Secondary ticket sellers are companies or individuals that sell tickets to events after the original public sale. They obtain tickets through various methods and then resell them, often at inflated prices compared to face value. Some key things to know about secondary ticket sellers:
How they get tickets
There are a few main ways secondary ticket sellers obtain inventory:
– Use bots or automated software to buy up tickets the moment they go on sale. This lets them buy large quantities quickly.
– Partner with ticket brokers who have special agreements with venues, teams, etc. to get inventory.
– Buy leftover tickets from the public on sale.
– Get tickets from season ticket holders or other fans looking to resell.
Secondary sellers use these methods to acquire large pools of tickets, then resell them on secondary marketplaces.
Why tickets get resold
Secondary sellers thrive because there is demand for tickets, even at higher prices. Some reasons people buy from them:
– Hot shows or games sell out instantly. Secondary sellers offer a way to still get tickets.
– People missed the initial on sale and need tickets.
– Fans want better seats than they could get in the public sale.
– Gift buyers and corporate events need tickets after initial selling periods.
Prices are higher
Secondary sellers often charge well above face value for tickets. Prices can be 2-3x higher, or sometimes even 10x face value or more for highly desirable events. Sellers are able to charge these premiums because of demand from buyers willing to pay more.
Major secondary ticket sellers
There are a few big players that dominate the secondary ticket selling market:
StubHub
Owned by Viagogo, StubHub is one of the largest online secondary marketplaces. It allows buyers and sellers to transact ticket sales securely. StubHub charges sellers fees and buyers additional fees.
Vivid Seats
Vivid Seats is another large online marketplace for tickets. Like StubHub, it facilitates sales between buyers and sellers. Sellers pay commission fees, and buyers pay service and delivery fees.
SeatGeek
SeatGeek is a search engine that scans multiple secondary sellers to find ticket deals. They don’t directly sell but connect buyers and sellers on partner sites. The company makes money via affiliate commissions.
ScoreBig
ScoreBig runs its own secondary marketplace and makes offers on leftover inventory from primary sellers. Their large inventory comes from partnerships with major venues and teams.
Controversies around secondary sellers
The secondary ticket market has received some backlash over the years. Here are some controversies:
Artificially inflating prices
Critics argue secondary resellers artificially drive up prices by cornering large shares of limited ticket inventory. They charge excessive fees and premiums.
Reselling speculative tickets
Some secondary sellers will list tickets for events before officially having the tickets. If sales go through, they then try to acquire the inventory.
Use of ticket buying bots
Bots that automatically buy tickets en masse are controversial. They make it harder for the general public to buy tickets at face value. Their use is prohibited by many venues.
Are secondary resellers legal?
The legality of ticket reselling depends on local laws. Here are some key legal considerations:
Price caps
Some states enforce price caps on markups to prevent extreme inflation. Reselling above face value is legal as long as caps are respected.
Speculative selling restrictions
Many states prohibit speculative selling – when sellers don’t yet actually have tickets in hand. Lists must be clearly marked as speculative.
Banned activities
Practices like using bots are illegal in some jurisdictions when expressly forbidden by event hosts. Resellers can’t use prohibited methods.
Consumer protections
Secondary sellers must comply with consumer protection laws around transparency, refunds, and exchange practices.
Pros and cons of secondary sellers
Here are some potential advantages and disadvantages of the secondary ticket market:
Pros
– Provides a way to get tickets even when initial sales sell out
– Gives fans access to better seat options
– Allows a route to buy tickets as gifts or for corporate events
– Gives ticket holders an avenue to resell unused tickets
Cons
– Prices are often inflated compared to face value
– Speculative selling is risky for buyers
– Use of bots crowds out everyday fans from buying
– The practice remains controversial overall
Conclusion
The secondary ticket market has a mixed reputation, but continues to thrive by offering ticket availability after initial sellouts. Secondary resellers use various methods to obtain large ticket inventories, then resell at a premium over face value. While the practice has controversies, it remains popular for providing buyers another route to get tickets, even at inflated prices. Governments continue to explore regulation around secondary reselling to find the right balance between allowing availability and preventing abuse.
Comparison of Major Secondary Ticket Sellers
Seller | Marketplace Type | Inventory Sources | Pricing |
---|---|---|---|
StubHub | Online marketplace | Brokers, season ticket holders, general public sellers | Charges sellers fees, buyers pay additional service and delivery fees |
Vivid Seats | Online marketplace | Brokers, season ticket holders, general public sellers | Charges sellers commission fees, buyers pay service and delivery fees |
SeatGeek | Search engine and aggregator | Links buyers to sellers’ listings on various partner sites | Makes money via affiliate commissions from referrals |
ScoreBig | Own secondary marketplace | Direct inventory partnerships with major venues and teams | Revenue model undisclosed, speculated to take cut of ticket sales |