Is this right, or delusional?

I'm no promoter, but I'm pretty confident that there's no way in hell either of those 3 bands are making 5-10K per show plus merchandise.

Dude, you realize that alot of big packages (like Paganfest) cost anywhere from $20-30,000 for a promoter to put on right? The really big ones, like the SymX/Nevermore/Soilwork tour or Hatebreed/Cannibal Corpse/Unearth ones cost like 50-70,000 for a promoter to put on.

Again, this is NOT a charity.

Not all of the money earned from ticket sales goes to the band's guarantee either. Sometimes the promoter takes bar money too (actually there was a whole situation for last year's Summer Slaughter in which a promoter moved the show out of greed because he wanted to book a bigger act instead that would make more bar money).
 
Now, you get into the "Net" of what a band "Grosses" in pay, and it's a much smaller number, once your booking agent and crew get paid.

Depends on what your crew is. Nowadays due to a lack of CD sales, most headlining bands stick with the bare basics - one lighting guy, one merch guy, maybe a tech, and a tour manager (not to mention the actual manager and booking agent behind the scenes who also needs to be compensated) because they're only making money from touring. Of course, all of these guys need to be paid too, which is also justifiably why these bands are grossing 10,20, or even 30 grand per night. Guessing what a band nets after all these is very difficult because I have no idea what rates/salaries/% they negotiate with all these people and it varies from act to act. Some merch guys and tour managers work for dirt cheap (only 100 bucks or less a night), some don't.
 
Dude, you realize that alot of big packages (like Paganfest) cost anywhere from $20-30,000 for a promoter to put on right? The really big ones, like the SymX/Nevermore/Soilwork tour or Hatebreed/Cannibal Corpse/Unearth ones cost like 50-70,000 for a promoter to put on.

Again, this is NOT a charity.

Not all of the money earned from ticket sales goes to the band's guarantee either. Sometimes the promoter takes bar money too (actually there was a whole situation for last year's Summer Slaughter in which a promoter moved the show out of greed because he wanted to book a bigger act instead that would make more bar money).

I don't doubt that some of the bigger packages can cost quite a bit for the promoter. But I think your numbers are a little overstated. I would say 2-3k a night (on average) for the bands you mentioned is more accurate. With your numbers a band would gross 150-300k for a 30 date US tour. I realize that were talking about gross but I just don't see that happening.
 
Alan from Primordial talked about the financial issues of touring the States a while back here:

What I found hilarious about that quote is that he's complaining about touring the States being costly, but Europe is arguably worse. You usually don't make a dime besides merch unless you headline.

And of course, this is NOT the job for you if you have a family and kids to support. It will be years and years before the band nets enough money at the end of the year for each member to be able to support a family.
 
I don't doubt that some of the bigger packages can cost quite a bit for the promoter. But I think your numbers are a little overstated. I would say 2-3k a night (on average) for the bands you mentioned is more accurate. With your numbers a band would gross 150-300k for a 30 date US tour. I realize that were talking about gross but I just don't see that happening.

It's not my fault then, that you're choosing not to believe me. Think about it though, 400 people x 20 (ticket cost after TM fees) would be something like 8,000 bucks from tix alone. Factor in the % the promoter takes in from other things such as bar money and merch % and you could easily gross 10-12, or even 15 grand on a "smaller" show as a promoter.

And yeah, they gross 150,300k fpr a US tour, but they don't net that much after expenses such as food, travel, crew, managers, etc. Again, use your brain man, how else could a band justifiably want to tour the US on a headlining run if they weren't able to cover these costs and still be able to make money. Yes, travel is usually paid for by the label, but there are other costs that the label does not pay for like crew. Do you think soundguys, lighting guys, tour managers, and artist managers are going to do that shit for free? If the band wasn't making some net earning after these expenses, they wouldn't be doing these tours. Simple as that.


But FYI, A LOT of times promoters DO lose money on the smaller package overpaying these bands only to get a few hundred people out there. Why do they do it? In the hope the agent will later come to them for a large package that will make them a lot of money.
 
A band the size of Decapitated, Behemoth, or Hammerfall would probably not come out too badly either. I'd guess they gross about 5-10 grand a night in the states + about 200 a night in merch.

Behemoth, yes. Decapitated I'm not so sure on as I don't know much about them. I highly doubt this is the case with Hammerfall as when they toured in early 2010, I read this in an interview:

HammerFall has traditionally done really well in Sweden and other European countries. How much do you think you've progressed here in North America?

Oscar: I don't know about sales and I think they basically still suck. We've done three weeks on this tour and the thing I'm most happy with and the most surprised with, is that at most of the shows the first few rows are filled with teenagers. I didn't see this last time. So that gives me a lot of hope for the future. It was like that in Sweden and Europe too. We started played for people mostly of our age, which was about 25 in those days. Then we started seeing lot more younger people and all of a sudden there is this new metal generation. So this gives me a lot of hope and I hope we can come back again. The way I see it is, we do this tour now which is like ground work, we come back soon for the next time and if there are not many people at the shows then I don't think we are going to tour here anymore. This is the last try. We are a band and everybody has their say, but if I had my way I would like to come back and do it again soon so we can know if this actually worked. Everybody always tells you that in the States you have to keep touring all the time. We never did that. We did 98, 2002, 2005 and now 2010. So four tours in 13 years is not a lot.

Judging by that, I find it hard to believe Hammerfall is making those types of numbers.
 
It's not my fault then, that you're choosing not to believe me. Think about it though, 400 people x 20 (ticket cost after TM fees) would be something like 8,000 bucks from tix alone. Factor in the % the promoter takes in from other things such as bar money and merch % and you could easily gross 10-12, or even 15 grand on a "smaller" show as a promoter.

But FYI, A LOT of times promoters DO lose money on the smaller package overpaying these bands only to get a few hundred people out there. Why do they do it? In the hope the agent will later come to them for a large package that will make them a lot of money.

We'll agree to disagree then. And you're right it's not your fault that I don't agree with your numbers, it is what it is. Jasonic hit the nail on the head when he said merchandising is where the bands make most of their money nowadays. You just don't see these smaller to mid level metal bands touring over here as much (non US bands). It's too costly for them to justify it.
 
or Hatebreed/Cannibal Corpse/Unearth ones cost like 50-70,000 for a promoter to put on.

Ok, so this show in Chicago was at The House of Blues (which, for Jason's info, is a part of LiveNation, and has had nothing to do with Disney as far as I know). Total building capacity is 1300, but I think sellable tickets are lower than this, since that total includes the 1st-floor restaurant. Still, we'll assume 1300, and assume the show sold out.

Ticket price was $24.50, x 1300 = $31850.

Assume every one of those 1300 bought a $20 t-shirt, assume the bands get 70% of that, and the promoter gets 100% of the rest: $7800. That brings us to $39650.

If the promoter bid $50,000 for this show, that leaves him hoping that he can make $10000 on beer sales, which would require every single person (at an all-ages show!) to have two beers, with a $4 profit margin on each, and requires 100% of that to go to the promoter. And that's just to break even.

Given that I sided extremely to the optimistic side on every estimate I made in these calculations, the idea of paying $50k (to $70k?!) for this show sounds crazy to me, so what am I missing?

I'm not sure what the relationship is between promoter/venue at HoB/Livenation (they might be the same person?), but being part of a corporate behemoth, I'm guessing HoB/LN has no interest in doing shows that simply "break even", just to help out the scene.

Neil
 
Ok, so this show in Chicago was at The House of Blues (which, for Jason's info, is a part of LiveNation, and has had nothing to do with Disney as far as I know). Total building capacity is 1300, but I think sellable tickets are lower than this, since that total includes the 1st-floor restaurant. Still, we'll assume 1300, and assume the show sold out.

Ticket price was $24.50, x 1300 = $31850.

Assume every one of those 1300 bought a $20 t-shirt, assume the bands get 70% of that, and the promoter gets 100% of the rest: $7800. That brings us to $39650.

If the promoter bid $50,000 for this show, that leaves him hoping that he can make $10000 on beer sales, which would require every single person (at an all-ages show!) to have two beers, with a $4 profit margin on each, and requires 100% of that to go to the promoter. And that's just to break even.

Given that I sided extremely to the optimistic side on every estimate I made in these calculations, the idea of paying $50k (to $70k?!) for this show sounds crazy to me, so what am I missing?

I'm not sure what the relationship is between promoter/venue at HoB/Livenation (they might be the same person?), but being part of a corporate behemoth, I'm guessing HoB/LN has no interest in doing shows that simply "break even", just to help out the scene.

Neil

I was thinking the same thing...
 
Ok, so this show in Chicago was at The House of Blues (which, for Jason's info, is a part of LiveNation, and has had nothing to do with Disney as far as I know). Total building capacity is 1300, but I think sellable tickets are lower than this, since that total includes the 1st-floor restaurant. Still, we'll assume 1300, and assume the show sold out.

Ticket price was $24.50, x 1300 = $31850.

Assume every one of those 1300 bought a $20 t-shirt, assume the bands get 70% of that, and the promoter gets 100% of the rest: $7800. That brings us to $39650.

If the promoter bid $50,000 for this show, that leaves him hoping that he can make $10000 on beer sales, which would require every single person (at an all-ages show!) to have two beers, with a $4 profit margin on each, and requires 100% of that to go to the promoter. And that's just to break even.

Given that I sided extremely to the optimistic side on every estimate I made in these calculations, the idea of paying $50k (to $70k?!) for this show sounds crazy to me, so what am I missing?

I'm not sure what the relationship is between promoter/venue at HoB/Livenation (they might be the same person?), but being part of a corporate behemoth, I'm guessing HoB/LN has no interest in doing shows that simply "break even", just to help out the scene.

Neil

Livenation (the promoter) most certainly does book shows that break even. Not necessarily to "help the scene" but because their willingness to buy that tour package raises the possibility of them getting a better package that will make more money. This, is absolutely a fact of the promoter business, since booking agents book big tours and small tours; A market tours and B market tours, etc. In New York for example, Live Nation promoted the last Vader tour package over here. That was a pretty small show with a mediocre turnout. When it got close to the show, they ran a promotion where they were selling tickets for $10, which probably meant presales were not good. It doesn't matter of course, because even if Livenation lost money on that show, the agent who booked the tour would sell them a much better package (in which case, the Sepultura/Belphegor package: a package that I have been hearing is doing really well pre-sales wise and will be making promoters a lot of money) later on.

Secondly, and just like with the Barlow thread, I am obviously making guesses based on fees and numbers that I know about for sure. I could not tell you how much that Hatebreed tour was worth, but I guessed 50-70. If it's 30-50, so be it. It's still kind of a moot point on your end because even though we're talking about a 20,000 k difference, the point remains that it's still quite a lot of money being invested here on the part of the promoter, and quite a lot being grossed by the band (I'd guess... GUESS... Hatebreed would make 15 [on a smaller market], CC 10, and Unearth 5 with the other openers making like 100 bucks.) Additionally, it's also possible that the specific promoter in Chicago who bought that Hatebreed package only paid the bareminimum of what those bands needed because it might not be as big of a market for those bands. I know that in NYC, that package came to the Nokia Theatre which is almost double the size of the House of Blues (come to think of it, I always had thought The House Of Blues in Chicago had a much bigger capacity than 1300; are you sure about that?) Either way, it basically boils down to how much the promoter is going to want to spend on that package, and it does differ from market to market. However, the numbers I used earlier are ballparks obviously.
 
Behemoth, yes. Decapitated I'm not so sure on as I don't know much about them. I highly doubt this is the case with Hammerfall as when they toured in early 2010, I read this in an interview:

HammerFall has traditionally done really well in Sweden and other European countries. How much do you think you've progressed here in North America?

Oscar: I don't know about sales and I think they basically still suck. We've done three weeks on this tour and the thing I'm most happy with and the most surprised with, is that at most of the shows the first few rows are filled with teenagers. I didn't see this last time. So that gives me a lot of hope for the future. It was like that in Sweden and Europe too. We started played for people mostly of our age, which was about 25 in those days. Then we started seeing lot more younger people and all of a sudden there is this new metal generation. So this gives me a lot of hope and I hope we can come back again. The way I see it is, we do this tour now which is like ground work, we come back soon for the next time and if there are not many people at the shows then I don't think we are going to tour here anymore. This is the last try. We are a band and everybody has their say, but if I had my way I would like to come back and do it again soon so we can know if this actually worked. Everybody always tells you that in the States you have to keep touring all the time. We never did that. We did 98, 2002, 2005 and now 2010. So four tours in 13 years is not a lot.

Judging by that, I find it hard to believe Hammerfall is making those types of numbers.

They say that because they probably make like triple or even quadruple in Europe than what they make in the US and in Sweden I don't even want to guess but it's big money. To them 10 k is peanuts when they have crew and techs, etc. They actually moved agencies recently and will probably be focusing alot more over here now that they have a major booking agency working with them.
 
I found this from an online company profile for HOB Entertainment:
In mid-1995 Walt Disney purchased a 12 percent interest in the company in anticipation of the House of Blues opening near Pleasure Island at Walt Disney World in Orlando. A blues-themed hotel was under consideration for the Orlando site, as well as at proposed venues in Chicago and New York.

Neil is right though. It seems all locations are now fully controlled by Live Nation.
 
I found this from an online company profile for HOB Entertainment:
In mid-1995 Walt Disney purchased a 12 percent interest in the company in anticipation of the House of Blues opening near Pleasure Island at Walt Disney World in Orlando. A blues-themed hotel was under consideration for the Orlando site, as well as at proposed venues in Chicago and New York.

Neil is right though. It seems all locations are now fully controlled by Live Nation.

They may have a deal that allows livenation to exclusively promote shows at those venues.
 
It's all about the market. Market C doesn't make a 1/3 of Market A (or 1/2 of B if you will), but Market C is necessary to book on the same tour in order for the routing to make $ense. There is a tremendous drop for non-sure things (ask Hammerfall).


Market A- House of Blues, Nokia,etc
Market B- Jaxx (based on capacity)- yes, this could be argued...but still...
Market C- Mason Jar/White Rabbit


I would also point out the flip side of the Live Nation political handshake which is a larger portion for most of these smaller tours. If you burn a promoter or club (indy for either one) too many times with a high fee, they aren't going to exactly look to deal with the agent in the future unless absolutely necessary or you bring them a sure thing. The underground metal touring market isn't exactly overloaded with agents here in the States so most have to walk a fine line.
 
Livenation (the promoter) most certainly does book shows that break even. Not necessarily to "help the scene" but because their willingness to buy that tour package raises the possibility of them getting a better package that will make more money.

Really? For Joe Schmoe Promotions, trying to build a relationship with a booking agent, I certainly understand that, but LiveNation? Are there really booking agents out there saying "hmm, I dunno, I've never heard of these 'LiveNation' guys; I'd like to try 'em out a few times before giving them a shot at a real money-maker"? Wouldn't a booking agent just shop the show to all the promoters he knows and sell it to the highest bidder who meets the requirements? Wouldn't a smart booking agent put the Sepultura show out for LiveNation to bid on regardless of what they did with the Vader show?

Incidentally, I got a $10 ticket for Behemoth being fire-saled by LN/HoB, so I guess this is a corporate policy for Polish metal bands. :D

It's still kind of a moot point on your end because even though we're talking about a 20,000 k difference, the point remains that it's still quite a lot of money being invested here on the part of the promoter, and quite a lot being grossed by the band

Yeah, I'm not really disputing your general point that some bands make money, I just think your estimates might be NYC-focused, and New York is terrible example to use as a proxy for the rest of the county.

And while I know you're just giving estimates, a difference between $50k and $30k is 40%; I think most people would have significant lifestyle changes if they had their salary reduced 40%.

There's really nowhere in Chicago larger than ~1100 people that gets booked by metal tours (unless they're major-label 80s bands). And I would imagine that Chicago can still pay higher than the mean on a 25-date tour, especially since there is a surplus of venues in Chicago that can help bid up prices.

And yes, HoB Chicago is really 1300 max.: "House of Blues is a 1,300 person capacity, four story venue." But again, I've done count estimates during sold-out shows and have had difficulty figuring out where even 1000 people could be hiding.

If we use more realistic figures for that Hatebreed show of 1000 people, 20% buying a t-shirt, and half the beer previously estimated, we come to $31700 in income. LiveNation still has to pay for the building, all the workers, etc., so that might bring the break-even figure that they can pay the bands down to $25000. Figure Chicago can pay 20% above the mean, and that brings the average paid to the bands down to $20k/show. So on a 25-date tour, that's a difference of $1.25 million between my estimate and your high-end $70k guess. $30k here and $30k there and soon you're talking about real money!

For Nevermore/SymX in Chicago, tickets are $30, but it's at a much smaller venue (I think less than 500, but I keep forgetting to check the max occupancy sign), so again we're talking something like only $15000 available to pay bands in the 3rd largest city in the country.

Since ticket prices are almost never above $30, and crowds are almost never above 1000, that effectively gives a ceiling of $30000 available to pay metal bands, and I really doubt that promoters are eternally losing money on metal shows in order to have the chance to book other metal shows where they will also lose money.

Neil
 
Yeah, I'm not really disputing your general point that some bands make money, I just think your estimates might be NYC-focused, and New York is terrible example to use as a proxy for the rest of the county.

And while I know you're just giving estimates, a difference between $50k and $30k is 40%; I think most people would have significant lifestyle changes if they had their salary reduced 40%.

QFT
 
Dude, you realize that alot of big packages (like Paganfest) cost anywhere from $20-30,000 for a promoter to put on right? The really big ones, like the SymX/Nevermore/Soilwork tour or Hatebreed/Cannibal Corpse/Unearth ones cost like 50-70,000 for a promoter to put on.

Again, this is NOT a charity.

Not all of the money earned from ticket sales goes to the band's guarantee either. Sometimes the promoter takes bar money too (actually there was a whole situation for last year's Summer Slaughter in which a promoter moved the show out of greed because he wanted to book a bigger act instead that would make more bar money).

Are those figures per night? Wow.