When it comes to putting on a successful live show, there’s a lot more going on behind the scenes than most people realize. Beyond the deal sheets and the hustle, it’s the shared insights between promoters and venues that can turn a good night into an unforgettable—and profitable—one. By collaborating and leveraging their combined experience, promoters and venues can unlock new ways to make more money and elevate every show.

Know Your Audience: Personalize and predict bar sales:

Alcohol sales often serve as a venue's biggest moneymaker, but they’re more than just a result of a crowded bar. There’s a deep well of institutional knowledge at play, particularly around which types of acts drive better alcohol sales. Some genres or specific performers create a party-like atmosphere that encourages drinking, while others may draw a crowd that’s less likely to spend at the bar. Promoters and venues have learned over time which acts are more likely to drive those higher sales, and they use this insider knowledge to their advantage.

For example, a venue might notice that certain rock bands or country acts generally lead to higher beer sales. On the other hand, a jazz performance or a spoken word event might attract a crowd that drinks less or prefers higher-shelf spirits and cocktails. Promoters and venues leverage this understanding outside of the deal sheet, planning shows and promotions around acts that align with their sales goals. They might even adjust the scheduling, promotions, and pacing of a night to maximize bar sales, strategically placing high-alcohol-consumption acts at times that could boost sales even further. This is not just about serving drinks; it's about creating an environment where certain behaviors—and spending—are encouraged.

Merch Sales: A Collaborative Win-Win

Merchandise sales provide another opportunity for venues and promoters to work together and boost a show's profitability. While artists usually get the most from these sales, venues often take a small percentage for providing space and sometimes staff. By promoting merchandise effectively—whether through strategic placement of the merch table, spotlighting it during breaks, or including incentives like meet-and-greet opportunities—both the promoter and venue can benefit. When promoters understand the nuances of merch sales and work with venues to optimize these opportunities, everyone wins.

Sponsorship Deals and Partnerships

Sponsorships and partnerships can be lucrative ways to add value to a show beyond ticket and merchandise sales. Venues may have ongoing partnerships with local businesses, beverage brands, or other sponsors who want to reach a live audience. These partnerships can provide additional revenue streams through sales incentives or flat fees. Promoters who leverage these relationships or bring in their own sponsorship deals can add another layer of revenue. By coordinating efforts, promoters and venues can maximize the financial potential of every show.

Ancillary Services: Beyond the Main Event

There’s also significant potential in ancillary services that often go unnoticed. Things like parking fees, coat checks, or VIP experiences can add extra revenue with minimal effort. By collaborating on these services, promoters and venues can offer a more comprehensive and engaging experience to attendees while enhancing profitability. For instance, offering a VIP package that includes exclusive parking, early access to the venue, or a private meet-and-greet can not only increase profits but also elevate the attendee experience, encouraging repeat business.

Building Strong Relationships: The Key to Success

Ultimately, the success of these ventures depends on the strength of the relationship between promoters and venues. By sharing insider knowledge and collaborating closely, both parties can find creative ways to maximize every show's potential. Whether it's adjusting the timing of performances to boost bar sales, optimizing merch placement for maximum visibility, or leveraging local sponsorships to add value, a strong promoter-venue relationship is the secret ingredient to turning a good show into a great one.

The Bottom Line

Understanding and leveraging the full spectrum of revenue opportunities is essential for both promoters and venues. It’s not just about the performance on stage, but about the partnerships and strategies behind the scenes. By working together and tapping into insider knowledge, promoters and venues can create unforgettable experiences for audiences and ensure every show reaches its full potential.

Register for our September Make More Money Event, "The Venue / Promoter Relationship"!