How Concert Promoters Make Money - Ancillary Revenue | Show Deals Ep.002
ฝัง
- เผยแพร่เมื่อ 20 ก.ย. 2024
- Concert Promoters and venues who only make money on ticket sales, have set themselves up for failure. Tickets aren't the only potential revenue streams for promoters or venues. In episode 2 of SHOW DEALS, we're going to take a look at ancillary revenue, and what really makes promoters profitable.
Artists, Tour Managers, Artist Managers, Promoters, Agents, Tour Accounts...want to see a video breaking down one of your deals? Get in touch with me at chris.goyzueta@gmail.com, leave a comment, or reach out on the IG DM / makingitwithchrisg .
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I’ve booked, promoted, and produced over 2,500 shows with the world's biggest promoters (Live Nation and AEG Presents) and independently. Here is more about my background - www.makingitwit....
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Thanks for breaking this all down in Ep. 1 and 2! Hope 3 and 4 are still on the way 😊
They’re coming! Ended up taking a hiatus. 2020 was rough, as it was for many of us. Thanks for watching 🙏
Was that a fart at 2:21??? LMAO
I thought i was the only one who heard that 😂😂😂
amazing fart!! LOUD and sound. so LOUD streamer lost concentration, had to repeat it again.
Dude needs a pop filter
Love the videos Chris! Been a longtime listener of your podcast. Excited to see the next ones, and tackling the concert drive in business, wondering if it can be profitable especially during these times.
Thanks so much! I appreciate the support and glad to hear you’re enjoying this new series. Really excited about this series! Drive in concerts are interesting. What do you think? Profitable or just a way to continue brand building?
i always wondered about this , thanks for clearing this up
This is an excellent package of info! Seriously - thank you - it has helped me immensely. Would you be able to direct me to someone who is able to break this down in the same way that you have done, for the Australian music arena...?
Hi. This is a valuable resource. Thank you. Quick one, What are the typical payment cycles to artists for shows and what percentage gets paid at these different cycles?
How do I as a promoter pay the venue? Do i pay the venue before the show???? Or do i pay the venue a cut of the ticket profits?? Im so confused
great info!!
Thank you! Doing some new episodes this summer. Let me know if there are any topics you want to learn more about.
Did we ever get episode 3 and 4?
Don't think I did. But do you want to learn more about show deals? Doing some new episodes this summer.
Also, do these offer deals differ when booking artists for festivals where there are other artists that can boost a sold out show? If so how are festival offers structured in the industry?
Where can I learn more sir?
Come join here! Got a great community of promtoers and lots of content.
www.patreon.com/makingitacademy
If the show sales out with a sold out on the post. Would it be the trump if the public asks for a demand for having a second show till sold out. 3 day could happen but I'm tryna put a team together and hope put a one night only show. Load of money strategies???
What’s all included in “ support “ I own a night club but looking to expand to areas
I have a site in Minneapolis
How can I get a copy of the breakout sheet. I would be happy to pay for it
It's all available with a Promoter Course at www.patreon.com/makingitacademy. Join at the $20 or $30 level to get access to everything. We also do live classes almost every Tuesday at 2 pm EST.
Can you post more videos on this?
How long after the concert do organizers get paid?
Who ever agreed to a $80,000 contract payment to the artist made a huge mistake. regardless of the ancillary revenue you should always make a profit off of the ticket sales. on a sellout. if you don't then you made a bad deal.
Agreed that when starting out (in the first few years) you should try to make money off the door. However, when you net $50k+ from ancillaries and all expenses are paid, that’s a great night! Also, this is a volume business for venues and promoters. Some shows will profit on the door, some you get into the black with ancillaries. As long as you can avoid the red as much as possible you’re successful.
Also, U2 gets 102% off the door. That makes it kinda hard to profit on the door. One more thing, LN smallest revenue stream is from the door. Their 3 main profit centers are ancillaries, ticket fees, and sponsorships. So really, the goal should be to have alternative revenue streams if I want to build a real business.
@@chrisgoyzueta honestly. U2 should be told to take a hike. Nothing wrong with moving on to a different artist who is easier to deal with..ancillary profit is good, fee profits good, but if you are marketing, advertising promoting the event. Ticket sales are a biproduct of your efforts. You, the promoter, should never be in the red on a sellout show on ticket sales. If you are thats bad business.
Hey could you send me a copy of that spread sheet?
@@chrisgoyzueta can you send me a copy of that spreadsheet?
@@caev2698 any luck with a response? Would love to have this as well. Was gonna sign up for the class but wasn't sure if this is included.
I think ancillary revenue is good, but on a sold out show you lose money- That may be an acceptable result for you/ , but in any business, that's considered bad business. Run every concert as a business. Don't run it from the point of view of a fan, run it from the point of view that I am a business man or woman and The end game is to make money. You should not take a loss on ticket sales, especially if you have a sold out show. If you are, than you made a bad deal with the performer and the venue. If you have a venue and/ or performer demanding more than you make, then that is a deal you need to walk away from.
"Ancillary revenue is good, but on a sold out show you lose money" - that doesn't make sense. Ancillary revenue is how promoters and venues ACTUALLY make money. CEO of Live Nation, Michael Rapino, is all over TH-cam talking about the way they make 99% of their money is ancillary revenue, sponsorships, and ticket rebates.
@@chrisgoyzueta I think if you look at it from having a successful show, he and live nation probably are very successful. On the financial side, I don't know. He talks about paying U2 110% of ticket sales. Basically paying them an additional 10% on top of ticket sales. Which means you are in the hole. I think because of the volume of shows they do. They anticipate to have shows that they lose money on, and shows they are profitable on. It's basically a volume of shows that they look at as to their success. Not each show. So in terms of success a small time promoter really can't afford to lose money on a sellout show, vs a corporation who can. I get it, but for me I look at it like this, at the end of the day it's about money. And can I afford to lose it, because the end game is bigger and there is a bigger payoff down the road? Right now, No I can't. If I had millions of dollars backing me I could do 150 show a year and probably be okay with losing money on 50 of them. Getting started. No I cant.
@@chrisgoyzueta Michael rapino is the ceo, this guy talking is not Michael rapino.
@@caev2698 you seem to have a very negative outlook on the industry and promoting shows. Are you a promoter, former promoter, or considering a career path in this? I appreciate the concerns, but I've done this profitably for 18 years from indie promoter, to mom & pop venues, to Live Nation, AEG, and Performing Arts Centers. All very profitable! The reason I do these videos is to help indie promoters to avoid making mistakes, learn how the industry works, and to protect themselves from losing money doing it. No industry makes sense for someone if they are losing money. Feel free to reach out if you have questions - chris.goyzueta@gmail.com.
@@chrisgoyzueta I just watched Michael give an interview and live nation gets a percentage of every ticket sold. It's part of their revenue stream, as does the venues. So some of what this other guy is saying, doesn't hold water.
Is it possible to get a copy of this spreadsheet?
yes, shoot me an email and I'll send it to you - chris.goyzueta@gmail.com. Add some info about you. Are you a promoter, tour manager, booking agent, artist manager, etc. Thanks! Also, please subscribe to the channel if you haven't yet.
@@chrisgoyzueta would it be possible to receive this spreadsheet as well?
Btw this video is such a great breakdown on promoter income
@@youngscrimmage6632 Hey there, did you ever get a response? I would love a copy as well. Was gonna sign up for the class if I know its included.
I just found you today. I would live a copy of the spreadsheet as well. I’ll be sending an email. All love from Portland Oregon
Email Sent. Thanks man.
Hey brother anyway we can get this excel?
Lol what a interesting hypothetical as a person who has been in and around promoters you can bet your ass if you even out you won because now you will generate notoriety
Can you link me with ep 04 I can’t seem to find it. 🙏🏾
I don't think I recorded it. What topic were you looking for me to cover? I'm starting a list for weekly educational videos. Would be happy to make a custom one.
This is not right! Promoter doesnt get any rebate on any venues
If you can get shows that venues want and they can’t or you can bring a venue volume, and run shows well, deals change very fast. I’ve received rebates or “promoter bumps,” or have given them to promoters when I was on the venue side. Very common in arenas, but definitely happens in clubs and theaters.
The gum is killing me. Informative video though. Try a drink if you’re worried about cotton mouth.
Lol. I don’t chew gum. You’re probably talking about my Tourette’s sounds. No worries, I know there weird if you’re not used to them. I add a disclaimer in the caption of every video for Tourette’s awareness 😃 Glad you found the info informative. Thanks for watching! 🙏