How A Struggling But Savvy Local Band Turns Cheap Concerts Tickets Into Really Big Profits!Part Two
As you previously recall in part one of this ongoing series, about how a local struggling (but extremely marketing savvy ) band routinely went about turning relatively cheap concert tickets tickets into some really big long term profits.
Although (truth told), as you recall from part one it was the savvy local concert promoter(s) that really made a lion’s share of both the front and back end profits from this hypothetical marketing example.
And that’s because more than likely (let’s be brutally honest) the all too typical aspiring local band, just isn’t that marketing savvy! Not in the beginning anyway. Because they’re far too focused on getting their next paying gig. Or trying to raise enough money to record their next track and or album etc.
So they haven’t really developed all the necessary basic marketing skills (on or offline) that they’re surely gonna need! And that’s why most of the marketing focus (in part one) centered primarily around the promoters, because at least they understand the basic marketing concepts (initial front and back end) of the transactions etc.
In part two we’ll dive a little deeper into some of the less obvious untapped potential (long range) marketing opportunities, that are just waiting to be utilized.
How Cheap Concert Tickets Can Strategically Be Turned Into Some Really Big Long Term Profits!
Now let’s make part two more about the savvy local struggling band. After all, once they start getting formally introduced to the right type of long term battlefield tested marketing tactics and strategies, they’ll start to view the vast possibilities through an entirely different set of lens, don’t you agree?
For ex: since more than likely there will most certainly be some type of cold beverages being sold (whether) it’s alcohol or not! So that being the case, here’s three incredibly simple ways for the savvy band members to cash in, even if the concert tickets are relatively cheap.
Simply by taking advantage of the natural momentum of the marketing opportunities. Since the concert promoter will sell the tickets for just $10 dollars each.
Which means that if only 3,000 people show up (give or take) for any live events and let’s say that at least 2,500 of them bought a ticket. That’s still an initial gross profit of $25,000 dollars! (2,500 people x $10 dollars each, equals $25,000 dollars gross profit.)
And let’s say they pay each participating band $1,500 dollars. ($1,500 x 5 =$7,500 dollars.) $25,000 – $7,500 = $17,500 minus any licenses and permit fees etc.
1.) Potentially marketing opportunity # one: The beverage vendor will place a really big sign right near their concession stand, that says win a free coupon for a $100 dollar bracelet with every purchase of a large beverage!While supplies last
The vendor will (of course) get these special time sensitive VIP first time new customer only special discount coupons from a savvy local jeweler that’s wants to leverage these live events.
The special VIP new customer only discount coupons give the coupon holder 80% off a $100 dollar bracelet, for an extremely limited time! Meaning: they only pay $20 dollars, for a rather nice eye catching bracelet that normally retails for $100 dollars!
So the vendor sells a few more large beverages than normal at these “battle of the bands” events than usual. (And going forward at other live events as well!)
Savvy Marketers Really Do Make It Big On Little Deals!
2.) Potentially marketing opportunity # two: Next, since (in reality) it’s the marketing savvy band members (A) that initially negotiated the affiliate deal with the jeweler (and or local vendor X), so not to be out done, every ticket purchaser will also get a special time sensitive new customer only VIP discount coupon from a local appliance dealer for 35% off their very first purchase.
And once they redeem the coupon, it automatically gets converted into an annually renewable laminated discount card. And every month that the consumers use it, at the end of every month, the vendor simply tallies the band members affiliate sales and writes them a check for 25-35% of that month’s gross sales.And that’s for as long as their arrangement stays in place.
3.) Potentially marketing opportunity # three: As the band becomes more and more marketing savvy, they’ll negotiate becoming affiliates with a two tier payout system with each participating vendor.
For ex: let’s say they get the appliance center to pay the other participating band members the same 25% commission for passing out their VIP time sensitive new customer only VIP discount coupons, at all of their upcoming shows and beyond.
But because band (A) originally negotiated the entire affiliate arrangement, they get an additional override/referral fee commission of say an additional 10%. So let’s play with some numbers to illustrate the monthly potential of their over ride pay.
Let’s say the appliance dealer grosses $30,000 as a direct result of affiliate band B, so they get their customary 25% commission rate. Which means they receive a check and or bank credit of $7,500 dollars. ($30,000 x 25% = $7,500.)
And affiliate band A gets their ten percent (second tier over ride/referral fee) commission of 10% (or) an additional $3,000 dollars!And that’s per band!
They could potentially earn an additional $12,000 dollars gross in any given month, just on their 10% percent referral fees! Provided of course that the other four participating bands had consumers that spent at least $30,000 dollars each!
But the actually gross numbers are not what’s important! Because they may not actually get a local vendor to go along with 25% and or an additional 10% over ride/referral fee commission structure!
So what! The real point is, a local savvy struggling band can multiply their gross profits, even if they sell rather cheap front end concert tickets. Don’t you agree? And that’s the overall marketing concept!
Please list your extremely valued comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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