Secondary ticket sellers, also known as ticket brokers or resellers, are companies or individuals that buy tickets to concerts, sporting events, theater shows, and other events and then resell those tickets at a higher price to customers. There is a huge secondary ticket market worth billions of dollars that provides another way for fans to get tickets in addition to buying directly from the venue or primary ticket seller.
What is a secondary ticket seller?
A secondary ticket seller, also referred to as a ticket broker, ticket reseller, or ticket scalper, is a company or person that buys event tickets from primary sellers and then resells those tickets at a profit to customers on the secondary market. Primary sellers include the venue hosting the event, the performer or team’s box office, or an authorized ticket retailer contracted to sell tickets on behalf of the venue or performers.
Secondary sellers obtain tickets from primary sources using various methods: they may purchase tickets when they first go on sale just like any other customer; they may leverage special relationships with insiders to get access to tickets before the general public; they may utilize technological tools like ticket bots to automate mass purchases; or they may acquire unused season ticket holders’ seats. They then repost these tickets on secondary marketplaces like StubHub, Vivid Seats, SeatGeek and Ticketmaster at marked-up prices.
The key characteristic that defines a secondary seller is that they resell tickets they have purchased from other sources rather than being the original issuer of the tickets. This allows them to set their own prices based on demand rather than face value.
Why do secondary ticket sellers exist?
Secondary ticket sellers fill a void in the ticket marketplace by catering to customers who are unable to buy from primary sources:
- They provide tickets even when primary sources sell out.
- They offer options when tickets are unavailable through normal channels due to exclusivity deals or holdbacks.
- They allow fans to shop for specific seat locations.
- They give buyers recourse if plans change through refunds and exchanges that primary sellers don’t always offer.
- They provide convenience by aggregating tickets in one place rather than having to go to multiple primary sources.
The high costs of secondary market tickets are a downside for fans. But secondary sellers argue the higher prices simply reflect what supply and demand dictates for a scarce resource.
How do secondary ticket sellers obtain inventory?
Secondary ticket sellers use a variety of sophisticated and simple methods to obtain tickets for resale:
Purchasing tickets normally – Secondary sellers buy tickets just like any other customers when tickets initially go on sale. They utilize technological tools to buy in bulk.
Leveraging industry connections – Sellers develop relationships with venue employees, season ticket holders, artists’ fan clubs, and sponsors to get access to tickets before the general public.
Season ticket resales – Season ticket holders often resell some of their unused tickets to brokers. NFL teams even have official partnerships with large brokers.
Speculating on unpopular events – Sellers take the risk of buying large quantities of tickets to events they predict will have low demand. This can yield big rewards if a once-unpopular event gains interest.
Ticket bots – Software automatically purchases huge volumes of tickets online faster than any human could. This controversial practice is illegal under the BOTS Act but still occurs.
How do secondary sellers determine ticket prices?
Basic economic principles of supply and demand guide secondary sellers’ pricing models. Popular high-demand events will have the highest markups. Sellers use data like venue size, artist popularity, tour history, and prices on competitor sites to forecast demand and optimize prices. Dynamic pricing algorithms adjust prices in real-time based on factors like:
- How many tickets are left
- The pace of recent sales
- Prices competitors are charging
Unexpected events like the cancellation of a concert or player injuries at a sporting event will also instantly impact prices as supply is affected.
Are there limits on what secondary sellers can charge?
There are no federal US laws restricting what prices secondary market ticket sellers can charge. Many states have anti-scalping laws that cap markups, but most apply only to physical ticket sales outside venues, not online sales. Some states like New York are proposing stricter resale price caps that would affect major secondary marketplaces.
Performers and teams are starting to combat extreme markups by partnering directly with ticket resale platforms. This gives them some control over setting price limits. But broadly, secondary sellers are free to charge what the market will bear regardless of how much over face value tickets are marked up.
What are the largest secondary ticket marketplaces?
Here are some of the largest and most well-known secondary ticket marketplaces online:
- StubHub – Founded in 2000 and owned by Viagogo, StubHub is the largest online ticket resale marketplace operating in over 40 countries. It sells tickets for concerts, theater, comedy shows, and a wide variety of sports.
- Vivid Seats – Established in 2001, Chicago-based Vivid Seats deals in MLB, NBA, NFL, NHL, and college sports tickets, along with concerts and theater shows.
- SeatGeek – Founded in 2009, SeatGeek is a mobile-focused ticket aggregator that pulls listings from multiple sellers and ranks them by deal score.
- Ticketmaster – Ticketmaster is a primary ticket seller but also facilitates resales via its Ticketmaster Resale site formerly known as Ticket Exchange.
- Gametime – Gametime specializes in last-minute sports tickets with mobile instant delivery of e-tickets.
How do secondary sellers deliver tickets?
In the past, secondary ticket sellers had to physically deliver paper tickets to customers via mail or at the venue. Nowadays, most tickets exist as electronic tickets or e-tickets that can be instantly transferred to buyers online and accessed on mobile devices. E-tickets reduce the risk of counterfeits and lost tickets. Secondary marketplaces pride themselves on quick digital delivery following purchases. For very high-profile events, paper tickets shipped via courier may still be used. Sellers with physical offices may also allow local pickup.
Are there any risks to buying from secondary sellers?
There are some risks to transacting on the secondary ticket market:
- Counterfeits – With paper tickets, there is potential for scammers to sell fake duplicated tickets.
- Stolen tickets – Criminals may sell tickets illegally obtained using stolen credit cards or hacked accounts.
- Invalid tickets – Tickets could be canceled after sale for reasons like non-payment, violating resale restrictions, or fraud.
- Misleading listings – Listings don’t always accurately reflect seat locations or may advertise unavailable tickets.
Reputable large marketplaces have policies to reduce risks like guarantees for invalid tickets. But buyers should still exercise caution and only buy from trusted established sellers. Reviews of sellers can indicate potential issues. Payment methods like PayPal also offer buyer protection against problems.
Are secondary sellers legal?
The legality of ticket resale is complex. Here are some key legal considerations:
- At the federal level, the BOTS Act of 2016 outlawed using software to bulk-purchase tickets, but enforcement is difficult.
- Around 30 states have anti-scalping laws limiting resale markups, but most exempt online sales.
- New York recently capped resale prices at no more than 10% over face value.
- Some event tickets have contractual resale restrictions, but these are hard to enforce.
- Reselling NFL tickets for over face value is illegal, but the law is not strongly enforced.
Broadly, online secondary marketplaces operate legally with few restrictions in most jurisdictions. But low integrity sellers do break laws around issues like counterfeit tickets and misrepresentation. There are ongoing efforts to tighten regulations, though progress is slow.
Do primary sellers like secondary ticket reselling?
The relationship between primary ticket sellers and secondary resellers is complicated. On one hand, secondary markets increase overall sales and expand consumer access. But primary sellers dislike third parties profiting off initial underpricing. Slowly, the line between primary and secondary markets is blurring as partnerships emerge and major players like Ticketmaster operate in both spaces. But for now, primary sellers generally tolerate secondary markets while working to limit extreme speculation and maintain tighter control over supply chains.
Does ticket resale always mean higher prices?
Although secondary market prices are frequently higher than face value, resale can sometimes yield deals and lower costs. When an event is declining in popularity or tickets were overpriced initially, the laws of supply and demand will force secondary prices down below initial levels. Dynamic pricing algorithms instantly factor in downward trending demand. Savvy buyers can capitalize on last-minute fire sales. Patient fans may find significant bargains on secondary markets compared to box office costs. Of course, the most in-demand events will still command extreme premiums.
How can you get the best deals from secondary sellers?
Here are some tips for finding the lowest prices on secondary ticket marketplaces:
- Shop multiple sites at once using aggregators like SeatGeek to find the cheapest listings.
- Sort by lowest price first instead of best seats first to uncover hidden deals.
- Focus on sites that show prices with all fees included to avoid surprises.
- Be flexible on dates or seats if your schedule permits.
- Buy at the last minute when sellers panic and reduce prices.
- Search for single tickets which are typically priced lower than pairs.
- Avoid extremely high demand games or shows where markups will be astronomical no matter what.
You can save money if you are strategic and persistent. But popular events will still command premium pricing regardless.
Should you buy directly from primary or secondary sellers?
There are advantages and disadvantages to both primary and secondary ticket sellers:
Primary Sellers
Advantages:
- Prices are face value (though still may be high)
- Tickets are guaranteed valid and legitimate
- Convenient to buy directly from the source
Disadvantages:
- Tickets may sell out quickly
- Fewer options to shop different seat locations
- Less flexibility if plans change
Secondary Sellers
Advantages:
- Tickets available even when primary sources are sold out
- Can choose specific seats from seating charts
- Access to deals below face value
- More options for exchanges and refunds
Disadvantages:
- Higher prices, sometimes extremely marked up
- Small risk of invalid or fraudulent tickets
There is no one right option. Consider factors like availability, flexibility, and costs to decide if primary or secondary sources best meet your needs.
Conclusion
The multibillion dollar secondary ticket market provides an alternative avenue for fans to access tickets while also generating large profits for brokers and marketplaces. Sophisticated technologies and supply-demand based pricing drive a complex reseller industry that primary ticket issuers both rely on and compete with. While risks like counterfeits exist, secondary markets allow resourceful fans to unlock deals on otherwise unavailable tickets. Understand the pros, cons, and inner workings of both primary and secondary ticket sellers to make informed purchasing decisions based on your specific circumstances and priorities.