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Do any members here know how concert promoters get paid?


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Promoters get the money from food and beer, band from merch in 99% cases. Promoter needs to pay the venue, staff, shit that band requested, promotion... And that's not cheap at all. Also GnR doesn't make the same for every show. Those shows that were guaranteed to sell a lot got GnR more money. I was in organization of several shows in small-mid sized venues (300-2000) and usually if we didn't make 33% profit we wouldn't find it successful. 

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All I know for sure is that some of the promoters of the UYI tour probably didnt walk away with as much as they'd anticipated.  Enter Barry Fey. :lol:

It was once a very regional industry.  Almost a cottage industry in some areas.  Major changes over last 25 years.  People will know way more than I do about how it works currently.  

edit: missed nicklords above post.   

Edited by soon
omission
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Hard to tell, there is so much going on these days. Like for example special deals with credit cards. Also they are now scalping their own tickets. I have checked Live Nation (GN'R Arena Shows) Now you can bid for tickets and you can make a counter offer. Hey! here it is my counter offer... GA Pit for free!! :lol: Needless to say the situation is the same with other artists

Seriously I really miss the old fashion way to buy tickets :(

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9 hours ago, Nicklord said:

Promoters get the money from food and beer, band from merch in 99% cases. Promoter needs to pay the venue, staff, shit that band requested, promotion... And that's not cheap at all. Also GnR doesn't make the same for every show. Those shows that were guaranteed to sell a lot got GnR more money. I was in organization of several shows in small-mid sized venues (300-2000) and usually if we didn't make 33% profit we wouldn't find it successful. 

This isn't correct with acts at this scale.

Below is an example.

A band has an Agent.  The Agent will inform promoters that their act will play 10 dates and invite Promoters to bid for the right to promote these 10 dates.  A promoter wins the bid at $10m ($1m per show).  The band get $10m (Agent fees included)

The promoter needs to now route the tour.  It is up to them to book venues, set ticket price and launch a marketing campaign.

A large venue will charge (very roughly) $3.50-$4 per capacity, so a 10k seated Arena will likely cost in the region of $35-40k.  For that, the venue provide stage, front of house staff and technicians.  Promoter brings production, set, screens and provides artist security.

Venue handle all food and drink transactions and retain income.  A rock gig averages $4 spend per head.  Venue usually supply staff and sell merchandise, and retain 25% of revenue.

Some venues have an in-house ticketing platform.  Booking fees average around 11%, so there is a potential income of an additional $10-12 per ticket sold (venues can make more in booking fees than in hire fee).  Usually the promoter will have existing relationships with Agents such as Ticketmaster, who will kick back a portion of those booking fees straight back to the promoter.

 

 

 

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On 8/5/2017 at 4:13 AM, Pele said:

This isn't correct with acts at this scale.

Below is an example.

A band has an Agent.  The Agent will inform promoters that their act will play 10 dates and invite Promoters to bid for the right to promote these 10 dates.  A promoter wins the bid at $10m ($1m per show).  The band get $10m (Agent fees included)

The promoter needs to now route the tour.  It is up to them to book venues, set ticket price and launch a marketing campaign.

A large venue will charge (very roughly) $3.50-$4 per capacity, so a 10k seated Arena will likely cost in the region of $35-40k.  For that, the venue provide stage, front of house staff and technicians.  Promoter brings production, set, screens and provides artist security.

Venue handle all food and drink transactions and retain income.  A rock gig averages $4 spend per head.  Venue usually supply staff and sell merchandise, and retain 25% of revenue.

Some venues have an in-house ticketing platform.  Booking fees average around 11%, so there is a potential income of an additional $10-12 per ticket sold (venues can make more in booking fees than in hire fee).  Usually the promoter will have existing relationships with Agents such as Ticketmaster, who will kick back a portion of those booking fees straight back to the promoter.

 

 

 

Thanks for the education.

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On 8/5/2017 at 5:13 AM, Pele said:

This isn't correct with acts at this scale.

Below is an example.

A band has an Agent.  The Agent will inform promoters that their act will play 10 dates and invite Promoters to bid for the right to promote these 10 dates.  A promoter wins the bid at $10m ($1m per show).  The band get $10m (Agent fees included)

The promoter needs to now route the tour.  It is up to them to book venues, set ticket price and launch a marketing campaign.

A large venue will charge (very roughly) $3.50-$4 per capacity, so a 10k seated Arena will likely cost in the region of $35-40k.  For that, the venue provide stage, front of house staff and technicians.  Promoter brings production, set, screens and provides artist security.

Venue handle all food and drink transactions and retain income.  A rock gig averages $4 spend per head.  Venue usually supply staff and sell merchandise, and retain 25% of revenue.

Some venues have an in-house ticketing platform.  Booking fees average around 11%, so there is a potential income of an additional $10-12 per ticket sold (venues can make more in booking fees than in hire fee).  Usually the promoter will have existing relationships with Agents such as Ticketmaster, who will kick back a portion of those booking fees straight back to the promoter.

 

 

 

Pretty spot on.  I think for a mega tour like this one though, the band also gets a % over their guaranteed amount if they sell over a certain amount per show, etc. 

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