From the Business End

By Maria E. Caria

From “door pay out burns” to the way certain local media personalities have so much control over which nationals get attention and who don’t, from the drama on a local level to the drama within full-size production companies and venues, Sacramento is often looked at as a very risky market in which to do business.

Most metropolitan regions of comparative sizes offering a similar amount of clubs and venues usually offer a wider variety of entertainment based on the needs of the customer and local market, in comparison to what the touring and performing market has to offer. Over time, the markets stabilize, revenue is generated by venues and promoters can establish key relationships that, in turn, attract and maintain patronage from various consumer markets.

Aside from communication issues between promoters and business owners, venues and agents, and similar business scenarios, a lot of promoters and some venues in Sacramento have a tendency to copy other venues and calendars. They often book the same locals every week in venues clustered too closely together, or from the venue side; not communicating operational expenses with the promoter; or providing information they need to make key decisions that impact the show(s).

Decisions made while jumping the gun to beat the other guy or poor communication with all parties are decisions that create a certain amount of instability that can lead to venue closures, shows being shuffled and cancelled, overbooking… all things that have a negative impact on consumer response and sales.

Then touring acts and agents are less likely to have a desire to do business in or with anyone from Sacramento due to the reputation Sacramento has developed over the past 10 years.

In the end, the venues, promoters, agents, reps, artists and fans who really do care suffer the backlash that results from the unprofessionalism and egotism of those who make poor decisions.

Granted, the music business, like other businesses, is impacted by surrounding events, such as the weather and the local economy. That is why it is so important to communicate general business challenges regarding cost or market impact and concern with the artist.

The following is an example to illustrate what could be considered small issues that happen in business but may have a larger impact than many might realize.

The subjects involved in this sceanario are a venue owner who requires 50 percent to cover labor; a promoter who sells themselves one way and operates in another way that is not so professional; and a touring artist. The venue is 500-person capacity with a basic sound system, but will have to outsource techs for the show.

The artist is a semi-national of a $5,000 asking with $2,500 deposit up front for a date with sound and food on the rider, no hotels. The artist does well in other parts of the region, but has had difficulty in Sacramento in the past because the promoters do not market their shows to the right market. The artist is known to offer flexiblity on asking cost.

The promoter is known to use others in the industry for their benefit. The promoter caught a lead on the artist from a source who told them a competitor was going to bid on them. The promoter is known for moving on other people’s ideas for their own glory without applying basic business sense.

The time of the year is when the State Fair is in full force, Hot August Nights is coming up, and people are looking to travel. It is a hard time for live music and more consideration and communication should be used when negotiating.

Except the promoter chooses to brag about their success and how they are the best person for the job, while leaving out important information about the venue, expenses and the market.

There is a very high chance that the artist, who would maybe pull 400 in November with $10 tickets, making a $4,000 gross plus bar sales of $2,000. However, in the summer, the artist’s realistic pull would be about 100 people at $10 tickets, with a bar sales of $1,000 IF the date is not a weekday, which then you can anticiapte even lower sales.

Now, the expenses start to kick in with the $2,500 deposit. There is also marketing, food, your labor, and the venue’s cut for their labor. That puts expenses at $5,000. The show has now become a $7,500 show (and you still owe the band $2,500).

The promoter was so focused on telling eveyone else how to promote the show and about their promotion company that they did not tell the artist anything really after the artist accepted the date. The artist thinks they are coming for a great show and the venue owner thinks they are gong to have a nice little sales night.

Except that now it is after the show has ended and it is payout time. You barely hit 110 paid guests at $10. The guest list cost was $100, five for the national and five of the promoter’s friends. The venue has the door cut and the promoter is holding $500. Here comes the tour manager, right up to the promoter: They want $2,500. They are not happy that the show was off schedule and unorganized, and they express this unhappiness to the promoter. Then to the venue, who is not pleased that they did not know what the promoter’s actions were. The band goes to the promoter, who at this point is gone, or gives them a portion of the $500 and a lie.

And why ? The promoter was concerned with having the ability to say “I booked that band I promoted that show.” The promoter was not thinking like a businessperson. A wise promoter or venue has an expense sheet, they know their market and they know how to communicate with artists and their agents to make sure this is a worthwhile investment for all parties involved.

Yes, that’s right. Shows are investments of time and money. The industry is similar to the stock market with its ups and downs, consumer trends and the economy’s impact on the markets.

What is really scary about the above is that it is not just relevant to a semi-national with an asking rate, but also to locals and smaller touring artists. Those are the ones who are hurt the most by lack of communication. Bands and others in the music industry will have more respect and interest in possibly doing business in the future or with another act because circumstances surrounding the general operations of the venue and market surrounding are well-communicated.

The artist then knows what to expect for draws and markets. The artist is also able to set their budget, knowing that it may be a soft night. They may even have material sent to help or waive cost. In the business world it is called making a good-faith effort.

I am at a point where people in the industry and who support the industry need to have an understanding of why things are the way they are and how can we finally make a change.

It is time to take back the music industry from egos, venues and reps who intentionally make poor decisions in business or back-door the bands. The people who cut out venues and reps who actually care: who do what they can to the best of their effort, and treat artist and their reps with respect.

The public needs to see interviews with industry reps and artist, as well as venues and promoters. Here’s the catch though: the people will be from various aspects and levels of experience in the music industry, as well as from general business. The purpose is to give the fans and artists, and the readers of FRINGE, an opportunity to have the insight they need to do their part, even if it just going to the show and actually paying.

A BIT ABOUT ME

I have worked in various aspects in the industry for 17 years now, cleaning up after shows and helping at studios in Oakland and around some of Northern California’s wisest minds in the industry. I have also spent many a day listening to wise blues men and established artists from the Bay area scene, from venues operations and production assistance to administrative third party booking support, promotions, marketing, public, artist and media relations … I wanted to learn as much as I could about the scene in which I grew up.

I have had experience with local and national artists, venues with capacities from 80 to 1,500, networking, consulting, administrative, accounting, media artist and public relations, even a little sound. I have been through the Atlanta punk scene, the Hollywood Glam scene, the thrash and Death eras, and am proud to be from The East Bay metal scene. But, Sacramento is the worst scene in which I have had to conduct business.

That is why I consider myself a consultant. I would rather help people who have the resources and passion to make good decisions than support fake people who just continue to feed the bad reputation of Sacramento. That is a big reason why people do not see or hear of me doing anything. I keep I quiet and avoid the drama. I have been sucked into it too much and I was trained to be a warrior in the metal business, not to relive high school. The sad thing is I am not the only person who feels this way. Obviously, FRINGE’s Charlie stated that in her article from the artist fan standpoint. Now we need to hear from the venue business points, from people who agree with Charlie. “We are not idiots.”

Those who always remember that when the paperwork is done, the sounds dialed and the door are open, in the end it’s about the artist and the fans. . It is about the music and it is time to start reminding people of that truth.