I’ve long kidded that the reason I got into music is that when I was young my parents told me music wasn’t lucrative. I was just starting Sunday school and they had talked about lucre and how lucre was a bad thing, i.e. filthy lucre. If lucre was a bad thing I reasoned that anything lucrative must also be bad and music WASN’T lucrative therefor it must be good and a worthy pursuit. Right? That was sound reasoning wasn’t it? Ah youth and naiveté. But I’ve never thought of playing music as taking a vow of poverty either. I was smart enough to know I wouldn’t get rich or make nearly the amount of money I had as an executive recruiter, but when I started out touring nationally in the mid 90’s things were working out. I wasn’t filling rooms like I’m doing now on a semi-regular basis, but the folks that did come were a huge support and bought my CDs. Tickets to my shows were $10-$20 and if I didn’t get a guarantee I would typically get 70-80% of the door.
Here’s the thing. When I got in the business CDs sold for $15 and tickets to my concerts were in the $10-$15 range and, as I said, I retained 70-80% of ticket sales plus 100% CD sales. Over 20 years later CDs are sold (ha! more on that later) at the same price of $15 and the tickets to my concerts have gone from $10-$20 a ticket to $12-$25 a ticket. But here’s the kicker; rooms are by and large keeping 40-50% of the door instead of 20-30%. Why? Because their costs kept going up, like everyone elses, but instead of passing the costs off to the consumers by raising prices to appropriate levels they’re making up most their revenue from the artists who are bringing people in as opposed to their customers.