Chapter 16 Concert Promotion

Local promoters

recommend the best venues, determine seat prices, and arrange local sponsorship with local radio stations and record stores.

National Association for Campus Activities (NACA)

represents over 1,200 colleges and produces it's own magazine Programming which is highly read by promoters.

Sponsorship

• Record Company sponsorships • Local radio station sponsorships • Venue and corporate sponsorships • College sponsorships

Seven Types of Concert Venues

1. Stadium 2. Amphitheatre 3. Festival Sites (SXSW/Woodstock) 4. Arenas (AT&T Center) 5. Theatres (Majestic Theatre) 6. Mid-sized Music Venues (Trinity University's Laurie Auditorium) 7. Small-sized Music Venues (Clubs and Halls all over San Antonio)

Examples of National Promoters

AEG, Messina Group, Live Nation, and Jam Productions are preferred by major stars to coordinate their national and international tours.

The Agent in concert promotion

Agents bring offers for concert appearances to the artists they represent. Since they work on commission, they like to negotiate the highest fees possible.

The Art of the Deal Negotiating Artist's Fees

Agents usually want guaranteed fee plus a percentage of ticket sales. If it's a charity event, only flat fee is expected.

Preliminary Budgets

Agents will want to see all estimated expenses (as seen on expense sample sheet) and will allow promoter to receive 15% of that as profit. The total expenses plus 15% profit are then referred to as the split point. Profit realized after split point (sometimes referred to as back end) is split between artist and promoter (usually 85% for artist & 15% for promoter - some mega groups get 90%). These percentages are open to negotiation.

Web Sites

Artist's web sites can have tour schedule, links to venues, fans can signup for newsletters, email addresses can be harvested and fans emailed regarding concerts and new releases, etc...

Ad Mats (Advertising material, or Branding)

Artists are gaining more control of how their ads are produced and for creating ad mat, industry slang for reusable ad material. This helps create a consistent look and message

Two organizations exist where promoters and agents both attend conferences

Association of Performing Arts Presenters (APAP) and the National Association of Campus Activities (NACA).

Written agreements

Before the event can happen, the promoter will sign many contracts with: venue management, merchandisers, lighting and sound companies, insurance companies, transportation companies, caterers, and security personnel (usually with local police and fire departments). The costs of all these services must be included in total expense estimation or the promoter could wind up losing money.

Publicity and Public Relations

Cheaper than advertising and sometimes free • Web Sites, foreign Interest, Press Release, Publicists

Who issues the contract?

Contracts - Once the promoter and artist's agent agree on terms, the agent will issue a contract. The contract has two sections

Control Sheets

During the months leading up to the event the promoter will have numerous details to deal with: lots of contact information, deadlines, schedules, etc... The savvy promoter will use a control sheet to keep track of and stay on top of everything.

What is the venue's potential? $$$$

Estimating costs accurately is key to success! Example: A 1000 seat facility at $20 per ticket if sold out will gross $20,000. (Few shows sell out!) Even with a sell out, expenses not anticipated may consume any profit. A promoter might be more successful securing a 5000-seat venue, book a strong headliner and financing a strong promo campaign. Regardless of a venue's potential, promoters don't base the budget projections on a sold out house. They budget for a 60% house meaning 40% of tickets don't sell. The 60% goes all the way back to the 1800's with Vaudeville and Broadway shows.

How can you find out who represents an artist?

Finding out who represents an artist is relatively easy. An internet search will usually find the answer. The artist's record label is happy to supply the name of the artist's agent and often prints that information on the CD credits. The trades publish an agency roster.

Initial cash investment

First thing necessary is money (personal or outside investors) Before any money is realized from ticket sales, there will be lots of expenses up front. Expenses can range from: renting a venue, printing tickets, liability insurance, security, damage deposit, advance for act, etc...

Papering the House

Giving away free tickets so the venue looks pa ked and it looks good to a label

Booking the Artist- Promoter of Record

New promoters usually discover them early on and by building a good relationship with the artist and the artist's agents and personal manager, they can keep the relationship long term and share in the group's eventual success. Promoters that do this are called the

What are possible venues?

Often, the best venues are booked months or years in advance. Securing open dates can be difficult and are useless without availability of the artist on the same date. Venues are usually secured for a flat fee or flat fee and percentage of gross ticket sales.

Advertising Production

Once promoters decide on their media-mix and ad budget, they need to produce the ads their going to place. *Ad Mats, National touring acts,

Multimedia Marketing

Print media Radio & TV Direct Mail & Email

What are the artist's fees and available dates?

Promoter asks agent for available dates and fees - based on that, promoter may put a hold on a venue.

Split Point

Promoter will negotiate a split point (number based on ticket sales where promoter and artist split balance of profit) 60% rule and then the promoter will make 15% after all expenses, then, + that to the end

Foreign Interest

Promoters can contact consulates or embassies of foreign artists that promote their artists in other countries

Publicists

Promoters often hire a publicist because they have close contacts in the press and can devote more time than the promoter. One major feature story can be more effective and way less expensive than traditional advertising

Press Releases

Promoters provide news releases and sometimes video footage, photos or artist's latest CD - reporters talk about upcoming concerts and the only cost is mailing physical goods (CD's), everything else can be emailed - Pretty much FREE!

National touring acts

Rely on ad mat to specify all aspects of any advertising insuring the right pictures, graphics, copy, print the right size, font etc. Many will include these requirements in their technical rider.

Licensed Music Merchandise

Royalties on "merch" range from 8% to 14% of the wholesale price - if sold at concerts, 15% to 22%. *With the decline of sales of recorded product, labels want to participate in more revenue streams which has brought about the increasing number of "360 deals."

Making an Offer - Promoters will

Sometimes deal with group directly if they are relatively new. Usually they will begin by contacting the artist's agent.

Face page

The face page has all the details such as: location, time, length of performance, billing, fees, payment schedules, etc...

Net potential = gross potential - unsold/free tickets

The number of seats (i.e. tickets potentially sold) multiplied by the average ticket price equals the gross potential of the event. Some tickets will be given away to artist's guests, the press, radio stations for giveaways for promotional purposes. Deducting the value of those tickets results in the net potential of the event.

Key Players in Concert Production

The three key players in the concert promotion game are: 1) the event promoter 2) the artist's manager 3)the talent agent who books the tours

Big name act might want an addendum? HAVE A RIDER

Their rider may specify a luxury trailer and six bottles of Dom Perignon - Are they known for attracting a rowdy crowd? Extra security and damage deposits for the venue may be overly expensive

What does the venue offer?

Venue rental usually includes the stage manager, box office manager, maintenance crew, ushers, and sometimes security. The city may require promoter to hire security based on past history of particular act and style of music. Venues are also offered with only the stage manager. This is called four-walling. The promoter will have to supply all other necessary personnel.

Four-walling

an empty venue with a stage manager

Ticket Scalping

buying a large block of tickets and selling them for a higher price when best seats or whole show is sold out

Technical rider (aka rider)

details such artist requirements as: Hotels, catering, travel arrangements, technical needs (such as gear, sound, lighting), size and number of dressing rooms. Promoter's usually want to see the rider before signing to see if it's reasonable or too expensive because the group wants Wild Alaskan Salmon flown in and ten bottles of Dom Perignon or 30 string players. A ridiculous technical rider can be a * • deal breaker! • finer points open to negotiation - star power of main act / what opening act will accept, etc.

National Promoters (NPs)

o Coordinate tours o NPs need local promoters - NPs need the assistance of local promoters who known their territories better than the NPs. o Negotiate share of net receipts - give local promoters a percentage

Term

o Deadwood (tickets that don't sale) o Scaling the house (pricing tickets based on location - front rows, middle, back, balcony, box, etc.) o General Admission (GA) non-reserved - first come-first served - too many of these can cause security concerns

Two sections of a contract

o Face page o Technical rider (aka rider)

Key responsibilities of promoters

o Setting up ticket sales o organizing sale of artist's "merch" at venue o assisting in securing tour sponsorship o providing event staff, financial accounting o complying with all safety regulations.