I’ll Gladly Pay You Tuesday…

…for a hamburger today (~Wimpy from Popeye). How many of you remember that statement? I had a conversation recently with a newer planner who was asking about different ways live musicians, speakers, or artists settle their contracts. When working with a touring band or multiple bands, singing or performing artists, speakers or other entertainers, especially for something like a large, multi-day event, there can be almost as many different payment arrangements as there are artists. If you’re not familiar with how your particular performer wants to be paid, you might end up with a budget deficit you weren’t expecting. 

First, most larger bands and speakers have an agent who negotiates the initial contract. Some smaller bands and solo artists have them as well, but it’s not as common. When working with an agent, the initial payment (usually a 50% deposit) is paid to the agent directly, and any final payments are paid to the band or artist (I’m going to refer to this group as performers). If you don’t read every single word of the contract and rider, this detail can get overlooked. Trust me, you must read EVERY – SINGLE – WORD (see my blog Read. Every. Word. for more). Some solo performers require a deposit and others don’t. Regardless, make sure that everything is spelled out in writing.

Second, there are two major types of payment arrangements: flat-rate and a percentage of ticket sales (also known as door split or revenue share). When paying a performer based on a flat rate, the terms are fairly straight forward. If the agreed-upon price is $10,000 for the event, then usually a 50% deposit is paid to the agent when the contract is signed, and the balance due is paid to the performer before they take the stage on the concert day or possibly within ten days of the show. One benefit of this arrangement is that you know what your budget will be for this portion of the event; $10K.

Additionally, be sure to review the contract to understand who is responsible to pay for travel, lodging, and meals. Occasionally these costs are included in the flat rate, but rarely. You are most likely going to be responsible to pay these expenses on top of the flat rate fee. Again, be sure you know exactly what you are paying for, to whom, by when, and write it down. 

If the payment terms are based on ticket sales or a revenue split, this can get very time consuming very quickly. This type of agreement generally requires you to guarantee a minimum number of ticket sales or a minimum amount you will pay the performer regardless of ticket sales. The performer’s representative will quickly become your best friend. They will be in contact about ticket sales monthly, then weekly, then daily as the event approaches. And when on-site, this person usually sits in the ticket booth and reviews reports, monitors ticket sales, and prepares to cash out at the end of the show. When the performer is on-site at the venue, they often travel with several different staff members, so be sure you know up front exactly who gets to determine their cut of the ticket income and how it will be calculated. Some payouts are calculated based on overall ticket sales (a percentage of the total sales) and some are calculated on the profit (the total less your expenses). Whichever the method, this should also be captured in writing in the contract so there’s no confusion at the end of the night.

Most payment agreements of this type don’t allow any reduction for cancellations or no-shows, nor does the performer reduce their take to account for platform service fees or credit card processing fees. These might be negotiating points when booking a performer so again, be sure to review the contract and rider carefully and offer an addendum with your own terms if needed. And, you’ll need someone from your organization who can cut a check the day of the event or provide you with a blank check as the performer’s representative will be expecting to leave with payment before they go. If paying a performer based on ticket sales, when calculating the ticket price for attendees, be sure to account for your ticket platform and credit card fees, factor in your income goals, consider all of your event expenses, and estimate what you will be paying the performer so you can cover all costs. If you underestimate these, you could end up losing your shirt.

It sounds more complicated than it is, but if it’s your first time contracting a performer using either of these payment methods, it can’t hurt to ask another event professional who has done this before. Also, it is wise to read and re-read the contract and rider, highlight parts that you need to remember, ask your legal counsel if there are portions of either document that you don’t understand, and walk slowly through the payment process. Don’t let an impatient performer’s representative rush you. That’s when mistakes can happen. Then, document your process and what you learned so you’re more prepared for the next time around.

Do you have any advice for this audience of a time when you worked with of either of these payment arrangements for a performer? Share something with us here or
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