INDUSTRY RESEARCH : PROMOTERS
HOW DOES A PROMOTER GET PAYED?
There are many types of promoters and each with different experience levels and revenue streams. From bar and club promoters at the ground level for local artists and events, all the way up to event management at the highest pop star and international venues. We focused on the Outdoor festival circuit last year but only because it was the most entertaining manner we could find to stay motivated through all of the research and analysis but a promoters job is universal across industries and products or services.
BAR/CLUB promoters can make $100, $500 and even more than $1,500 per night while helping small venues fill in their off nights or pack their weekends and holidays. They need not hire staff like DJs since the establishments already have those in place.The promoter does need to have a game plan to create buzz and drive the crowds to the establishment. These promoters can be payed on a per head count basis anywhere between $10 in big city market and $100 usd for "model type" patrons. If they areconsistant they can demand flat fees from $100-800 per night.
When the promoter is able to guarantee glamour customers , rich and famous or VIP big spenders they can also request a % of bar sales or bottle sales anywhere between 10-30%. The venue owner will often place a minimum that must be sold in order for commission to be payed and if it is not met then the promoter must pay the difference. The bar/bottle sales option requires a lot of experience and confidence from the promoter itself so be cautious. If you commit to 5 days a week of promotions or 4 weekends a month you can easily bring in $50,000 a year ( 25 per hr )
PARTY promoters mature into existence from the previous stage. They will need to hire DJs, entertainers, support staff and even manage the venue rentals and catering in some cases so start-up capital is needed. Risk in these types of promotions is high with insurance for the venue becoming a must in certain genres like hip-hop ($2500 per night ) but certainly "better safe sorry".
Return on Investment can range between 1K and 10K per party but this requires careful market research, advertising and marketing with a sound understanding of business planning that insures success. It is not a stretch to expect to run 25-50 events per year and expect a yearly total of $25,000-$500,000 in gross if you are committed to the job and not the lifestyle. That's $12.50 to $250 per hour in shift worker lingo.
EVENT promoters can make 10x or more but require long planning timelines, carry high risks and demand large amounts of working capital. The typical payouts are tied to revenue splits of 80/20, 70/30 and 50/50 for regional and national events. This is often taken from ticket sales and door sales but a seasoned promoter will include merchandising and cross marketing revenue streams as well.
Media buying costs are much higher as this type of event requires regional media buys as discussed on page 10-18 and media schedules that can have daily frequencies, regional reach and month long runs of both traditional and digital channels. These events are high profile so there is very little room for mistakes and the competition is high from large A&R organizations as well as the record companies and publishers that are offering 360 deals to top artists in order to capture this profitable revenue stream.
