If you were asked the secrets of some of the most successful and in-demand event planning companies around the globe, would you know what they were? Most probably, you would not. This is because these same events are also the sources of revenue for these companies. They make a killing on every occasion they manage.
The question is, how do event management companies make money?
It’s Not Impossible to Make Money
Now, if you ask how do event company Singapore make money? This may sound like a difficult question because it depends on how the company wants to run its business. It would help if you were looking at the long-term benefits rather than the short-term ones. As long as they continue to rent out the venues, they will not make any money.
Short-term income may come in if there are many people interested in attending the event, but it will all depend on the sponsor. For example, if you are signing a contract and if your agreement says that you can buy the tickets, you could make more money per ticket sold than if you could charge the regular price for them.
Charging Fees
To begin with, the primary source of their income comes from their contracts with large corporations and private parties. They charge a fee for their services to organize these parties, and they make a tremendous amount of money from each contract. Once their fee is paid, they distribute the bulk of the profit between the leading company and the various contractors.
Revenue Streams
The second method of how event management companies make money is through their revenue streams. Each of these contracts comes with an option to buy space from them and develop a theme park or amusement park. With this, the leading company can continue to earn the fee they receive from the sponsor company and can also generate a little extra cash on their own. The amount depends on the contracts and how much money it is worth to rent out space.
Being Hired by Huge Companies
In addition, another way these companies make money is through their event planner status. Many of them are members of a corporation that represents many other companies, so when one of these companies is hired to organize an event, they get a percentage of the entire bill. These are paid regularly per event. The more organized events and the more contracts that are signed, the more money the company makes. It is very similar to the way a hotel manager makes their per room revenues.
How To Make Money As An Event Management Company
So you’ve decided that it is time to start your own business and how to make money as an event management company. You have already researched the different aspects of event planning and understand that it is a very profitable business with many avenues for growth. So now it’s time to get started, right? The first thing you will need to do is sign up for some basic event management certifications. Depending on the type of event you are planning, you may need different types of certificates, so be sure to find out exactly what your needs are ahead of time.
Once you have your basic certification, you can look into getting more advanced certificates in specific areas. For instance, if you want to work on significant scale events like weddings or corporate events, you may want to look into a Bachelor’s degree. After your education, it’s time to find the jobs and figure out how to make your career start properly.
