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How do I become a profitable venue & also pay performers
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luketemplar



Joined: 04 Sep 2007
Posts: 314
Location: United Kingdom

PostPosted: Tue Feb 26, 2008 11:46 pm    Post subject: Reply with quote

Doubledown Tandino wrote:

my simple opinion is to not to depend on other people donating to make your venue hopefully profitable.   Just because you house and host musicians all day and make a valliant and stoic effort all the time keeping things going, doesn't mean people are obligated to donate.

No offense.... if this was possibly offensive


No I totally agree with you there - venues need to be self reliant - whether the funding is coming from advertisements, another business or from their own wallets. But the honest truth is - without sponsorship or somekind of ticketing charge there is no way that I know of for a venue to stand on it's own and pay it's own bills. (If you know of a way please share it!) I don't count ancillary businesses into the equation e.g: making prefabs, textures or club equipment.

I think what many venue owners are saying is simply this - it's not fair - for one person to pay so that other people can have a great time, pay their sl bills, buy new guitar strings or justify the purchase of their latest mixer equipment. The sentiment is well summarised by an ex venue owner that I know who said, (and i am paraphrasing here)  'I just got tired of other people having a good time with my money.'

Of course musician fees are going to come under fire here because it is the bulk of expenditure for any venue. And I'm not saying that musicians shouldn't be paid. None of the venue owners are saying that. I don't want to put words in people's mouths so I will just speak for myself - I merely want to see the burden of payment shared elsewhere (and in a sustainable manner). Then ideally musicians can still be paid a good fee and everyone can enjoy the music without the venue owner feeling raped repeatedly in the derriere. After all - the musician is providing the entertainment and the venue is providing the facilities - why shouldn't both be given compensation for their time?
But there is a general reluctance to charge cover fees on a whole partly for myself because i think it is counter productive to my central goals of promoting an artist and perhaps on the side of the artist a fear of alienating fans etc. But if your fans won't pay you for your music... then who will?

(How to piss off a venue owner in 3 seconds: Declare to your fans how you want to keep SL music free then hit the venue owner with a whopping fee)

How has my venue managed to survive since April last year?

*** through the goodwill and kindness of talents that have agreed to play for reduced or no fee
*** by bartering services - e.g: mentorship or promo vs. performances
*** money from other businesses to pay the acts that want fees
** tip sharing - formally via a tip jar or a tip from the act afterwards
** tips from other venue owners
* tips from audience

The asterisks do not represent importance - it is merely a rough representation of the percentage of lindens it contributes to keeping my venue alive. Obviously the first - time and talent donated well... that is priceless.

I guess that's my answer to DD's original question - but I don't turn a profit nor do I break even. I just survive.

Maybe the question should be - what do you expect out of your SL music experience? Perhaps we will see a natural seperation between the people who use SL as a promotional tool and will therefore work with the venues who are dedicated to providing promotion - and those that wish to play in here for the money because there are loads of business venues that will pay. Neither side is right or wrong - just two different agendas. *shrugs*
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Doubledown Tandino



Joined: 07 Sep 2007
Posts: 1658
Location: RAVELONG @ SLMC Info Island - SIM: Tivona

PostPosted: Wed Feb 27, 2008 11:51 am    Post subject: Reply with quote

Ok, here's a few other concepts that may work......    if you're totally throwing out the very good and smart idea of having a sponsorship....
(I believe sponsorship in SL is the best method of becoming a profitable venue... and also, sponsorship in SL works TOTALLY different than RL sponsorship.   I'd go so far to call an SL sponsorship a partnership.

but anyway... so you aren't gonna go the sponsorship method.....

...my next thought would be the promotion method......    
I would probably create a plan and a venue so that the musician knows it's important to play at my venue.....    ....I would, instead of focusing on booking musicians and paying them....  I would focus on creating a venue that ALWAYS has 30+ people there for every show.    Once it becomes the turnaround that the venue is more popular than the person performing, then the venue has the edge.   If people are showing up for the venue, for the chat, for the regulars, for what goes on at the venue.....  and then the venue also has a lineup of performers all day,.....  then,.... the performers will work for tips and for the promotional aspect since there are 30+ regulars that know to tip the musician.

Soooooo....    venue owner doesn't pay musicians.   There is a split tip jar for the musician/venue.  there is a donation box for the venue.  And all the performers that play there get permanent info signs on the wall for $1000L a month.

My point is, if you focus on bringing in a constant crowd always and anyways, with or without a performer, then the venue has the upper hand....   Musicians will want to perform there with the guarantee that all the promotion will be taken care of because there's gonna be a huge crowd.

So, in summary:  
the venue is spending money to create a constant crowd
the musicians are paying just to play there and that pays for the clubs rent + any profit

Just another SL venue business model brought to you by the Doubledown Tandino factory
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ticious



Joined: 03 Sep 2007
Posts: 2087
Location: Chicago

PostPosted: Wed Feb 27, 2008 2:26 pm    Post subject: Reply with quote

Doubledown Tandino wrote:

(I believe sponsorship in SL is the best method of becoming a profitable venue... and also, sponsorship in SL works TOTALLY different than RL sponsorship.  


Can you recommend a couple that are, or may be, looking to sponsor venues?  I've tried to interest a few but gave up as the consistent yawning I heard (if I got a response at all) was putting me to sleep.  Bottom line, no one was interested.

My model at Rocky Shores has always been exactly what you describe.  I have a fan group bigger than many musicians and loads of regulars.  Very few of whom tip either me or the musician (though those that do, do so consistently and generously).  But I guess it has given me something of an upper hand as I have had very few musicians refuse to play for tips since my announcement that I was going in that direction.

Edited to add....to make this model work your focus HAS to be on the enjoyment of the audience, you have to make sure they feel welcome and have a good time.  The setting has to have a good 'feel', you have to have engaged hosts (no canned greetings or auto greeters), limit requests for tips and/or any other form of spam, personally engage in the room chat, have good, invisible but on-their toes and well trained security and you have to allow build and scripts.  Yep, that makes a lot of work for the venue, but I didn't hear DD say this was an easy model, just one that works  Laughing
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Doubledown Tandino



Joined: 07 Sep 2007
Posts: 1658
Location: RAVELONG @ SLMC Info Island - SIM: Tivona

PostPosted: Wed Feb 27, 2008 5:16 pm    Post subject: Reply with quote

In terms of finding sponsors in SL... IT COMPLETELY has to do with your friends and people you trust in SL.    Over time, you meet people, some of which you bond with and can tell you would do business with.    Some of those people have businesses and companies in SL.

It's as simple as an IM chat or a nice and neat notecard.
If you are pulling in 30+ people generally all the time, many businesses would want to be involved in that action.    Friends that are inventers, land barons, investors, builders, mall owners, etc... they all are making good money in SL, and they're always up for a friendly connection and solid promotion for some extra lindens.

My company Ravelong Productions is usuallly always interested in sponsoring events and venues.... but I primarily deal with clubs, raves, and lounges
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Silas Scarborough



Joined: 04 Sep 2007
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Location: Rhode Island

PostPosted: Wed Feb 27, 2008 5:25 pm    Post subject: Reply with quote

Doubledown Tandino wrote:
So, in summary:  
the venue is spending money to create a constant crowd
the musicians are paying just to play there and that pays for the clubs rent + any profit

Just another SL venue business model brought to you by the Doubledown Tandino factory


The traffic count for the Eden Ballroom is typically over 10K for any day of the week and is often over 14K.  It's fairly consistent around the clock.  So what am I bid for gigs there?  (There's only one rule over here.  If you cover a Pink Floyd song, we have to kill you.  Sorry but it's the law.)

P.S.  I'm not serious.  The Ballroom is not for profit.
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Doubledown Tandino



Joined: 07 Sep 2007
Posts: 1658
Location: RAVELONG @ SLMC Info Island - SIM: Tivona

PostPosted: Wed Feb 27, 2008 6:08 pm    Post subject: Reply with quote

Silas Scarborough wrote:
Doubledown Tandino wrote:
So, in summary:  
the venue is spending money to create a constant crowd
the musicians are paying just to play there and that pays for the clubs rent + any profit

Just another SL venue business model brought to you by the Doubledown Tandino factory


The traffic count for the Eden Ballroom is typically over 10K for any day of the week and is often over 14K.  It's fairly consistent around the clock.  So what am I bid for gigs there?  (There's only one rule over here.  If you cover a Pink Floyd song, we have to kill you.  Sorry but it's the law.)

P.S.  I'm not serious.  The Ballroom is not for profit.



Me personally.... if I were a musician that played what fit in there I would play for free, and give 50% of the tips to the venue, plus be on the mic multiple times reminding to give donations.  I would also pay $1000L a month to have a permenant sign displayed there.  that's just me.   If there were a Live DJ club doing this, I would probably do this.
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ticious



Joined: 03 Sep 2007
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Location: Chicago

PostPosted: Wed Feb 27, 2008 7:10 pm    Post subject: Reply with quote

Doubledown Tandino wrote:
[I would also pay $1000L a month to have a permenant sign displayed there.  that's just me.   If there were a Live DJ club doing this, I would probably do this.


There's another part of the problem.  Like I say, you have to have a theme that 'feels' good and at 1k per month per sign, it would have taken about 140 such bill boards to cover my monthly musician fees at my average of 2k per hour per musician (16 hours per week = 69.3333 hours per month times 2k each).  Then there'd be tier and other expenses, but I'm not gonna bother to convert that to additional billboards.

I have a lot of friends in SL, but......
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Tommy CUlt



Joined: 06 Sep 2007
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PostPosted: Thu Feb 28, 2008 2:51 am    Post subject: Reply with quote

What I find common in SL - is most of the 'success' stories in SL really are not that successfull in reality. Sure - they make all these lindens and good on them - but they are here for 14 hours a day. In RL if i worked 14 hours a day EVERY day...just to earn what a 'successful' SL business person makes - I would be ...hmm...well..SL rich..and RL poor.

Sure, there are a handful of people earning decent money in SL, but lets be real - not many are earning over $50,000 real life dollars per year lol - they might own a heap of sims but they are not operating them from their Apartment overlooking Central Park in NY.

At the end of the day, what has made me a lil cynical is the number of (new) musicians who expect that in SL they are going to be paid more than they actually get paid for doing the SAME thing in RL. I have PLENTY of RL musician friends and have talked about breaking down what they do into an hourly rate - and ya know what - they dont make $40.00 per hour. But hell - if you got a myspace page, a few average youtube vids and a computer - that is what is 'expected' by many in SL.

Von is right on many many issues because it just depends on perspective, and I know all too well how easy text can be taken the wrong way. New venues, with new people running them who are the next 'big' success in SL music open every day. I see them promoted, read all the advantages they are going to offer (one of the lastest claimed how the performers wont even have to pay to play there LOL - I bet that was a relief to many people lol) - so ....I cant see an end to places thinking Live music is the solution to their already failing SL venture (yea yea..that is the cynical me part again lol) - so....no worries there, there is no shortage of places willing to host and pay for musicians.

Thinking about this..maybe that in reality is the business model. As long as there are people coming along and paying to get involved - everything works great. Kinda like a chain letter - or a pyramid selling scheme - you know the sort....everyone wins...till all of a sudden - everyone looses.
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Doubledown Tandino



Joined: 07 Sep 2007
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PostPosted: Tue Mar 04, 2008 12:32 am    Post subject: Reply with quote

Yes, "success stories" are all relative.    We're speaking specifically in regards to financial success for a music venue....  which is very rare.

But plenty of venues are VERY successful.   It's all about what you wanna focus on... money.. or the fun of it all... and there is a compromise because venue owners DO need to pay rent... unless they're on sponsored land.
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vonjohin



Joined: 19 Sep 2007
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Location: Nashville, TN

PostPosted: Tue Mar 04, 2008 1:04 am    Post subject: Reply with quote

When I've seen venues offering 20, 30, 40, 50, 60 or even more shows per month, its usually been a sign they are going to have serious issues soon, especially if they are paying any amount to the performers. Without even paying, that's a huge time commitment to promote and manage. Burnout is coming on at some point, and nothing will burn you out faster than not making money at something. Second Life may allow a venue to have events 24/7, but that doesn't make it a good business idea. I can't think of any real life venues that book that many events and acts. Its just too much in my opinion.

If I were to decide to start booking acts at my club, I would possibly allow some newer acts that wanted to play for free to schedule themselves a few times a month, and then pay for one big show a week each featuring one artist on Friday or Saturday. I'd experiment with treating it like a real life show, with the paid artist doing two sets, with a short break in-between, and promote both set times in SL events. That all said, I don't want to be a club owner or promoter, I don't have time to do it right and still play the amount of shows I've been booking.

Doubledown Tandino wrote:
Yes, "success stories" are all relative.    We're speaking specifically in regards to financial success for a music venue....  which is very rare.

But plenty of venues are VERY successful.   It's all about what you wanna focus on... money.. or the fun of it all... and there is a compromise because venue owners DO need to pay rent... unless they're on sponsored land.
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