Touring can be a game-changer for your music career, not only in terms of exposure but also profitability. For many musicians, hitting the road is the pinnacle of their career, offering a unique blend of excitement, connection with fans, and the potential for significant financial gain. But how do you make sure you're maximizing your earnings?
Here's a comprehensive guide to making more money while going on tour. After all, every dollar counts when you're making your mark on the music scene.
The Importance of Tours for Musicians
When it comes to building a successful music career, touring is a must. It offers artists a chance to connect with fans on a personal level, which can lead to stronger fan loyalty and increased album sales. Tours also offer numerous merchandising opportunities and can significantly boost your profile in the industry.
But beyond the glitz and glamour, tours can be financially rewarding. With careful planning and strategic decision-making, you can make each tour a profitable venture that supports your long-term career goals.
Cutting Costs to Increase Profit
While earning more income is essential, cutting costs is the quickest way to increase your profit margin. Let's explore some key areas where you can save money without compromising on quality.
Example Scenario
Suppose your tour grosses $1,000,000, and you pay 35% ($350,000) to your professional team. This leaves you with $650,000, out of which you pay $400,000 in expenses. Your net income is $250,000.
If you earn an additional $100,000, 35% goes to your team, leaving you with $65,000. Your net income becomes $315,000.
Now, if you instead save $100,000 in expenses, your net income increases to $350,000. Thus, cutting costs is more beneficial than trying to earn additional income.
Budgeting for a Successful Tour
The first step to a successful and profitable tour is meticulous budgeting. Outline all your expected expenses, including travel, accommodations, food, crew salaries, and equipment costs. A detailed budget will help you avoid unexpected costs and keep your spending in check.
Tips for Saving on Travel and Accommodations
Travel Light:
Flying commercial is significantly cheaper than chartering a jet. While it may be less convenient, it's an effective way to save money.
Avoid "Hubbing," Basing yourself in a central location and flying out for gigs might seem efficient, but it doubles your travel costs. Instead, plan your tour route to minimize back-and-forth travel.
Smart Accommodations:
Opt for mid-range hotels that offer comfort without breaking the bank. Remember, your goal is to save money, not to splurge.
Look for group discounts and consider short-term rental options like Airbnb for longer stays.
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Salaries
Be mindful of how much you're paying your band and crew. While it's essential to hire skilled professionals, you don't always need to carry a large entourage. Evaluate the necessity of each team member and consider hiring local crew members at each tour stop to further cut costs.
Essential Personnel Only:
Avoid hiring friends or family members who don't have a specific role or skill set. This can lead to unnecessary expenses and workplace tension.
Negotiate fair salaries but be prepared to make tough decisions about who to bring on tour.
Stage, Sound, and Lights
Your stage, sound, and lighting should be up to your level, but be practical. Extravagant setups can eat up a large portion of your budget. Focus on delivering a fantastic performance that doesn’t rely heavily on expensive sets.
Practical Innovation:
Use versatile equipment that can be easily transported and set up.
Consider renting equipment locally to avoid high transportation costs.
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Catering
Catering is another area where expenses can skyrocket if not managed carefully. Instead of lavish spreads, consider simpler, more cost-effective options:
Limit Essentials: Keep the backstage food to essentials that everyone will enjoy and consume.
Control Access: Restrict access to the catering area to prevent waste and misuse.
Local Catering: Use local catering services to avoid the high costs associated with national suppliers. *Beware of the goodies supplied from promoters it may be apart of your deal and without noticing you could be paying for food that you probably would never consume.
Post-Tour Evaluating Success
Once the tour is over, it's crucial to evaluate its success. This not only helps you understand what worked well but also provides insights for future tours.
Metrics for Evaluating Tour Success
Financial Performance:
Compare your actual income and expenses against your budget. Analyze any discrepancies to understand where you can improve.
Fan Engagement:
Track merchandise sales, social media engagement, and fan feedback. These metrics provide valuable insights into how well your tour resonated with your audience.
Operational Efficiency:
Review the logistics of your tour. Identify any areas where you faced challenges and develop strategies to overcome them in future tours.
Strategies for Improving Future Tours
Feedback Loop:
Gather feedback from your team and fans. Understanding their perspectives can help you make necessary adjustments and improve future tours.
Continuous Learning:
Stay updated on industry trends and best practices. Attend workshops, network with other musicians, and continuously refine your touring strategy.
Conclusion
Touring can be one of the most financially rewarding aspects of your music career if done right. By carefully managing costs, evaluating success, and continuously improving strategies, you can maximize your earnings and ensure a successful tour. Remember, every dollar saved is a dollar earned. So, plan meticulously, perform passionately, and watch your profits soar.
If you found this guide helpful, we’d love to hear from you. Share your feedback and experiences, and together, we can continue to make touring a profitable adventure for all musicians.
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