Producing non-dues-revenue-from-virtual-events

Executive Summary produced for KRM by

Executive Summary

August 26, 2008

Panel Discussion

Producing Non-Dues Revenue From Virtual Events

Moderator: Tim Wilson, KRM

Panelists: Christopher Dean, KRM, Account Manager Rick Olson, KRM, President and CEO Mary Taggatz, KRM, Account Manager Ann Werner, KRM, Event Services Manager

KRM Virtual Seminar Producing Non-Dues Revenue from Virtual Events August 26, 2008

Summary created for KRM by: Page 1

Producing Non-Dues Revenue from Virtual Events Moderator: Tim Wilson, KRM Panelists: Christopher Dean, KRM, Account Manager Mary Taggatz, KRM, Account Manager

Rick Olson, KRM, President and CEO Ann Werner, KRM, Event Services Manager

Big Idea Many associations are enhancing their member education strategy by offering virtual seminars. In doing so, they are satisfying their members while tapping an additional source of non-dues revenue. Successful execution of virtual events requires relevant topic choices; careful consideration of the pricing strategy; creative mar-keting; and diligence regarding the event’s logistics and details. Effective execution can be aided by selecting a partner with the requisite experience and capabilities to produce successful virtual events.

Quick Summary: Virtual events don’t compete with an association’s face-to-face

events; they complement them.

A compelling value proposition is the key to convincing mem-bers to attend virtual events.

Marketing virtual events calls for using a unique set of marketing and promotion practices.

Adhering to best practices in speaker preparation can enhance the member experience.

Choosing the right format, technology, and vendor can improve the member experience and the value delivered.

Creative low-risk options exist to get started with virtual events.

Context In this teleseminar, KRM team members drew on their experience having produced more than 6,000 virtual events to answer questions about virtual events posed by association executives.

Key Takeaways Both virtual and face-to-face events are integral parts of a

comprehensive member education strategy. Some association executives wonder if virtual events will replace face-to-face events and if frequent virtual events might prove overwhelming.

Q: How can we get over the fear that virtual events will replace

the real, live events of the association?

A: Virtual events are “real, live” events. They allow people from across the country or around the world to interact. They aren’t face-to-face, but they are live.

Regarding potential concerns that virtual events might replace

face-to-face events, in KRM’s 14 years of producing more

than 6,000 events for hundreds of clients, no client has ever seen their virtual events negatively impact their face-to-face events. In fact, the opposite has been seen. One KRM client, after introducing virtual education events, experienced a doubling of attendance at face-to-face events. (Similarly, some associations have wondered if offering CDs from virtual events might hurt attendance at these events. Again, KRM has never seen a situation where this occurred.)

Virtual and face-to-face events offer different experiences,

have different objectives, and represent different value propo-sitions. Conferences provide opportunities that can only occur face-to-face, such as networking, while virtual events offer unparalleled convenience, provide a forum for group learning, and are low cost (since no travel expenses are incurred). Rather than compete with face-to-face events, virtual events complement them—enhancing overall member value.

“We look at virtual events as supplementing, or com-plementing, face-to-face events, not replacing them.” ⎯ Rick Olson

Q: How can webinars’ expense be justified when one-day workshops, typically better attended, bring in higher revenue?

A: Webinars can be complementary to educational workshops,

offering a different value proposition. But, it is important to clarify some misconceptions: ⎯ Better attended. Workshops aren’t necessarily better

attended than virtual events. The virtual events that KRM produces are often attended by 200 to 300 sites, with each site having four people on average. (Not many workshops have 800 or 1,000 attendees).

⎯ Higher revenue. Based on the number of attending sites and the price per site, revenue from virtual events can be greater than the revenue from workshops. And, work-shops, which require renting hotel space and serving food, entail higher costs than virtual events.

Webinars can also be used in tandem with face-to-face

events; for example, by inviting workshop participants to share follow-up experiences in a virtual gathering at a later date.

Q: With 18 webinars planned in 2008, how do we . . . not over-whelm members by the frequency of events?

A: Overwhelming members is a risk, but it can be avoided by:

1. Choosing “hot topics.” If the content of the virtual events is relevant—such as new laws or regulations or new research findings—members won’t feel overwhelmed; they will see value in frequent events.



2. Segmenting your members. Not all topics appeal to all members. Segment your members based on their inter-ests and target those who have interest in a topic.

3. Providing valuable information. Make sure your virtual events give attendees information to use immediately.

4. Making the entire experience positive. By making the entire experience a positive one, members will not feel overwhelmed and will want to participate in future events.

“Satisfied attendees will want to attend more of your events and will welcome additional virtual seminars from you and your organization.” ⎯ Ann Werner

The key to attracting members to attend virtual events is offering a compelling value proposition. Association executives wrestle with the best model for virtual events, the optimal pricing strategy, and how to generate non-dues revenue if they’ve been offering events for free.

Q: What's the best way to generate revenue via webinars—by

charging attendees or by using a sponsor-funded model and allowing attendees to attend for free?

A: Both models can work; the right model depends on an asso-

ciation’s goals. However, in KRM’s experience, the attendee- pay model is more likely to be successful and sustainable. Considerations in deciding which model to use include: ⎯ Perceived value. People value something more when they

pay for it. With a sponsorship model, people may be skeptical of “free” content, questioning its objectivity or fearing they will be pressured to relinquish their contact information.

⎯ Commitment. When people pay to attend an event, they are more committed. Free events experience much higher no-show rates (50% plus) than paid events (less than 5%) as well as more late arrivals and early departures.

Q: How do I get buy-in from members when I've been offering

webinars free of charge?

A: If you can, never give away what you might want to charge for later. If you’ve already offered free events and now plan to charge, the key is to clearly differentiate the value of paid events versus free ones. Ways of differentiating include: ⎯ Length. Free events might be 30 minutes whereas paid

events are 60 or 90 minutes. ⎯ Format. Free events might entail a presentation while paid

events can be interactive, with interaction and Q&A. ⎯ CEU credits. Perhaps attendees at paid events earn CEU

credits while credits are not offered at free events. (While offering CEU credits can enhance a virtual event’s value proposition, CEU credits aren’t necessary to construct a compelling proposition.)

“It’s really important to clearly differentiate between free and paid events if you plan to transition from one to the other or to offer both.” ⎯ Christopher Dean

Q: How do you determine the optimal price for webinars, audio conferences, and virtual events?

A: Deciding on pricing is based on assessing the value that

members place on a virtual seminar. KRM’s association clients generally charge $90-$250 per site

for members and $115-$410 for non-members. Associations are selling, and members are buying, a “site license” which allows any number of people at a site to participate. Considerations for setting the price include: ⎯ Goals. Some organizations merely want to cover their

costs while others see virtual events as an attractive source of non-dues revenue.

⎯ Value. Organizations must determine the value of the content being presented. Is it unique? Is the speaker of high interest and limited access to members? Other factors that affect the value are the length of the event, the number of people who can be trained at one time, and value-added components such as white papers, books, study aids, and executive summaries.

⎯ Alternatives. What is the cost of comparable educational alternatives? In many cases the cost for someone to attend a workshop isn’t just the tuition, but includes travel time and expense. Not only does a virtual event allow multiple people to be trained, it eliminates travel expenses and time out of the office.

“There’s high value in the ability to train a number of people at each location for one price.” ⎯ Ann Werner

Q: How to earn non-dues revenue without “pricing out” members? (In other words, how much is too much?)

A: In KRM’s experience having reviewed tens of thousands of

participant evaluations, few participants say that a webinar was too expensive. Factors to keep in mind in optimizing prices include: ⎯ Look at competition. How are competitive offerings priced? ⎯ Focus on differentiation. It can make sense to price at a

premium if your offering justifies it. The justification for higher prices includes having reputable presenters, delivering a better member experience, and providing value-added offerings, such as supplemental reading materials and/or tools that help members focus on practical applications of the information presented.

Most associations offer different prices for members and non-members, often giving members a $50 or $100 discount.



Making virtual events successful requires effective marketing and promotion. With several marketing channel choices and even more options about what to say in promotion materials, association executives need to be aware of the tactics that work best for virtual events.

Q: What's the most effective way to market these events?

A: Some advice based on KRM’s experience:

⎯ Use blast emails. The marketing channels with the best response rates for virtual events are also the least expen-sive: blast email and prominent website placement. Other media that have worked well for some: blast faxes and voice mails, press releases, and voice clips on your web-site. Direct mail has not worked well for virtual events.

⎯ Give potential attendees plenty of notice. Send at least two blast emails for an event; one four weeks before the event to create awareness and buzz, and another one week in advance. In KRM’s experience, 30% of registra-tions occur 1 to 7 days prior to an event and 4% occur the day of the event.

“We have data to support that it’s best to send out that first notice as early as possible. . . . But the beauty of virtual events is that they can happen with advance planning or very short notice.” ⎯ Mary Taggatz

⎯ Keep promotions simple. For the best response rates, feature only one event per email or fax rather than several. Avoid burying the promotion with a lot of other information.

⎯ Market to narrow member segments. Virtual events are ideal for niche topics. Market only to members likely to be interested, so that members don’t feel inundated.

⎯ Deliver what you promise. Trying to increase the audience by promoting in overly general terms can backfire—poten-tial attendees will refrain from registering because they can’t tell if the event is right for them and attendees are disappointed because the event was not what they envisioned. Provide very specific information on who should attend and why.

⎯ Don’t be confined by traditional scheduling taboos. Sched-uling virtual events can be counterintuitive. Unlike with face-to-face events, Mondays and Fridays, summer months, and even holiday weeks often have good turnout. When people don't have to leave the office to attend, scheduling can be more flexible.

Q: Our members are not that tech savvy and haven't bought into

e-learning. How do we convince them that e-learning can be an important and cost-effective training solution?

A: They don’t need to be tech savvy to realize tremendous value

from virtual events. When KRM has seen associations have success it is because these organizations have: ⎯ Sold the benefits of virtual learning. These benefits aren’t

about technology. They are about educating multiple people at once, avoiding travel, and cost effectiveness.

⎯ Emphasized unique speakers/content. Bring to members speakers and information that are important to them and that are difficult for them to experience face-to-face.

⎯ Started low-tech. Start with low-tech, phone-based tele-conferences. As members get familiar, migrate to webinars, streaming video, and more interactivity.

Q: How do you overcome reluctance of members to participate when they don’t know enough about the event?

A: Use messaging and promotions that sell the benefits of

participating and eliminate the risks. Specifically:

⎯ Focus on the topic. It is the topic that sells a virtual seminar. Overcome reluctance by focusing on the topic.

⎯ Emphasize convenience. Clearly communicate how simple and easy virtual events are.

⎯ Use money-back guarantees. Such guarantees reassure risk-averse members that they have recourse if their fears pan out. (Few members will ask for their money back.)

⎯ Offer “one free.” To overcome reluctance, offer a member a free webinar. Doing so lets them experience the bene-fits first hand. (But, so that members don’t perceive a bait and switch, be clear that they will be charged in the future and make them aware of the ongoing price.)

⎯ Employ testimonials. Invoking testimonials from satisfied participants can be persuasive, as can posting excerpts from events on the association’s website.

Q: Any tips for marketing an extended training or certification

program over a series of 60- or 90-minute sessions?

A: If the content is part of the same subject matter, not discrete topics, and/or if certification is involved, such programs have a greater chance of success.

Adhering to best practices in speaker preparation can enhance the member experience. Engaging presenters and coaching them are also on the minds of association executives considering a virtual education offering.

Q: How do you train industry experts to deliver like a

professional?

A: Share with presenters snippets of past, highly rated presen-tations that model the desired performance. Your virtual event vendor may be able to provide assistance. For example, KRM’s moderators are broadcast industry veterans who give speakers tips on relaxing (such as imagining an audience of one and envisioning laughter at humorous comments), so that they will deliver a professional presentation.

“As moderator I try to take care of all the details of running the event and make the speaker as comfortable as possible, so they can concentrate on their presentation.” ⎯ Tim Wilson



Q: When the expert you invite to present a webinar isn't the most engaging speaker, what's the best way to prepare him/her?

A: In addition to the training suggestions, experiment with for-

mats that take the burden off the speaker, such as a panel discussion or an interview format. Using electronic question submissions and audience polls also helps. These techniques help the speaker feel more confident and engage listeners.

Q: How do I get professionals to participate as presenters?

A: Sell them on the idea—explaining why it’s important, what’s in

it for them, and the expected results. Presenters who are time constrained or nervous about speaking live can pre-record their presentation and then join in for the Q&A.

Choosing the right format, technology, and vendor can improve the experience and the value delivered. Logistics such as format and technology issues can seem daunting without the guidance of an experienced virtual event partner—as the following questions suggest.

Q: When should you use audio conferencing versus webinars?

A: Let the content dictate the format. Consider if the features of

various media enhance the learning experience or not. Q: How do you build interactivity into your event?

A: Before the event, get input regarding the content (during the

registration process). During the event, do electronic polling and Q&A. After the event, encourage the participants at each site to have discussions about the topic.

Q: How do you handle registration? Does the association collect

money and send instructions, or does the webinar company?

A: Registration can be handled by the association or vendor. A cost-benefit analysis can help determine which way is best for your organization, taking into consideration the association’s capabilities and those of a vendor.

“Pay-to-attend members are not very tolerant of delays in registration. . . . The questions are who can handle it best and at what cost.” ⎯ Rick Olson

Q: What are best practices for virtual events’ customer support? Our member support staff is not equipped to handle the technical support these products require.

A: Day-of-event issues can be tricky and the stakes high. A pre-senter can get disconnected, or insufficient capability to handle late registrants can result in money left on the table. For these reasons, having a vendor that has focused and dedicated customer service resources is an important consideration. (KRM usually handles the IT support and registration details for its customers.)

Several creative, low-risk ways exist to get started with virtual events—and earning non-dues revenue from them. It is possible to get started quickly, easily, and at no risk.

Q: What is the easiest way to get started with virtual events that generate non-dues revenue?

A: KRM has developed a way for associations to present their

members with content from other providers. Members are able to participate in existing events and the association earns royalties for bringing attendees to the program. Associations bear no financial risk in this scenario.

Alternatively, associations can form partnerships with other

organizations to conduct joint events. Another option: start with low-risk content—a hot topic or content based on member feedback.

Q: What should we consider when selecting a webinar vendor?

A: The vendor’s experience and capabilities. Ask how many events they have ever produced and how many they handle each month. Ask about their level of resources and commit-ment to your event. Other factors to consider: ⎯ Long-term partnership potential. Is this a vendor that can

support your needs long term? ⎯ Ability to help you achieve your goals. Is this organization

a partner that can help your organization realize your non-dues revenue goals?

⎯ Pre-event support/training. What pre-event training capa-bilities are offered? Will they help train speakers and presenters?

⎯ Live event support. What resources and capabilities are available to provide support during the event? How many people are available to provide assistance?

⎯ Post-event support and reporting. What reports are provided after an event? How quickly are they furnished?

⎯ Pricing and contract provisions. How does the vendor price its services and what are the terms of its contract?

Other Important Points Attendance caps. In some instances associations may choose

to create a cap of 100 or 200 sites. However, technology is not the limiting factor; technology allows for much larger audiences.

Assisting non-attendees. There will always be members who were interested in a topic but were unable to attend the virtual event. An organization can deliver value to these members by having archived recordings and complementary materials such as transcripts, executive summaries, and discussion guides.

On-demand education. Associations are increasingly offering on-demand education, such as podcasts. But, these offerings are in addition to in-person events; not instead of them.

Read more about it. For a copy of Ann Werner’s white paper, “Five Critical Mistakes Association Executives Make When They Attempt to Earn Non-Dues Revenue from Webinars, Audio Conferencing, and Virtual Events and How You Can Avoid Them,” email KRM at [email protected].

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