How long will it take for you to learn this lesson about your Small Magical Event?

The money Is elsewhere.

Ouch.

The reason you will keep reading is because you know it is true.

You have spent years, maybe decades, trying to make your event profitable.

And?

Let me make my point from an unlikely source: Nespresso.

How Nespresso’s Business Model Mirrors the Future of Experience-Driven Events

Nespresso revolutionised the coffee industry by shifting its profit focus away from the machine and toward the consumable product—the coffee pods. This strategy mirrors how small, high-quality events should prioritise reputation over direct profitability, as the true financial upside lies in ancillary products, long-term loyalty, and brand influence.

I. The Core Idea: Sell the Machine, Profit from the Pods

Nespresso’s success wasn’t built on selling coffee machines—it was built on a business model that sacrificed margin on the hardware to lock in long-term profit from recurring coffee pod purchases. This principle is widely recognised in the razor-and-blades model, where the initial product is the gateway to a much larger, ongoing revenue stream.

Key insights:

? Nespresso machines were priced just low enough to feel accessible but premium enough to suggest exclusivity.

? The real money came later: once consumers owned a machine, they were committed to buying Nespresso’s proprietary coffee pods, ensuring a high-margin, long-term revenue stream.

? The strategy created an ecosystem—an emotional connection between consumer and brand, reinforced by convenience, habit, and product quality.

II. Applying This Model to Small Magical Events

Most event organisers try to make money directly from ticket sales, just as most coffee machine manufacturers tried to profit from the machines themselves. However, just as Nespresso saw the money was in the pods, event creators should recognize that the financial upside is not in the event itself but in what it enables afterwards.

How this plays out:

? Sacrificing margin on the event: If an event is small and intimate, it should focus on delivering an exceptional experience, even if it means breaking even or operating at a slight loss. The event is the “machine”—a gateway to deeper relationships.

? Where the real money is: The financial upside comes from what follows—whether that’s high-value memberships, consulting, follow-up retreats, product sales, or even an industry-shaping reputation that leads to bigger opportunities.

? Reputation as the real asset: Just as Nespresso used exclusivity and quality to create brand stickiness, an event that prioritises experience and connection can build long-term influence that is far more valuable than immediate profit.

III. The Long-Term Game: Creating a Subscription-Like Model

Nespresso didn’t just create a great product; it engineered habit formation. Buying a Nespresso machine wasn’t a one-time transaction—it was an entry into a continuous loop of engagement and spending. This is the ultimate goal for event organizers: creating a system where attendees don’t just come once, but stay engaged long after.

Event parallels:

? Building a community instead of a one-time audience. A great event should have a high-return rate, just like a Nespresso user who keeps ordering coffee pods.

? Offering a premium after-experience. Just as Nespresso offers exclusive coffee blends, limited-edition flavours, and members-only perks, a small event should lead into deeper engagement—whether it’s an inner-circle membership, private mastermind, or recurring touchpoints.

? Ensuring repeat revenue. The best events are those that create a system where people don’t just attend once, but invest in the ongoing journey—whether that’s through digital content, courses, advisory services, or a continued relationship with the brand.

IV. The Mistake Most People Make: Focusing on the One-Time Transaction

Most businesses (and event organisers) fail because they focus too much on immediate profit. Traditional coffee machine manufacturers tried to make money on the machines, but Nespresso changed the game by focusing on where the real value was: long-term consumption.

Similarly, event organisers often price their events to maximise ticket sales rather than thinking about what happens next. The real play is not in selling a ￡5000 event ticket, but in using that ticket as an invitation into a deeper world of engagement, belonging, and future opportunities.

Building for Influence, Not Just Revenue

Nespresso’s model proves that sacrificing margin on the front end can lead to a much bigger win on the back end. The best small magical events should adopt this same mindset: the goal isn’t just to make money on the event itself, but to use the event as a reputation and relationship-building tool that creates a long-term, high-value ecosystem.

Key takeaway: The event is not the product. It’s where you make a reputation.?

Think of any 3-star Michelin Restaurant. It makes a reputation on the food, and money on the wine. Wine is the elsewhere business.