A few ideas to make The Lab Offsite profitable

I’m a huge fan of Jay Clouse and his Creator Business, so I was thrilled to hear he’d just run the second edition of his offsite for the members of The Lab, the highest tier of his community for creators.

It was a 2-day event with educational content, group discussions and entertainment options in Boise, USA. 41 of his community members joined the event.

The event was highly praised by members, receiving a 9.4 out of 10 rating. Jay and Mallory also recorded a podcast sharing how the event was organised and the key learnings from it.

Among the many interesting things that were shared on the podcast, I found myself especially tuned in to the economics of it, because that happens to be my world.

The Lab’s first in-person event edition wasn’t profitable, and since this is directly in my line of work, I paid close attention to how the numbers evolved this time around.

Jay was generous in sharing his takeaways, and I couldn’t resist adding a few thoughts of my own from a revenue and cost perspective, along with some ideas and recommendations below.

For context:

Jay Clouse is the founder of Creator Science, a media and education company that teaches creators to build sustainable businesses. Through Creator Science, Jay hosts an award-winning podcast (featuring guests like James Clear, Ali Abdaal, and Tim Urban), runs a YouTube channel with behind-the-scenes creator interviews, and offers a suite of products including CreatorHQ (an all-in-one creator operating system), online courses (e.g., Build A Beloved Membership, Podcast Like A YouTuber, Newsletter Masterclass), and The Lab, a selective membership community for professional creators.

Strategy first: what is this event actually for?

Before getting into the numbers, it’s worth considering a bigger question: what is the event’s core purpose?

Pricing, format, and scale all flow from this. Once the goal is clear, many of the operational decisions become much easier to make.

In my work with business networks and communities, I typically saw two main goals for network events:

1. To generate more business for members. I.e. they meet to facilitate relationships, referrals and business in general. So, technically speaking, members pay for this event as part of their membership fee (and expect it), or have an exclusive invitation to join such an event. It is, in a way, an increase in membership value (if it delivers on its promise), especially if the event is exclusively available to members.
2. To generate revenue for the organisation to maintain its operations — and, as a side benefit, generate more leads and potential member interest. (Even if they don’t say it directly ;)

There could certainly be more primary goals for such events, especially depending on the industry, but for now I’ll focus on these two.

Offsite goals were:

Retention or reduced member churn

The event was described as a mid-year reset, a place to gain new ideas and new friends and fall in love with the business again. All of that should improve retention and provide a member benefit.

Member retention is a very important goal to keep in mind, but it is not the reason #1 why this event exist. At least for the Lab.

A few questions here: has the impact on retention been measured since edition one?

If there is no data, or if the data shows no measurable impact, I wonder whether this needs to be the primary goal of the event. For me, the member value may actually come from something else, which I’ll describe below.

Generally speaking, I’d be hesitant to make retention the main reason for an event unless the data showed a clear connection between the two.

Member value increase

This is likely a big part of the equation.

My sense is that members probably don’t join The Lab because of this event alone. The community already delivers strong value on its own.

Instead, I wonder whether the event’s role is more about facilitating and deepening the relationships created within the community and building a stronger network.

And, perhaps more importantly, could this event eventually become a mechanism for Jay to stimulate the “economy” for his members?

What I mean by that is that a member’s success in The Lab is closely connected to them continuing to run a profitable business. So, wouldn’t it be great if there were a function within the community that helped ensure members are well positioned to run their businesses successfully?

That function could be a deeper exchange created during the Offsite, something the online community can’t quite deliver in the same way because it is missing that in-person component.

We hear in the podcast that members enjoyed the smaller masterminds much more than the presentations.

And there’s a reason for that.

People literally join to spend 2–3 days with other creators, learning how they run their businesses, sharing experiences, and exchanging ideas.

That’s where so much of the value comes from.

There are opportunities for them to build stronger bonds, discover synergies, build partnerships and more.

It is an investment for them to build a stronger network and a thriving business.

Considering the seniority of members in the Standard and VIP tiers of The Lab, I’d imagine the opportunity to connect with members of that calibre is particularly valuable.

If I had to pick one

If we look at the Offsite from the perspective of the two main goals mentioned above, to me, generating more (or better) business for members through relationships, referrals and connections could be the primary purpose of the event.

Eventually, that goal also addresses Jay’s goal directly: having stronger creators with profitable businesses inside the community.

But can it be profitable?

I’d personally aim for the event not to become a cost to the business. Ideally, it could run at breakeven and generate a surplus.

I sense there is no need to turn this event into something that generates massive profits — at least not yet. But if that eventually becomes the goal, there are ways to achieve that as well.

The important thing to notice here is that changing the financial goal could also change the direction of the event.

Should the format change to deliver the Offsite’s main goal?

So, if we agree that the main goal of such event is to generate more (or better) business for members through relationships, referrals and connections, then the format don’t need to change.

I actually think the event is winning right now by being deliberately small and almost exclusive.

There were considerations about whether such event should include an open day for non-members.

For example:

• Day 1 — open to all creators
• Days 2–3 — open to members only

Such a formula does exist and makes sense in some cases. However, one thing I’d be mindful of is that when audiences are mixed, it can sometimes dilute the message and attractiveness of the event for the core audience.

It also involves different marketing approaches to attract both.

If the strategy is to have an open day for Creator Science, then you could still do that during Crafts and Commerce, for example. A cocktail reception or dinner could be a lower-cost, lower-effort way to get in touch with potential members.

Event economics and profitability

Jay shared that the second edition still ran at a loss: roughly $9,100 in year one and around $8,300 in year two, even with sponsor involvement. Without a sponsor, it would have been around minus $18,300 (? to be confirmed), which is a significant gap.

I don’t have access to the actual budgets, but I’ve built one based on the figures mentioned in the podcast in my own budget tempate, that allows me to see:

• detailed expense per attendee
• fixed expenses regardless of how many attendees
• variable costs per person
• total attendee costs

amonst other things.

And it allows me to model the best- and worst-case financial outcomes for an event and determine the optimal ticket price to charge.

So, what could be done to improve the economics of the event?

At a high level, any event budget improves either by increasing revenue, reducing expenses, or both.

So let’s look at the revenue side first.

Pricing

Jay mentioned that the ticket price felt too low, and I’d agree.

It moved from $399 to $499 this year, yet 34% still felt that was underpriced.

For context, $499 is closer to a half-day workshop rate. Given the scope of functions involved, a price point around $1,200–$1,300 would feel more aligned to me, even before looking at the actual budget.

When I’ve built the budget, it showed me that a breakeven could be reached with ticket tiers around $699–$899.

The event ran in conjunction with a bigger conference, and I wonder whether there was some comparison to Kit’s Crafts + Commerce conference price, which was around $600–800.

That comparison may not have helped because the nature of the events is different. Asking for a higher ticket price for a smaller event can feel psychologically difficult when people have another event’s price in their heads.

But Jay’s event is different and has a different purpose.

At the same time, raising the fee to where it could potentially make sense financially is likely to be difficult right now without some impact on attendance.

A higher fee would need to be explained and justified.

It might also be worth asking whether growing attendee numbers is truly the goal, since each additional attendee adds directly additional costs. And if the price is heavily discounted you are simply go deeper and deeper into negative balance.

Jay was discussing early-bird pricing, and here is something I think many folks miss:

An early-bird price is really just your standard, budget-based price. Everything above it is technically an upsell for people joining later.

One thing I’ve seen happen quite often is setting the early-bird price based on gut feeling rather than on what the budget can actually sustain.

In my experience, it helps to calculate the early-bird price from the underlying event costs. It can’t really be lower unless you are confident that most of the expenses will be covered through sponsorships, which wasn’t the case here.

For me, ticket pricing ultimately needs to be grounded in the budget.

I would therefore recommend building the event budget early and having that cost conversation with the venue and suppliers upfront, before pricing is set.

I also wonder whether all expenses were factored into the calculation, such as bank fees or transaction fees, which can sometimes add a couple of thousand dollars.

My provisional event budget also includes contingencies and miscellaneous expenses in case something goes wrong, so you don’t lose money on a small event like this.

Another way to look at it

Another option could be to consider the Offsite ticket as already included in the membership plan (or partially included in it).

In that case, the event fee could still be $499, but the budget would need to reflect the relevant portion of the membership fee being allocated to the event, just to give the Offsite a fair financial picture.

Sponsorship as a lever, not a safety net

Jay and Mallory mentioned that sponsorship softened the loss, which is a familiar pattern: sponsor funds fill budget gaps.

Ideally, though, sponsorship can be planned for rather than relied on after the fact.

A question I get often is what the “right” ratio between ticket sales and sponsorship should be, and honestly, it varies enormously by event type, industry and audience.

I’ve seen sponsors invest generously in small events with little concern for ROI, and I’ve seen others calculate cost-per-lead before committing a penny.

Given that Jay’s audience is senior and made up of experienced creators, this feels like a rich audience for sponsors interested in building relationships with creators and their networks.

Sponsorship doesn’t need to reshape the event experience either. Packages can be designed thoughtfully, and not every sponsor needs a speaking slot to feel engaged.

Having the right sponsor may eventually even elevate the experience for attendees, by providing peers, giveaways or sponsoring a fun activity where members can connect even more.

A closer look at the catering and venue costs

The event took place in the US during a week when a major event was also happening nearby, which is close to the hardest possible time to negotiate venue rates.

A few ideas that could help bring food and beverage costs down:

1. Renegotiate rates directly. This is often more possible than it seems. Quite often, you can inform the venue of your budget and ask them to come up with a quality option within that budget. Sometimes that means making portions smaller, or removing some fancy ingredients from the menu.
2. Use food and beverage minimums to offset meeting space rental. This year’s rental came in higher than last year’s, and I assume Jay has paid for both the meeting space and food and beverage. There may therefore be some room to negotiate here.
3. Spread some functions across other spaces or locations. Not every function needs to happen in the most expensive room. And quite often, attendees enjoy a variety of different spaces. It can increase creativity and create more opportunities for connections between attendees.
4. Choose one standout premium function rather than making every function premium. If it is even needed. When designing the event experience, if the goal is a friendly, family-feeling environment, I think it is totally OK to have good-quality food without premium add-ons.
5. Negotiate beverages as a package. Beverages are a big drama in the US and always seem to come as a surprise to organisers, so I’m not even surprised to hear how much Jay and Mallory had to pay for coffee refills. One option could be to negotiate a day-long package beforehand, or perhaps renegotiate this expense with the hotel if you were not informed about it.

Operations

Why do I include Operations in a piece about revenue? Simply because we rarely account for the time dedicated to running an event, and time is money too.

In my mind the more effective and efficient we are in planning an event, it is huge financial win as well.

The current budget doesn’t include operational support. If it did, I’d estimate a project fee of around $15–25K for someone to manage the event of that size for Jay and Mallory.

If budgets are tight and you prefer to keep the operations in-house, one of the best solutions I can think of is to work with an event strategist on a weekly or monthly consultation basis until the event is delivered.

This will help to avoid unneccesary costs and possible mistakes.

On the podcast, Mallory and Jay mentioned some of the logistical obstacles they faced. Here are a few tips to make event logistics a little easier.

Listen to the podcast here to follow the context.

1. Venue selection remotely

Choosing a venue from a distance is genuinely tricky.

A few things that could help:

• Build a relationship with the local tourism or convention bureau. They may sponsor a site visit if you’re bringing a group to their destination. The same organisation may even sponsor your event with some small items and contribute a discount for the accommodation rate. It’s worth talking to them.
• Ask venues directly for a site inspection. Many will cover a night’s stay, which makes it possible to visit several venues in a single trip.

This turns venue selection from a guessing game into something much more informed, and it doesn’t necessarily need to come with a big price tag.

2. Seating plan and dietary restrictions

Making a seating plan each time is a killer. I totally feel it.

One option could be to make it a bit more flexible by, for example, letting attendees pick a colour card that groups them for a particular evening, function or discussion table.

I also noticed that dietary management sounded like it may have added quite a bit of complexity.

Most venues are well equipped to handle allergies and restrictions, as long as the details are shared with them in advance. So there may be no need to build the menu around everyone’s individual dietary restrictions.

3. Travel disruption created real stress

Travel generally creates real stress.

One idea worth considering is having organisers arrive two days early to handle logistics and preparation.

That extra night is often something a hotel will offer for free, especially given the overall spend. Many properties also include one or two complimentary nights for the group booking itself.

Creating experience

Time away from family

Jay and Mallory raised the concern that attending an event also means spending time away from family, and that really resonates with me. As a parent of a young child, I don’t like being away for too long either.

The broader trend does seem to be towards shorter trips, since longer ones can become tiring quickly.

But what if: attendees can bring their partners and children along? Will that align with the community’s values, so families can enjoy the destination together while the event runs.

To me, this could help build even stronger relationships.

Newcomers may feel like outsiders in a reunion-style environment

When an event has returning attendees, helping newcomers feel like part of the family quickly matters a lot.

A pre-event online meetup, which was already discussed on the podcast, is a lovely way to let new members connect with familiar faces beforehand.

It also helps enormously when a host personally introduces newcomers to two or three people right when they arrive, and when a few returning members are gently asked to look out for someone new.

Post-event accountability could be more built into the event design

How do we make sure attendees are actually using the knowledge they’ve gained and acting on what was discussed?

And how do we measure it?

This is one of the biggest questions for many organisers and this ties closely to the event’s core purpose.

When designing an event, it helps to ask early on:

Why should people join, and what do we want them to do once it’s over?

With that clarity, the post-event structure tends to fall into place naturally. And you also know what to measure.

The next steps

What would I do when planning the next edition of the Offsite (especially if the idea is to have 2 of them a year)?

Start early. A year in advance is a typical planning cycle for an event of this type.

• Decide on the location and start building relationships with that destination. Perhaps it makes sense to look at which destinations support creator businesses more than others. Business tourism and convention bureaus may be able to help with that.
• Interview past attendees (and members), if you haven’t yet. Especially if you are planning to increase the rate, it would be useful to make sure you are building according to their expectations. We already know attendees want more conversations and smaller group experiences. What else would make this a must-attend for them? 1:1 time with Jay? Or other creators?
• Work through the Event KPIs and objectives. This can help clarify your main goal, your target audience and their goals, expected outcomes for both you and the attendees, the learning environment, what behaviour change you expect from attendees, and how you are going to measure all of that before, during and after the event.
• Build the budget with best- and worst-case scenarios, incorporating sponsorships, if planned. Important to note that if sponsorship is part of the event revenue strategy, it should have its own strategy too: who, what, when and how much.
• Upon registration, ask what the #1 thing attendees would like to answer, learn, meet or take away from the event — this will inform you what to focus on most at the event.
• Decide on the venue and negotiate a flexible agreement. Venues don’t always love it, but there may be more flexibility than you expect. It is better if you have several options to choose from, as this helps in negotiating.
• Start designing the experience, which is not only the programme, but all the touchpoints before, during and after the event.

For me, an event really has a circular life cycle rather than a linear one with a start and end.

Hope that was helpful.

This turned into a longer piece than planned, but Jay’s openness in sharing real numbers made it too good an opportunity to pass up.

Events like this offer a rare, honest look at what running a premium community gathering actually costs, and where a few thoughtful adjustments could shift the entire economic picture.

And that’s exactly why I love looking at event economics.

Not because every community event needs to become a profit machine, but because a well-designed event can create significant value for members without becoming a financial burden for the organisation.

If you are working through the economics of your own community event, feel free to get in touch.