{"id":1245,"date":"2022-03-24T09:06:00","date_gmt":"2022-03-24T15:06:00","guid":{"rendered":"http:\/\/encompass01.www75-98-173-71.a2hosted.com\/?p=1245"},"modified":"2022-03-24T09:06:00","modified_gmt":"2022-03-24T15:06:00","slug":"how-scheduled-payments-create-value-for-client","status":"publish","type":"post","link":"https:\/\/illusoryisle.com\/index.php\/2022\/03\/24\/how-scheduled-payments-create-value-for-client\/","title":{"rendered":"How Scheduled Payments Create Value for Clients"},"content":{"rendered":"\n

This might not be the industry standard \u2026 but we think it should be!<\/strong><\/h3>\n\n\n\n

We get it … the live event industry has become increasingly unpredictable over the past two years. Between changing guidelines and regulations, as well as public safety measures, it\u2019s hard to know if your meeting will go on as planned.<\/p>\n\n\n\n

Understandably, this makes organizations nervous when it comes time to sign the dotted line and make a large financial commitment. Luckily, there\u2019s another payment model. A scheduled payments approach prioritizes the client\u2019s budget and event planning schedule, minimizing upfront costs and reducing risks along the way.<\/p>\n\n\n\n

What are scheduled payments?<\/strong><\/p>\n\n\n\n

Scheduled payments are one of the many agency billing models that can be used for live events. It\u2019s based on the \u201cpay as you go\u201d method of billing – rather than billing arbitrary percentages on a fixed set of dates, payments are collected as event planning milestones are reached and equipment rental costs are due.<\/p>\n\n\n\n

Scheduled payments allow organizations to lower their upfront costs and long-term risk, while still giving them a predictable payment schedule.<\/p>\n\n\n\n

What are the benefits of scheduled payments?<\/strong><\/p>\n\n\n\n

There is no question that a scheduled payment model creates value for clients throughout the event planning process. While there are a wide variety of benefits, there are four key ones that we think are the most important.<\/p>\n\n\n\n

1. Lower upfront costs and limited long-term risk.<\/strong><\/p>\n\n\n\n

The 50% deposit and 50% net model has been the live event industry standard forever. But just because something has always been done a certain way doesn\u2019t mean it should be!<\/p>\n\n\n\n

While the traditional payment model uses two large, bulk payments, a scheduled payment method is weighted based on a number of factors, as well as when event costs are actually incurred.<\/p>\n\n\n\n

Events incur a variety of technical production costs, including equipment rentals and subrentals, retail items, technical services, product coordination, event labor, logistics, and other event related expenses. While many of these costs are paid far in advance, the vast majority are incurred as the event nears – resulting in payments that are much lower early in the event planning process. In a scheduled payment model, this means a much smaller financial commitment is needed to get the event planning ball rolling.<\/p>\n\n\n\n

Over the past two years, the ability to gather for large events has become incredibly unpredictable, and cancellations or postponements are more common than ever. A scheduled payment model decreases the financial risk associated with event planning, in case changes need to be made.<\/p>\n\n\n\n

2. Pay expenses as they are incurred and drive budget transparency.<\/strong><\/p>\n\n\n\n

Scheduled payments should align with pre-defined milestones, rather than arbitrary deadlines. This transparency makes it incredibly easy to understand how much of your budget is being applied to specific tasks, equipment, or labor.<\/p>\n\n\n\n

Of course, receiving an invoice every time a cost is incurred isn\u2019t realistic – and would be incredibly tedious! Instead, examining the event planning period and identifying 3-6 significant milestones strikes the perfect balance. It provides a reasonable number of accountability checkpoints, with clear costs associated with each milestone, and a number of invoices that are easy to keep track of.<\/p>\n\n\n\n

We hope that all events moving forward are able to go on as planned – but if a cancellation or postponement becomes necessary, the organization will have spent minimally, meaning no additional costs will be due, and no refunds will be necessary.<\/p>\n\n\n\n

3. Predictability<\/strong><\/p>\n\n\n\n

Having smaller payments spread out over a longer period of time doesn\u2019t just allow you to know what exactly you\u2019re paying for – it let\u2019s you know with plenty of advance notice when <\/em>those payments will be due.<\/p>\n\n\n\n

Knowing the date and amount for each payment due will make each one easier to plan for and fund.<\/p>\n\n\n\n

4. Event flexibility<\/strong><\/p>\n\n\n\n

Anyone who has planned an event knows that decisions are made throughout the planning process – and are often changed multiple times! Expecting that each decision with a financial impact will be made the second you sign the dotted line is not only unreasonable, but unrealistic. Paying for the event as you go leaves room for flexibility in decision making.<\/p>\n\n\n\n

Minor decisions that impact the budget can be calculated into the final scheduled payment, or accounted for as you go, while large changes will be accounted for in a formal Change Order, ensuring that you know exactly what you\u2019re agreeing to before you pay for it.<\/p>\n\n\n\n

Pro Tip: <\/em>Make sure you define what constitutes as a \u201cminor\u201d and \u201cmajor\u201d change in the original Production Agreement and\/or Scope of Work to ensure that everybody is on the same page and there are no surprises.<\/p>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

Scheduled payments are not the industry standard \u2026 yet. Especially as the event industry changes, clients deserve flexibility, predictability, transparency, and reduced risk. Utilizing a scheduled payment model creates a win-win situation for everyone involved and allows you to focus on what matters most \u2026 producing a engaging, impactful, and entertaining events!<\/p>\n\n\n\n

<\/p>\n\n\n\n

\n\n\n\n

<\/p>\n\n\n\n

At Encompass, we have unique backgrounds that situate us perfectly to produce high end and complex offerings. We\u2019ve worked in broadcast television, touring entertainment, live sporting events, and countless convention facilities across the country.<\/p>\n\n\n\n

We have technical design experience and a disciplined process in place that allows us to easily scale events and shift from in-person to virtual without angst. There isn\u2019t much that\u2019s beyond our scope and we love the intensity of putting on events!<\/p>\n\n\n\n

If you’re a planner working to create an event, seeking help with virtual event technology, or simply want to learn more \u2026 we can help! Sign up below to receive our updates (we promise to keep your contact information secure and won\u2019t \u201covershare\u201d).<\/p>\n","protected":false},"excerpt":{"rendered":"

This might not be the industry standard \u2026 but we think it should be! We get it … the live event industry has become increasingly unpredictable over the past two years. Between changing guidelines and regulations, as well as public safety measures, it\u2019s hard to know if your meeting will go on as planned. Understandably, […]<\/p>\n","protected":false},"author":1,"featured_media":1247,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-1245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nHow Scheduled Payments Create Value for Clients - IllusoryIsle<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/illusoryisle.com\/index.php\/2022\/03\/24\/how-scheduled-payments-create-value-for-client\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Scheduled Payments Create Value for Clients - IllusoryIsle\" \/>\n<meta property=\"og:description\" content=\"This might not be the industry standard \u2026 but we think it should be! 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