concert production tips

Concert PromotionMusic 229

Concert PromotionThe Promoter is the entrepreneur who has a feel for the music business and can see an opportunity to make money selling tickets. Promoters are selling a moment in time. They have the capability to persuade the ticket-buying public that this is the show it has to see.

Concert PromotersLarge Conglomerates

Smaller companies

Arts Presenters

Festivals

Symphony Orchestras

Entertainment to enhance another activity

Fairs

Bars

Chapter 1: Key Representatives

Entertainment AttorneyRead, Draft, and evaluate all contractual agreements

Lawyers are regulated by a code of ethics. Other members of the team are not.

A well established entertainment Attorney can be an essential networking bridge for aspiring artists.

What to look for-Experience

Beware of attorneys who branch out into entering management, recording or publishing contracts with their own clients.

RetainerBillable HoursValue BillingLetter of engagement

Chapter 1: Key RepresentativesArtist Manager

The individual who serves as the artists primary advisor is called an artist

manager, a personal manager, or simply manager.

-planner, advisor, organizer, strategist, overseer, coordinator, detail

person…

Key ElementsIdentification of PartiesGeneral Breadth of AgreementDutiesPower of AttorneyCompensationDurationSunset ClauseKey Person Clause

Chapter 1: Key RepresentativesBooking Agent

A talent agent refers to any agent who finds work for creative artists.

Agents who concentrate on finding live appearances are

traditionally referred to as booking agents.What Agents Do

Find BookingsRoute Tours

Buyer generally pays a guarantee-Front EndVS a percentage of ticket sales-Back EndBooking agents are regulated by the state and require a license.Afm-American Federation of Musicians (Scale)

Chapter 1: Key RepresentativesWhat to look for in an agent

Reach-local, regional, national, international

Type of venues an agency books

In-house bookers

Honest and mutually satisfactory relationship

William Morris Agency

Creative Artists Agency

Club Agent

Line Agent

Responsible Agent (RA)

Marquee Value

Chapter 1: Key RepresentativesKey Elements

Exclusive or nonexclusive

Duration-usually 1-3 years

Rate of commission-usually 10%

Commissionable income

Geographic Limits

Key Person Clause

Chapter 1: Key RepresentativesBusiness Manager

A business manager works closely with the artist manager in establishing

budgets, regulating income, weighing in on various deals and running

the artist’s career as a “business.”

Like a CFO-a financial watchdog

Most are CPA or have in-house CPA’s at their firm

Tour Budgets

Tour Manager (road manager)

Manages the day-to-day needs of you and your entourage

Transportation and lodging

Responsible for Settlement at each venue

Coordinated publicity, interviews, appearances, ect…

Chapter 1: Key RepresentativesProduction Manager

Manages the technical side of your production

Sound, Lights, Stage Set

Stage plots & Tech Riders

Other Essential Personnel

Stage Manager

Sound Engineer

Monitor Engineer

Sound Crew

Lighting Crew

Backline Crew

Stagehands

Area Manager

Runners

Chapter 1: Important TermsEntertainment Attorney In-House Bookers

Conflict of Interest Line Agent

Retainer Responsible Agent

Billable Hours Marquee Value

Value Billing Exclusivity

Letter of engagement Commissionable Income

Artist Manager Geographic Limits

Power of Attorney Business Manager

Commission Tour Manager

Duration Settlement

Sunset Clause Production Manager

Key Person Clause

Severability Clause

Booking Agent

AFM

Chapter 2: Making Money on the RoadTouring is a business, selling tickets, merch, and sponsorship are important components of the business.Selling Tickets

Headliner

Ticket prices have doubled over the past decade

Strategies to tickets sales

High Prices (Eagles)

High Volume (Brooks)

Ticket prices are often based on how much an artist wants to be paid and

how elaborate a production they want to present.

Prices are generally hammered out by the acts manager, business

manager and agent.

Chapter 2: Making Money on the RoadVenues

Clubs 100-2,000

Ballrooms 800-1500

Theaters PAC 2000-8000

Auditoriums 500-10,000

Amphitheaters 10,000-15,000

Stadiums 15,000-100,000

Motor speedways 100,000+

Why play smaller venues

Genre or style can also determine venue

GA vs reserved seating

Multi-tiered seating-scaling

Usable seating/comps

Tour vs one-offs

Chapter 2: Making Money on the RoadMerchandising (“Merch”)

“Outside of ticket sales, merch revenue is the most important revenue

stream for touring artists.”

For beginning bands merch often bankrolls the band getting from point A to

B.

Managers solicit bids from companies

Basic deal is usually the longer of one album or touring cycle or

recoupment.

A buyout option is usually offered.

If there is a large advance, royalty rates are lower.

“for new artists most deals are worth 75-100k”

Merch company often has a employee on tour

House Rate or Hall Fee –usually 20-25%


Basic Deal

Headliner ROYALTY RATE 72-77%

Artist pays hall fees out of its share

Artist nets 47-55%

Some artist handle their own merch

Investment

inventory

staff, warehousing,distribution,inventory selection.

merchandising is more than just selling t-shirts and hats

at concerts?


One of the newest forms of merch is the concert cd

Basic instant Live Blueprint

Cd’s can be complicated with a revenue chain that includes the record

label, act, venue, promoter.

CD-$25

Label and Artists 30-40% (usually split)

Venue 5-10%

Packaging 10%

Instant Live 20%

Chapter 2: Making Money on the RoadSponsorship

An artist being sponsored by a company was once considered a sellout.

Companies bankroll tours in every genre

Sinage

ROI

Contact ant the Company or Advertising Firm

Better to approach a niche brand

More likely to receive marketing support than hard cash

Endorsement deals

Label Support

Festival Sponsors

Festival Survey• Demographics

– Gender– Age– Ethnicity

• Residence• Homeownership• Intention to Refinance• Income• Education• Purchasing Habits• Cell Phone/Wireless Co.

HAM Fest

Sponsorship Opportunities for the Happy Artists Music Festival

May 3, 2009

Explain what makes the event, project, charity, etc. worth being associated with.

You might want to describe the event’s history with an aim toward showing growth in numbers, growth in participation, growth in sponsorship, and consistency in reaching a desirable demographic target: e.g., In 2008 HAM Fest went to 22 key markets presenting, music, cultural events, and opportunities for marketing to over 880,000 fans of Happy Music and Happy Culture.

HAM Fest 2009 will go to 31 markets promising a total reach of 1.2 million Happy Music, Happy Culture fans presenting unprecedented opportunity to market to this desirable demographic.

Past sponsors include: Big Record Company, Inc., Happy Cola Company, Large Cell Phone Service Provider, Cool Clothing Designer, Super Energy Drinks, and Wicked Awesome Sneaker, Co.

Introduction and Overview

Provide a bit of background showing the history of the event:

“The HAM Fest was started to represent, speak to and capitalize on the emergent Happy Culture. In the late 1990s, we realized grunge had come and gone. People were looking for cheery festivals. Morose was out, and happy was in. We saw a community of fans, artists and an emerging youth culture. We capitalized on the opportunity.”-Happy Rich Guy (Founder HAM Fest)

History

Provide Testimonials from past sponsors and past participants of note.

“We came in as a Tier 1 sponsor with HAM Fest in 2008. We saw a marked increase in interest and brand recognition among Happy Music enthusiasts age 18-25, a group we wouldn’t have otherwise reached.”– Suzan Bigbucks (VP Branding, Happy Cola Company)

“We jumped on the HAM Fest juggernaut in 2001. Since then we’ve seen a three-fold increase in core sales. Prior to HAM Fest, we sold mostly left-footed shoes but had no luck with right. Tier 1 Prosciutto Level sponsorship changed that.”– Rubber Souls McGinty (Founder, Wicked Awesome Sneaker, Co.)

Testimonials

Happy Music Fans:

18 - 25 years old

Number over 35 million

Born in the 80s, came into consciousness in the 90s, established their own buying habits in the new millennium

Define themselves through purchase of Happy Music, Happy Clothing, Happy Soft drinks, and Happy lifestyle products and services

Active Consumers of Happy Culture and related lifestyle products

Spend nearly $ 90 million a year on music, clothing, soft drinks

Provide any other relevant demographic data that convinces potential sponsors that buying in at any level provides quantifiable benefits

Demographics

HAM Fest 2009

Happy Artist

The Cheery Cheerios

The Smiling Satisfaction Transaction

Smiley Smith

Joan Joyous

Glee Club Convoy

HAM Fest 2009 Dates

List all festival dates

List all festival markets

Provide any market specific information

Note if dates are tentative

HAM Fest 2009

SPONSORSHIP PLATFORMS

Tier 1: Prosciutto Sponsor

Tier 2: Jamon Sponsor

Tier 3: Candied Ham Sponsor

Tier 4: SPAM sponsor

HAM Fest 2009 Prosciutto Sponsor

Exclusivity in category Logo / marks prominently

featured in all HAM Fest print materials, signage, ads, and collateral

Official product / service designation

Presence and access to hospitality suites at all stops

Entrance signage On-stage signage Program book ad

On-line presence at hamfest.com Branding on official tour

merchandise Radio broadcast tags Tickets to key tour stop ID / tag in media buy On-site sampling On-site sales rights Mailing lists PA announcements Tags in all local TV / radio

broadcasts

HAM Fest 2009 Jamon Sponsor

Logo / marks featured in select HAM Fest print materials, signage, ads, and collateral

Presence and access to hospitality suites at select stops

On-site signage Program book ad

On-line presence at hamfest.com Tickets to key tour stop On-site sampling On-site sales rights Access to select mailing lists PA announcements Tags in all local TV / radio

broadcasts

HAM Fest 2009 Candied Ham Sponsor

Logo / marks featured in select HAM Fest signage, ads, and collateral

Access to hospitality suites at select stops

On-site signage

On-line presence at hamfest.com One time email blast PA announcements

Contact For sponsorship opportunities, contact:

Samantha Smiley at: HAM Fest 2008

PO Box 123Ebullientville, NY 12341

(212) [email protected]

Chapter 2: TermsHeadliner

Support Act

Billboard/Pollstar

General Admission

Reserved Seats

Comps

Scaling

Gold Circle

Merch

House Rate

Royalty Percentage

Roi (return on Investment)

Sponsorship Deck

Sinage

Chapter 3: Why, When, and Where to TourPreproduction Phase-before capital is invested in gear and other costs

Benefits of the tour can be maximized.

The tam will map out the tour to fully realize venues and

exposure.

Plotting a tour is a process that starts with the act and it’s team.

As long as a year in advance

Plot out objectives

Key Factors-album release, tv exposure, tour announcement, on-sale

tour launch, routing.

Chapter 3: Why to tourPromote album sales

Sell Merch

Build fan Base

Attract Labels

For most groups signed to a label, touring is tied into a release date of an

album to capitalize on exposure, radio play, and the labels marketing

muscle.

Priorities are to:

Create and Event

Make Money

Have Fun

Chapter 3: Touring to Promote Album salesParallel business

Create a buzz

In-stores Sponsors

Touring to Make MoneyAll tours should be profitable

There is no shame in playing for the money

Heritage Groups

Touring to Build the fan base

Chapter 3: When to TourBig name artists can dictate tour dates.

Headliner

Billed

C0-headling situations

Availability

New Release

Radio or TV exposure

Penetrate secondary Markets

Buzz-Plays

Timing the on-sales with radio play

Chapter 3: Touring TrafficTo much touring traffic can be problematic

Most concert activity occurs between April and September

Acts should be cognizant of how often they play a given market

A general rule of thumb is every 16 months to 2 years

The right venue the right time

Arenas theatres and clubs tend to be busier in winter.

Playing on-offs

one-offs are rare

radio shows

Payola

Corporate Shows

Sell-out

Chapter 3: Art of the On-SaleOn-sale or going-up (tickets available to the public)

Two strategies

Put tickets on sale early

Wait until a few weeks out to create a sense of urgency

Where to tour-Determining Markets

Where to TourDetermining Markets

Secondary and Tertiary Markets

Anchor Dates

Building the fan base

Partnering with other groups

Skynyrd & 3 doors down-neither group played their best markets

Chapter 3: Determining which venue to playThe type of venue is largely determined by the amount of tickets that can

be sold.

Another important factor is venue aesthetics

A general rule of thumb is that production tends to work better in a

controlled room

Some groups sell their music as a party and create lifestyle events that fit

better in “sheds”

Some groups need more reserved seating than GA

Sometimes there is a stigma attached to certain types of events?

Chapter 3: Routing the TourThe type of venue is largely determined by the amount of tickets that can

be sold.

Another important factor is venue aesthetics

A general rule of thumb is that production tends to work better in a

controlled room

Some groups sell their music as a party and create lifestyle events that fit

better in “sheds”

Some groups need more reserved seating than GA

Sometimes there is a stigma attached to certain types of events?

Avails-Second or third hold.

Smaller acts can move more quickly

Compare a historic venue to a new one.

Chapter 3: TermsPreproduction phase shed

In-stores avails

Heritage acts second third hold

Headliner

Billed

Buzz plays

Touring traffic

One-off

Radio show

Payola

On-sales

Going up

Secondary market

Anchor date

Chapter 4: BudgetingYou need to create a plan. A budget is one of the MOST important parts of

that plan.

Projecting Income

Ticket sales

Merch

Sponsorship

Other?

The goal is to tap as many potential revenue sources as possible.

Projecting income is more difficult that estimating expenses because there

is less control.

Chapter 4: BudgetingTicket Sales

Fees paid to an artist for performance but the talent buyer are know as

ticket sales.

Guaranteed Flat Fee

Percentage of ticket sales (door)

Combination of the two

If percentage deals are requested the band will want to suggest realistic

ticket prices.

“Priors”-are published weekly in Billboard and Pollstar

Venue Priors

Flat fees are known as Guarantees or “flats”

The percentage a band receives is called the “back end”

Chapter 4: BudgetingTicket Sales

The risk in a straight percentage deal is that the ticket sales is unknown.

Most groups will try to remove some of the risk by negotiating a

minimum versus as percentage, whichever is greater. This is commonly

known as the “versus deal”.

Merch Sales-measured per capata or “per cap”

Set up boundaries for expenses

Variables Costs-hard to predict

Chapter 4:Your BudgetCreate a detailed Budget for your event by next week.

Income Budgeted Projected Actual Delta

Ticket Sales 450

Merch

Sponsorship

Expenses

Artist fees 382(85% TS)

Sound Rental 20

Sound Person 0 ($50 paid by club)

Personnel

Chapter 4: TermsFee StructuresPriorsFlatsBack endGross PotentialDeductionsHouse RatePer CapImpressionsSee pg 60Production reimbursementVariable costs-running expenses

Chapter 9: Types of Talent BuyersA talent buyer is the person or company who pays an act or artist to

perform. The size and scope of talent buyers is very diverse.

Concert Promoters

National & International Promoters

College Buyers

Club Buyers

Venue and PAC

Fair and Festival

Casio

Private

Chapter 9: Types of Talent Buyers

Hard Ticket BuyersHard ticket buyers primary revenue stream is selling tickets.

Hard ticket buyers are commonly referred to as Concert Promoters.

Evolution of the Concert Promotion Business

Since colonial times

Big Band Era

True beginnings in 1950’s with Rock and Roll

Large packages with hit bands of the day

1960’s- Bill Graham

Attending Concerts became one of the primary entertainment choices for

the youth culture.

1980’s Promoters tired of watching the venues capture all the ancillary

revenue began building their own amphitheatre.

Chapter 9: Types of Talent Buyers1990’s –All types of business begin to consolidate. Robert Sillerman begins

buying up regional concert promoters.

2000 Sillerman sells SFX to clear channel

2005 CCE spun off its live entertainment business creating the independent

entertainment giant Live Nation

2006 Live Nation owns

153 Venues worldwide

Produces 28,000 events annually

Chapter 9: Chapter 9: Types of Talent BuyersThe promoter pays the act usually through an agent. The promoter agree to

promote the show through whatever means necessary. Box office

proceeds traditionally go 15% to the promoter and 85% to the act-this

is negotiable.

From the promoter share come expenses-promotion, production fees, hall

rental, catering, any other costs.

Some have estimated the promoters profit margin at 1%

National & International Buyers

Deep pocketed corporate promoters with a presence in multiple markets.

Can build an advantage by cross-collateralizing across the tour.

May partner with local promoters

College Buyers

Student run campus entertainment buying association

May partner with local promoters-Sig. cost savings

Chapter 9: Chapter 9: Types of Talent BuyersLarge Venue Buyers

Many times the venue and the talent buyer are one and the same.

Club buyers, arenas, theaters, ballrooms, PAC.

Club Buyers

Venues have played an undeniable role in launching many artist career.

The club circuit remains an important vestige of the traditional touring

model. Promoters take chances on new acts in hopes that they will

remember the promoter if they are successful.

Clubs can offer better pay because the overhead is less.

Some groups are just better in clubs.

PAC

Most have in-house talent buyers

Chapter 9: Chapter 9: Types of Talent BuyersFestivals & Fairs

Some of the most established buyers in North America.

Some are Hard ticket buyers some derive ancillary income streams.

Casino Buyers

Have become more diverse. Baby boomer demographic.

Private Buyers

One of the fastest growing segments of live industry

Often will partner with an experienced promoter