The Value of Giving Away Money
Hey Newman, cash prizes at trade shows: A good investment or a waste of money? -Mike in Los Angeles
I recently did three days of presentations for a company that was giving away $10,000 at a trade show. The festival atmosphere this promotion conjured up was beyond incredible. I’ve seen companies give away cars and other larger-ticket items, but the buzz about this cash was unparalleled.
To win, you filled out a card with your name and contact information. To be eligible to enter the drawing, you had to watch the live presentation I gave or engage with somebody in the booth one-to-one and ask a question or listen.
All three days of the show, we never presented for less than standing room only. Ever. On the last day, the money had already been given away, yet we still packed the presentation. That final-day success had a lot to do with our crowd gatherers and how persistent we were about getting the seats full. But on those first two days, the money did a lot of the work.
I mean, it’s $10,000. That’s a lot of cash … and a substantial incentive.
Not every company is going to shell out 10 grand, but they might spend $1,000, which is still a good chunk of change. It’s enough for people to come into a booth and fill out a piece of paper just to enter the drawing. So, if a company is willing to spend $1,000 for the cash grand prize and a total of $800 more for three medium-priced electronic devices, what they’ll get back for that expense is huge. There’s a lot of buzz and booth traffic to be gained from an investment of that size.
Mike, the point of contention is whether this cash incentive will get you a bunch of greedy “dead-ends” or some actual leads on which to follow up. There’s a big argument in the trade show industry that says you’ve got to look for quality leads over quantity. I disagree. That’s because if you have 20,000 people attending a show, you must do something compelling in your booth to capture the names of a significant percentage of those people (even 10 percent over three days) and get that traffic to flow through the booth. If you don’t, there’s a good chance you’re never going to have the opportunity to identify those coveted high-quality leads. In fact, you won’t have any leads at all.
Those 25-30 key people—the dream leads—aren’t going to just magically appear in your booth. They’re likely to be swept into your booth along with the hundreds of other people who may be there to just win the $1,000.
There are only a few things that will draw people to your booth, and a lot of it has to do with what’s eye-catching. That can be movement, color, noise; those create crowds. When we did this drawing, and we have video documentation of this, there were 1,000 people standing around the booth. The fire marshals were getting people out of the aisle. It was insanity, pandemonium. People were walking by asking, “What’s going on here? … They’re giving away $10,000! Oh my, can I get in?”
Sure, that person may have no interest in the particular technology, but somebody they later talk to might … or somebody they’re standing next to might … or somebody just walking by. An adept salesperson will capitalize, and there’s a huge piece of business that’s been booked.
Trade shows are, by their nature, a little bit of “sideshow.” There’s no question that it’s all about buzz and excitement. And nothing says excitement better than an oversized check with $10,000 printed on it.
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