Business model Promoters are typically engaged as
independent contractors or representative companies by entertainment venues, earning a pre-arranged fee, or a share of revenues (colloquially known as a "cut" and "share of the house"), or both. A share of revenues is often a simple percentage of admission fees (called "the door") and/or food and drink sales, with many variations possible, such as minimums or maximums, allowances for various expenses, or limitations (such as only alcohol sales after midnight). Other promoters operate independently, renting venues for a fixed fee, or under a
revenue sharing arrangement with the venue holder, thus keeping larger profits from successful events. One common arrangement for small venues is for the promoter to earn all of the admissions fees, while the venue retains all food and drink revenue. Some venues have exclusive arrangements with a single promotion company, others work with multiple promoters on a rotating schedule (one night per week, for example), or on an event-by-event basis. Promoters often work together — either as equal partners, or as
subcontractors to each other's events. Several promoters may work together for a special event, such as a large
New Year's Eve party in a hotel ballroom. They may also engage
freelance hosts for their social influence; these amateur promoters market the events to their circle of friends and/or
social media followers, in exchange for special treatment and/or free admission to the event and at times, and may form or be included in
street teams that promote events at other live venues. Minimally, an event promoter manages
publicity and
advertising. Depending on the arrangement, they may also handle
security,
ticket sales, event admission (door policies), decorations, and booking of other entertainers. Many promoters are
DJs or
musicians themselves, and may perform at their own events. Some bloggers and individuals with a large following on social media may consider themselves as promoters and charge fees promotional service via their social media platform(s), or through their efforts. Many musicians and artists act as de facto promoters for their own concerts, either directly or through their manager or
booking company. Historically, promotion has been a
cottage industry, with companies operated by one or several well-connected charismatic individuals, often working part-time. However, with the rise of corporate ownership of live entertainment assets, several large companies have emerged in the field.
Contracts and disputes There are often disputes over money in the promotions industry because it is largely cash business with a history of corruption and uneven
recordkeeping. In addition there are many
accounting complexities to manage, particularly for large events: revenue, expenses, and oversight of
parking,
coat checks,
concession vendor sales (e.g.,
CDs and
t-shirts),
box office so-called "
convenience fees",
in kind trades, promotional give-away items used to lure guests (e.g., free drinks), costs for
insurance,
cleaning staff, and so on. One area of frequent contention are
quid pro quo cross-promotions, where the promoter or some other party connected with the venue will obtain a favor (for example, a price discount) in exchange for giving a future favor to the vendor. If the existence of the scheme, or the relationship between the parties, is undisclosed this may become a form of
bribery. Another opportunity for misunderstanding are the various "lists" of guests who will be admitted for free or with
VIP treatment, and the "door policy" used by bouncers to decide who will be admitted and at what price. To deal with these complexities event contracts can become quite long and detailed. Whether written or not, these arrangements tend to favor the party with the greater sophistication or the more control over the production of the event. Even the most detailed, professionally written and negotiated contracts can become the subject of lawsuits over interpretation. Because nightclubs are often associated with drug and alcohol consumption, rowdiness, and other late-night behavior, promoters may become entangled in various criminal disputes as well.
Methods Promoters bring crowds through a variety of methods. The most direct are
guerrilla marketing techniques such as plastering
posters on outdoor walls,
flyposting, and distributing
handbills on windows of cars parked in entertainment districts. Promoters also keep mailing lists, usually
email lists, of their preferred guests and their wider list of potential customers. Many promoters have taken advantage of online technology such as
social networking services and event listing sites to handle publicity, invitations, mailing lists, and so on. Clubs and promoters are among leaders in
SMS text message advertising to their own lists as well as sponsored snippets on third-party lists for daily content to subscribers. Many fans promote events and products through their social media on their own free will. Promoters often build a
brand out of their own personalities and the parties they host, marketing the events under a consistent name, style, type of program, and social experience that downplays the branding of the venue or artist. They may develop a loyal clientele that will follow them between locations.
Image promotion and VIP hosting In cosmopolitan cities with large affluent populations, there are upscale venues that employ the services of a special kind of promoter called an image promoter. The role of the image promoter is to bring celebrities or fashion models to high end venues and host them at a VIP table. In order to entice models and celebrities to come to the venue, the image promoter is provided with a VIP table and complementary alcohol. High end venues use the presence of models and celebrities to market their venue to an affluent clientele which may often only obtain admittance to the venue through agreeing to spend a certain amount of money on alcohol at the establishment. == Notable promoters ==