Why Promoters Make So Much Money

I wanted to discuss something that I think is very important but some promoters just aren't grasping...I want to make sure everyone understands this completely, that's why I'm taking the time to post this topic...

Some people new to this business seem a little skeptical as to how they can make a lot of money promoting. They just don't seem to understand how much money is involved in the club, bar and party business.

It's a multi-billion dollar business yet people seem to not fully understand how a promoter can make so much money.

I keep getting asked "how can promoters get paid so much"or "how can the clubs afford to pay them so well"
...and here's the one-word answer to "how can they afford to pay them so well?"...

Alcohol

Clubs, bars, pubs or any place that sells alcohol work on a tremendous markup--one of the biggest in any business.

If you don't believe me, just think of that bottle of beer you bought in the club--the one you paid $7 for...just for ONE BOTTLE!

But, if you went to your local grocery store, you could buy an entire six pack of that same beer for about the same price...AND the grocery store is making money on you.
The same goes for wine, mixed drinks, and shots!

If you really think about it, everything at a bar or club is marked way up. The soda's from the fountain are $3 and that bottle of water you want just to cool down...another $5.

Also, remember, they are getting a good deal on it because the venues are buying the beer, wine, and liquor in BULK!

....think about these profits!

Individual drinks are just one revenue stream alcohol brings to the club...another is bottle service.

Typically, these bottles are served at the tables when you "buy a table" and most of the time, to get these tables, there is a 2bottle minimum.

The bottles that are sold are often marked up almost 900%! A $40 bottle of Grey Goose sold at the liquor store is sold to a table of people eager to have a great seat for over $350. That's more then a $300 profit *per* bottle!

One of the clubs I used to promote in New York City, brought in very high end clients, and the bar tabs were often way over $2,000 per night for each table.
Multiply this out and think how much money the bar is raking in. And again, the profit margin is very high on liquor so most of that is going into the pockets of the owners!!

....So how does this effect promoters?

Well, owners will do anything, or should i say PAY ANYTHING, to get people into their venue.

They want it packed to the brim with people who are willing to fork over money for their pricey drinks. (With these mark-ups, can you blame them?)

Now, if you are able to pull in a high-end clientele, the kind of people that buy bottles of liquor, clubs will really love you.They'll pay even more to those promoters that can bring in the "high-end" clientele that are willing to pay for the bottle service.

Lets look at this quick from a numbers point of view...

- imagine if every person that came into your bar spent $50.

- you knew that you profited $30 from that $50 spent.

- you pay promoters $10 for each person they could bring in....

...you profit $20 for each person a promoter brings to your venue.

Would you give a person $10 if you knew it meant you'd make $20 in PROFIT? Of course you would--and the owners do!

I hope that you can see how easy it is for promoters to get paid for every person they bring to the venue. Owners want to pay you this money because it means they have a lot of people in their venue and THEY are making money.

So the more people you bring, the more money the owners make and the more money they are going to pay the promoters! It's pretty simple.

As long as alcohol is around (I don't think it's going away anytime soon--they tried that once and it didn't work out too well) there will be bars & clubs looking to fill their venue with thirsty clients willing to pay for their costly drinks...

...and that means there will ALWAYS be a need for promoters to fill these venues!!