How is revenue from gross ticket sales at a mid-level music venue split between the venue, the band, and others?
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I've often wondered what a mid to upper level indie rock band takes home from each show they do on tour. Take the Decemberists for instance. If they play a 2,500 seat venue like the House of Blues in Boston, and sell that out all tickets for an average of (let's just say) $30 each, what are they taking in as a band for that show. So $75,000 in gross ticket sales for one show. How is that money split between the venue, the promoters, the band etc? I've just been curious what a band like that, playing sometimes 5 shows a week, really is pocketing (after splits, expenses, etc) for a week on an average tour.
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Answer:
Ok, doing some more research, I am going to answer my own question (in part). Forgive me if I am COMPLETELY wrong here, I am just trying to guess at the economics of how these things work. A friend pointed me to http://www.prettypolly.com/, which lists rates for booking a band. The Decemberists are actually listed, at a "Price" of $40k. So based on this flat-ish rate, my assumption is that the Decemberists have determined that ~$40k per show, allows them to make what they need to make, after their expenses. House of Blues then assumes some moderate risk by just paying the $40k to book the band, and then sets the ticket prices, factors in the bar revenue and then their own costs. Then when all is said and done, looks to end up making some amount of profit over that $40k when everything is settled at the end of the show.
Andrew Teman at Quora Visit the source
Other answers
A typical deal structure would include an artist guarantee (roughly 1/3 of gross gate receipts) and a split of 'back end' profit that would be shared between the promoter and artist (80/20 or 85/15 in favor of the artist). 'Back end' profit is what remains from ticket revenue after covering all expenses (artist fees, rider, production, marketing + advertising, venue rental, insurance, misc, etc...). Deal structures will vary depending on the venue (how expensive it is, if the staff are union members or not, if it's owned by the promoter) the artist (history in the market, developing or established act, what other competing offers exist for the act) and the promoter (do they have leverage, are they offering on multiple shows or markets, etc...). If they are not owned by the promoter, the Venue will get a flat rental fee + security fee + concession sales and sometimes a piece of merchandise sales. So a very rough estimate for The Decemberists show would be $25,000 plus 80% of net gate receipts after expenses of approx $55,000 with a walkout potential of $41,000 ($25,000 + $16,000).
Adam McIsaac
Usually by the time a band is playing 2500 seat venues, they are not taking a split of the door. Instead a promoter is paying the band their flat booking fee and for whatever items are on their hospitality rider.The promoter is then renting the venue, again for a fixed cost (room plus labour), and for any backline (guitar amps, drum kit, etc.) that needs to be rented.The venue or ticketing company will make extra money on any ticketing charges, the venue makes money on beverage sales, and the band can make money on merchandise sales. Sometimes the venue is involved in staffing merch booths and so takes a cut of that.All left over ticket revenue goes to the promoter. They make the most because they take all the risk - if the concert flops, they still have to pay all the upfront costs of the band and venue.
Jason Salvatori
Worth noting that http://prettypolly.comis for college bookings. I have always been under the impression that college prices don't necessarily reflect what bands actually make at normal venue concerts, and in some cases may even be much higher. Can anyone confirm this? Other examples: http://main-stageproductions.com/music http://www.talentcompass.com/music
Anonymous
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