The live music industry is booming, but behind the scenes, a contentious debate rages on: artist representatives claim that venues are taking an unfair cut of merchandise sales. Let’s delve into the issue, explore real-world examples, and discuss potential solutions.Artist reps argue that the 20% to 25% cut venues take from merchandise sales is excessive, especially at clubs.
Layne Weber, director of merchandising for country singer-songwriter Ashley McBryde, points out that some venues charge this percentage, even when services provided are minimal.Imagine a merch table next to the bar, where the merch seller competes with the bartender. That’s 20% of sales lost.
Smaller artists, who often operate their own merch tables, suffer the most.These acts tour on slimmer margins and need every dollar to survive on the road.Barry Drinkwater, executive chairman of Global Merchandising Services, emphasizes that these artists rely on merch profits for essentials like food and transportation.
Ashley McBryde, the talented country singer-songwriter, has faced the issue firsthand during her recent tours.She sets up her merch table next to the bar, ready to connect with fans and sell her merchandise.However, despite the minimal services provided by the venue, she still encounters the standard 20% to 25% cut from her sales.This discrepancy between effort and fees can be incredibly frustrating for artists like Ashley.
Ashley, like many smaller acts, relies on merch profits to cover essential expenses while on the road.Whether it’s gas money, food, or lodging, every dollar counts for artists navigating the challenging touring lifestyle.The exorbitant fees eat into their hard-earned revenue, affecting their livelihood.
Layne Weber, Ashley’s director of merchandising, has been vocal about this issue.She emphasizes that venues should consider the services they provide when determining merch fees.Ashley’s frustration echoes the sentiments of countless artists who feel that the system needs reform.
Live Nation, the world’s biggest concert promoter, launched the “On the Road Again” program.This initiative eliminates merch-selling fees for artists at Live Nation clubs.It also provides a per diem for gas and travel costs, supporting developing artists.According to Live Nation, At Live Nation venues, artists keep 100% of merch profits.No merchandise selling fees are charged, allowing more money to flow into artists’ pockets.For every show played at an “On the Road Again” venue. Each headliner and support act receives $1,500 in gas and travel cash.
This extra support helps offset travel and lodging costs.The program also recognizes crews working tirelessly behind the scenes.Special bonuses are distributed, and club staff receive a $20 minimum wage.Launched with Willie Nelson, the program has supported over 4,000 developing artists.There’s no set end date, and Live Nation plans to continue this collaboration.
In summary, Live Nation considers its “On the Road Again” program to be a true partnership between Live Nation and the Artist and that prioritizes artists’ well-being while keeping live music thriving. Artists benefit directly from existing venue earnings, with no impact on consumers.
Potential
The merch table is a vital revenue stream for touring artists. Unfortunately, confusion and frustration often cloud the picture when merch percentages are hidden within complex contracts. Here’s why a more transparent and adaptable approach to merch deals would benefit everyone involved.
Open communication during contract negotiations is key. Discussing merch percentages openly fosters trust and ensures artists understand the breakdown of their earnings. This eliminates surprises and allows for fair deals that benefit both artists and venues/promoters.
A “one size fits all” approach to merch fees doesn’t work. Venues have varying needs. A small club might offer minimal services, while a large arena provides extensive support. Merch fee structures should reflect these differences, considering factors like venue size, services provided, and artist popularity.
Successful models exist. Programs like Live Nation’s “On the Road Again” empower artists by offering merch support and education. Expanding such initiatives has the potential to further empower artists on the road.
Ultimately, successful artists lead to successful tours. Promoters who prioritize artist well-being by ensuring fair merch deals not only contribute to a healthier music ecosystem but also foster long-term partnerships with talented acts.
By embracing transparency and tailoring merch agreements to specific situations, we can create a more equitable system that benefits everyone involved in the live music industry.
Conclusion
The current system for merch deals in the music industry is ripe for a refresh. By prioritizing open communication and embracing flexible solutions, we can move towards a future where fairness reigns. Transparent discussions about merch percentages ensure artists understand their earnings and empower them to negotiate fair deals. Furthermore, tailoring merch fee structures to account for venue size, services offered, and artist popularity creates a win-win scenario for all parties. Ultimately, a healthy music ecosystem thrives when artists are well-compensated for their creative endeavors, and venues can continue to play their vital role in making live music accessible to everyone. This collaborative approach paves the way for a future where artists and venues can build sustainable partnerships, fostering a vibrant live music scene for generations to come.