The Challenges of a Concert Promotion Budget
by Kevin Morrison

As a concert promoter, creating and adhering to a budget is an important component to having a profitable event. Moreover, having to make tough, painstaking budget decisions along the way is an inevitable part on promoting a successful show.  When the budget gets out of control, due to unforeseen expenses, it can be the difference between winning and losing. In other words, your profit margin depends not only on your gross income but on your expenses too.

When unexpected expenses begin to mount and budget cuts need to be made, some firm decisions have to be made to keep your event profitable. Looking for things in the budget to cut or trim can be helpful, as long as it’s not the advertising budget. That’s because fewer ads can lead to less than expected tickets sales. Try to find other expenses to cut or renegotiate like sound and lights, catering, ground transportation, hotel reservations, runners, street team, the artist rider (a document with a list of their additional onstage, backstage, and hotel requests). For example, a band that requests a Baldwin Grand Piano may have to settle for a lesser brand. 

It is not uncommon to adjust and update the budget in the weeks and days leading up to the show. The fact of the matter is, you have to manage your budget and constantly evaluate it to stay on course. There is a tendency, especially for new concert promoters, to focus more on selling tickets. This can easily distract one’s attention away from how much is being spent.

Some concert promoters add a 5% contingency expense to the budget, to help account for any unpredictable expenses. The key is to do your homework, know the costs involved in producing your show and stay focused on meeting your objectives. At the same time be prepared to make changes and adjustments to the budget if necessary, while trying not to go over the top. There is nothing more satisfying to a promoter (other than making money), than to get the budget right and sell more tickets than expected.

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