Every few months, an idea pops up and several people ask me about it. The idea that's popped up this week… probably due to Convention, is whether or not you should charge for your workshops. There are some Demos who charge a small fee… say $5 or $10… to workshop attendees for projects.
Personally, I don't believe this is a good idea, and here's why:
- You're making some money on the front-end, but losing more on the back-end. A $5 fee is the equivalent of what you would make if you sold about $15 in product. Therefore, if you are averaging more than $15/person in workshop sales, you could be losing money because you're giving the attendee a cheap way to not have to buy product.
- It's harder on the hostess. Most of your hostesses don't make enough of an effort to fill up the workshop anyway. A large number of them are going to find it even harder to invite people if they have to charge them up front, as well.
- It's not as rewarding for the hostess. Giving the attendees a way to not make a purchase not only decreases your sales (and commission), but it also decreases the hostess benefits.
- You're setting a bad price-point precedent. By offering up what is, essentially, a $5 class, it's going to be much more difficult for you to then market an actual $20 class. You may see the distinction between the two events, but your customers will have a much harder time.
Workshops take a lot of work. And there's a direct correlation between the amount of work you and your hostess put into it and what you both get out of it. Shortcuts like this are usually not actual shortcuts, but detours away from success.
Please feel free to post your opinions in the Comments section below.