Plus Deal

What Is a Plus Deal?

A plus deal is a payment plan that is the combination of two parts. The first part is a fixed payment called a guarantee. The second part is a share of revenue. This usually comes from ticket sales at the door or bar sales.

A plus deal is not to be confused with a versus deal. That’s where an artist gets the higher of two different compensation amounts, not a combination of them.

Instead of the term “plus deal” you might hear something like “guarantee plus a door deal” or a “guarantee with a cut of the bar.”

How Does a Plus Deal Work?

A plus deal just means the artist is getting a combination of a guarantee and a share of revenue. It’s very simple. But there could be split points or caps involved as well. The following are all examples of plus deals:

• $500 guarantee plus 10% of the bar
• $500 guarantee plus 80% of the door
• $500 guarantee plus 80% of the door after the split point is reached
• $500 guarantee plus 80% of the door up until a $2000 cap

Why Do Venues Like Plus Deals?

Venues like plus deals because they lower financial risk. If a venue pays a huge guarantee to an artist, they might lose money if no one shows up.

With a plus deal, the venue can offer a smaller guarantee. This keeps their costs low on a bad night. If the show is a big success, the venue and the artist both share the extra profits. It is a team effort.

Plus deals also encourage the band to promote the show. Since the band can make more money if more people come, they will work harder to invite their fans. They will post more on social media and tell everyone they know to buy a ticket.