The Different Pageant Business Models
How do pageants make a profit? It depends on the pageant business model. In this article, I will be reviewing several business models based on my 21 years of experience in the pageant industry as a competitor, judge, and sponsor.
U.S. Pageant Business Model
These pageants require contestants to pay an entry fee to compete in the pageant. Typically, this does not include the travel, lodging, food, hair and makeup, etc. The entry fee covers the cost of the pageant production, staff, set up, and other expenses incurred by the pageant organization. There are local, state, national, and international pageants. If a contestant wins their local pageant, they move on to the state pageant without paying the state entry fee, but there may be other additional costs like an opening number dress or tickets to the finale. The same applies when winning a state pageant and going to the national pageant, and so forth. Many pageant systems also have appointed titles, where contestants do not compete at a local pageant, but go straight to the state pageant and pay the state entry fee. Or in some cases, they do not win their state pageant, but go to the national competition and pay a national entry fee.
Many of these pageants are also able to generate revenue by asking contestants to sell advertisement pages for the pageant program book. A pageant program book is like a yearbook for pageant contestants to share their headshots, and if they have sponsors they can be showcased on an ad page like a magazine or newspaper. Some of these pageants also have optional competitions like People’s Choice, Best Hair, Photogenic, etc., that contestants can choose to participate in for an additional fee, but it is not required.
Franchise Pageant Business Model
Larger pageant organizations have state and regional directors that operate under that system, typically as a franchise. Similar to large franchise chain restaurants like Subway, state directors need to pay a franchise fee along with expenses that tie into the branding of that pageant organization. For example, a Subway franchisee would need to buy the wallpaper, grill, food, from Subway’s specific vendors. The Miss Florida USA state director needs to have the Miss USA state vendors’ crown, sash, logo, etc. Miss USA would have revenue from the state directors’ franchise fees, along with tickets to the show, sponsors, etc. The state directors would have revenue from the state contestants’ entry fees to compete at the state pageant. Miss Universe also has a franchise model, and national directors interested in running a country pageant for 2024 applied here.
Pageant Business Model Outside the U.S.
Some international pageants follow the same business model of most U.S. pageants. However, there are many that are fully supported by business sponsors because it is great international marketing. For example, many international pageants are dedicated to promoting tourism in the pageant’s host country or host city. It is an exciting opportunity for these host country hotels, transportation services, restaurants, and excursions to welcome representatives from many different countries that can provide exposure to new audiences from around the world. When there are no fees involved in an international pageant, contestants instead provide promotional marketing, modeling, and brand ambassador services to these business sponsors. Similar to Nascar races where there are advertisements around the race track, these pageant stages, step and repeats, red carpets, and even sashes are covered in the business sponsor logos. Additionally, pageants are much bigger in other countries like the Philippines and Colombia, where a lot more businesses would want to be involved compared to the USA.
This can also apply to other countries’ pageant competitions. In my interview with former Miss Universe Sweden, she discussed how there were no entry fees to compete in Miss Gothenburg or Miss Sweden, even their gowns at the national level were sponsored. However, we also discussed how Sweden as a country is known for covering costs in general compared to the USA for things like healthcare and college.
Conclusion
Honestly, most people who direct pageants are not doing it for the money, but out of the love for pageants, how it empowers girls and women, and the opportunities pageants can provide them. As entrepreneurs, there is always risk in building your own business, but the expenses involved in running a pageant makes it even more challenging to profit. For example, let’s look at the wedding industry and all the costs involved with the venue, DJ, food, photographer, etc. Now imagine the cost of multiple hotel ballrooms, setting up a stage, music, lighting, photography, and videography for 20 to 500 ladies! Most pageant staff members are volunteers that want to help the pageant, just like that pageant system helped them.
Pageants are mostly lead, operated, and consumed by females. That is one of the main reasons why I love pageants and will continue to advocate that pageants are not antifeminist. Rather, the media and society as a whole are more prone to criticizing women. As our society continues to change with ever-evolving technology, I am curious to see how our pageant business models will change too.
