This episode we are joined by Lisa. We dive into the issue of hiring versus contracting event planners and where the threshold is.
This week Charles sits down and talks about three things that he has found to be really important from his time in the events world. He talks about hiring a planner, hiring A/V and production, as well as maintaining your relationships with clients. Use these points to up your events game!
When you are thinking of new ideas what is too big? How do we create new things that are fun and engaging without being too crazy? This week we brought back Amy Zaroff, and she spent some time interviewing Charles. Listen this week’s episode with two visionaries talking about creating.
We are joined by the VP of the Inc 5000 Event Breana Murphy. Tell us about you!
I’ve been doing this for almost 20 years. I started in Marketing, I’ve worked in Media my entire career. I’ve worked in the corporate marketing department, and I grew up there, we put on varying types of events. We did roadshows, tours, pop up stores. I was there for 10 years. I worked for rolling stone and did stuff on the festival circuit. Then I ended up here as a freelancer. Was recruited by a friend of mine who worked in the industry and she needed someone to help produce the Inc 5000. This will be my 16th 5000 next year.
Tell us about the Inc 5000 event.
The Inc magazine is the premier magazine that services small business magazine. Every year we publish the Inc 5000 list, the fastest growing small businesses in America. It’s a three day event that celebrates their achievement. It’s not easy to make the list. The folks there are people really excited to come and celebrate their achievement and be recognized for their hard work. Its rooted in content. Everything about our event starts with the content and how we can better empower our audience and readers.
1 day pre conference
2 day conference
1 day gala event.
Tell us about the conference.
The attendees are people who have made the list. Business owners. The speakers are generally other founders. We try to put on the stage notable founders, Mark Cuban to Ben Chestnut, people who have had remarkable success. Or we also do teachers, people who are inspirational. Our audience is across the industry so we don’t cater to any specific industry.
How many attendees?
Just shy of 2000
Where is it?
We move and try to keep it in resort areas. We are in San Antonio this year, coming up it will be in Scottsdale, then Palm Springs.
When it comes to the event, tell us about your process.
There’s two parts, multiple actually. We have the logistics side and the content side. Last week I sat down with my editorial team and my programming team and we brainstormed who will be the big names, who will be interesting, who will make impact, who is relevant, we made a laundry list of people we’d like to go after. That’s on the content side. On the logistic side, the floral plan, anticipating if we have enough rooms, our setup how we like it, keep our sponsors in line.
We have a lot of return sponsors because we deliver a lot. We give them a lot of ROI on their investment. If they keep coming back we are doing something right.
Tell me about the design.
We redesign. Every year we try to inject something new. What we did this year that was successful and unique was a session in the round. We do concurrent sessions and gave the options of really small pointed conversations with business leaders. 30 minute topics with a maximum of 10 people per table. Then they switched and moved tables. Or they could do a breakout session.
It wasn’t just providing them with keynote, it’s interactive.
And that is probably the note we get back most. How can we provide more networking opportunities and that is something we strive to do. We do a kick off networking before our opening session. We do purposeful networking. We do an in depth survey to drill down the content pieces. They are there to be inspired and they want to meet other people.
It’s lonely to be an entrepreneur. You get them in a room it’s amazing they start solving each others problems.
How much does a company need to grow to make your list?
There’s not a set number, you have to be in business for at least 4 years and you have to have over a million in revenue. The growth percentage ranges. Some grow 3000%.
Do you include the room and other things with the ticket?
The ticket is just itself. The marketing department handles that. We have a room block, almost 800 room nights reserved. We have a portal where they can book and get a discounted rate. We do not arrange for travel or pay for hotel.
Tell me about when you are doing the coordination and working with hotel, are you negotiating directly with them?
I work with an organization that I connected with a few years ago. Hotels for Hope. They help us negotiate the room block. I work with them because my contact there is amazing and because the process of managing that block is hard and I have a small team. That process is made turnkey with working with them.
What do they do?
Part of their commission goes to a charitable organization.
When it comes to pricing your ticket, have you had to move it around?
It has stayed, we have separate consumer marketing team that handles that. The price has been pretty consistent year after year. We have to keep in mind inflation. The industry average is 10% i do my best to negotiate that. But food goes up by 10%.
Tell me more about your programming.
I have an executive producer, I’ve worked with her for six years. We sit down and do a draft agenda. We do a lot of planning with our editorial team. We look at who is making waves or has something new coming out, something that will be relevant and topical. We start with key names we want to put in and we try to round out the content and make sure we hit all the notes. Talk about money, company culture, human resources, economically, we empower them to grow their businesses.
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Tell us a little bit about you, how does someone get started?
Most people that become an auctioneer grow up in the business. All the auctioneers that work for us, most of them have a family member that was involved. My dad became an auctioneer in 1978 and I had no plans to go into the business. I went to Wilmer high school graduated, went to Hamline University and have a degree in communications. I was working for WCCO tv in college and out of college.
Then my dad had a heart attack and a stroke. He had a stroke the morning of my wedding. I left my job at WCCO and went back to our family business. My dad wanted my sisters and I to go to auction school, the World Wide College of Auctioneering in Mason City Iowa. We all went there, I went in 1994 and in college, I started doing these events when I was 19. I had no money I was living in St. Paul. People found out this kid in Drew Hall at Hamline University had his license. I was 20 years old and I was doing little events to raise money. By the time I graduated from college I was doing 30 of these a year in the early 2000’s. Then it went from 30 to 50 to 90 to 150 and today this year our company will do 300 all over the country.
You fell into it in a way?
I did fall into it. I will tell you a fair amount of growth and success we’ve had is a little bit of God given but also who we are. You have to have a heart for non profits to be successful in this. You have to care about why this is important to the community. You have to care about what it will do for people. It is hard to be successful at what I do if you stand on a stage in front of 1000 people and don’t have empathy for what your raising money for.
Yes you have to be excited about the vause or you can’t do your best job.
The business today is so different than what it was 5 years ago and 10 years ago. The audience can sense if your not authentic. They can sense if you’re there for a paycheck. They can sense if you haven’t done your homework. You can’t just be standing on the stage going through the motions. I tell the auctioneers that work for us all the time is the real key is can you build a bond with the audience. You are building a bond and they are saying I trust this person cares I know what the money is going for. Today, the two portions were involved with, the live auction being one and the fund to need giving moment being the second portion. The second portion is raising 80% of the revenue. I tell people, if I’m on an airplane and somebody asks what I do for a living, my lead answer is I own a company that consults and advises and facilitates giving moments for non profits. So much of the revenue is from people pledging financial support, not me auctioning items.
Maybe you can speak more to someone who doesn’t understand the difference between the live auction and fund to need?
I wouldn’t be here today if the fund to need hasn’t’ grown to what it is. About 20 years ago in the industry, people would do the events, raffles, silent auctions. They identified there are so many people in the room that don’t win or don’t care if they get the wine basket. You have to create an opportunity for guests to pledge financial support. That’s the moment where the MC or auctioneer stands up and makes a case why you should donate to the mission of the organization and people pledge financial support. For those of you listening, if you don’t remember anything I say remember this, do a fund to need and focus 90% of your energy on mission based giving where people can pledge financial support. I think years from now it is absolutely the future and direction of fundraising. It is the total key. The big thing now is a lot of people are not driven by buying something, they don’t care. They’d rather write a check to build wells than purchasing a night on the town.
We have been talking about the shift in millenials and how different the mindset is of giving.
Before the end of the show I will highlight there still are live auction items that are selling really well. There is one interesting that’s happened, last year congress made some tax changes on the deductions you can make. We have seen an uptick in people spending money in live auctions because now there’s a limit to how much you can donate to a non profit to have a tax consequence. Dinners are the best, in home dinner with a chef is the best item, and how we’ll sell those things for $7,000-$15,0000. Some people are wanting to give 15 thousand but in this case I’m giving and getting a dinner.
To your point about millenials, the big change that we’re seeing with younger people aging into the marketplace, this is probably the second most important piece I’m observing right now in the business. 15 years ago this business is about seen to be seen dress to the nines, what is the new hot ice raffle bar etc. What’s the new trick and gimmicka? The new change is millenials want to think and feel this is important. It’s not what’s the hot new thing, people still like to be entertained, the biggest thing for younger donors is, is there there behind it.
Sometimes people show up to have a party and it’s hard to weave mission and fundraising in that.
Not only is it hard but sadly, the planners have miscalculated what they’ve created has put downward pressure on the fundraising environment. They’ve actually created an environment that is more difficult to raise money because they believe it should have been about a party or something unique or cool. My wife, when we were dating, she’d come and sit down, I’m going night after night, she’d sit down and in the first 20 minutes she would say I totally get it, I get why this is important. She wouldn’t know about the organization but based off the opening the show, how they communicated she would know. There were other nights where she would sit for an hour and say, I don’t get why people care. The mindset of the donor changes throughout the night.
When people come to these events you can tell the ones that came because they wanted a party vs the ones that are there to have fun, but they are there for the cause. I want to get back to the statement about how the planners can make it more difficult to raise money. What are things they can do to make it easier?
We now know, on any given saturday night that we will raise more money at 8:20 than 9:05. You will raise a significant more money, they are more engaged there mindset is more clear, their buzz is a little bit better. It is significantly easier to raise money earlier. Timing is a really big thing, the time at night. One of the greatest mistakes you canmake is getting into your fundraising too late.
The second big thing is it has to be mission focused. Does it really make a personal connection about why this is important. Design your showflow so it leads in right before the fund to need, are they sitting in their seats and are they able to say I get it. There has to be clarity in messaging as well. A lot of event planners will set it up but do not connect the dots on what it means and what it will do. Talk to people in advance see the momentum donors. When I am standing on stage and trying to raise money, 99 times out of 100 when I am asking for a large sum I know one or two people will give. They are called seeded or momentum gifts. If you don’t have that in place, people don’t want to be the first one to raise their cards, but after 2 or 3 people do it they’d be happy to do it. You have to alter the mindset, if 2 or 3 people give 25 thousand dollars there’s 600 people sitting in the room and they think more about there donation. Create the perception there is organic enthusiasm around what you are raising money for.
The program length is critical, tell me what’s the perfect program like?
Almost everyday we get a call from a new perspective client. I’m handling these calls and I’ll tell people now, we will roughly know how you will do three days before your event. After we look through the shoflo, we know who is in a more tricky spot and whos going to be in a great spot. The right length of the program, if you can make it about an hour and fifteen minutes I think that is helpful, that’s assuming a fifteen – twenty minute break for dinner. You have to build in time for the live auction, air on the side of caution.
How many items for a live auction?
It depends, it’s changed, the short answer is fewer today is better. There are nights now where we are doing two or three items because the fund to need has grown, it is rare in the midwest to see events with other 500 people with more than 9 live auction items. A general answer would be someplace 4-7 live auction items depending on the size and history of your event.
Often times we will raise more money with fewer items. You’re not creating competition within itself for the items, and the environment and energy around the live auction is usually higher. The other thing we are evaluating is if the fund to need giving moment is coming after the live auction, I’m looking at how much money and energy is there in the room, because those two items are contingent on eachother.
You’ll laugh when I say this, there are so many nights that I walk out and think, why did people ever hire me when I was 23 years old? In the moment, the decision you are making and experience helps, you have to be intuitive and thoughtful, you have to be data driven. In the moment many clients don’t realize the choices and decisions the auctioneer makes makes a $7500 difference in the moment.
The other piece, if you ask me aside from mission based giving and fund to need, if I said where’s this business at five years from now, I would say it’s not based on just how much money we raise night after night. That’s a big mind shift. It’s a shift about how we are thinking about this. We also have to make decisions based on how to keep donors more active and involved and keep those relationships strong regardless of the financial gift they make that night. The big thing is the auctioneers I hire, they have to be mission focused, look at the big picture, and they have to make people feel valued and appreciated. It can not be driven by did we top last year’s financial goal. Now there are so many non profits, the real question is can you keep your donors longer than anybody else. It can’t be a revenue equation, it has to be a relationship equation that is built on trust, accountability, communication, and authenticity.
The other thing that surprises you over the years, there’s nights where somebodies giving $100 and maybe that’s all they can give or used to giving. Then six months later they will gift a farm to them. Sometimes these relationships that are based on a $100 gift, the long term upside to sincerity and thankfulness is a big deal.
I’ve seen some of your tricks, what tricks do you have?
When you have a double item you can sell twice, it’s super helpful. A lot of committees don’t understand how complex and in the moment that is for the auctioneer. A lot of times when I am doing that I can’t sell that second dinner unless I’m at x amount for an example. Then I have to get both of these people and keep them both with me. As they are bidding you have to gauge their interest. You have to stop before you lose the second person. It’s a lot of dynamics and in the moment.
A really helpful trick or experience is, so much of the value of these items has nothing to do with the item, it’s the relationship around the item.
How should an auctioneer be charging for their services?
Some charge a flat rate or a commission fee. A flat fee is better in the nonprofit world. I don’t want people to think we are giving different advice based on our compensation. The fees across the country vary, and they’ll change. A lot of auctioneers will prorate their fee based on their revenue. I also tell folks whether they hire us or somebody else, I encourage them to grill the auctioneer before they hire. If you spend a half hour asking the tough questions you’ll figure out who the right fit for you are. You should interview a couple two or three. The challenge depending on the size of your event, we schedule a year or two out so you have to be really on top of that.
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