Love ‘em or hate ‘em, you can’t ignore ‘em. Every quarter, Live Nation rolls out their earnings report, and while ticket sales always make the headlines, the real story is in the fine print: ancillary revenue is king. Concessions, VIP upgrades, sponsorships - Live Nation treats every fan in the building like an opportunity to boost their bottom line.

For independent venues, this can feel like yet another example of how the corporate giants play a different game. But here’s the thing: there’s a lesson in all of this. While independent venues don’t have the scale or leverage of Live Nation, they can take a page from the playbook when it comes to maximizing revenue beyond the ticket sale.

The Live Nation Model: What’s Driving Their Revenue?

A quick skim of any Live Nation quarterly report will show you where the real money is coming from:

F&B Sales – It’s not just about selling drinks; it’s about making more on each one. Think high-margin cocktails, exclusive themed drinks, and premium options.
VIP & Premium Experiences – Whether it’s fast-lane entry, exclusive seating, or all-you-can-drink wristbands, fans love options and will pay for perks.
Sponsorships – Every inch of space in a Live Nation venue has the potential to be monetized—bars, menus, digital screens, even wristbands.
Dynamic Pricing & Upsells – From parking to merch bundles, Live Nation leaves no stone unturned in capturing extra revenue per head.

How Independent Venues Can Apply These Tactics

You don’t need a corporate war chest to get smarter about ancillary revenue. Here’s how indie venues can compete:

Look at Your Pricing Structure – Could your drink menu use a premium option? Are your margins where they should be?‍

Experiment with VIP or Add-On Experiences – Even small upgrades like reserved seating or early entry can add up.

Talent Booker Justin Nordan does just that in our February Make More Money webinar on ancillary revenue:

‍“We created a thing called a Homie Lounge, which is kind of like - you’re not backstage, but you're pretty close to backstage and you've got a side-stage view, but you don't get any access to the artist.”

“We’ve also created a VIP lounge with premium sightlines in larger venues like the 1000-cap room or even in Goldfield Roseville. You can offer things with premium sightlines and have a little upcharge for that.”

Local Sponsorships – Partner with local breweries, distilleries, or brands that align with your audience. Sponsorship money doesn’t have to come from a multinational corporation.

Merch and Bundles – Instead of just selling artist merch, consider venue-branded merch or exclusive bundles that include drinks or perks.

Maximize Your Space – Is there underutilized real estate in your venue that could generate revenue? A pop-up vendor, a sponsored photo wall, or a special VIP section?

Bottom Line: Learn from the Machine

Live Nation’s business model is built on squeezing every possible dollar out of an event. Indie venues don’t have to take it to the extreme, but a strategic approach to ancillary revenue can help level the playing field. Every extra dollar from F&B, add-ons, or sponsorships goes straight back into keeping your venue thriving without needing to increase ticket prices.

In a landscape where costs are always rising, a little extra revenue per fan could be the difference between scraping by and truly thriving. Might as well learn from ‘em.