Why Project Managers Hurt Your Profit
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Tom Stimson
July 18, 2025
Team of professionals collaborating on project management and financial analysis in modern office setting.

Listen instead on your Monday Morning Drive:


The term “project manager” became ubiquitous in the live events industry in the 1990s.

At that time, it was fashionable for event staging companies to include project management “for free” (because customers wouldn’t pay extra for it).

“That’s just your cost of doing business,” they’d say.

This battle of semantics introduced the problematic concept of “value add” to our industry. A value add is something you do that costs money, but you don’t charge for it. In other words, it’s free.

Once you offer something for free, customers won’t pay for it later.

Quote: ISL - 7/21

The Problem With Project Managers

Project managers don’t convey much value to buyers. The title suggests, “My team can’t supervise themselves, so I’ll charge you to have me supervise them.”

While buyers have grown accustomed to this role (many now ask, “Who’s the project manager?”), the title still limits what you can charge.

Even worse, many companies assign additional responsibilities to project managers: calling the show, filling show positions, technical direction, or creating content on-site.

These valuable services are worth charging for. Instead, they create more “value add” (free work).

The Value Hierarchy

To understand what titles command higher fees, we need to examine who each role’s customer is. The more valuable the customer, the more valuable the role.

Here’s the value hierarchy in order of importance:

  1. The Audience: For most buyers, the audience is more important than themselves. We organize in-person events because the audience matters. If you address the audience’s needs, you can charge more.
  2. The Buyer: This could be the person assigned to buying or the organization bringing the audience together.
  3. Content Creators/Presenters: The people who go on stage or produce content delivered to the audience.
  4. Technical Crews: The suppliers and technicians who work on events.
  5. Administrative Functions: Accounts payable, accounts receivable, legal compliance, etc.

Adding Value Through Better Titles

The traditional AV model puts a project manager in the middle to connect what the buyer needs, what the audience needs, what content creators need, and what the crew needs.

But “project manager” isn’t a valuable title for this responsibility. A more valuable title (with a higher price!) is “producer.”

A producer takes care of the client-facing needs, focusing on the audience, the buyer, and the content creators. This is extremely valuable to customers because it addresses their top priorities.

Infographic: ISL - 7/21

The Title Hierarchy for Maximum Value

For more complex events, consider this structure:

  • Executive Producer: Has the final say on all decisions and is responsible for everything in the budget. Often, this person is on the client’s side, but you can offer to fill this role for a price.
  • Producer: Closer to the audience, buyer, and content creators. Manages the overlap between these groups and the event’s technical elements. They might also be the show director or hire one.
  • Technical Director: More expensive than a production manager. Responsible for technical solutions and oversight.
  • Production Manager: Manages a specific room, venue, or crew. Worth the extra cost over a project manager.

With this structure, a “project manager” becomes unnecessary. You’ve replaced it with roles that add value and command higher fees.

How to Recommend Producers to Buyers

Start by asking the buyer what matters to them:

  • “Tell me about your audience and why they’re important.”
  • “What will make you happy?”
  • “Who’s creating the content, and who has agency in that content?”

Then, explain what you recommend:

“This job needs an executive producer and a producer. The executive producer is responsible for making all the deliverables and your experience as a buyer as efficient as possible. The producer ensures we deliver the show and addresses all client-facing needs.”

Change Your Profitability

Even on a $50,000 event, adding a producer will:

These roles provide value buyers will pay for because they address the buyer’s most important priorities: the audience, the buyer themselves, and the content creators delivering the message. You’re not padding the bill. You’re solving real problems.

We can take care of the show’s technical aspects in our sleep. It’s these specialized talents and soft services that actually add value.

About Tom Stimson
Tom Stimson MBA, CTS is an authority on business and strategy for small- to medium-sized companies. He is an expert on project-based selling and a thought leader for innovative business processes.
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