Hi all,
This is a great question to be asking. I think that it's going to be difficult to provide a straightforward answer, because comparing free v. paid programs is not a simple experiment. There are so many different kinds of programs, and since the fee structure is built into the design, it's not often you can compare two programs that are similar in every other variable excepting the fee. Lectures might be one exception to this, but the "value" of a lecture depends very much on the prestige and draw of the speaker.
What I generally recommend, rather than making each decision as a one-off, is developing and working from a program strategy. Such an approach looks at your programs from a high-level view, over the course of a year, and addresses the needs of your budget, mission, and audience. That strategy usually includes some fee-based programs and some no-fee programs. The decision of whether a program is free or fee-based is part of the program design. In that design, you would want to consider:
- The fee's impact on attendance. A fee is always a barrier to attendance, but it's true that it draws a firmer commitment to attend - and the higher the fee, the firmer the commitment, although even a small fee (paid in advance) is an investment people prefer not to lose. |
- The messaging of value. A fee sends a signal about the value of the program. Is this being framed as a limited-access, high-value program, or a wide-access program designed to serve many more people? Does the fee indicate that you might expect personal attention, close access to presenters, a unique experience, skills training, materials or a takeaway?
- The funding structure. Is the program already being supported to some degree by members, donors, sponsors? Is it covered completely, or merely supported? If programs are sponsored fully, they may be offered at no fee but it is also good to make clear the program isn't "free," but subsidized or underwritten.
- The required investment. If a program is going to require a significant outlay of cash from the museum, such as a high speaker fee or the purchase of art supplies, it is usually best structured to break even financially or make a profit.
- The programming department's role in the budget and responsibilities for revenue generation. It's wise to use your program strategy to clearly designate some programs as revenue-generating and others as a public service without the expectation of turning a profit. That way, you can communicate shared expectations for each. A revenue-generating program could include lectures by famous speakers with a high ticket price, classes or courses, food/drink festivals or dinners/cocktail programs, small-group high-touch experiences, special-access tours, etc. Those programs can be designed with the intent that they will more than pay for themselves (sometimes including sponsorship). Audiences will pay more but have higher expectations. Meanwhile, the programs offered as a service to the audience can then be offset by program revenue in your budgeting. Perhaps those offer lower fees or no fees, again sometimes sponsored or subsidized.
- The development strategy. Is a free, wide-access program an important tool for membership or donor recruiting? If so, looking at the long-term benefit of the program may be more important than ticket revenue for a single event.
Without knowing the particulars of your institution and program, I'd say that it would be worth doing some of this thinking. Is the goal to increase attendance? Increase revenue? Remove barriers to participation? Knowing the intent and strategy of your program can help you make decisions that align your fee structure with the audience behavior you're looking to develop. It may well be that instead of tinkering with the fee, you'd get more results by revisiting the marketing or the presenter selection, or adapting programming to better match the interests of audiences you're hoping to engage.
Hope these thoughts are helpful!
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Michelle Moon
Principal, Satlworks Interpretive Services
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Original Message:
Sent: 10-20-2022 09:34 PM
From: Rosie Siemer
Subject: Paid vs Free Program Attendance
Hi all,
Does anyone have any data on attendance numbers for paid vs free programs?
I'm looking for evidence to prove/disprove the theory that charging a fee for programs results in higher participation rates.
Thanks in advance!
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Rosie Siemer
Founder + CEO
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