Music concerts often charge for event admission, but the money collected goes to many different items associated with running the event. From hiring technicians, renting equipment, renting the venue and decorating, the costs can pile up. Organizing a concert for profit requires an understanding of these costs as well as having ideas for increasing cash flow before and during the event.
Create a budget for the concert. Decide how much money you are going to need. Specify these costs in the budget as much as possible, including venue, labor costs, decorations, equipment rental and advertising. Overestimate costs when a figure is unsure, but stay within a feasible limit. Write down sources of revenue that you already have, such as personal contributions, and which sources you would like to pursue for funding, such as sponsors.
Negotiate every business dealing involved with the concert. Discuss discounts you can receive for purchasing items in a package deal or for repeated business with a particular company. Offer incentives to the company that will encourage them to give you discounts, such as free advertising at a table or on posters at your event.
Choose a date or set of dates and a time to hold the concert. Nothing can be booked, planned, sold or decided upon until the date of the event is known. Choosing a weekend is more likely to bring in larger crowds.
Book musicians, singers or bands to perform at your event. Discuss pay rate in advance. Determine the technological needs of the band members. Discuss the housing options the band has if they need to travel into town for the event.
Approach sponsors that may be interested in funding your event. If your concert is raising money for a charitable cause, many local community organizations may be willing to give money to help with its organization. If you are planning a much larger event, consider corporate sponsorship. Large corporations often set aside portions of their budget for charitable cause donations or community involvement, especially in return for advertising opportunities at the event.
Book a venue for the concert. Create a list of local venues where you would like to hold the concert, keeping in mind the genre of music and size of the band. Order them on the list from most desired to least desired. Call and find out pricing options. Consult with all team members on your organization committee before booking a venue.
Decide on ticket prices and whether they will vary by seat location in the venue. Consult your budget to see how much you need to cover base costs before you start producing profit. Determine whether ticket sales are handled by a venue's box office or your organization, which may be cheaper. Decide whether ticket sales will start in advance or at the door, which may increase last minute sales. Print paper tickets yourself instead of hiring a printing company.
Advertise the event. List the event on concert sites like Ticketmaster.com. Post flyers around the local community of the venue. Place advertisements on your company or organization's website. Hand out flyers to pedestrians on the street. Create a Facebook event. Place an ad on local radio.
Rent sound, audio and video equipment for the concert for the band's performance. Hire the necessary technicians to set up, run and disassemble the equipment the night of the event.
Organize food and beverage availability prior to the concert date. Hire a caterer to come and serve food, or prepare food for the event ahead of time using volunteers. Preparing foods with your own committee members will cut down on costs. Use volunteers to run the food stands.
Make sure to follow the venues rules pertaining the sales of alcohol, as a permit is required.
Bailey Richert is a 2010 graduate of Rensselaer Polytechnic Institute with a dual bachelor's degree in environmental engineering and hydrogeology, as well as a master's degree in systems engineering. After several years in the environmental consulting industry, she is now attending MIT for graduate school. An accomplished traveler, she has visited 23 countries and published her first book about international travel in 2014.