“How do I fund my convention?” This is definitely the most common question I receive from potential con directors. Typically, they are hoping I will give them an easy answer–go get a loan from such and such bank. Make it 15,000, and mortgage your house to get it. If you talk to this particular book vendor they will give you loads of money. Here’s the magic.
Unfortunately for all of you, there isn’t actually an easy button. But there are some very straightforward principles that will keep you out of trouble and out of debt. If you can’t follow these, you might want to reconsider running a convention before it ruins your personal financial life.
First of all, let’s clarify. AnomalyCon was started on $147. That broke down to $50 for an LLC, $25 to start a bank account, and the rest was for web domains (and I think we had to pay a couple bucks for some modules for our website). $147 out of pocket. The rest paid for itself.
To do that, you’re going to need some integrity, a website, a business bank account, a paypal account, a business plan (see previous chapters), and a ticket pricing schedule.
And a return policy. This is the most important. Since this is your first year event, you need the website to have information about your plans, and a way to take money. Have a cart with tickets, but make sure that the disclaimer says the tickets will be refunded in case of event cancellation. This is where your integrity comes in.
Now, notice I did NOT say you need a hotel. I didn’t mention location at all, actually. Since this is your first year event, I’m going to advise that your nearest college and cozy up with a member of a student organization. Make friends, then negotiate the use of rooms for the student rate. It might be a weird space, but it will be close to free. In most cases you don’t even have to pay until it’s almost time for the event. AnomalyCon didn’t nail down our space until we’d been taking vendor registrations for a couple of months. Thank goodness, because we needed a bigger space than we had initially scoped.
Now, here’s the key. Go steal vendors from other events.
What I mean by that is–attend other conventions. Find out who’s local. Meet the vendors and talk to them about how they are doing at the show they are at, and whether they’d be interested in a startup show. Charge them maybe $50 for a table, and explain what you’re doing to get attendees. They get the same refund policy in case of cancellation.
If you do it right, the vendors pay for your event space. Your job is to make sure there are enough attendees to make it worth it for them.
Do NOT promise guests that you’ll “pay them if the show does well.” Bad BAD precedent to set, and also without integrity. It’s better to find locals willing to perform/appear for the sake of a first year event than to lie to guests.
Most importantly, budget as though almost no one is going to attend, but plan as though you’ll have great attendance.