Guarantee vs Door
Payment structures for live performances—fixed fee versus percentage of ticket sales.
Definition
In live music, payment structures typically fall into guarantees (fixed fees paid regardless of attendance) or door deals (percentage of ticket revenue). Established acts usually command guarantees, while developing artists often take door deals. Hybrid structures exist, like "guarantee plus bonus" where artists receive a base fee plus percentage after breaking even.
Why It Matters
Payment structures significantly impact artist economics and risk. Guarantees provide income certainty regardless of attendance; door deals offer upside if shows sell well but risk if they don't.
Understanding these structures helps artists negotiate appropriate terms for their career stage and show history. Established acts command guarantees; developing artists often accept door deals to prove themselves.
Examples in Practice
A headlining artist negotiates guarantees that cover touring costs, treating door bonuses as profit.
An opening act accepts a smaller guarantee plus percentage, betting on the headliner's draw to boost their earnings.
A local artist's strong draw lets them negotiate favorable door splits rather than flat payment.