Question: Who Pays for Gig Promotion Costs?
The information that follows is general in nature and may differ from the individual deals you have made.
Answer:
This sounds like an easy enough question to answer on the surface, but it is actually a little more complex than you might imagine. Who pays for the promotional costs of a show really depends on the kind of deal promoters and bands make between themselves. First, let's look at the generalities. If there is to be a flat fee for the show, that the band gets no matter how many tickets are sold and whether the promoter makes a fortune or loses their shirt on the show, then the promoter shoulders the responsibility for the promotional costs. If there is a door split deal, the promoter still shells out for the promotional costs up front, but the band does not get paid until the promoter makes that initial investment in the show back. Although the promoter can't require the to band make up the difference out of their own pockets if the show does not generate enough cash to cover upfront promo costs, the band works for free until that money is made - technically putting the burden of the promotion costs on the band, assuming the show is a money maker (and take note - that is a HUGE assumption).
That covers the basic, general nature of the split of promotion costs, but there are exceptions. As you move up the ladder to large gigs in bigger venues, with bigger promoters, then the deals will be more cut and dry, and you will encounter more flat fee shows and fewer door split deals. In the indie music world, especially in smaller venues and with promoters who work with up and coming acts, the deals are much more fluid. It is not uncommon for promoters and bands to share promotion costs a bit more. Some ways that promotion costs may be spread out:
- Posters and promo CDs that bands provide to promoters at their own expense
- Ads in newspapers/magazines for the show either paid for entirely by the band or with the cost shared by the band and the promoter
Although promotional costs may be shared by a band and a promoter, it is important to remember that a promoter should not ask bands to reimburse them after the fact for expenses that they did not recoup on the show. Promotional costs are a gamble, and promoters cannot change the deal after the show has happened.
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