Merchandise Split

What Is a Merchandise Split?

A merchandise split is how the money from selling merchandise is divided.

For example, the band might get eighty percent and the venue might get twenty percent. Or the band might get one hundred percent after paying a flat fee to the venue.

Another way is a rent model. The band pays the venue a fee to sell merchandise. The band keeps all the sales money.

Sometimes it is a hybrid model where the band pays a small fee plus a percentage of sales.

Who Handles Merchandise Sales At a Live Music Show?

At smaller venues, the artist often handles their own merchandise sales. The artist or a member of their crew sets up a table, manages sales, and handles cash or card payments. The venue may not be involved at all.

At larger venues and festivals, the venue or promoter often handles merchandise sales. They may have their own staff working the merch table, or they may hire a dedicated merchandise seller. In these cases, the venue typically takes a percentage of sales as a merchandise split.

Some shows use a hybrid approach. The artist provides the merchandise and display materials, but the venue provides the staff to run sales.

The key questions to answer before signing a performance contract are who provides the point of sale system, who counts the inventory before and after the show, and how sales are reconciled.

These details should be in the contract or discussed during advance negotiations.