Event Sponsorship Timeline

Sam Parr and Rob Walling discuss the realities of running an events business, particularly focusing on the timeline and challenges of building a profitable event company.

• Event Business Growth Timeline:

  • First year sponsorships start small (~$2K per sponsor)
  • By year 2-3, sponsorships can grow to $50K-$100K
  • Sponsors typically book a year in advance
  • Takes 2-3 years for sponsors to trust and commit to larger deals

• Revenue Evolution (MicroConf example):

  • Initial event: Aimed to sell 200 tickets at $500-800 each
  • Actually sold only 70 tickets at ~$500
  • Current state: Running 15 events per year
  • Revenue growth from $600K (3 events) to ~$1M+ annually

• Business Model Considerations:

  • Can be run as community service with 10-20% profit margins
  • Some events (like local ones) may break even or lose money
  • Potential to be more profitable but may choose community focus over maximizing profits
  • Strong competitive advantage if events are well-executed
  • Creates tighter community bonds than online-only alternatives
  • High retention rates (60-70% return attendance)

• Common Misconceptions:

  • Many founders don't initially realize they're in the events business
  • Often viewed as "means to an end" but becomes core business
  • Can feel "embarrassing" compared to software companies
  • Value becomes apparent once accepted for what it is