Different Ways To Get Paid As A Nightclub Promoter

If you are just starting out or looking to get into the club promotion field, it helps to have a clear understanding on some of the terms used when it comes to discussing about the compensation plan. In this post, I will break down some of the terms that are used when dealing with club promoters and nightclub owners.

Flat Rate
A fixed price for service rendered for marketing an event or promoting a venue. Usually, I tend to stay away from this type of deal, unless the “Flat Rate” is really worth my wild.
Pros – No matter how busy or slow the night the event may be you will always be guaranteed for your paid performance. For example, if you made a deal with a bar or club owner to assist on pushing a certain night for $200. He/She will pay you the flat fee no matter what was the outcome.
Cons – This can also work in reverse. If for some reason, your night is doing extremely well, momentum has picked up, and your night is the talk of the town. No matter how busy and profitable the club is doing, you will only be entitled to your “Flat Rate”.

Hash or Tally Mark
A line mark which notches are made to keep count of the number of guest you bring in to the club. This system is highly used for sub promoters or new promoters who are trying to get their foot into the door. The usual “Hash or Tally Mark” pay scale ranges from $3 to $5 per person and depends on the general admission pricing.

Here is an example, which some promotion companies or club owners would use when testing out new promoters:

1. The general admission is $20 and guest list is FREE before 10:30 p.m.
2. Guests getting into the club for “FREE”, the promoter would get a hash or tally mark for $3 per person.
3. Guests who paid the full general admission price, the promoter would get a hash or tally mark $5 per person.

Under this system, if a person gets 30 people in free and 40 people which paid, he/she will get a total of $90 + $200 = $290.
Pros – You can make a good sum of money for getting people into the club for free, but you would need to find out the criteria of the guest list procedure in order capitalize on the compensation. In addition, the fact the more people you invite and market to, the higher the chance of you being paid.
Cons – If nobody attends to the event, you basically get nothing.

Tier System
A pay structure in which different wage scales are set for promoters to achieve maximum payout base on the number of people they bring to the club. This system can be complicated, but if used correctly a promoter can receive a higher return.

Here is an example:
Tier One: 0 – 25 $2 per person
Tier Two: 26 – 50 $4 per person
Tier Three: 51 – 75 $6 per person
Tier Four: 76 and above $8 per person

Under this system, if the promoter brings in only 25 people he/she will be compensated for the amount of $50. If the promoter brings in a total of 26 people, he/she will earn $54 (25 X $2 = $50 plus 1 X 4 = $54). Another scenario is if the promoter brings in a total of 75 people, he/she will earn $290 (25 X $2 =$50 plus 24 X $4 = $96 plus 24 X $6 = 144).
Pros – You can make a good sum of money for reaching the higher tier on a consistent basis.
Cons – If nobody attends to the event, you basically get nothing.

Full Door
A compensation plan, which is based on the total number of paid patrons entering the venue. Getting 100% of all the door would be ideal plan for all promoters, but is usually given when you become the main host or you have a strong following that can pack the entire club.
Pros - Everything that is being generated at the door is yours
Cons - With higher gains for door revenue, a person should expect higher responsibilities which may include marketing and operation expense.

Bar Percentage
A percentage pay plan agreement, which is made between the owner of the nightclub and promoter for total sales of alcohol revenue. I usually seen and heard that some owners are willing to give up to 20% of bar revenue sales in exchange for a promoter marketing services.
Pros – Receiving a percentage off total gross bar sales
Cons – Some nightclub owner would like a bar guarantee, in exchange for revenue from total gross bar sales.

Club promotion is a business, which not to many people are aware about the compensation plan. I’ve laid out some of the simple foundation here in this post, which may assist you in understanding and negotiating your way to top of the food chain. Basically the club promotion or event marketing business is a fun industry, remember you get paid to party and meet people.

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