Originally Posted by DamoSyzygy
Seems like these shows are massively profitable, and some can be, but you must also consider the COST of putting on shows, from venue hire, to paying the soundguys, roadies, security, licensing fees (if any), plus the additional (and significant) cost of travel, accomodation and promotion of the event.
It can REALLY add up!
Exactly. I'm always amused by people who observe that in a 4-pc band grossing $1m at a particular show, the drummer must make $250,000. Sheesh.
There are a huge amount of expenses, fees, and simple costs of doing business that turn gross amounts into much smaller net profits, which are further eaten away by taxes.
To expand on the items listed above, there are:
Promoter fees/percentages (which may include venue costs, catering, and adverstising)
Booking agent percentages
Merchandise cost, shipping, and a percentage of sales to the 'house'
Salaries for musicians and crew
Daily expenses such as hotels, coach and truck rentals, diesel fuel, and per diem for musicians and crew
Rental of lighting and sound equipment
Misc consumables 'tour expenses' such as new heads, strings, gaff tape, fog juice, as well as ongoing costs like wardrobe cleaning and unforeseen repairs (new road cases, etc.)
Not mention flights to and from key cities, and crew salaries, per diems and hotels, equipment rentals and rehearsal space rental during pre-production before the tour (when there's no income to offset those costs!)
Yep... it's VERY expensive to put on shows and tour.