We have two locations that host monthly tournaments. I pulled the 2016 figures (as much as are out thus far at least; I had 12 points of data for Location 1 and 10 points for Location 2) on both. It may be interesting/useful.
Location 1: $5 entry + coin drop. Payout to top 3 finishers. Waives $5 fee for first-time attendees. 10 machine bank. Average attendance of 19.75 players per month (low of 13 and a high of 24). The average attendance of non-rated players is 1.67 "newbies" per month.
Location 2: $5 entry + coin drop. Payout to top half of the field. 7 machine bank. Average attendance of 20 players per month (low of 10 and a high of 31). The average attendance of non-rated players is 3.5 "newbies" per month.
Cost barrier is very similar. Coin drop average is higher at Location 1 (most machines at $0.75/play) than Location 2 (most machines at $0.50/play) but cost per tournament is still pretty similar at both locations. Location 1 is a bar but it allows kids to come in and play. Location 2 is a restaurant (pizza joint). The two locations are about 20 minutes apart. Location 1's tournament has a reputation for being where the better players consistently attend.
Anyway, looking over this, the average monthly attendance is very similar for both places. What's more telling is how many of those people are relatively new to competitive pinball. There's a significantly better pull on newbies for Location 2. And I think it's for a mix of reasons:
1) When I word-of-mouth to someone, I recommend Location 2 more than Location 1 for a first tournament, because I think they'll find it less intimidating. From speaking to others I don't think I'm alone in doing that.
2) Location 2's payout model means even not-so-great players have a chance of at least winning their entry fee back. I know I was pretty thrilled the first time I won back my entry fee, and I've done at least that well there multiple times. I've never won money at Location 1 by comparison.
3) Location 2 is located in the same strip mall as another location with pins (bank of 7). So, if you wash out of the tourney and want to keep playing you can make the 30-second walk and do so there without waiting on the tournament to finish.
I think reasons 1 and 2 have the most impact, but no numbers to back that up obviously.