When I attend an event I always try to make a ROI calculation to see if I have invested wisely and I agree, its rather difficult to measure it exactly and there are many factors which simply do not translate to the numbers. I have attended some events where I have not gained any business, but they have inspired me to try new things, they gave me more confidence to pursue further with my projects, and I have made some great new contacts who may not translate to business today, maybe never, but they will be a base to make introductions in upcoming years to another big client, or another big project.
In any case, I do try to make calculations and I like when in addition to having a great time and getting inspired, I see the real value from attending an event. Here is my formula:
ROI =(Total return –
RETURN
Incremental Sales Revenue = Annual amount of sales revenue collected as a result from attending the event – (minus) cost of goods – (minus) labor in % from annual revenue – (minus) other expenses and fees related to this additional new clients
+
Incremental Savings = savings from increased marketing efficiency, including costs saved on trainings, research done during the conference, time saved on reaching decision makers , who are your potential customers.
INVESTMENT
Total investment = registration fee + travel expenses including the hotel, flight, other conference related expenses + cost of time out of the office
This is it, a simple formula, when ROI = 1, you have just paid back your expenses, ROI >1 – you profit from attending, ROI <1 – you have a financial loss from attending the event.
Its not so easy sometimes to get the exact numbers, and as I have mentioned before, in some cases you may not find any new business for the coming year, but after attending the next event and many other events your presence becomes more noticeable and others start looking at you like at expert (“ I see you at all the marketing conferences, so you must have some serious knowledge and many good contacts in this area”).
My conclusion – numbers are not the only ROI you can get from attending an event, however you have to agree, it’s a business world and we are here to make profits, not losses.