Post by Gary ChildsPost by r***@excite.comI once read (I think on this group) that
they did a huge world tour that made millions of dollars and the
bandmembers each got $16,000 and that was it. Is that true?
Yeah that's right. The tour grossed 2 million, and they got 16K each.
Creative accounting.
Here's what you guys don't uderstand:
The tour GROSSED $2M, that means the total cost of tickets sold was $2M.
But ths is how it works:
The booking agent, who works for the band, calls a series of promoters
in each city that band is intersted in playing in, and asks the
promoters if they're interested in doing a show.
The promoter makes an offer to the band of how much they are willing to
pay for the show. After word gets out that a good band is touring,
sometimes the promoters will call the booking agents.
either way, the booking agent sells the tour to the prooter for a set
fee. Sometimes there is a bonus or a percentage on top of the fee if
the show sells out.
A band like Devo, at their peak, was getting maybe $50K for their fee,
with possibly a bonus for sell-outs.
By the Total Devo tour, it was probably more like $5K - $8K.
The promoter then rents the venue, hires the security staff, the
bartenders, the stage crew, and pays for all of the advertising. He
then sets the ticket price, based on what the thinks the market will
bear, and collects all money from the ticket sales.
If the show sells out, he does well and keeps all the money, minus his
(considerable) expenses (SOME of which are listed above), which
includes paying the band their pre-determied amount.
If the show tanks, the band still gets their guaranteed amount, and the
promoter loses.
Now, out of the band's guarantee, they have to pay for their personal
crew (stage techs, sound and lighting people), tour busses, bus
drivers, tour managers, gas for the bus, hotel rooms between gigs, food
and per diems for all band and crew memebers, insurance, gear
maintenance, and more. On days off with no gig, they're paying for all
of this stuff with no income.
MOST tours are lucky to break even.
The reason they do it, is to promote record sales, and to sell
merchandise, which is where the majority of the profit comes in on big
tours.
The promoter will usually reap 10-25% of merch sales, and of course
the band has to factor in the cost of having the t-shirts and other
stuff made, but they can usually make more off of the merch than off of
their guaranteed fee for playing - after the expenses are factored.
If Devo, circa 1980, only made $16k per member for a tour, that doesn't
actually surprise me.
It seems a little low, but not outrageously so.
Especially since those expensive sets, the trucks to haul them in, and
the techs to build them every night had to be paid for out of their
performance fees.
How long was the tour?
Eight to ten weeks is standard for a north American tour - This is
$2000 per guy, per week - that doesn't seem like a bad income, in 1980
dollars.
And they made cash on the back end from their merch sales.
If they'd been smarter about signing their admittedly bad record deal,
they also would have seen more royalties from record sales during the
touring months.
This is documented for almost all bands - record sales spike when
you're on tour.
- James
(who spent most of the 1990s on tour with Ministry, Pigface, Royal
Crown Revue, and others)