Concert cash refers to money that artists and performers make from playing live shows and going on tour. There are several ways musicians can earn concert cash and make money from their live performances.
Ticket sales
The most obvious way musicians make money from concerts is by selling tickets. Ticket prices can vary widely depending on the artist, venue, city, and demand. More popular artists playing bigger venues in major cities will charge higher ticket prices, sometimes hundreds of dollars per seat for front row or VIP seats. Less established acts will have cheaper tickets, sometimes as low as $10-20 for small club shows. The artist’s management team works with concert promoters and venues to determine ticket prices based on expected demand.
Artists get a percentage of the revenue from every ticket sold. This percentage is negotiated in the artist’s contract with the promoter and varies based on the artist’s stature, but can be anywhere from 70% to 90% of each ticket’s face value. So for a $100 ticket, the artist might get $70-90 of that amount. Some huge legacy acts like The Rolling Stones or U2 can command an even higher percentage of ticket revenues.
The remaining share of ticket revenue goes to the concert promoter and venue to cover their costs and profits. The promoter covers expenses like advertising, staging, and ticketing fees. The venue covers its own overhead costs like rent, utilities, and labor. Both promoters and venues aim to make a profit as well from putting on shows.
So in general, the more tickets an artist can sell for their shows, the bigger their overall concert cash will be from ticket revenue. Playing bigger venues allows artists to sell more tickets and make larger sums from each show. But they also take on more financial risk if they cannot sell out a large venue.
Merchandise sales
Another significant revenue stream from concerts is merchandise sales. Items like T-shirts, hoodies, hats, posters, and specialized tour memorabilia can all earn big money for artists on tour. Fans are often eager to buy merchandise at shows as concert souvenirs or to display their fandom. Top artists can make hundreds of thousands or even millions in merchandise sales on a single major tour.
Just like ticket revenue, the artist gets a negotiated percentage of merchandise sales. This is commonly around 30%, but can vary based on the artist’s negotiations. The remainder of merchandise revenue goes to the vendors selling it at concerts. Major tours may contract with large merchandise companies to handle all tour merchandising.
Higher ticket prices mean artists can expect to sell more merch, so merchandise earnings tend to correlate with ticket sales. But even artists with cheaper tickets can do well on merch if they have an eager fan base. The key is having desirable and creative products that fans want to buy. Effective merchandising takes planning, insight into what fans will buy, and strong marketing at shows.
Sponsorships and partnerships
Some artists or tours will partner with corporate sponsors to earn additional tour income. A sponsor might pay a flat fee or a percentage of ticket or merch sales to become the official sponsor. In exchange they get marketing benefits like having their brand name and logo promoted on tour posters, merchandise, or announcements.
Famous examples include Metallica touring with Blackened Whiskey (a brand they co-own) or U2’s deal with BlackBerry in 2009. Companies see artist sponsorships as a way to reach target demographics and get brand exposure. Meanwhile, artists make lucrative deals that can bring in millions without having to split the money like they do on tickets or merch. Securing a major tour sponsorship can give a huge boost to a tour’s overall concert cash.
Special VIP packages
Some artists now offer expensive VIP tickets or experiences as part of their tours. These may include options like:
- Front row or other premium seat tickets
- Pre-show receptions with free food and drinks
- Meet-and-greet with the performers
- Photo opportunities with the band
- Backstage tours
- Early access to venue and merch shopping
- Signed gifts or tour merchandise
- Branded VIP-only merchandise
VIP packages allow artists to capture more money from their most dedicated fans. The packages can cost from $100 up to $1,000 or more. Artists and promoters split this extra revenue, just like regular tickets. But it represents “found money” they would not make otherwise from standard ticket sales. VIP packages have become a common offering to boost overall tour earnings.
Some artists have come under criticism when these packages seem to exploit fans. But used judiciously, VIP experiences can be an effective way to increase concert cash from those able and willing to pay more. The key is giving real value instead of a naked cash grab.
CD and music sales
In the past, concerts heavily promoted artists’ albums and CD sales. And record sales were a major source of income for musicians on tour. While streaming has hurt overall music revenue, artists still benefit from sales at shows. They may sell autographed CDs or LPs at the merch table. Some bands even offer new releases or exclusive tour-only music for sale at shows.
Performance royalties are another modest but stable revenue source. Venues must pay a royalty rate to performing rights organizations when live music is played. This captures a tiny fraction of concert cash from each show that gets funneled back to artists.
Lastly, concert tours boost musicians’ overall popularity and exposure. This drives more streaming, downloading, and music sales long after a tour ends. So even if direct music sales at shows are limited, tours have an indirect effect of increasing music income over time.
Revenue from live streaming
With live streaming’s growth, a new concert cash flow has emerged. Platforms like LiveXLive and Live Nation offered paid live streams for major tours forced off the road during the pandemic. And even as live shows return, live streaming looks likely to stay. It offers a way for artists to earn money from fans who can’t attend concerts in person.
Live streaming a real concert generates revenue two ways:
- Selling “virtual tickets” for online access like a traditional pay-per-view event.
- Partnering with sponsors who pay for brand placement and marketing exposure during the stream.
Virtual ticketing income is shared between the platform, artist, and promoter like a regular live show. Streaming sponsorships offer a unique new revenue pool to tap. Look for more artists to live stream major concerts or festival sets as a path to expanded concert cash in the digital domain.
Conclusion
In summary, concert cash comes from diverse sources, with ticket and merchandise sales making up the bulk for most successful touring acts. Revenue split percentages vary, but artists can count on earning a large share of the money their live performances generate. Other income like sponsorships, VIP packages, and streaming add to the bottom line for savvy artists and promoters. Concerts remain the lifeblood of the music business. For bands looking to get paid, hitting the road is still the surest way to collect concert cash.