Event Planning Employment

The Business Side
of Working in the Event Industry

Just like with any job, there is a business side to working in the event industry; and it is important to understand the various forms of event planning employment.

There are logistical issues to consider when choosing your career path, especially if you intend on working in any one of the areas of event planning in which you can be a freelancer/independent contractor, or if you plan on owning your own event planning business. Understanding these differences can determine what path you take and on which kind of employment you will focus your search.

On this page I discuss the three main areas of consideration when you are choosing your path in the event planning industry:

1. Business Structure
2. Pay
3. Taxes

Does all this "business side to business" make your heart beat in fear? Don't panic. It happens to me, too. That's why we are in a creative industry, it's our nature to not like this stuff! But you still need to understand the basics enough to decide what direction you want to take your career.

It's not that difficult. Here's a basic rundown:

1. Business Structure:
   • When you work independently (instead of as an employee), you are in essence creating your own business. All businesses must declare a legal structure. Legal structures include, but are not limited to: sole proprietorship, limited liability company (LLC), different forms of partnerships, and different forms of corporation. Your legal structure will determine a number of things regarding your business, most importantly:
     • How you will get taxed, and
     • Your liability if something should happen while you are working.

   • There are countless resources on the web to teach you the details of each of these legal structures; and, again, you should consult an attorney and/or accountant when deciding. Small Businesses for Dummies also does an excellent job of explaining this; you can click here to read more about it.

   • In general, if you plan on working as an independent contractor as an on-site event manager, or for DMCs or catering companies, you more than likely will work as either a sole proprietor, a corporation, or an LLC.

   • If you plan on opening your own event planning company, a lot of other factors become involved. Again, consult with a professional before making any decisions.

   • If you know you are going to work as an employee at an event planning company or as a planner in a large corporation, this does not apply to you.
2. Pay:
   • Hourly: Usually you will be paid hourly if you are working for a DMC, a catering company, as a banquet server, or perhaps an AV company. You also can get paid hourly to plan events. The fees vary greatly between regions of the country; but just to get an idea, most DMC companies pay between $12 to $24 per hour. As a planner, you can make between $30 and $50 (or more, with experience) per hour. Network with your colleagues to find out the average rate in your area.

   • Daily: If you plan on working as an On-Site Event Manager and traveling all over the world to work at events, you will be paid on a daily basis. There will be a flat fee offered to you (ranging roughly anywhere from $200 on the low end to $350-$400 on the high end) per day, plus a per diem to cover food and other expenses. To learn more about working as an On-Site Event Manager, click here.
     
     
   • By Project: This is a common fee structure once you start working as an independent planner. There are many factors to consider when setting your fee for a project; estimated hours that the project will take, additional expenses, overhead such as printing, phone and internet usage, etc. Network with your colleagues to find the best rates to price yourself out at in your region or in each specific industry.

   • Salary: if you plan on working as an employee at an event planning company or a larger corporation, then you be paid by salary.

   • Rates very greatly across the country. Do your research either on the web or by networking, as discussed on the “Career Planning” page. To get a very general idea of rates in your region, check out www.salary.com. However, keep in mind that the event planning business is a volatile and dynamic industry, so this will only serve as a guideline.
3. Taxes: Your business structure will affect how you pay your taxes, so it is important to meet with a small business attorney and/or an accountant.
   • If you are independent in any way (sole proprietor, corporation, or LLC), meaning you are planning on working either for a DMC, a caterer, an on-site event manager, a freelance/independent planner, or (sometimes) a banquet server, then you will be paid on a 1099 basis.
     • This means that your clients will pay you for the entire project, without any taxes withheld. That can be pretty exciting, when you get that large lump-sum check. But your success as an independent will rely on your ability to budget out and save a portion of that check to go toward taxes. Since you are not an employee, the government does not withhold part of your taxes; and so you must write a check to the IRS and to your state for your taxes every year. You also should pay your taxes quarterly to avoid fines and interest; be sure to talk with your accountant about this in greater detail.

     • This also means that you need to learn to keep every receipt for anything you pay for throughout the year that is business-related. This is called a write-off; this means that you deduct that amount out of your total income as a business expense, which changes the amount that you are taxed on. Your accountant will guide you on what you can or can’t write off. In general, things like food or cabs while traveling, software or other office supplies, and even association fees can be written off. Again, consult your accountant; but be prepared to create an organized system of paperwork and tracking your receipts.
   • If you plan on starting your own event company, you will need to consider a number of factors, to be discussed with your attorney and/or accountant.

   • If you plan on working as an employee, this does not apply to you; unless you want to “moonlight” and do some extra work on the side.

Almost everyone dreams of the day they no longer have to answer to someone else. If you find that your freedom is more important than a steady paycheck, if you want to work on your own schedule instead of someone else’s, if you dream of never having to go into a cubicle ever again, then being an independent contractor might be for you.

We’ve already discussed a few of the jobs that you might be able to find as a freelancer; catering, DMC work, AV work, and banquets.

But if you want a career as an independent planner, you should first become an On-Site Event Manager. This is the single most logical step to take if you ever want to be a planner. There is much more about this topic here.

As you will see, working as an On-Site Event Manager gives you the chance to learn every aspect of meetings and events, while traveling the world and working for yourself!

Therefore, if you choose to take the “independent” route, it helps if either you have at least six months’ of bills in savings, or another flexible way to make income. Many people (myself included) had to work random jobs while building up their clientele. I had to wait tables for two years while I was starting my freelance career. It seemed like a long road at the time, but now, I can look back on 15 years of a career in events because I was willing to take the appropriate steps. And I still have a lifetime of events ahead of me.

And, while you are working, the steps as outlined on the “Career Planning” page still apply. Volunteer for events in your area, and start networking and attending association meetings. Go on informational interviews. And before long, your dedication and hard work will pay off!

So, while you might be impatient to get started, I can’t stress this enough: put in your time now, take the right steps, and years from now you’ll be glad you did!