When you are first starting out, you’ll likely just get a portion of the ticket sales, called a “Door Deal”. Take the next step up in shows and now you’re getting “Promoter Profit” deals. This deal will have show expenses deducted from the ticket sales before you share a percentage of what’s left over. Show expenses shouldn’t be confused with tour expenses. Show expenses are directly related to that particular show and are usually paid by the promoter before being passed on to you, the artist. These are things like stagehands, show security, advertising, venue rent and license fees like ASCAP and BMI. Tour expenses are your costs for keeping the tour on the road. Your tour manager, the bus, and getting everyone to the start of the tour are tour expenses, and do not factor into the show expenses in your financial settlement with the promoter.
Think of it this way – if you were playing a show in your hometown and got yourself to the venue from your home, you probably didn’t have any tour expenses. But, there will still be show expenses to take care of. All expenses and revenue that affect your payment should be documented, and it is totally okay to ask for receipts, invoices or ticket reports.
Tune in below to see the sixth episode of Band to Business: ‘Show Expenses’.
Band to Business was created to help in the business of artistic endeavors, and shed some insight into the behind-the-scenes jobs that make it all happen. See you next time!
About Jen Kellogg
Jen Kellogg has spent over 25 adventurous years in the concert industry as a roadie, talent buyer, educator and entrepreneur. During her quarantine, she’s hosting a virtual workshop series called “Concert Business Basics” to help those starting their career in the concert industry, and established professionals interested in expanding beyond their existing areas of expertise. She crunched numbers as the tour accountant for the Vans Warped Tour from 2009-2017. During that time she co-founded The Entertainment Institute and brought the fan’s unique backstage workshops with artists on the tour. Prior to that, as a talent buyer at Jam Productions, she booked theaters and arenas, and specialized in minor league baseball parks. Her first full tour was with Bob Dylan and Willie Nelson and it sparked her love of the road life. Jen teaches Producing and Touring Live Entertainment at Columbia College Chicago and has spoken at highly respected industry conferences including SXSW and Pollstar.