and goals. This is included with our free online registration software. It includes an event planning guide and event planning tutorial to help you through your process.
Here, however, are the days where producing a road race is more about insurance, liability, medical coverage, media, security, technology, live race results, computers, performance (Tec) shirts, charities, food and entertainment and less about road cones, ribbons and tear off stubs as in the good old days. And, of course, all this “new stuff” just costs more and more and more money. Additionally, where and when the race is held also contributes to the ever-increasing expense of an event. The days where “everyone” involved offered his or her services free of charge are also gone.
How many road races have you gone to in the last few years are just that…road races? Most, if not all, are fundraisers for one cause or another. This is not necessarily a bad thing, it is just a fact. As such, there is a lot of pressure on event directors to either increase the revenue or decrease the expenses (or both) in order for the event to be deemed successful. Interestingly, nowadays many races are being measured by not how well managed they were or whether the participants had a positive experience but rather by how much money they raised for their beneficiary. It’s a whole new world with much different objectives and much different priorities.
When we are approached by a prospective client to produce a race for them, my first question is…. why do you want to do this? The most common response nowadays is “to raise money for xyz cause”. Our typical reply usually is that it is a lot less painful and much less risky to hold a car wash or cake sale and you may even raise more money doing that then delving into the complexity of road race management.
Without corporate sponsors, whether cash, product or services, it is virtually impossible to “make money” conducting a road race. Each race is different, of course, and as such, incurs different expenses. However, every race must deal with standard expenses in order to produce a half decent product.
Typically, some of those expenses include but are certainly not limited to:
- Administrative Expenses
- Bibs, Safety Pins and Labeling
- Course Certification / Route Measurement
- Charity Donations (When using our system for donations an admin and transaction fees apply)
- Equipment Rental (Tables, Tents, Generators)
- Finisher Medals
- Dj’s / Entertainment
- Door Prizes
- Goodie Bags
- Management Fees
- Merchant account fees for Credit Card Processing
- Online Registration Fees
- P/A System
- Paid Help
- Port-a-Potties and necessities
- Refreshments (Water, Bananas, Protein Bars)
- Rental Truck to transport finish line supplies, fencing, water, etc.
- Road Closures / Barricades / Traffic Cones
- Route Mapping and Marking
- Signs and Banners
- Sponsorship Collateral
- Race Supplies
- Social Media Management
- Timing Services
- T-Shirts (chip or Traditional)
- Volunteers (Neon Shirts, Coffee, Donuts)
- Venue Rental
- Web Site for online registration
We have found that generally, entry fees can usually cover reasonable event expenses. It’s the sponsorship that ultimately makes the difference in an event generating proceeds or not and giving the event the capability of possibly paying management fees. Without sponsorship, the chances of the event making any money is pretty slim. 5Kevents offers a unique sponsorship platform that can assist the event in generating an additional $2,500 to $25,000.00 or more per event. ASK FOR DETAILS!
If you do an analysis of how a $35.00 entry fee is expensed out per person in say a 300 runner field size race, it might look like this:
You may change any of the variables. Hit refresh on your browser to restore original numbers. GREEN represents a LIVE event, while the Blue represents a REMOTE RUNNERS EVENT aka Virtual Event utilizing our $25 Flat Fee Program.
PROFIT POTENTIAL FROM A LIVE EVENT – Profit using above figures = $1.890.00. (Not including sponsorship and donations)
So, as you can see, that $35.00 gets gobbled up real fast. Without sponsors, a typical race would not generate that much money. Now this is just a sample, not an actual. Every race is different but this should give a little clarity as to “where all the money goes!”.
The somewhat difficult decision many times that event directors face from year to year is what to actually charge for an entry fee. You need to cover costs but you don’t want to charge so much that you’ll actually scare people away. That delicate balance sometimes is the difference between the race surviving or the race going in the tank. It doesn’t do anyone any good if a race “loses” money as the end result is that the race is simply going to disappear, never to return. It is very rare that an event makes a “killing” off of entry fees and thus the need for corporate sponsorship.
By partnering with 5Kevents.org we can significantly reduce your expenses to assure every race is a success. In addition, we have established a unique sponsorship acquisition program that can yield a charity a substantial profit depending how much effort the charity puts into the program.
PROFIT POTENTIAL FORM A REMOTE EVENT– Profit using above figures = $3,000.00. (Not including sponsorship and donations)
5Kevents Remote Runners® Program is designed to assure our charities do not lose any money on their virtual events. We take care of all the logistical details of printing, packaging and shipping to your participants for a flat fee of $25.00 per participant (There is no minimum). Just let us know what you want in the packets. While your team focuses on promotion, sponsorship and donations we will take care of all the administrative duties to make your virtual event a success.