Where Concert Ticket Money Goes To

 Living in Las Vegas and being an entertainment writer and journalist. I get to see a lot of different bands and music presentations throughout the year. Many if not all are comped (Free) to me because of my work.

To those of you who are music fans.

Ever wonder where the money goes when you purchase a ticket to see your favorite band or music artist? Some of these tickets are pretty pricey!

Here's a breakdown of where the ticket money generally goes to. 

A portion of the ticket revenue goes directly to the performing artist or band. This can vary significantly depending on the artist’s popularity, negotiating power, and the type of event.

Concert promoters are responsible for organizing the event, booking the artist, securing the venue, marketing the concert, and handling logistics. Major promoters like Live Nation or AEG typically take a significant portion of the ticket revenue as they bear most of the financial risk.

The concert venue receives a portion of ticket sales, usually as a rental fee or a percentage of the gross revenue. This fee compensates the venue for providing the space, staff, security, and other facilities. Larger, well-known venues often charge higher fees, while smaller venues may charge less but might take a percentage of the merchandise and concessions sold during the event.

The ticketing platform or vendor takes a cut through service fees, convenience fees, and sometimes even "processing fees." This fee helps cover the cost of selling tickets online or at physical locations. Companies like Ticketmaster often charge a significant percentage (sometimes as high as 10-20%) of the ticket price.

Some of the revenue from ticket sales goes towards covering production costs for the tour. 

• Lighting, sound, and stage setup
• Transportation for equipment and crew
• Roadies and technical staff
• Costumes, pyrotechnics, and other special effects These costs can be significant, especially for large-scale productions or arena tours.

The artist’s management and booking agents also take a portion of the ticket sales. Managers usually receive around 10-20% of an artist's income from tours, while agents typically take around 10% of the deal they negotiated for the artist. 

Promoting a concert requires marketing efforts such as digital ads, posters, and other promotional materials. Some of the ticket money is allocated to cover these costs. In large tours, this budget can be substantial, especially for promoting stadium or arena shows.

Ticket sales are subject to various taxes, including sales tax, entertainment tax, and sometimes venue-specific taxes. Depending on the location, the total tax amount can vary, but it usually adds a few percentage points to the cost of the ticket.

Concert organizers must secure event insurance, especially for large gatherings, to cover liability in case of accidents or injuries. Additionally, licensing fees may be required to cover the use of copyrighted music, particularly if cover songs or pre-recorded music are played.

While not directly tied to ticket sales, concessions (food and drinks) and merchandise (t-shirts, albums, etc.) provide additional revenue streams at concerts. Artists, venues, and promoters usually split these profits, often with venues taking a significant cut of food and beverage sales, while artists retain a larger share of merchandise revenue.

Here's a breakdown to see where the percentage of ticket costs goes to.

For a hypothetical $100 concert ticket:

• Artist/Band: $30–40
• Promoter: $20–30
• Venue: $10–15
• Ticketing Company: $10–20 (in fees)
• Production/Other Costs: $10–15

This breakdown can fluctuate based on the size of the concert, the artist’s popularity, and how costs are structured. High-profile artists and large-scale tours may negotiate better terms, while smaller artists and venues may see different percentages.

GE