How Bands Make Money During Tours: Insights for Successful Tour Management
Entertainment tours have always been a significant part of the music industry, providing not only performance opportunities but also substantial revenue streams. Bands can earn money through various methods during a tour. This article explores the key strategies and methods of making money on tour, emphasizing the importance of thorough planning and contract negotiations.
The Basics: Setting Up the Tour Structure
Before embarking on a tour, bands must lay the groundwork. This includes setting up contracts with promoters and venues, defining pay structures, and determining who is responsible for what. The following outlines the essential steps to make the tour financially successful.
Contracts and Pay Structures
The first step in any tour is to establish a clear contract with your promoter. This contract will outline the payment structure, which is critical for securing and planning the tour. Typically, bands will receive a significant portion of the revenue generated from ticket sales and merchandise. Bands might negotiate for payment in installments, such as receiving half of the money upfront and the remaining amount upon completion of the tour.
Revenue Sources and Expenses
1. Playing for the Door: In this arrangement, the band receives a portion of ticket sales. This is a straightforward approach where the venue generates revenue from ticket sales, and the band gets a share of that revenue.
2. Bar or Club Pay: More significant bands might negotiate to be paid by the venue or club, a fixed amount per show. These venues generate revenue through ticket sales, drinks, and food, and they pay the band a share of this revenue based on an agreed-upon contract.
Merchandising and Ticket Sales: Maximizing Profits
Merchandising and ticket sales are crucial for bands on tour. When planning a major tour, it is essential to keep overheads down while maximizing profits.
Merchandising Strategies
Selling merchandise such as t-shirts, CDs, and DVDs is a direct way to increase revenue. Bands often set up booths at the venue, selling merchandise at full prices. However, there are cases where bands might offer merchandise discounts at these stalls to boost sales and increase overall revenue from the tour.
Concert Revenue
Concert revenue is the primary source of income for tour proceeds. Ticket sales are usually the main source of revenue for the venue and the band. Bands can further capitalize on ticket sales by promoting their shows through social media, engaging fans, and offering limited-time ticket rates.
Case Study: A Hidden Opportunity
A few years ago, a significant overseas act performed at a venue approximately 3-4 hours away. After purchasing a ticket online, the band decided to buy their latest CD. Upon arrival, they noticed a sales booth selling not only t-shirts but also a drum skin bearing the band's signatures, with the CD being sold for less than the original price online. This anecdote highlights the importance of properly planning and negotiating the terms of merchandise sales to maximize profits.
Conclusion
Successfully managing a touring band involves a combination of thorough planning, effective contract negotiations, and a well-thought-out revenue strategy. By carefully selecting venue partners, negotiating fair pay structures, and promoting merchandise effectively, bands can maximize their income and make tours both profitable and enjoyable.