Evolving business models

Image by andreasnilsson1976 via Flickr

Every day we see stories of publishers struggling to come to terms with the new rules of engagement and challenges of revenue generation in the digital arena. Murdoch has erected his pay wall, YouTube is still losing money despite the hefty price Google paid for it, operators are struggling to get a share of the revenues 'over the top' (OTTP) suppliers are generating from their networks, and yet virtual event platforms are still predominantly rented or licensed by the event organiser (publisher) just like they would rent a venue for a physical event.

Of course, there is nothing wrong with that.

However, is there not a real opportunity to embrace the true spirit of partnership? True sharing of risk and reward between event organiser/platform owner and publisher/content owner?

Chris Anderson's The Long Tail: How Endless Choice Is Creating Unlimited Demand shows us that when things are reduced from atoms to electrons our underlying costs are drastically reduced. We, as virtual event enthusiasts, would support this notion and list it as a major advantage over physical events.
When this fact is coupled with an awareness that although Virtual Events are certainly growing in popularity and marketing teams are rapidly adding them to the list of available channels to be considered, there is still fear and trepidation in trying something new.

So, what should we do?

Well, education is certainly one answer: clearly communicate the ease, convenience and ROI benefits of virtual exhibiting and running your own virtual events. But also, as platform vendors, we are in a perfect position to also remove or at least reduce that fear by demonstrating we are in this together - both the person/company commissioning the event and the platform provider have 'skin in the game'. A successful event has a financial upside for both parties, an unsuccessful event encourages deeper collaboration to improve the outcome next time.

Virtual events are growing and are here to stay but we can really help maximise the rate of adoption by introducing innovative business models that make companies want to experiment with virtual events and feel secure that the platform vendor will do everything in their power to help deliver a successful event.
By looking to minimise the initial outlay required from the client and making up (and surpassing) the project AOV (average order value) with a revenue share on stands/booths/sponsorship/etc. sold (or using another measurable KPI like attendance, time on site, number of interactions per visitor for closed events), individuals and companies alike will become far more adventurous.

Come on platform owners, we all believe in the future of virtual events, let's start putting our money where our mouths are and make 2011 not only a year of technical, but also business model, innovation!