In a Tough Economy DEMO Delivers Value

As the December 1 deadline for DEMO 09 demonstrator applications approaches, you can bet that we're getting all sorts of questions about the event, the audience it pulls, its track record, and - most notably - its price.

We've never made a secret of the fact that demonstrating companies, once screened and invited to launch their products at DEMO, pay a not-insignificant fee to participate in the event.  The DEMO.com Web site makes the case for the value companies receive in return for the $18,500 investment.  Over 13 years and 23 DEMO events, I can only think of two cases where a company felt that the price was a push in terms of value received.  That's two companies in approximately 1,500 that have introduced products at DEMO during my tenure as Executive Producer.

Still, anyone who paid even a little attention to the Twittesphere this summer knows that DEMO's business model and pricing were sharply criticized by a vocal competitor.  While I could - and surely did - argue with the tactics, it remains a fair question:  Why does DEMO charge companies to participate in its conferences, what does the money buy, and why does DEMO bother to charge at all?

All good questions not well answered in 140-character micro-blog burst.  But as the DEMO 09 vetting season gets underway, now is as good a time as any to really address them.

Why does DEMO charge companies?  

I'm glad you asked.  There is the obvious reason: DEMO is not an insignificant production.  In order to assure that everything works perfectly - that our production crew can give each company the focus, equipment, and advice it needs to pull off a flawless 6-minute demo, that there is more than enough bandwidth to support  onstage presentations and an audience full of bloggers, that our media team can recruit an active and engaged group of journalists and bloggers, that the pavilion is carefully managed  so that attendees can find and engage with every demonstrator, that each demo is captured in our Web archive - DEMO doesn't cut corners.  We buy bandwidth, we invest in equipment, we hire great PR people, we bring in the best technical AV team in the nation.  And so far, no one has offered to work for free.

Sure, you say, but why not take that money from other sources?  Why charge companies to present?  Again, so far no one has offered to pay a higher attendee fee, and sponsors have tight budgets, too.  We do ask everyone to pay commensurate with the value derived from the event.  And, arguably, the demonstrating companies extract the greatest value from the event.

What does $18,500 buy? 

In the most pragmatic of terms, the cost to demonstrate at DEMO includes:

• One demonstration station in the DEMO product pavilion, including furnishings, electrical, signage and telecommunications consisting of one display, two chairs, 10 amps of electrical outlets and a shared internet connection.

• Three complementary attendee registrations.  Additional registrations can be purchased at a discounted rate of $995 (1/3 off the regular of $2995) for members of your DEMO team.

• A one-page company and product description in the DEMO program guide.

• An online microsite including complete company and product profile published and maintained in a searchable database on the DEMO.com Web site.

• Your presentation in the conference general session will be video taped and hosted on DEMO.com at the conclusion of the event. Ongoing news about your company and product are aggregated on the DEMO.com Website.

• Professional support including pre-conference and on-site PR support, presentation coaching, A/V support, and pre and post show media support including an "online news kit".

• Dedicated stage time in the conference general session. 

• Invitation for one senior executive of your company to attend the invitation-only CEO/Dealmaker's dinner (tentatively scheduled for the opening night of the show).

• Invitation for your entire team to attend all other DEMO sponsored networking/social events including the opening cocktail reception, the DEMO Jam Session and the Closing dinner and Awards.

• Worldwide syndication of all news content generated by IDG journalists at DEMO to the 140 million IDG subscribers/site visitors worldwide through the IDG News Service—the world's leading daily source of global IT news, commentary and editorial resources, serving more than 300 IDG publications and 400 Web sites in more than 50 countries worldwide.

But really, why bother to charge entrepreneurs at all? 

There is another, perhaps philosophical reason for the fee.  You see, DEMO is about companies - established and startup - meeting the market. While certainly business has changed and companies can be built much more efficiently, it still takes money to talk to the market.   While not chump change by any measure, $18,500 remains a fairly low price to pay to reach deep into a market and to be recognized and recommended by an audience of thought leaders and market makers. The fee also represents a reasonable barrier; a company that cannot afford the expense of a national product launch may not be well enough capitalized to properly support customers.  

No doubt, we can argue that point, but one thing is certain, in my mind. Entrepreneurs understand their businesses better than does any blogger, event producer, or maverick journalist.  Entrepreneurs will well decide for themselves if the price of entry to DEMO buys them the exposure, relationships, and market propulsion they need to advance their business concern.  And year after year, entrepreneurs have made the decision that DEMO is a strong value.