I started out this week to write about how to stylize different contracts for different events. But, when I got the point of "compensation" I started coming up with all the different ways I've been screwed over on pay over the years.
We'll still talk about contracts and riders in a future installment...but this just seemed a bit more important to get out there.
How Am I Getting Paid
Once you've worked up some songs, most bands are either going to want to cut a CD, get out and play, or a combination there of. It's fun to get in front of people and try your material out. Plus, on some level it helps validate to your spouse/significant other the insane amount of money you've spent on gear (OK...it really doesn't, but it will make you feel a little better about it).
There are three basic ways that club bands get compensated:
- Straight Guarantee
- Percentage of the door
- Percentage of bar sales
I've only had a problem with this arrangement one time (even with a contract in hand, the club owner wouldn't pay. It wasn't worth going to court over. We just didn't play there anymore more, and they closed shortly after that.
For a straight guarantee, don't be surprised if the club hands you a check at the end of the night (unless you've specifically said you need to have cash). A lot of places will cash the check for you. Don't be put off by this...the places that run like a business are going to report their band expenses. They're probably going to ask for a SS number as well, because once you make more than $600 in a year from a venue they're going to report it. Conversely, someone has to claim it, and that person is the one who's social security number they got! If you're running your band like a business...it's not a big deal.
This is pretty much the way I do club business now.
Cut Me In
Door proceeds can get interesting...especially if you're on a multi-band bill. But let's start with the easiest scenario, and that's the one where you're the only band and get 100% of the door.
Some places let you put your own person on the door, and for me that's the best. If you're manning the door yourself, you need to have your own cash box, change (more on that in a minute), and some kind of stamp if you're allowing in & outs. Do yourself a favor and print a sign up with the answers to the 3 most common questions:
- Who's playing here?
- What kind of music do they play?
- How much?
When The Rhythm Dawgs used to work a venue that did that, we would charge until the last set, and then just let folks in for the last hour. That was our call, not the venue's.
With your cash box, you want to bring some change, relective of how much you're charging. If it's a $5 cover, then you'll likely want a lot of $5's and $10's. If you're charging $4 or $6, then you'll need a butt-load of $1's. And at the end of the night when you're paying out the band, don't forget to pull the original change out. Otherwise, the band makes out better than they should and someone gets screwed over.
These days, it's almost a requirement to be able to accept credit cards. That used to be a big hassle, but no more. Square Up is ruling the roost these days on mobile credit card points of acceptance. Sign up with them and they send you a card reader for iOS or Android mobile devices. They'll charge you 2.75% of the transaction. But, had you rather have 97.25%, or 0% because the folks that wanted to come in don't carry cash.
https://squareup.com/
Finally on this subject, you always want to watch out for yourself. Some venues will put one of "their" people on the door for a cut of the money or a guarantee. When this happens, I still put one of our people on the door with one of those hand held counters. If they count 100 people in at $5 a head, there are questions to be asked at the end of the night when you get handed $275.
What Band Is It You Want To Hear?
Door proceeds from a multi-band band are really a pain. Some places will ask people as they come in "who are you here to see?". If they say your band's name, then you get credit for those people. However, a lot of folks just go to the club...not really planning to see any specific band. Now, you would think the club would just split that between all the bands. Nope...they usually pocket that money. I NEVER take a gig like this. I'm so over that.
Credit or Debit?
And then...there are the "percentage of bar sales" deals. Again, if you're the only band on the bill it's a bit easier. If you're on a multi-band bill, then supposedly you get credit for a percentage of the sales while you're playing. A reputible bar will show you a time-stamped print out of the sales...but that almost never happens any more.
And here's a real scam I got caught up in years ago. This club we started playing in Lakeway (OK...Detours...I'll call 'em out, but they're long gone), offered us a minimum guarantee or a percentage of bar sales, which ever is greater. We were looking for a new venue for our rotation so we said OK.
The first time there, there was a so-so crowd, but apparently they were real drinkers because we walked out with a really good pay-out. The club was fun, stage was nice, and so we booked additional shows with them.
The next time we're back, we had probably 20% more people, yet the pay was about 15% off from the first time. The club said that the crowd wasn't drinking as much. OK...if you say so.
The next time, I put one of our people at the bar to watch the transactions. It was really crowded that night, and we were expecting a really good payout. Unfortunately, this one was less than the other two. Our estimates were that they ran over $3000 in business at the bar, but we were paid on less than half of that.
It turns out that they were only paying us on cash sales...NOT CREDIT CARD SALES. That exclusion was never declared, because the deal changed after we played there the first time. Seems the owner didn't feel like any band should be making what we were (regardless of the fact that we were selling a ton of booze for them). Needless to say, we didn't come back after that. And from then on, anytime we would accept a percentage deal like that, it calls out "Total Cash and Credit/Debit Card sales".
Sometimes, you just ain't gonna win
Here's a really wretched scam I found out that some of the clubs on 6th Street in Austin are running. The deal is you get 10% of the bar sales after $500. In other words, they only pay you on the sales starting at $501.
OK...in my book that's a bad deal to start with even if everyone plays fair. But here's how the club gets over. If they're really busy at the bar when it's time to start...they'll say something like "hold off for 30 minutes". They wait until business dies down a bit and then let you start.
Likewise, if it gets really busy during your set, they pull you off early. The idea is to get you on and off the stage before they cross that $500 barrier. And if they do so, then they don't owe the band a penny.
Really????
And then there's this guy....
Most clubs are not going to execute a full contract with a band. Those club owners view bands that want a contract as a "pain" and "difficult to work with", so they just move to the next band on the list. For those situtations, I at least have an email stating time, date, length of performance, and compensation. (Funny, the really successful places insist on a contract...go figure).
I won't call this club out, because they're still open (and I'm pretty sure the individual involved isn't associated with them anymore). We had an email from his club manager that specified we got the door or a guarantee, which ever was greater. The show was on July 4th, and I told them that they weren't going to have that great a crowd. The only reason we took is was because they gave us the guarantee and we needed the money for a CD project we were doing at the time.
As expected, the club was really slow. We went to get paid at the end of the night, and the owner said there was no way we were getting a guarantee. I showed him the email from his manager (who was standing right there), and he said that he didn't authorize it. I told him that he shouldn't be letting his manager book the bands if that's how he felt about it.
He then said he would give us the guarantee, but we were never play there again. I said "fine", as I wasn't planning on ever going back. Unfortunately, the band overruled me and took less than half the money. (BTW, I don't think we ever went back).
Moral of the story...there will always be a-holes trying to get over on you
But it's not all bad
As bleak of a picture as I've painted, there are club owners and agents out there who are real pros and treat people right. Two clients that I've dealt with for years (Bill Fischer and Martha Edwards) have been extremely kind to me and my bands. There's never, ever been a problem with pay outs. One time, there was accidentally a double-booking with one of them (us and another band on the same night). It was their error, but they owned it and they still paid us about half of the guarantee for our trouble.
These are the people that have the businesses that are there year after year. They have the best bands wanting to play their venues and their revenues reflect that.
Too band the other 90% of club owners and agents out there haven't made the connection.
Next week...we'll get back to some technical work. I've received a couple of emails asking about pedalboards, effects, and such. I thought that might be fun to touch on.
Until then, keep
Ken
Ken Carver has been a musician and performer since the early 70's, and involved with live music production since the mid 70's. He worked for 15 years as a broadcast engineer, building numerous studios and transmitter sites around Texas. He's also worked in Critical Care Communications for the medical industry, R&D for an automated lighting manufacturer, and owned Project Lighting & Sound in the 80's. He currently heads up an R&D Hardware Technician Team at National Instruments in Austin, and still performs on the weekends in the Central Texas area. You can reach Ken at itsjustlogistics@gmail.com
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