Live Nation Cut Merch Fees — And This California Club Owner Says Indie Venues Should, Too

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“Merch money is not what is going to keep us in business,” says Ineffable CEO Thomas Cussins, who cut merch fees at his own venues in January.

to stop charging acts performing at his venues a cut of their merch sales — a standard industry practice — while watching a Jan. 24 Senate Judiciary Committee hearing about Ticketmaster. Cussins says it was members of the band Lawrence’s testimony about how much bands rely on merch money for touring that moved him to change the company’s policy: “It is money that most directly gets into the band’s pocket and the idea that we were taking away from that did not sit right with me.

“It’s difficult to operate a single venue in a market against Live Nation,” says Cussins. “Venues are low-margin businesses. I’m not here to say that no one should charge merch fees. What I am here to say is that it is my opinion that if you waive those fees, it is an overall healthier ecosystem and you will actually do better in business because you are doing something that makes the process easier.

Were you worried about the financial hit Ineffable would take when you decided to eliminate merch fees at Ineffable venues?

 

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