SLMC

Doubledown Tandino

I figured I start this thread so we have a clear location for all the advice, tips, tactics, and supportive ideas to help someone's venue become profitable (if that's what they're looking to do).

So, if you're a venue owner and are trying to be profitable but are not, post up your experiences and obstacles. If you're a venue owner that is profitable and want to share some pointers, please do so.
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Jojamela Soon · Posted: Thu Jan 17, 2008 5:41 pm Post subject:

Sailors Cove Theater is in a residential sailing community themed set of sims (15 now) I originally started the venue as a way to control the amount of time I was working in SL (was working as a musician's promoter/assistant) because the hours were causing personal difficulties. I figured owning my own place, I could set the hours and the days that I work.

My biggest problem is because my theater is named after the sims, most people think that it's supported by income from the sims. It's not. I do get tips from the sim owners and guests but 90% of the costs involved in running the venue come straight from my pocket.

In the beginning I had money that I could play with. Since the theater has grown I've found my finances running thin and have attempted several things to help out.

1. I've cut back on the hours that I have live events from 5 days a week to 2 days.

2. I've become much more cautious on how much I am willing to pay for a booking fee. In the beginning I didn't have a clue and paid some outrageous sums. Now I have a set number that I can afford (for now). Most of my shows are regulars who play weekly or bi weekly. Some do no charge a fee at all, but I still tip them my regular rate. Some split tips (which is a huge help). I'm only booking non-regular acts once or twice a month and those to have a set amount that I can afford.

3. I'm looking at several ways to raise funds- not very successful so far:

a. Building/Selling houses - our community has a strict covenant and theme committee- I build houses that are pre-approved by the committee and can be placed on property owners land right away.

b. Storefront- I'm in the process of creating a store that will be located at the back of the property. I have some personally created content, some resell items (from my inventory and donations) and vendors who are paying me a commission on their sales.

c. Commercial sponsorship- this is a really sticky point for me. I'm in a strictly themed community, I can't set up huge billboards and signs or anything that will distract from the landscape and theme so anything I do has to remain in theme. I also can not add any lag causing scripts to my property. I'm looking for sponsors that fit into the theme.

My sim owners are very supportive of me and are also trying to think of ways to help me out because I am providing a valuable service to them in bringing a lot of people to our beautiful estate, but in the long run I have to agree with Ticious, I can not continue the way I am and foot the bill almost entirely by myself. We need to educate the listeners and the concert goers because a lot of them really have no clue.
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Tessira2 · Joined: 20 Sep 2007 Posts: 170

Brand spankin new venue, Stonehenge Arena, and after 3 shows (10 musicians) we are making a profit. /knocks on wood The only out-of-pocket expenses we are covering are for the land (which is small). I attribute this success to two things:
1 - top secret, have to ask my business partner to reveal. Cool

2 - Have Sally in the audience yelling, 'No venue, no music!' Laughing

Seriously tho, an educated audience seems to be a large potion of the answer venue's desperately need. We were showing the expected 10% audience response, until awareness was raised and discussed often in chat. I'll guess we had 40-50% audience response at that point. This alone would bring our budget to a reasonable level.

Perhaps we're just lucky so far. I just hope this continues so we'll be able to add more music! Very Happy

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Jojamela Soon · Posted: Thu Jan 17, 2008 8:16 pm Post subject:

gotta have that secret cause I'm stumped...lol
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Sally Silvera · Posted: Fri Jan 18, 2008 1:34 am Post subject:

That's very nice of you Tess, but I doubt shouts like mine make that much of a difference, otherwise other venues would be seeing similar benefits. I'm not the only one who tips venues.
Great to hear it's going so well! And yes, I'm voting with the ëducate the crowds side.
Also ..... while I'm here ..... could I just applaud all venue owners for doing what they do? I love my hiding places Very Happy

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Doubledown Tandino · Posted: Fri Jan 18, 2008 6:19 am Post subject:

Here is my simplist and probably most effective method to being a profitable venue:

Partner with a land baron. The deal is you use their land, something that they don't have to touch and get rid of, a piece of land that won't cost them anything by holding on to. It'll cost them something, but by being a land baron they'll be making plently of profits already and also have a lot of land sitting around. The venue owner pays no rent, and builds/runs the venue. There would be prominant signs displaying the land baron's info displayed throughout the club (IE: the club is sponsored by the land baron). When a patron from the club sees the sign, clicks through the sign, and ends up buying/renting land from the landowner, the club owner makes a percentage. That commission is what pays the musicians. Any merchandise, and donations to the club would be profit. This you could also do as a basic/free member of Second Life

Copyright 2008 - Doubledown Tandino
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Tommy CUlt · Joined: 06 Sep 2007 Posts: 160

I am still trying to figure out if Tessera2 is serious or not?? OK...so you had 10 musicians...were these all people who played for no charge? or say...a nominal one like 1k? 2k?

It is great to hear how it can work well - and profitable, but I want to be comparing apples with apples. If you still only get 10% audience tips, that 10% must be some generous folks - unless your only real expense is the stream and your land costs - but....who knows?

When it comes to costs, expenses or income for our venue, there are no top secrets. We are not in competition with anyone - the more info that can be shared the better decicions others can make BEFORE they make some of the same mistakes or assumptions other venues have made.

For example...If I was performing at OUR venue for 1 hour - I would not pay myself a fee - and If i ONLY attribute 1 hour worth of 'venue/land/tier/stream cost ...well hell yes I guess i could say we are profitable - but to state my venue made a profit would be misleading people because my formula or reasoning (or accounting method used) is flawed.

I think the point of DD's thread was to inform others what things worked (or did not work) but hey...maybe I read it all wrong?

Tessera2...If you are getting 10% of your audience to cover all your costs and fees (if there are any), and you have no other income stream - my hat goes off to you - you obviously have a secret worth keeping Wink

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ticious · Joined: 03 Sep 2007 Posts: 2085 Location: Chicago

Tessira2 · Joined: 20 Sep 2007 Posts: 170

I'm completely serious and we are still turning a small profit. I believe 2 of our first 10 musicians played for tips only. The rest have been paid their normal fee, most of which are significant. We host 2 shows a week, consisting of 2-4 musicians, and costs vary from 5-10k per show.
Our venue is on a piece of land 2048sqm. And yes, looking to expand to a 2-sim or something... 40 max audience is crippling some of our fun shows!

As an FYI - this 'profit' is in the books only, and is being put back into the venue for more musicians.

Doubledown Tandino · Posted: Sat Jan 26, 2008 9:07 pm Post subject:

yeah, basically the point of my thread here is how a venue owner can be profitable after spending for land, performers, staff, promotions, stream, etc.
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Ravelong Productions @ SLMC Info Island