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Applied Concert Promotion & Talent Buying

Lecture
by

Derek Brown

on 14 January 2013

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Transcript of Applied Concert Promotion & Talent Buying

Applied Concert Promotion & Talent Buying Making Money
on the Road Ticket Sales

Merchandise Sales

Sponsorships Do All Artists Tour To Make Money? The Three Main Revenue
Streams of Touring How do we determine ticket pricing? How much does an
artist want to make? How much will it cost to tour? Ticket
Price Ultimately, ticketing pricing comes
down to what the market will bear. Garth Brooks vs. Eagles

The Black Keys ticket prices vs. scalpers' prices

VIP Packages Scaling Multi-tiered pricing structure that lets the
consumer determine the price that best
fits their budget. Merchandising Sometimes what keeps the entire tour afloat Merchandising Deals Merch companies offer sales, manufacturing, design
services, warehousing, distribution, etc.

Merchandisers will submit proposals to
handle merch for a tour or album cycle
- OR -
until the advance is recouped (whichever is longer).

Payments to artists usually involve an advance
and a percentage of gross sales (royalties).

On the road, it's likely a combination of rep(s) from the merch company and someone from the band's crew handling accounting and inventory. House Rate
aka Merch Rate
aka Hall Fee The percentage of gross sales a venue takes for the right to sell in their building.

Can range from 10-25% for recordables (CDs, etc)
30-35% for non-recordables (everything else) Gross Sales =
The sales price to the public less taxes.

Royalties to artists generally are
30-40% of gross sales.

Merchandisers set deals that set a limit on
hall fees. If the hall rate exceeds the agreed
%, then it comes out of the artist's royalty.

Sponsorships Merch Advances Almost always "returnable" - meaning the artist might have to pay it back if it's not recouped.

Advances might include some stipulations:
*A minimum number of performances
*A minimum number of people
*Tour begins in a reasonable amount of time after signing

If the merchandiser terminates the deal, they'll want the advance returned plus possible interest. Gross Sales / Royalties Per Head The average amount of money spent by
every head that attends the concert.

20,000 people attend a show &
gross sales are $60,000

$3 per head Sponsorships
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