Concert Promotion Music 229

Concert Promotion The Promoter is the entrepreneur who has a feel for the music business and can see an opportunity to make money selling tickets. Promoters are selling a moment in time. They have the capability to persuade the ticket-buying public that this is the show it has to see.

Concert Promoters Large Conglomerates Smaller companies

Arts Presenters Festivals Symphony Orchestras

Entertainment to enhance another activity Fairs Bars

Chapter 1: Key Representatives Entertainment Attorney Read, Draft, and evaluate all contractual agreements Lawyers are regulated by a code of ethics. Other members of the team are not. A well established entertainment Attorney can be an essential networking bridge for aspiring artists. What to look for-Experience Beware of attorneys who branch out into entering management, recording or publishing contracts with their own clients. Retainer Billable Hours Value Billing Letter of engagement

Chapter 1: Key Representatives Artist Manager

The individual who serves as the artists primary advisor is called an artist manager, a personal manager, or simply manager. -planner, advisor, organizer, strategist, overseer, coordinator, detail person…

Key Elements Identification of Parties General Breadth of Agreement Duties Power of Attorney Compensation Duration Sunset Clause Key Person Clause

Chapter 1: Key Representatives Booking Agent

A talent agent refers to any agent who finds work for creative artists.

Agents who concentrate on finding live appearances are traditionally referred to as booking agents.

What Agents Do Find Bookings Route Tours Buyer generally pays a guarantee-Front End VS a percentage of ticket sales-Back End Booking agents are regulated by the state and require a license. Afm-American Federation of Musicians (Scale)

Chapter 1: Key Representatives What to look for in an agent

Reach-local, regional, national, international Type of venues an agency books In-house bookers Honest and mutually satisfactory relationship

William Morris Agency Creative Artists Agency Club Agent Line Agent Responsible Agent (RA)

Marquee Value

Chapter 1: Key Representatives Key Elements

Exclusive or nonexclusive Duration-usually 1-3 years Rate of commission-usually 10% Commissionable income Geographic Limits Key Person Clause

Chapter 1: Key Representatives Business Manager

A business manager works closely with the artist manager in establishing budgets, regulating income, weighing in on various deals and running the artist’s career as a “business.”

Like a CFO-a financial watchdog Most are CPA or have in-house CPA’s at their firm Tour Budgets

Tour Manager (road manager) Manages the day-to-day needs of you and your entourage Transportation and lodging Responsible for Settlement at each venue Coordinated publicity, interviews, appearances, ect…

Chapter 1: Key Representatives Production Manager

Manages the technical side of your production Sound, Lights, Stage Set Stage plots & Tech Riders Other Essential Personnel Stage Manager Sound Engineer Monitor Engineer Sound Crew Lighting Crew Backline Crew Stagehands Area Manager Runners

Chapter 1: Important Terms Entertainment Attorney In-House Bookers Conflict of Interest Line Agent Retainer Responsible Agent Billable Hours Marquee Value Value Billing Exclusivity Letter of engagement Commissionable Income Artist Manager Geographic Limits Power of Attorney Business Manager Commission Tour Manager Duration Settlement Sunset Clause Production Manager Key Person Clause Severability Clause Booking Agent AFM

Chapter 2: Making Money on the Road Touring is a business, selling tickets, merch, and sponsorship are important components of the business. Selling Tickets

Headliner Ticket prices have doubled over the past decade Strategies to tickets sales High Prices (Eagles) High Volume (Brooks) Ticket prices are often based on how much an artist wants to be paid and

how elaborate a production they want to present. Prices are generally hammered out by the acts manager, business

manager and agent.

Chapter 2: Making Money on the Road Venues

Clubs 100-2,000 Ballrooms 800-1500 Theaters PAC 2000-8000 Auditoriums 500-10,000 Amphitheaters 10,000-15,000 Stadiums 15,000-100,000 Motor speedways 100,000+ Why play smaller venues Genre or style can also determine venue GA vs reserved seating Multi-tiered seating-scaling Usable seating/comps Tour vs one-offs

Chapter 2: Making Money on the Road Merchandising (“Merch”)

“Outside of ticket sales, merch revenue is the most important revenue stream for touring artists.”

For beginning bands merch often bankrolls the band getting from point A to B.

Managers solicit bids from companies Basic deal is usually the longer of one album or touring cycle or

recoupment. A buyout option is usually offered. If there is a large advance, royalty rates are lower. “for new artists most deals are worth 75-100k” Merch company often has a employee on tour House Rate or Hall Fee –usually 20-25%

Chapter 2: Making Money on the Road Merchandising (“Merch”)

Basic Deal Headliner ROYALTY RATE 72-77% Artist pays hall fees out of its share Artist nets 47-55%

Some artist handle their own merch Investment inventory staff, warehousing,distribution,inventory selection. merchandising is more than just selling t-shirts and hats at concerts?

Chapter 2: Making Money on the Road Merchandising (“Merch”)

One of the newest forms of merch is the concert cd Basic instant Live Blueprint Cd’s can be complicated with a revenue chain that includes the record label, act, venue, promoter. CD-$25 Label and Artists 30-40% (usually split) Venue 5-10% Packaging 10% Instant Live 20%

Chapter 2: Making Money on the Road Sponsorship

An artist being sponsored by a company was once considered a sellout. Companies bankroll tours in every genre Sinage ROI Contact ant the Company or Advertising Firm Better to approach a niche brand More likely to receive marketing support than hard cash Endorsement deals Label Support

Festival Sponsors

Festival Survey •  Demographics

–  Gender –  Age –  Ethnicity

•  Residence •  Homeownership •  Intention to Refinance •  Income •  Education •  Purchasing Habits •  Cell Phone/Wireless Co.

HAM Fest

Sponsorship Opportunities for the Happy Artists Music Festival

May 3, 2009

HAM Fest

Sponsorship Opportunities for the Happy Artists Music Festival

May 3, 2009

§ Explain what makes the event, project, charity, etc. worth being associated with.

§ You might want to describe the event’s history with an aim toward showing growth in numbers, growth in participation, growth in sponsorship, and consistency in reaching a desirable demographic target: e.g., In 2008 HAM Fest went to 22 key markets presenting, music, cultural events, and opportunities for marketing to over 880,000 fans of Happy Music and Happy Culture.

§ HAM Fest 2009 will go to 31 markets promising a total reach of 1.2 million Happy Music, Happy Culture fans presenting unprecedented opportunity to market to this desirable demographic.

§ Past sponsors include: Big Record Company, Inc., Happy Cola Company, Large Cell Phone Service Provider, Cool Clothing Designer, Super Energy Drinks, and Wicked Awesome Sneaker, Co.

Introduction and Overview

Provide a bit of background showing the history of the event: “The HAM Fest was started to represent, speak to and capitalize on the emergent Happy Culture. In the late 1990s, we realized grunge had come and gone. People were looking for cheery festivals. Morose was out, and happy was in. We saw a community of fans, artists and an emerging youth culture. We capitalized on the opportunity.” - Happy Rich Guy (Founder HAM Fest)

History

Provide Testimonials from past sponsors and past participants of note.

“We came in as a Tier 1 sponsor with HAM Fest in 2008. We saw a marked increase in interest and brand recognition among Happy Music enthusiasts age 18-25, a group we wouldn’t have otherwise reached.” – Suzan Bigbucks (VP Branding, Happy Cola Company) “We jumped on the HAM Fest juggernaut in 2001. Since then we’ve seen a three-fold increase in core sales. Prior to HAM Fest, we sold mostly left-footed shoes but had no luck with right. Tier 1 Prosciutto Level sponsorship changed that.” – Rubber Souls McGinty (Founder, Wicked Awesome Sneaker, Co.)

Testimonials

Provide Testimonials from past sponsors and past participants of note.

“We came in as a Tier 1 sponsor with HAM Fest in 2008. We saw a marked increase in interest and brand recognition among Happy Music enthusiasts age 18-25, a group we wouldn’t have otherwise reached.” – Suzan Bigbucks (VP Branding, Happy Cola Company) “We jumped on the HAM Fest juggernaut in 2001. Since then we’ve seen a three-fold increase in core sales. Prior to HAM Fest, we sold mostly left-footed shoes but had no luck with right. Tier 1 Prosciutto Level sponsorship changed that.” – Rubber Souls McGinty (Founder, Wicked Awesome Sneaker, Co.)

Testimonials

Happy Music Fans:

§  18 - 25 years old

§  Number over 35 million

§  Born in the 80s, came into consciousness in the 90s, established their own buying habits in the new millennium

§  Define themselves through purchase of Happy Music, Happy Clothing, Happy Soft drinks, and Happy lifestyle products and services

§  Active Consumers of Happy Culture and related lifestyle products

§ Spend nearly $ 90 million a year on music, clothing, soft drinks

§ Provide any other relevant demographic data that convinces potential sponsors that buying in at any level provides quantifiable benefits

Demographics

HAM Fest 2009

Happy Artist

The Cheery Cheerios

The Smiling Satisfaction Transaction

Smiley Smith

Joan Joyous

Glee Club Convoy

HAM Fest 2009 Dates

List all festival dates

List all festival markets

Provide any market specific information

Note if dates are tentative

HAM Fest 2009

SPONSORSHIP PLATFORMS

Tier 1: Prosciutto Sponsor

Tier 2: Jamon Sponsor

Tier 3: Candied Ham Sponsor

Tier 4: SPAM sponsor

HAM Fest 2009

SPONSORSHIP PLATFORMS

Tier 1: Prosciutto Sponsor

Tier 2: Jamon Sponsor

Tier 3: Candied Ham Sponsor

Tier 4: SPAM sponsor

HAM Fest 2009 Prosciutto Sponsor

§  Exclusivity in category §  Logo / marks prominently

featured in all HAM Fest print materials, signage, ads, and collateral

§  Official product / service designation

§  Presence and access to hospitality suites at all stops

§  Entrance signage §  On-stage signage §  Program book ad

§ On-line presence at hamfest.com § Branding on official tour

merchandise § Radio broadcast tags § Tickets to key tour stop § ID / tag in media buy § On-site sampling § On-site sales rights § Mailing lists § PA announcements § Tags in all local TV / radio

broadcasts

HAM Fest 2009 Jamon Sponsor

§  Logo / marks featured in select HAM Fest print materials, signage, ads, and collateral

§  Presence and access to hospitality suites at select stops

§  On-site signage §  Program book ad

§ On-line presence at hamfest.com § Tickets to key tour stop § On-site sampling § On-site sales rights § Access to select mailing lists § PA announcements § Tags in all local TV / radio

broadcasts

HAM Fest 2009 Candied Ham Sponsor

§  Logo / marks featured in select HAM Fest signage, ads, and collateral

§  Access to hospitality suites at select stops

§  On-site signage

§ On-line presence at hamfest.com § One time email blast § PA announcements

HAM Fest 2009 Candied Ham Sponsor

§  Logo / marks featured in select HAM Fest signage, ads, and collateral

§  Access to hospitality suites at select stops

§  On-site signage

§ On-line presence at hamfest.com § One time email blast § PA announcements

Contact §  For sponsorship opportunities, contact:

§  Samantha Smiley at: §  HAM Fest 2008

§  PO Box 123 Ebullientville, NY 12341 (212) 333-4444 ssmiley@hamfest.com

Chapter 2: Terms Headliner Support Act Billboard/Pollstar General Admission Reserved Seats Comps Scaling Gold Circle Merch House Rate Royalty Percentage Roi (return on Investment) Sponsorship Deck Sinage

Chapter 3: Why, When, and Where to Tour Preproduction Phase-before capital is invested in gear and other costs

Benefits of the tour can be maximized. The tam will map out the tour to fully realize venues and exposure.

Plotting a tour is a process that starts with the act and it’s team. As long as a year in advance Plot out objectives Key Factors-album release, tv exposure, tour announcement, on-sale tour launch, routing.

Chapter 3: Why to tour Promote album sales Sell Merch Build fan Base Attract Labels For most groups signed to a label, touring is tied into a release date of an

album to capitalize on exposure, radio play, and the labels marketing muscle.

Priorities are to: Create and Event Make Money Have Fun

Chapter 3: Touring to Promote Album sales Parallel business Create a buzz In-stores

Sponsors Touring to Make Money

All tours should be profitable There is no shame in playing for the money Heritage Groups

Touring to Build the fan base

Chapter 3: When to Tour Big name artists can dictate tour dates. Headliner Billed C0-headling situations Availability New Release Radio or TV exposure Penetrate secondary Markets Buzz-Plays Timing the on-sales with radio play

Chapter 3: Touring Traffic To much touring traffic can be problematic Most concert activity occurs between April and September Acts should be cognizant of how often they play a given market A general rule of thumb is every 16 months to 2 years The right venue the right time

Arenas theatres and clubs tend to be busier in winter. Playing on-offs

one-offs are rare radio shows Payola Corporate Shows Sell-out

Chapter 3: Art of the On-Sale On-sale or going-up (tickets available to the public) Two strategies

Put tickets on sale early Wait until a few weeks out to create a sense of urgency

Where to tour-Determining Markets

Where to Tour Determining Markets Secondary and Tertiary Markets Anchor Dates Building the fan base Partnering with other groups Skynyrd & 3 doors down-neither group played their best markets

Chapter 3: Determining which venue to play The type of venue is largely determined by the amount of tickets that can

be sold. Another important factor is venue aesthetics A general rule of thumb is that production tends to work better in a

controlled room Some groups sell their music as a party and create lifestyle events that fit

better in “sheds” Some groups need more reserved seating than GA Sometimes there is a stigma attached to certain types of events?

Chapter 3: Routing the Tour The type of venue is largely determined by the amount of tickets that can

be sold. Another important factor is venue aesthetics A general rule of thumb is that production tends to work better in a

controlled room Some groups sell their music as a party and create lifestyle events that fit

better in “sheds” Some groups need more reserved seating than GA Sometimes there is a stigma attached to certain types of events? Avails-Second or third hold. Smaller acts can move more quickly Compare a historic venue to a new one.

Chapter 3: Terms Preproduction phase shed In-stores avails Heritage acts second third hold Headliner Billed Buzz plays Touring traffic One-off Radio show Payola On-sales Going up Secondary market Anchor date

Chapter 4: Budgeting You need to create a plan. A budget is one of the MOST important parts of

that plan. Projecting Income Ticket sales Merch Sponsorship Other? The goal is to tap as many potential revenue sources as possible. Projecting income is more difficult that estimating expenses because there

is less control.

Chapter 4: Budgeting Ticket Sales

Fees paid to an artist for performance but the talent buyer are know as ticket sales.

Guaranteed Flat Fee Percentage of ticket sales (door) Combination of the two If percentage deals are requested the band will want to suggest realistic

ticket prices. “Priors”-are published weekly in Billboard and Pollstar Venue Priors Flat fees are known as Guarantees or “flats” The percentage a band receives is called the “back end”

Chapter 4: Budgeting Ticket Sales

The risk in a straight percentage deal is that the ticket sales is unknown. Most groups will try to remove some of the risk by negotiating a minimum versus as percentage, whichever is greater. This is commonly known as the “versus deal”.

Merch Sales-measured per capata or “per cap” Set up boundaries for expenses Variables Costs-hard to predict

Chapter 4: Your Budget Create a detailed Budget for your event by next week.

Income Budgeted Projected Actual Delta Ticket Sales 450 Merch Sponsorship Expenses Artist fees 382(85% TS) Sound Rental 20 Sound Person 0 ($50 paid by club) Personnel

Chapter 4: Terms Fee Structures Priors Flats Back end Gross Potential Deductions House Rate Per Cap Impressions See pg 60 Production reimbursement Variable costs-running expenses

Chapter 9: Types of Talent Buyers A talent buyer is the person or company who pays an act or artist to

perform. The size and scope of talent buyers is very diverse. Concert Promoters National & International Promoters College Buyers Club Buyers Venue and PAC Fair and Festival Casio Private

Chapter 9: Types of Talent Buyers Hard Ticket Buyers Hard ticket buyers primary revenue stream is selling tickets. Hard ticket buyers are commonly referred to as Concert Promoters. Evolution of the Concert Promotion Business Since colonial times Big Band Era True beginnings in 1950’s with Rock and Roll

Large packages with hit bands of the day 1960’s- Bill Graham Attending Concerts became one of the primary entertainment choices for

the youth culture. 1980’s Promoters tired of watching the venues capture all the ancillary

revenue began building their own amphitheatre.

Chapter 9: Types of Talent Buyers 1990’s –All types of business begin to consolidate. Robert Sillerman begins

buying up regional concert promoters. 2000 Sillerman sells SFX to clear channel 2005 CCE spun off its live entertainment business creating the independent

entertainment giant Live Nation 2006 Live Nation owns 153 Venues worldwide Produces 28,000 events annually

Chapter 9: Chapter 9: Types of Talent Buyers The promoter pays the act usually through an agent. The promoter agree to

promote the show through whatever means necessary. Box office proceeds traditionally go 15% to the promoter and 85% to the act-this is negotiable.

From the promoter share come expenses-promotion, production fees, hall rental, catering, any other costs.

Some have estimated the promoters profit margin at 1% National & International Buyers Deep pocketed corporate promoters with a presence in multiple markets. Can build an advantage by cross-collateralizing across the tour. May partner with local promoters College Buyers Student run campus entertainment buying association May partner with local promoters-Sig. cost savings

Chapter 9: Chapter 9: Types of Talent Buyers Large Venue Buyers Many times the venue and the talent buyer are one and the same. Club buyers, arenas, theaters, ballrooms, PAC. Club Buyers Venues have played an undeniable role in launching many artist career.

The club circuit remains an important vestige of the traditional touring model. Promoters take chances on new acts in hopes that they will remember the promoter if they are successful.

Clubs can offer better pay because the overhead is less. Some groups are just better in clubs. PAC Most have in-house talent buyers

Chapter 9: Chapter 9: Types of Talent Buyers Festivals & Fairs Some of the most established buyers in North America. Some are Hard ticket buyers some derive ancillary income streams. Casino Buyers Have become more diverse. Baby boomer demographic. Private Buyers One of the fastest growing segments of live industry Often will partner with an experienced promoter