I get asked a lot if vendor events, like the bridal expo, certain advertising and boosting posts are worth it. I get the question a lot, “Should I do this event”. First off, I always say I am not sure it depends on a couple of variables and where you are in your business, if you can afford it and what your future goals are.
Not super cut and dry right? The funny part is I almost feel like sometimes I am asked as if they need my approval of the idea. I want to education you on how to figure out your acquisition cost for acquiring leads because I feel like this knowledge is something people don’t think about, don’t know and it’s important if you are looking at what is an area in your business you should be focusing on. This will help you take a look at the results you are getting from specific activities and what it’s costing you in time and money. Remember your time is something you can’t make more of and that can be more costly than money if it’s spent working on the wrong areas in your business. Regardless if you are spending money on events, parties, ads, marketing, or networking there is a cost associated with meeting new people.
Today I want to talk about generating leads at events and the cost you pay per lead.
When I look at the cost to acquiring the lead at events I look at two areas. The cost I paid (for the event/advertising/networking) and the amount of leads I got in return. That will give you your basic cost per lead. If you start to keep track you will find an average. I like to also ensure I set a goal for things that I am paying for. If my focus is on meeting people and getting new leads, I can bring my cost down per lead.
Ex: If I do an event around the holidays and it costs me $100 but I walk away with 50 leads, conversations and new friends I paid $2 a lead for that event.
I know I picked easy math or that one. You will take the amount you paid and divide by the number of leads you found to get what you paid per lead.
Now don’t get me wrong. I have paid $1200 for one event and gotten future parties, vips, orders and a new team member. So even though I might have paid $4-$5 a lead (which for me is a bit high) I made my investment back through those activities. Shoot I think the new team member alone paid for that event PLUS some.
The hard part with events is you NEVER know who will be there, who will stop, who they advertise to. In most cases you need to try the event and see if it was good for you to determine if you should do it again. All you can control is how you engage, create relationships and get information. Follow up is SO SUPER important but that’s a whole other topic on its own. Some events advertise 5k attendees or a number based on historical information or maybe other types of events they do. I try to look at this information and the cost of the event and think. If I could get 5%ish (this can change as you get more tenured and really dependent on the event) of the people that walked through to engage with me and get their info or set a time to demo or meet my cost would be x.
EX: I am looking at signing up for an event in the fall. They say they are expecting 2k people to come through and the cost of the booth is $200. This means that if I can reach 5% of the projected people that are coming that would be 100 leads and that means that I would be paying $2 a lead. For me that is way worth my time and money. Shoot, 1 party would pay for that event and more. Plus if it is more of a selling show you may not get as many leads but you may be able to push more products. The best scenario is adding someone to your team you met at the event and they just kill it!
In my experience Bridal expos are more about leads, follow up and relationships than selling. After doing one I found that out and changed my expectations. It helped me to get more realistic in my goal for lead generation in hopes to meet more people but also to bring down my cost per lead.
It’s important to have a system to track your leads and how they converted. Even if you got 1 party from the event but you kept booking parties from parties that 1 conversion could be worth a TON of money! Make sure the event was worth it. Look at how they advertised, how much it was, what type of demographic came and the results from the event.
Don’t do something just because you did it last year… Don’t do something because you feel like you need to or will miss out. If you didn’t have a good experience and you didn’t get your lead cost to where you wanted or maybe you just didn’t meet the quality or type of person you were looking for, decide not to do it again.