Unlike a franchise system where a franchisee pays an average 6% of gross sales plus a 3% advertising fee, plus renewal fees, marketing fees, etc. We do not charge our clients these fees.
We make our money via online registrations. Most races that offer online registration do so through a third party company who provides this service for a fee. Races then have a choice of passing on the entire fee to the participant, passing on part of the fee to the participant, or paying the total fee themselves. Those that pay the fee themselves may actually just increase the entry fee by the same amount — so, actually, the participant is still paying for it. Usually these fees are a percentage — 5% to 10%, in most cases — of the race entry fee.
We charge participants a $2.00 transaction fee plus a lost revenue fee to offset the merchant card fee charged by our credit card processing company. This is typically a small %, around 3 to 5%. You keep 100% of your entry fee. This allows us to maintain the registration platform, offsets administration and merchant card fees and leaves us with a very small profit per registrant.
Online registration “makes life easier” for the race organizers, but it also benefits the participant, in that through the internet, you can easily access races and register for them almost immediately. Races then can maintain constant contact with the runners and send out regular communication to their participants about the race. For most races, the money and time saved in not having to handle paper applications simply goes toward the expense of maintaining the technology expense and expertise that all of this requires.
Lastly, most (not all) races do allow you to print out an application from their web site, with the total fee to register via this method being a little less than to register online. Conversely, some races actually charge less to register on line (incurring the online fee themselves) than by mail in as they are trying to encourage more and more registrants to use the easier, online method.
One of the biggest advantages of networking through 5Kevents is the cost savings our clients incur. While not obvious to the runner, we are able to buy in bulk and pass those savings on to the Race Director. Examples include Custom Race Medals, T-shirts, Race Bibs, and numerous other items. At 5Kevents we have a saying…” Saving Money is just as important as Making Money”. All of our programs are designed to do just that for our Race Directors, ourselves and for the participants.