Next time one thinks seats to a concert tour show are too much, consider what the costs of touring are. Bands practically go bankrupt taking their show on the road, which is something that should give one pause next time they think about unlawfully downloading songs.
Not cheap to tour
Most groups or artists do not have enough cash to cover a tour. You imagine a tour for a musician to have a ton of cash with a ton of partying and tour busses. Unfortunately, that is not the case for all.
For instance, a 2007 NPR interview with The Dresden Dolls, a Boston duo that has been playing their trade for several years, has some data that's quite revealing. The band had a record deal, toured all over the world, even opening for Nine Inch Nails on one tour. Amanda Palmer and Brian Viglione, the two people in the group, were both making $1,500 a month from touring.
That's $18,000 per year, assuming they tour every month of the year.
Granted, they also had earnings from CD sales -- royalties of $1 per CD sold -- and merchandise.
Might get better with more followers
Oh, Sleeper is a band that is considered "mid-level" since it has been around for a few years and has a following. Band member Shane Blay posted typical expenses associated with touring. He said that bands make money based on the amount of merchandise sold and the number of fans who arrive. The groups have to pay the venue for using the facility too. His band made about $600 per night for the venues on average because of $300 in merchandise sales and $300 in location profits.
Bands pay to print shirts. He reported $7.50 per shirt, which they sell normally at $15 per, meaning its half the price. So of that $300, $150 is already gone. Venues typically charge a 25 percent commission, $75, and the band's manager gets a 15 percent cut of the profits, or $11.25, meaning the band makes $63.75 from $300 in merchandise sales. From guaranties go, 15 percent off the top goes to the band's manager and 10 percent goes to their booking agent, who arranges tour dates. That leaves $225 per night, before paying travel expenditures, which he quotes around $150 just in fuel between gigs, leaving $75. Then, after a $10 per day food spending budget for all five band members plus their merchandise seller, $60, which leaves $15. In total, that's $78.75 per night.
Then there are additional emergency costs not calculated out. Without the emergencies, each band member will get $13.12 a night to play, which is not a lot of cash.
Only pays for the big wigs
The Daily Mail explained that the very best way to make cash while touring is to be large enough that enough tickets will sell to make the additional cash. Roger Waters toured in 2010 which made about $90 million. The costs were only $60 million, which means he made a lot of additional cash.
NBC News explained that most groups were close to having to end tours and quit due to gasoline costs in 2008. Most young bands struggle more than you would know.
When you download music for free, the band ends up losing cash there too.
Not cheap to tour
Most groups or artists do not have enough cash to cover a tour. You imagine a tour for a musician to have a ton of cash with a ton of partying and tour busses. Unfortunately, that is not the case for all.
For instance, a 2007 NPR interview with The Dresden Dolls, a Boston duo that has been playing their trade for several years, has some data that's quite revealing. The band had a record deal, toured all over the world, even opening for Nine Inch Nails on one tour. Amanda Palmer and Brian Viglione, the two people in the group, were both making $1,500 a month from touring.
That's $18,000 per year, assuming they tour every month of the year.
Granted, they also had earnings from CD sales -- royalties of $1 per CD sold -- and merchandise.
Might get better with more followers
Oh, Sleeper is a band that is considered "mid-level" since it has been around for a few years and has a following. Band member Shane Blay posted typical expenses associated with touring. He said that bands make money based on the amount of merchandise sold and the number of fans who arrive. The groups have to pay the venue for using the facility too. His band made about $600 per night for the venues on average because of $300 in merchandise sales and $300 in location profits.
Bands pay to print shirts. He reported $7.50 per shirt, which they sell normally at $15 per, meaning its half the price. So of that $300, $150 is already gone. Venues typically charge a 25 percent commission, $75, and the band's manager gets a 15 percent cut of the profits, or $11.25, meaning the band makes $63.75 from $300 in merchandise sales. From guaranties go, 15 percent off the top goes to the band's manager and 10 percent goes to their booking agent, who arranges tour dates. That leaves $225 per night, before paying travel expenditures, which he quotes around $150 just in fuel between gigs, leaving $75. Then, after a $10 per day food spending budget for all five band members plus their merchandise seller, $60, which leaves $15. In total, that's $78.75 per night.
Then there are additional emergency costs not calculated out. Without the emergencies, each band member will get $13.12 a night to play, which is not a lot of cash.
Only pays for the big wigs
The Daily Mail explained that the very best way to make cash while touring is to be large enough that enough tickets will sell to make the additional cash. Roger Waters toured in 2010 which made about $90 million. The costs were only $60 million, which means he made a lot of additional cash.
NBC News explained that most groups were close to having to end tours and quit due to gasoline costs in 2008. Most young bands struggle more than you would know.
When you download music for free, the band ends up losing cash there too.
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