Gig fees: guarantee or door split – and who carries the risk

A gig fee isn't one thing. The same show can be paid in several ways, and they differ on one decisive point: who carries the risk if the audience doesn't show up. Once you understand that, you can read an offer and negotiate the model that suits you.

The rule of thumb is simple: with a guarantee the promoter carries the risk, with a door split you do, and the most common model shares the risk between the two. This guide covers the main fee structures and what to check at settlement. The example figures are illustrations, not price lists.

Fee models sit on a scale according to who takes the financial risk of the night:

• Guarantee – the promoter carries the risk. You get the agreed sum whether the crowd shows up or not.
• Door split – you carry the risk. You get a share of ticket revenue; if no one comes, you can end up with almost nothing.
• Combinations (guarantee + percentage) share the risk: you have a secured floor and the chance to earn more if the night sells well.

Rule of thumb: the more uncertain your draw in a town, the more you should aim for a guarantee. The more reliably you fill the room, the more a door split (or percentage) can work in your favour.

A guarantee (also a minimum fee) is a sum agreed in advance that you receive regardless of the audience size. The promoter takes the risk: if the night flops, they lose money, not you. At festivals this is often a flat fee – the same sum with no ticket-revenue share. Private events such as weddings and corporate functions are likewise a fixed fee with no ticket sales involved – often a band's best margin.

A guarantee is best for a small or emerging band, because it makes tour budgeting possible: you know in advance whether the show covers travel and costs. The downside: if your draw is unknown, the promoter may not agree to a guarantee at all – or, if they do and nobody comes, they won't book you again.

A door split (or door deal) means you give up the guarantee and instead take an agreed percentage of ticket revenue. This is the most uncertain model: if the audience doesn't come, you can end up with almost no fee.

Typical splits vary – for example 70/30 or 60/40 in the artist's favour, up to 80/20 with a strong draw, and 50/50 if the promoter doubts the turnout. The key is to know what the percentage is calculated from:

• Gross revenue (only VAT and the ticketing fee removed) – the best for you.
• After costs – the promoter first deducts their own costs (rent, sound/light, marketing, staff) and only the remainder is split. In that case, ask for a cost list in advance.

Because your fee depends on the headcount, verify the ticket numbers yourself – watch the door or ask for the sales report. This is the most important practical rule of a door split.

A door split isn't the same as "door money". Door money means cash entry fees collected at the door – it's money, not a deal structure. A door split is the name of the deal in which your fee is based on ticket revenue.

The most common arrangement is neither extreme but a combination: you get a percentage of ticket revenue, but at least the guarantee – whichever is greater. This gives a secured floor and the chance to earn more if the night sells.

Example: an agreed €500 guarantee or 70% of ticket revenue, whichever is greater. If ticket revenue is €1,000, 70% is €700 – you get €700. If revenue is only €500, 70% would be €350, but you still get the full €500 guarantee. The guarantee is the floor, the percentage is the upside.

Another combination is a guarantee + bonus: a fixed guarantee with extra added once ticket sales pass an agreed threshold. Both models are safer for a band than a pure door split.

In larger productions the fee can be based on a profit split after costs: the promoter first works out the night's total costs (fees, production, marketing, rent) and their own margin, and only the revenue above that point – the break-even – is split at the agreed ratio.

This is the riskiest model for a band without a guarantee: if costs are high or inflated, there's no surplus and you get little. Always ask for a written cost list in advance – the higher the costs, the smaller your share. Only take this model if you trust the promoter and can see the numbers.

Three contract points that protect you:

• Deposit. Part of the fee is paid in advance to confirm the booking – often 25–50%, typically non-refundable. If the promoter cancels, you keep the deposit.
• Cancellation clause. Agree what a cancellation triggers: a show cancelled at short notice may require the full fee to be paid. A force majeure clause covers events outside anyone's control (an authority ban, a natural event), in which case neither side owes compensation.
• Settlement. After the show, ticket revenue is counted and your share is paid. If the fee is based on ticket revenue or costs, go through the numbers and receipts together, line by line. Prepare the ticket count already during advancing, so settlement is quick.

A support act (opener) typically gets a small fixed fee or just travel money – in a big production a few hundred, at a small club possibly nothing if the headliner is on a door split. Treat a support slot as a promotional opportunity, not a source of income.

Beware "pay to play". On some tours the support act is asked to pay to join. This is not the norm in the industry. Weigh carefully whether the exposure is worth the money – usually it isn't.

Customs vary by country, so treat the figures below as a worked example from Finland. On a typical European club circuit the most common model for a small band is a guarantee that covers costs and a little more, often topped up with a percentage. In Finland the fee is usually paid on the first working day after the show, and a booking agent's commission is typically about 20% of the gross fee – check the norms and timing in your own country.

Two responsibilities that are often confused:

• Performing-rights royalties for the songs played are the organiser's responsibility, not yours. Still file your own setlist report of the songs you played with the collecting society, so the writers get paid – reporting is not the same as paying.
• VAT treatment of a performance fee varies by country. In Finland, for example, a performance fee is in principle exempt from VAT (VAT Act, section 45), and you can choose to register for VAT voluntarily, which applies a reduced rate to the performance fee. Check the rule that applies where you are. The details of tax and invoicing are covered separately in the article on gig income tax.

The fee model decides who carries the risk. A guarantee is a secured fee (the promoter's risk), a door split is a share of ticket revenue (your risk), and the most common model combines them: a percentage, but at least the guarantee. Ask for a cost list when the fee is based on costs, verify the ticket numbers yourself, and agree the deposit and cancellation clause in writing. For a small band, the safest choice is a guarantee that covers costs.