So, how do music venues fare in that respect? Sadly, they are not much better than restaurants. It’s all about keeping expenses lower than revenue. A smartphone game company nets more than a local restaurant, for example. How Profitable are Music Venues?ĭifferent businesses have different profit margins. This might not be healthy for customers, but it’s healthy for performers’ paychecks. Intoxication leads to bad decisions - like buying more absurdly expensive drinks. While this may sound blunt, drunk patrons are profitable. In some cases, venues also charge bands a merch cut for selling merch on their property. Therefore, most venue owners profit from selling concessions at a steep markup. When famous bands perform, they receive a large share of entry fees. Some clubs have admittance fees, while others have free entrance with pricey drinks. In most arrangements, cash flows from customer to venue to performer. Knowing this can help bands understand their true worth - and negotiate better pay. Naturally, the popularity of the venue and the band play a huge role in which method is used.įirst, we need to consider how money flows. Some may divide earnings after the night is over, while others pay bands in advance. Venue owners have complete discretion on how they pay performers.
Performing gigs for venues is the best way to do this. Like it or not, all bands gotta pay the bills. A band is like any other business, except with drums.