Here are some of the types of fee arrangements you may encounter:

Guarantees

• a fixed fee – the most preferable and common fee arrangement
• In international engagements, this may also include hotel costs, in-country travel costs and local community travel. In some regions, presenters may wish to provide meals but this practice is generally discouraged since the meals provided may not be to the taste of your artists.

Guarantee Plus Percentage Split

• the most common fee arrangement in the North American music industry.
• Generally, the fee is be paid first and then, after allowing for all agreed-upon engagement expenses (venue rent, security, front of house, advertising, insurance, etc) and an agreed-upon promoter profit (often 15% of total expenses), the remaining box office income is split with the artist (with the artist receiving from 60-90%).

Splits

• fee is determined by the financial success of the performance. Rare in most areas of the world, but not uncommon in the US.
• This can be risky for artists without a well-established track record: it could require a significant financial investment from you.

Guarantee Against Percentage

• rare
• fixed fee or a percentage of the box office revenues, whichever is greater.

Local Expenses

• the artist doesn’t receive a fee, but local costs including travel, hotel and meals are covered by the presenter. Quite rare, but some festivals and other events will only consider such an engagement.
• Consider carefully whether it gives enough value (e.g. international visibility, media attention or future market opportunity) to warrant such an investment from you.