I think all the folks in our retreat community would agree that hosting a retreat can be a deeply rewarding experience, offering the opportunity to transform lives while doing what you love most in life!

However, as magical as retreats can be, they can also be financially risky if not planned and executed carefully. Unfortunately, many retreat leaders find themselves facing unexpected costs, lower-than-expected turnout, or other issues that eat into their profits—or worse, leave them in the red. 😂

So, what are the most common reasons retreat leaders lose money, and more importantly, how can you avoid these pitfalls?

Here are the TOP FIVE reasons and strategies to ensure your retreat is not only impactful, but also profitable.

As usual, feel free to email me back and lemme know what YOU think! Here we go….

1. Underestimating Costs

The Problem:
One of the most common reasons retreat leaders lose money is underestimating the total cost of hosting the retreat. From accommodation and transportation to food, supplies, and marketing, credit card costs, the expenses can quickly add up. Many leaders forget to account for smaller, hidden costs like transaction fees, tips, currency exchange costs, or travel insurance, which can all chip away at your profits.

How to Avoid It:
Start by creating a detailed budget that includes every possible expense, no matter how small. Be sure to include a buffer for unexpected costs—around 10-20% of your total budget is a good rule of thumb. Use a comprehensive pricing worksheet to factor in all costs, from the obvious to the obscure. Regularly review your budget throughout the planning process to ensure you’re staying on track.

2. Improper Pricing of the Retreat

The Problem:
Setting the price too low in an attempt to attract more participants can backfire, leaving you with slim margins or even a loss. Conversely, setting the price too high without clearly communicating the value can deter potential attendees. (And believe me, pricing is a BIG issue!!)

How to Avoid It:
Proper pricing starts with knowing your hard costs, your ideal client (and what they want and need) as well as understanding the perceived value of your retreat. Make sure you price your retreat based on a realistic assessment of all costs, including your time and expertise. (Remember, you’ll be working over 100 hours planning and delivering your retreat!) Factor in your desired profit margin and consider offering tiered pricing (e.g., early bird specials, payment plans) to accommodate different budgets. Clearly communicate the value participants will receive—both in terms of the transformation they’ll experience and the tangible benefits like accommodations, meals, and activities.

3. Low Enrollment

The Problem:
You’ve planned an amazing retreat, but only a handful of people sign up.😱 Low enrollment can lead to financial losses, especially if you’ve already committed to paying for accommodations, venues, or other non-refundable expenses.

How to Avoid It:
Start marketing your retreat as early as possible—ideally 6-12 months in advance. Focus on building your email list and engaging with your audience consistently through social media, webinars, and other channels. Utilize testimonials and success stories from previous retreats to build credibility. Consider offering early bird discounts or referral incentives to boost enrollment. If possible, set a minimum number of participants and be clear about it on your retreat page. If you don’t reach that number, have a plan in place for rescheduling or canceling the retreat.

4. Poor Contract Negotiation with Venues

The Problem:
Poorly negotiated contracts with retreat venues or service providers can lead to unexpected fees, higher costs, or even losing your deposit if the retreat doesn’t fill up as expected.💯%

How to Avoid It:
Always read the fine print and negotiate the terms of your contracts with venues and service providers. Ask for a clear breakdown of costs and clarify any ambiguous terms. Try to negotiate favorable terms, such as flexible payment schedules or the ability to reduce the number of participants without penalty if enrollment is low. Make sure you understand the cancellation policy and any penalties associated with changes to your booking.

5. Inadequate Post-Retreat Monetization

The Problem:
Many retreat leaders rely solely on the upfront revenue from ticket sales and miss out on the potential to monetize after the retreat ends. This leaves money💵 on the table and reduces the overall profitability of your retreat.

How to Avoid It:
Plan your post-retreat monetization strategy before the retreat even begins. This could include offering follow-up programs, coaching sessions, online courses, or future retreat discounts. During the retreat, introduce these offerings and make it easy for participants to sign up. Ensure that your post-retreat offerings align with your retreat’s theme and the needs of your participants, so they see the value in continuing their journey with you.

To sum it all up…

Running a successful and profitable retreat requires careful planning, clear communication, and a solid understanding of your costs and pricing. By avoiding these common pitfalls—underestimating costs, improper pricing, low enrollment, poor contract negotiation, and inadequate post-retreat monetization—you can ensure that your retreat not only changes lives but also contributes positively to your bottom line.

With the right strategies in place, your retreat can be both a fulfilling and financially rewarding experience. If you want to avoid these issues and more, consider joining our Retreat Blueprint Program.

It’s just what you need to prevent you from losing money on your retreats! And iI you’ve been thinking of joining the program and have some questions, we’re happy to hop on a call with you!  Happy retreat planning! 😍