[Projectleiding] Crowd funding the event

[Elger Jonker]

On Nov 17, 2019, at 16:21, Attilla de Groot <attilla at ifcat.org> wrote:
> 
> Hi All,
> 
> As quickly said yesterday during the meeting, we currently have about 38k left in funding. Given the fact that we start early with organizing the event, we will have to do (significant) payments before the ticketsales will even start. Of course we hope that we can get any donations and/or sponsoring, but another option would be crowdfunding.
> 
> I’m writing this in English, because I’ve put Martin on the cc. Martin previously ran the tickets & entrance at SHA (and wants to again ;-)) and now also works for Pretix. A new feature in pretix is the possibility to sell “giftcards” (don’t confuse with a voucher) that are valid for purchases in the ticketshop. This would give us the possibility to sell these giftcards in advance of the ticket-sales and generate income to cover any potential cashflow issues. However, there are a few consequences that we have to take into account to decide if we want to do this way.
> 
> - It would mean we have to “rush” the ticketshop with all related payments into production.
> — This has to be ~6 months before the tickets are being sold (~spring 2020)
> — The design won’t be done by then yet, so we will have to change the design of the ticketshop afterward to match the design
> - Participants will basically be pre paying for the event
> — We are responsible for this and we have to be clear in the procedures for this
> — An advantage of this is that participants don’t have to pay the full amount at once when the ticket sales start
> - We have to look at the tax regulations around this.
> 
> What do you all think about this idea and what other pros/cons are there?

It depends on the approach. 

Would we sell 40K (400*100 euro) of "pre-tickets"/"coupons": what are the perks we give those early buyers? In case of a cheaper ticket or discount, this amount should also be factored into the cost. Would the perk be "you can always get the cheapest ticket", it would be reducing the turnover between 5K to 20K depending on the discounts and average moment of sale. Missing out just 5K for 40K is the same as borrowing it against 13% interest and thus expensive. Banks charge about 6 to 7% for a year.

Other options might be early sponsors. Lending it from ourselves is also an (perhaps bad) option, how terrible would that be if things go south? And what happens if we fail  to deliver on the early tickets?

A perk like "a guaranteed" ticket might just work, without any reductions. This comes with some administrative overhead which is probably worth while. To convince people to get the "pre-ticket"/"coupon", it would require stating a price range of the actual ticket. Without it, nobody knows what part of the final ticket they're buying.

I think the biggest pro is the buzz that is created for the event.

Timing wise doing this at 36C3 would be a hassle. It requires doing about everything right the first time. Would it be better to have this somewhere in spring or at EMF? The next months are generally less expensive. And how much would it matter of we need just N of these to be sold to meet demands? That would mean this is a limited amount and limited time offer, otherwise people will just wait. (So what justifies the scarcity).

Regards,
Elger / Stitch