The negotiation is a conversation between you and the artist or his or her representative, the purpose being to sort out all details surrounding the performance. 

When it comes to the day of the performance, neither you nor the artist wants any last-minute surprises and that’s why you want to be sure you cover all aspects in your conversations. Ultimately, the contract resulting from the negotiation will provide both parties with equal protection and will fully disclose what each party expects from the other. Learn more about performance aspects to negotiate.

Artist Fees

Much of the negotiation will concern the amount of money the artist will be paid. Determination of the artist fees can be complicated, but generally the artist will take his or her costs into consideration and will want to know more about your costs. The artist will want to know:

• Your gross potential (based on ticket prices and the number of seats in your venue).
  
• The size of the market or community in which the presentation will take place.
  
• The attendance history of other artists in that or similar communities.
  
• Other costs (e.g., marketing, insurance, theatre rental, etc.).

Asking Fees

Each party will have a starting point to begin negotiations – an “asking fee” from the artist, and a “proposed fee” from the presenter. As with any type of negotiation, there is a basic underlying assumption – the artist wants to be paid as much as possible and the presenter wants to limit his or her risk to the utmost. Each party should respect the other party. The artist should not try to negotiate an unreasonably high fee, nor should the presenter offer unreasonably low remuneration.

Process

It is easiest for the presenter to begin by asking the artist his or her “asking fee” and whether it includes or excludes other expenses (e.g., travel, accommodation and so on). Knowing who is going to pay for the “other” costs helps to determine whether the fee should be high or low. It is particularly relevant to know if one of the two parties has a special arrangement with a travel or accommodation provider.

Fee Arrangements

There are different types of fee arrangement. While most fees are guarantees (where the presenter pays a flat service fee to the artist), sometimes a presenter may offer a lower guarantee in return for a “back end” or “split.” If ticket sales are good under this arrangement, it is a win/win situation for artist and presenter; if ticket sales are disappointing, the artist still receives the minimum payment to cover his or her costs, but the financial commitment of the presenter is lower. Learn more about the types of fee arrangements.

Artist Requirements

Make sure that you are aware of all the artist’s requirements (grand piano, lighting/sound equipment, dance floor, etc.) before making a commitment. Having to provide complicated equipment can add expenses that need to be considered before determining the fee you can offer.