Division of Profits for Events?
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  1. #1

    Default Division of Profits for Events?

    so i'm finally getting down to the actual negotiations (club owner tonight, promotions organizer tmrw), but this being the first event i've organized, and the first gig i'd be getting paid for, i'm at a loss for how the profit breakdown goes. i know most of it should be simple logic (the person/people putting in more should get more, theoretically), but what are the min/max for each party involved (should be 4 djs, club owner, promotion co.)? also, thinking about it i think the best way to set it up is on a percentage system, is this accurate? guaranteeing someone a set amount of money that may not come could turn out bad..

    any help/suggestions are greatly appreciated.
    soundcloud.com/hpntk / soundcloud.com/freakstep
    freakstep.com / thefreakbeat.com
    me on beatport / me on djtunes
    Quote Originally Posted by JesterNZDJ
    My solution: Pay some one to whack them so you don't have any competition

  2. #2
    DJTT Dominator JesC's Avatar
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    Hey check out this thread, we had some talks about promoting events and payouts.

    http://www.djtechtools.com/forum/showthread.php?t=3016

    If you have any un-answered question feel free to ask
    Controllerist: Think different | SoundCloud | MixCloud | Twitter |

  3. #3

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    You can put a lot more money in your pocket if you handle promotion on your own between yourself, the other DJs, and maybe a couple friends. Paying someone else to promote "your" event is wasting money.

    The venue will usually want either a flat fee and in addition you may or may not need to meet a bar minimum. If you're starting out, you may want to try to avoid bar minimums if you can. They can make you money later on when you have a good following, but for now try to just work out a flat fee to use the venue, let the bar take all the profits from the bar, and make your money on door cover.

    If you're paying your DJs, unless they're big headliners or they specify a price, pay them what you think you would want to get if you were playing for them. If you want to help yourself out, give them a promotion incentive where they get a discount guestlist and they get a dollar or two for each person on their list (make sure to correlate this with your cover charge so as not to get upside down on the night).

    If you are going to pay promoters, make it entirely dependent on how many people they bring. Give them an RSVP list and pay them a dollar or two for each person they bring on their list. I don't believe in paying someone else to promote for you unless you're throwing a huge event where you need to pull a bunch of heads to cover your costs.

    Don't be afraid to take a bit of a financial hit for your first couple shows, you'll build your following slowly but it will pay off in the long run.

    Good luck!

  4. #4
    DJTT Dominator JesC's Avatar
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    Good info SummerVest, & Welcome to the DJTT site!
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  5. #5
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    Everything is negotiable, so go in there and do what you think is right and don't let them persuade you by saying things like "Well this is how we've done it in the past" or "This is how so and so does it". This is your event so you do things the way you think they should be done.


    On that note, if it's a club or a bar they make their money at the bar, you take the cover, tell your DJ's they'll at least get a minimum amount and if you make more than expected you'll kick them some more.

    Make sure everyone gets paid before you do, even if you have to make a quick run to the ATM machine to pull from your own funds. Word gets around quick and if you start stiffing people that will be the end of it.

  6. #6
    Tech Guru josh@firestorm's Avatar
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    Quote Originally Posted by Nephew View Post
    ATM machine
    automatic teller machine machine... sorry couldn't help it

  7. #7

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    alright well just to clarify -- i may have called this a club but it's more of a warehouse-turned-partyspace. so the stuff about bar..kind of irrelevant at the moment. oh, and the promotion co. is a small one that manages start up bands and dj's. the staff is all cool people, and the head dude is a dj too, and a pretty chill guy.

    i like what you said summervest about payment. i wouldn't use an organization to promote if i hadn't been cool with the guy who runs it, and the owner of the venue basically has one big guideline of "have 35 people in here and the place is yours" i'm not sure it'll be that hard, but the more people the better. i'd rather shoot way over that 35 mark than be at 34 and not be able to come back again haha.

    i'm not letting anyone/anything take over my event. i've organized this from the ground up 100%, there's no way i'd just hand it over now. if the promoters want to run flyers, i have the design ready for them :P

    this is what i think it's gonna break down to:

    30% = venue owner
    20% = promotions (this is totally dependent on the extent to which they help. if they're doing mad work, 20 is tops)
    50% = split amongst the DJs

    thanks again for all your input, really quite insightful.
    soundcloud.com/hpntk / soundcloud.com/freakstep
    freakstep.com / thefreakbeat.com
    me on beatport / me on djtunes
    Quote Originally Posted by JesterNZDJ
    My solution: Pay some one to whack them so you don't have any competition

  8. #8

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    Don't forget to leave some for you! You deserve to make at least a little money, especially if you're paying for promoters and venue. It's ok to take a little bit to yourself, but if you truly want to operate earning no profit, then I commend you on your dedication. Few people out there would want to put all the effort into throwing an event and not get anything back.

    (and no, "the nod" doesn't count )

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