Music Business/Law Tips - Touring Profits

Touring profits for new artists are razor thin as most of the money goes right back out for travel, crew and commissions. It’s estimated that a new act only pockets between 15-30% of the profit from a show (after expenses and commissions), and this is before taxes. For example, a new band playing decent size rooms opening for a bigger act will generally gross about $10,000 a night if you combine the show fee plus merchandise sales. If such a band plays 5 nights a week they are grossing $50,000 a week (on average). Out of that, the band must deduct production costs ($10,000/week average), transportation costs ($10,000/week average), and crew costs ($10,000/week on average). That is a net profit of $20,000. The band must then deduct commissions of up to 40% to pay its manager, booking agent, lawyer and accountant, leaving the band with on average $8,000-$10,000 to split between the 4-5 members. Clearly, for a new artist, touring is all about setting themselves up for making more money in the future once they become a headliner where the fees increase (but so do the production and travel costs). On the other hand, touring is essential to develop a fan base that will stick with the act for many years to come/reap future benefits. Ben McLane Esq Benmclane.com