Should you charge awards entry fees?

Running an awards program is a fantastic way to acknowledge people or organisations making bold strides in your industry. 

A winning awards program is made up of multiple moving parts, most of which require budgeting. And, to help offset costs, it’s a common practice to charge applicants entry fees to participate. However, it’s not so cut and dry. 

Should you charge entry fees to your awards program? There are differing opinions, which we’ll go over in this article. 

On one hand, entry fees –and a robust awards program–are an investment into your business or organisation. A thriving awards program requires proper administration, marketing, a credible panel of judges and a notable prize. Without sufficient funding, achieving these can be challenging.  

If you, as the organiser, don’t have sufficient funding or don’t want to lean on sponsorship, awards entry fees are a good source of revenue.

On the other hand, some participants see awards entry fees as unfair and exclusive. It narrows participation, the prize and other benefits that come with entry only to businesses and individuals with enough funds to pay. Consequently, other deserving but less buoyant entities miss out on the opportunity simply because they can’t afford it.

Some even view entry fees as red flags – suggesting that the contest might be nothing more than a dishonest way to get entrants to part with their money–a “pay-to-play” scheme with no real benefits to the winners.    

When should you charge awards entry fees? 

As an organiser, certain situations make it necessary and appropriate to charge entry fees. If your awards program offers immense value for all entrants, it’s appropriate to charge. Since winners and non-winners alike stand to benefit a lot from the program, it’s fair to pay for entry. 

As a matter of fact, the price tag will further boost credibility and brand image as people typically associate prized offerings with good value.

Also, if your organisation has a good reputation in its industry, it’s appropriate to charge applicants. Building a name and carving out a place for yourself in the world of business is no mean feat. 

Participants will be happy to identify with your brand by way of participation and to be recognised for emerging victorious in your awards program. Leveraging such a unique position as a revenue stream is a smart business strategy.

It’s also possible to offer awards entry fee discounts. With Award Force, for example, it’s simple to set up online payment with pricing rules and discounts to help your entrants.  

With the right plan, entry fees have the capacity to attract more and higher-quality applications. They can drive greater interest and dedication to the program. 

Generally, if you have your marketing and communication efforts on lock, along with a fair pricing strategy, entry fees will not adversely impact the quantity and quality of submissions. As long as there’s no real threat that an entry fee will compromise the quality and quantity of applications, charging for participation can be a great strategy to support and grow your awards program.        

When shouldn’t you charge awards entry fees?

On the other hand, you shouldn’t charge entry fees if your awards program is relatively new or not very popular. Doing so will only serve to reduce the number of potential applicants that you attract. Focus, instead, on building your brand and gaining a reputation in your industry – free entry is a good way to get your name out there.

Also, if your awards program recognises people and organisations for their charitable deeds and positive contributions to society, it’s better to allow free entry. 

Charging entry fees, in this case, might send the wrong message. 

Best practices when you charge entry fees 

If you choose to charge entry fees for your awards program, here are some tips to ensure that you get it right:

• Implement a fair or reasonable awards entry pricing model. This will ensure that it’s accessible to all deserving entities
• Use award management software with a robust payment portal. The Award Force platform ensures hassle-free payment in any currency, flexible pricing, financial administration and security.   

In conclusion, the answer to the question of whether you should charge award entry fees is that it depends on your award program and the surrounding circumstances. 

If you’ve built a name for your brand in the industry or the program offers immense value or you’ve set up the program well that charging won’t impede submissions, then entry fees are appropriate. 

Charging entry fees isn’t compulsory, but if approached tactfully, it can prove efficient for maximising your revenue.  

But if your organisation is relatively new or the program focuses on humanitarian efforts, it’s ideal to make entry free. 

Read more about configuring online payment in Award Force