Live Music Deals Flashcards
How do door deals work?
it is a very common deal that is directly determined by the number of people who turn up.
admission price per person is split between the artist and the venue.
as the band is responsible for drawing in the audience, they get majority of the money.
How did door deals work in the 90s/00s
Venues were usually restricted to $1 a head, however during the confusion of the introduction of the GST, the venues managed to creep this up to $2 a head
Guarantee Vs. Deal - How Does it Work
common for professional bands and venues.
artist receives the greater of either the guaranteed amount or their split of the door
What is the logic behind a Guarantee Vs. Deal?
In the instance a band needs to tour, there are lots of costs a band needs to cover before they break even. The more shows that are ‘guaranteed’, the better as there will be a certain income. The guaranteed amount is determined by what the venue feels is safe for them to guarantee - based on past performances, drawing history, promotional ability
Flat Deal - How does it work?
The artist gets paid a fixed amount, regardless of the number of people attending the show.
Common context of a ‘Flat Deal’
in most circumstances all of the acts appearing at a festival are paid an agreed flat rate. This is because with so many acts and a festival revenue and cost structure it’s not possible to do it any other way.
Bar Tab Deal
for venues that can’t or don’t charge admission fees.
It’s a way of recognizing and rewarding the bands ability to draw people but at the same time protecting the venue from excessive costs in the event that they don’t.
If the place is packed because of the artist, the Bar Tab will be large and therefore so will the band’s fee. If the place is empty the band’s fee will reflect it.
Promoters Deal
Most common when you either have a 3rd party promoter independent of the venue who is putting on the show, or you have a ‘venue’ by day that isn’t actually a venue and there are costs incurred to get it ready to be able to do the show.
As this deal is structured that they give an artist a guarantee, they list all of their costs, once the door exceeds total costs then the artist and promoter split the subsequent door.
Similarities between a guaranteed vs. deal and a promoters deal
For both guarantee vs deal and the promoter deal, the point where the band covers all of the costs (either the guarantee or the costs) is called the ‘break point’
