10/26/2021
Canceling Your Event Speaker Due To COVID?
Truth: Don’t Rely on the Force Majeure Clause. Here’s What You Can Do Instead.
Most meeting organizers have experienced some sort of shift or cancellation in live meeting plans over the past 18 months. Negotiating cancellations or postponements with any professional keynote speaker or celebrity involves a similar process as negotiating for cancellations or postponements with hotels and catering. While many of the same principles apply, there are some things to consider that will make your negotiations with your professional keynote speakers more favorable.
Let’s start with one of the most important considerations--the Force Majeure clause. Prior to COVID, nearly every speaker’s contract had a Force Majeure Clause. This clause covered any act of nature that might impede the speaker from arriving on time, or the venue from being able to host the meeting. It was a loose clause that no one really paid much attention to. In 2020, COVID brought that clause to the forefront. And, based on that clause, most speakers and their agencies gave clients a pass and allowed them to either postpone or cancel the dates. The reality is (and was) that COVID isn’t a Force Majeure situation. A prominent attorney to the meeting and event industry, Jonathan T. Howe ESQ, weighed in on this topic in his recent article in Meetings and Events Magazine. His advice: The place to protect against a pandemic related change to the contract is in the cancellation or renegotiation clause. This is also the consensus here at The Keynote Shop and among most professionals in the speaking industry. To that point, meeting organizers should already be noticing some changes to the latest speaker contracts and should expect to see iterations of this language in speaker contracts going forward.
So what should meeting organizers know about contract negotiations with professional keynote speakers? Here are five important considerations.
1. Understand the true meaning of Force Majeure language
Common Force Majeure language looks like this:
Neither party shall be held liable or responsible to the other party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any obligation under this Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected party, including but not limited to fire, floods, embargoes, war, acts of war, insurrections, riots, strikes, lockouts or other labor disturbances, or acts of God.
In the spring of 2020, the professional speaking industry accepted cancellations as if they fell under Force Majeure terms. In 2021 that’s no longer the case. If an event is planned - with today’s knowledge of the pandemic, social distancing, and vaccinations - then if the organization or the speaker feels they have to cancel, it is now a choice - not an act of God. That can be a tricky thing to wrap our minds around because it’s easy to think the pandemic has left us with no choice but to cancel or postpone, but the truth is there are now alternative options for delivering an event. They may not be our first choice and it’s certainly a disappointing blow to cancel a live event, but thanks to virtual technology, a high-quality production company can deliver an event in real-time with a high degree of audience engagement. The majority of top-rated keynote speakers are quite capable of delivering their program virtually. Therefore, it is no longer impossible to hold an event on any given date.
2. Negotiate a thorough Plan B
So what are the considerations for negotiating with professional keynotes speakers, corporate education speakers, and corporate entertainers? Most importantly, be certain that you have the “what if” conversation with the speaker upfront and include the language needed to protect your comfort level in the event of a cancellation or postponement. Don’t fall back on standard Force Majeure language to cover your interests in a time such as this. Instead, work with the speaker or their agent to craft language that clearly spells out what happens if a choice is made to pivot from a live event.
What specific terms should be included in the contract when meeting planners hire a professional keynotes speaker? While we all hope our live events will be a reality when the date arrives, meeting professionals should have a plan B carefully thought out before negotiations begin. It is important to communicate upfront about what Plan B will entail. Make this a part of the initial conversation. Both parties must be transparent about their capabilities in terms of expected format, virtual platform, choice of production, etc. Of all the discussion points, format and fee are two biggies when it comes to negotiation with any professional keynote speaker and these are the two points both parties should discuss and be comfortable with before going forward with any final commitments
In terms of the format, if an in-person meeting becomes undesirable or impracticable, can the speaker quickly switch to a hybrid or virtual option? Will the length of their session need to change? Can they adapt to a more interactive platform? Don’t assume every speaker is as capable virtually as they are on stage at a live event. Most professional keynote speakers have adapted their content to a virtually appropriate version and most have implemented the technology on their end to handle a virtual presentation effectively. However, there are outstanding, award-winning presenters who are just not fantastic in a remote setting. Discuss this in detail with the speaker and don’t be shy about asking to see examples of their virtual presentation.
In terms of the fee, be sure to address any fee adjustments that will apply in a shift to virtual. Most speakers offer discounts for virtual presentations. However, meeting organizers should be aware that for most speakers the amount of time needed to prepare for a virtual event is more than for a live event. For that reason, don’t assume the speaker will reduce their fee if the event pivots to virtual.
How do you negotiate with a professional keynoter if your event can’t convert to virtual? Because of the nature of the event or the culture of the audience, it may be less than desirable to convert to a virtual format. If that is the case, make sure the speaker is open to rescheduling within a certain time window. Expect that window to be finite (usually a new date must be selected within 12 months from the original date). When it comes to a deposit, expect that you will be required to pay a deposit upfront, and expect that the deposit will likely be non-refundable even if you do not reschedule.
In summary, the negotiations - and ultimately, the contract - should include an exact set of terms outlining a contingency plan. This makes for a longer, more complex negotiation process, but it’s well worth the time and peace of mind.
3. Realize that there is no “standard”
As the complexities of negotiating a Plan B would suggest, there are now many different ways to negotiate a speaker's contract. One item, however, that is of utmost importance to the speaker is the integrity of the date that will be purchased. It’s important for meeting planners to realize that when they contract with a professional speaker or celebrity, they have effectively purchased a unique date on the talent’s calendar, one that cannot be sold to anyone else. Prior to the availability of top-quality digital production, it was understandable that clients would have no alternative but to cancel or reschedule. Now, with the prevalence of excellent quality digital streaming and visual technology, the expectation from professional speakers is that the event will pivot to virtual, thus their contracted date will be honored. That said, professional keynote speakers understand that not every audience is cut out for a virtual experience. If pivoting to virtual is off the table, that should be one of the first points that you should make clear. Enter negotiations in the spirit of mutual good faith by all parties, and the sincere intent to purchase a date on the speaker’s calendar, and you’ll find most speakers and agents will be accommodating.
4. Be creative, flexible, and fair
Marty Latz is a renowned negotiation expert, author, and professional speaker who was a negotiator for The White House on the White House Advance Teams and was an Adjunct Professor of Negotiation at the Sandra Day O’Connor College of Law at Arizona State University for ten years. A former Harvard teaching fellow, Mr. Latz offers the following wisdom for negotiating in an ever-changing, uncertain environment: “Be creative and don’t dig your heels in on minor elements.”
As Marty advises: “Focus on the parties’ underlying interests versus their positions and be fairly transparent about why you want or need a particular provision – not just what you want.”
These are words of wisdom. It’s easy to be unyielding in negotiations and the last year has left us all feeling overly cautious about our own interests. When you are negotiating with your professional keynote speaker, be transparent about why a particular interest is important. Why is a deposit non-negotiable? Does the meeting space have a cancellation policy that is helpful for the speaker to understand? Now is not the time for hidden agendas. Be open about the plan and the potential roadblocks ahead. You’ll be amazed at how creative and flexible professional speakers and their agents will be.
5. Use a professional speakers bureau
If adding another set of negotiations to your list is overwhelming, what’s one thing that will make the entire process of hiring your speaker a thousand times easier? Turn to an expert. Sourcing your professional keynote speakers, celebrities, and other presenters through an experienced, reputable, non-exclusive speakers bureau guarantees you a number of things:
First, you’ll have the industry’s very best speakers at your fingertips. Working with a bureau takes the common fear of hiring the right individual off your mind. Reputable bureaus only represent a stable of highly respected professional speakers. A knowledgeable, attentive agent will guide you to hand-select the perfect voice and messaging for your event.
Second, bureau agents are skilled in negotiations and we help set the protocols for what professional keynote speakers expect when it comes to hiring them. A reputable agent will work closely with both parties to negotiate the sticking points and make sure that both parties feel good about the terms. Agents spend their days booking speakers for events. They know what questions to anticipate to make sure they meet the needs of both the keynoter and the meeting planner. This saves both the meeting planner and the speaker valuable time and streamlines the process of selection, contracting, and payment. Win-win.
Third, a bureau will handle many of the stressful details. If a meeting does need to be postponed or switch to a virtual setting, the bureau will step in to make those arrangements, issue any necessary contract amendments, adjust invoices, negotiate for new dates and handle other communications. With the risk of change over the next twelve months, this kind of safety net and support can be a priceless resource to fall back on.
Finally on a personal note, the underlying spirit of the meetings and events industry to support each other has been magnified during this pandemic. I have seen event planners and speakers come together in unprecedented ways to make gatherings work. It’s been exhilarating to watch the collaboration and effort taken to be sure that the message is delivered to eager audiences - no matter the method! Their focus has not been on the minor details but on working together in the spirit of what’s best for the audience. As we say, the show must go on and the power of the spoken word continues to change lives. No pandemic will ever change that.
Who are the most influential thought leaders in the business world? The Keynote Shop is a professional speaker bureau representing business experts who speak, business consultants who speak, motivational and inspirational speakers for conference openers, corporate entertainers, and celebrities for corporate appearances. We are a 100% woman-owned and woman-founded bureau for professional keynote speakers. Collectively we offer over 30 years of experience in matching professional speaking and entertainment talent with conferences and events. Need a negotiation speaker or sales speaker for your next event? Email us here for customized recommendations.
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Who are the most requested professional keynote speakers for 2022? Contact us at The Keynote Shop for recommendations and introductions [email protected] the highest-rated professional speakers. Our top picks include:
*Top leadership speaker and change-catalyst, Alana Hill.
*Leading sales expert and author, Mark Hunter.
*Culture and resilience speaker, Courtney Clarke.
These are some of the premier thought leaders in the industry and they are prepared to guide your organization through these changing times. Contact Gina Davilla here to reserve a date and book the very best professional speaker for your next meeting.
