Certified Meeting Professional (CMP) Practice Exam

In how many years do most new exhibitions typically start to generate profit?

1. 1 year

2. 2-3 years

3. 4-5 years

4. 6-7 years

The correct answer is: 2-3 years

Most new exhibitions typically start to generate profit in a timeframe of 2 to 3 years. This period allows for considerable investment in marketing, establishing a reputation, and building relationships with exhibitors and attendees. In the initial year, much of the revenue might be directed toward covering up-front costs, such as venue rental, promotional efforts, and operational expenses. As the exhibition gains traction and develops a loyal base of exhibitors and visitors, income from ticket sales, exhibit space, and sponsorship can start to outweigh expenses, leading to profitability. Additionally, this timeframe aligns with market trends, as it often takes time for an exhibition to establish itself in the industry and become a recognized event that participants want to attend. In contrast, it is generally not expected for an exhibition to turn a profit within just one year due to the high initial costs associated with launching the event. It can also take longer than 3 years for some exhibitions, especially those that are niche or require more extensive outreach and growth efforts in a competitive landscape. Hence, the 2-3 year timeframe is a commonly regarded standard in the industry.