Scott Phinney - Event Production

1. Concert Promotion Music 229

2. Concert Promotion • The Promoter is the entrepreneur who has a feel for the music business and can see an opportunity to make money selling tickets. Promoters are selling a moment in time. They have the capability to persuade the ticket-buying public that this is the show it has to see. • Concert Promoters • Large Conglomerates • Smaller companies • Arts Presenters • Festivals • Symphony Orchestras • Entertainment to enhance another activity • Fairs • Bars

3. Chapter 1: Key Representatives Entertainment Attorney Read, Draft, and evaluate all contractual agreements Lawyers are regulated by a code of ethics. Other members of the team are not. A well established entertainment Attorney can be an essential networking bridge for aspiring artists. What to look for-Experience Beware of attorneys who branch out into entering management, recording or publishing contracts with their own clients. Retainer Billable Hours Value Billing Letter of engagement

4. Chapter 1: Key Representatives • Artist Manager • The individual who serves as the artists primary advisor is called an artist manager, a personal manager, or simply manager. • -planner, advisor, organizer, strategist, overseer, coordinator, detail person… • Key Elements • Identification of Parties • General Breadth of Agreement • Duties • Power of Attorney • Compensation • Duration • Sunset Clause • Key Person Clause

5. Chapter 1: Key Representatives • Booking Agent • A talent agent refers to any agent who finds work for creative artists. • Agents who concentrate on finding live appearances are traditionally referred to as booking agents. • What Agents Do • Find Bookings • Route Tours • Buyer generally pays a guarantee-Front End • VS a percentage of ticket sales-Back End • Booking agents are regulated by the state and • require a license. • Afm-American Federation of Musicians (Scale)

6. Chapter 1: Key Representatives • What to look for in an agent • Reach-local, regional, national, international • Type of venues an agency books • In-house bookers • Honest and mutually satisfactory relationship • William Morris Agency • Creative Artists Agency • Club Agent • Line Agent • Responsible Agent (RA) • Marquee Value

7. Chapter 1: Key Representatives • Key Elements • Exclusive or nonexclusive • Duration-usually 1-3 years • Rate of commission-usually 10% • Commissionable income • Geographic Limits • Key Person Clause

8. Chapter 1: Key Representatives • Business Manager • A business manager works closely with the artist manager in establishing budgets, regulating income, weighing in on various deals and running the artist’s career as a “business.” • Like a CFO-a financial watchdog • Most are CPA or have in-house CPA’s at their firm • Tour Budgets • Tour Manager (road manager) • Manages the day-to-day needs of you and your entourage • Transportation and lodging • Responsible for Settlement at each venue • Coordinated publicity, interviews, appearances, ect…

9. Chapter 1: Key Representatives • Production Manager • Manages the technical side of your production • Sound, Lights, Stage Set • Stage plots & Tech Riders • Other Essential Personnel • Stage Manager • Sound Engineer • Monitor Engineer • Sound Crew • Lighting Crew • Backline Crew • Stagehands • Area Manager • Runners

10. Chapter 1: Important Terms • Entertainment Attorney In-House Bookers • Conflict of Interest Line Agent • Retainer Responsible Agent • Billable Hours Marquee Value • Value Billing Exclusivity • Letter of engagement Commissionable Income • Artist Manager Geographic Limits • Power of Attorney Business Manager • Commission Tour Manager • Duration Settlement • Sunset Clause Production Manager • Key Person Clause • Severability Clause • Booking Agent • AFM

11. Chapter 2: Making Money on the Road • Touring is a business, selling tickets, merch, and sponsorship are important components of the business. • Selling Tickets • Headliner • Ticket prices have doubled over the past decade • Strategies to tickets sales • High Prices (Eagles) • High Volume (Brooks) • Ticket prices are often based on how much an artist wants to be paid and how elaborate a production they want to present. • Prices are generally hammered out by the acts manager, business manager and agent.

12. Chapter 2: Making Money on the Road • Venues • Clubs 100-2,000 • Ballrooms 800-1500 • Theaters PAC 2000-8000 • Auditoriums 500-10,000 • Amphitheaters 10,000-15,000 • Stadiums 15,000-100,000 • Motor speedways 100,000+ • Why play smaller venues • Genre or style can also determine venue • GA vs reserved seating • Multi-tiered seating-scaling • Usable seating/comps • Tour vs one-offs

13. Chapter 2: Making Money on the Road • Merchandising (“Merch”) • “Outside of ticket sales, merch revenue is the most important revenue stream for touring artists.” • For beginning bands merch often bankrolls the band getting from point A to B. • Managers solicit bids from companies • Basic deal is usually the longer of one album or touring cycle or recoupment. • A buyout option is usually offered. • If there is a large advance, royalty rates are lower. • “for new artists most deals are worth 75-100k” • Merch company often has a employee on tour • House Rate or Hall Fee –usually 20-25%

14. Chapter 2: Making Money on the Road • Merchandising (“Merch”) • Basic Deal • Headliner ROYALTY RATE 72-77% • Artist pays hall fees out of its share • Artist nets 47-55% • Some artist handle their own merch • Investment • inventory • staff, warehousing,distribution,inventory selection. • merchandising is more than just selling t-shirts and hats at concerts?

15. Chapter 2: Making Money on the Road • Merchandising (“Merch”) • One of the newest forms of merch is the concert cd • Basic instant Live Blueprint • Cd’s can be complicated with a revenue chain that includes the record label, act, venue, promoter. • CD-$25 • Label and Artists 30-40% (usually split) • Venue 5-10% • Packaging 10% • Instant Live 20%

16. Chapter 2: Making Money on the Road • Sponsorship • An artist being sponsored by a company was once considered a sellout. • Companies bankroll tours in every genre • Sinage • ROI • Contact ant the Company or Advertising Firm • Better to approach a niche brand • More likely to receive marketing support than hard cash • Endorsement deals • Label Support

17. Festival Sponsors

18. Festival Survey • Demographics • Gender • Age • Ethnicity • Residence • Homeownership • Intention to Refinance • Income • Education • Purchasing Habits • Cell Phone/Wireless Co.

19. HAM Fest Sponsorship Opportunities for the Happy Artists Music Festival May 3, 2009

20. HAM Fest Sponsorship Opportunities for the Happy Artists Music Festival May 3, 2009

21. Introduction and Overview • Explain what makes the event, project, charity, etc. worth being associated with. • You might want to describe the event’s history with an aim toward showing growth in numbers, growth in participation, growth in sponsorship, and consistency in reaching a desirable demographic target: e.g., In 2008 HAM Fest went to 22 key markets presenting, music, cultural events, and opportunities for marketing to over 880,000 fans of Happy Music and Happy Culture. • HAM Fest 2009 will go to 31 markets promising a total reach of 1.2 million Happy Music, Happy Culture fans presenting unprecedented opportunity to market to this desirable demographic. • Past sponsors include: Big Record Company, Inc., Happy Cola Company, Large Cell Phone Service Provider, Cool Clothing Designer, Super Energy Drinks, and Wicked Awesome Sneaker, Co.

22. History Provide a bit of background showing the history of the event: “The HAM Fest was started to represent, speak to and capitalize on the emergent Happy Culture. In the late 1990s, we realized grunge had come and gone. People were looking for cheery festivals. Morose was out, and happy was in. We saw a community of fans, artists and an emerging youth culture. We capitalized on the opportunity.” • Happy Rich Guy (Founder HAM Fest)

23. Testimonials Provide Testimonials from past sponsors and past participants of note. “We came in as a Tier 1 sponsor with HAM Fest in 2008. We saw a marked increase in interest and brand recognition among Happy Music enthusiasts age 18-25, a group we wouldn’t have otherwise reached.” – Suzan Bigbucks (VP Branding, Happy Cola Company) “We jumped on the HAM Fest juggernaut in 2001. Since then we’ve seen a three-fold increase in core sales. Prior to HAM Fest, we sold mostly left-footed shoes but had no luck with right. Tier 1 Prosciutto Level sponsorship changed that.” – Rubber Souls McGinty (Founder, Wicked Awesome Sneaker, Co.)

24. Testimonials Provide Testimonials from past sponsors and past participants of note. “We came in as a Tier 1 sponsor with HAM Fest in 2008. We saw a marked increase in interest and brand recognition among Happy Music enthusiasts age 18-25, a group we wouldn’t have otherwise reached.” – Suzan Bigbucks (VP Branding, Happy Cola Company) “We jumped on the HAM Fest juggernaut in 2001. Since then we’ve seen a three-fold increase in core sales. Prior to HAM Fest, we sold mostly left-footed shoes but had no luck with right. Tier 1 Prosciutto Level sponsorship changed that.” – Rubber Souls McGinty (Founder, Wicked Awesome Sneaker, Co.)

25. Demographics Happy Music Fans: • 18 - 25 years old • Number over 35 million • Born in the 80s, came into consciousness in the 90s, established their own buying habits in the new millennium • Define themselves through purchase of Happy Music, Happy Clothing, Happy Soft drinks, and Happy lifestyle products and services • Active Consumers of Happy Culture and related lifestyle products • Spend nearly $ 90 million a year on music, clothing, soft drinks • Provide any other relevant demographic data that convinces potential sponsors that buying in at any level provides quantifiable benefits

26. HAM Fest 2009 Happy Artist The Cheery Cheerios The Smiling Satisfaction Transaction Smiley Smith Joan Joyous Glee Club Convoy

27. HAM Fest 2009 Dates List all festival dates List all festival markets Provide any market specific information Note if dates are tentative

28. HAM Fest 2009 SPONSORSHIP PLATFORMS Tier 1: Prosciutto Sponsor Tier 2: Jamon Sponsor Tier 3: Candied Ham Sponsor Tier 4: SPAM sponsor

29. HAM Fest 2009 SPONSORSHIP PLATFORMS Tier 1: Prosciutto Sponsor Tier 2: Jamon Sponsor Tier 3: Candied Ham Sponsor Tier 4: SPAM sponsor

30. HAM Fest 2009 Prosciutto Sponsor • On-line presence at hamfest.com • Branding on official tour merchandise • Radio broadcast tags • Tickets to key tour stop • ID / tag in media buy • On-site sampling • On-site sales rights • Mailing lists • PA announcements • Tags in all local TV / radio broadcasts • Exclusivity in category • Logo / marks prominently featured in all HAM Fest print materials, signage, ads, and collateral • Official product / service designation • Presence and access to hospitality suites at all stops • Entrance signage • On-stage signage • Program book ad

31. HAM Fest 2009 Jamon Sponsor • Logo / marks featured in select HAM Fest print materials, signage, ads, and collateral • Presence and access to hospitality suites at select stops • On-site signage • Program book ad • On-line presence at hamfest.com • Tickets to key tour stop • On-site sampling • On-site sales rights • Access to select mailing lists • PA announcements • Tags in all local TV / radio broadcasts

32. HAM Fest 2009 Candied Ham Sponsor • Logo / marks featured in select HAM Fest signage, ads, and collateral • Access to hospitality suites at select stops • On-site signage • On-line presence at hamfest.com • One time email blast • PA announcements

33. HAM Fest 2009 Candied Ham Sponsor • Logo / marks featured in select HAM Fest signage, ads, and collateral • Access to hospitality suites at select stops • On-site signage • On-line presence at hamfest.com • One time email blast • PA announcements

34. Contact • For sponsorship opportunities, contact: • Samantha Smiley at: • HAM Fest 2008 • PO Box 123Ebullientville, NY 12341(212) 333-4444ssmiley@hamfest.com

35. Chapter 2: Terms • Headliner • Support Act • Billboard/Pollstar • General Admission • Reserved Seats • Comps • Scaling • Gold Circle • Merch • House Rate • Royalty Percentage • Roi (return on Investment) • Sponsorship Deck • Sinage

36. Chapter 3: Why, When, and Where to Tour • Preproduction Phase-before capital is invested in gear and other costs • Benefits of the tour can be maximized. • The tam will map out the tour to fully realize venues and • exposure. • Plotting a tour is a process that starts with the act and it’s team. • As long as a year in advance • Plot out objectives • Key Factors-album release, tv exposure, tour announcement, on-sale • tour launch, routing.

37. Chapter 3: Why to tour • Promote album sales • Sell Merch • Build fan Base • Attract Labels • For most groups signed to a label, touring is tied into a release date of an album to capitalize on exposure, radio play, and the labels marketing muscle. • Priorities are to: • Create and Event • Make Money • Have Fun

38. Chapter 3: Touring to Promote Album sales • Parallel business • Create a buzz • In-stores • Sponsors • Touring to Make Money • All tours should be profitable • There is no shame in playing for the money • Heritage Groups • Touring to Build the fan base

39. Chapter 3: When to Tour • Big name artists can dictate tour dates. • Headliner • Billed • C0-headling situations • Availability • New Release • Radio or TV exposure • Penetrate secondary Markets • Buzz-Plays • Timing the on-sales with radio play

40. Chapter 3: Touring Traffic • To much touring traffic can be problematic • Most concert activity occurs between April and September • Acts should be cognizant of how often they play a given market • A general rule of thumb is every 16 months to 2 years • The right venue the right time • Arenas theatres and clubs tend to be busier in winter. • Playing on-offs • one-offs are rare • radio shows • Payola • Corporate Shows • Sell-out

41. Chapter 3: Art of the On-Sale • On-sale or going-up (tickets available to the public) • Two strategies • Put tickets on sale early • Wait until a few weeks out to create a sense of urgency • Where to tour-Determining Markets • Where to Tour • Determining Markets • Secondary and Tertiary Markets • Anchor Dates • Building the fan base • Partnering with other groups • Skynyrd & 3 doors down-neither group played their best markets

42. Chapter 3: Determining which venue to play • The type of venue is largely determined by the amount of tickets that can be sold. • Another important factor is venue aesthetics • A general rule of thumb is that production tends to work better in a controlled room • Some groups sell their music as a party and create lifestyle events that fit better in “sheds” • Some groups need more reserved seating than GA • Sometimes there is a stigma attached to certain types of events?

43. Chapter 3: Routing the Tour • The type of venue is largely determined by the amount of tickets that can be sold. • Another important factor is venue aesthetics • A general rule of thumb is that production tends to work better in a controlled room • Some groups sell their music as a party and create lifestyle events that fit better in “sheds” • Some groups need more reserved seating than GA • Sometimes there is a stigma attached to certain types of events? • Avails-Second or third hold. • Smaller acts can move more quickly • Compare a historic venue to a new one.

44. Chapter 3: Terms • Preproduction phase shed • In-stores avails • Heritage acts second third hold • Headliner • Billed • Buzz plays • Touring traffic • One-off • Radio show • Payola • On-sales • Going up • Secondary market • Anchor date

45. Chapter 4: Budgeting • You need to create a plan. A budget is one of the MOST important parts of that plan. • Projecting Income • Ticket sales • Merch • Sponsorship • Other? • The goal is to tap as many potential revenue sources as possible. • Projecting income is more difficult that estimating expenses because there is less control.

46. Chapter 4: Budgeting • Ticket Sales • Fees paid to an artist for performance but the talent buyer are know as ticket sales. • Guaranteed Flat Fee • Percentage of ticket sales (door) • Combination of the two • If percentage deals are requested the band will want to suggest realistic ticket prices. • “Priors”-are published weekly in Billboard and Pollstar • Venue Priors • Flat fees are known as Guarantees or “flats” • The percentage a band receives is called the “back end”

47. Chapter 4: Budgeting • Ticket Sales • The risk in a straight percentage deal is that the ticket sales is unknown. Most groups will try to remove some of the risk by negotiating a minimum versus as percentage, whichever is greater. This is commonly known as the “versus deal”. • Merch Sales-measured per capata or “per cap” • Set up boundaries for expenses • Variables Costs-hard to predict

48. Chapter 4: • Your Budget • Create a detailed Budget for your event by next week. • Income Budgeted Projected Actual Delta • Ticket Sales 450 • Merch • Sponsorship • Expenses • Artist fees 382(85% TS) • Sound Rental 20 • Sound Person 0 ($50 paid by club) • Personnel

49. Chapter 4: Terms • Fee Structures • Priors • Flats • Back end • Gross Potential • Deductions • House Rate • Per Cap • Impressions • See pg 60 • Production reimbursement • Variable costs-running expenses

50. Chapter 9: Types of Talent Buyers • A talent buyer is the person or company who pays an act or artist to perform. The size and scope of talent buyers is very diverse. • Concert Promoters • National & International Promoters • College Buyers • Club Buyers • Venue and PAC • Fair and Festival • Casio • Private