Venue Merch Cuts: How Artists Lose Revenue at Live Events
A clear explanation of how venue cuts and deductions suppress artist merch revenue — and what structural controls improve outcomes.
This post is part of the live-event merch problem series.
The revenue stack that compresses artist profit
Gross sales are not net sales. The common deductions that reduce artist take-home include:
- Venue/promoter merch percentage
- Sales tax
- Processing fees
- Management/operational percentages
- Production + logistics
Why this matters
When the revenue stack is unpredictable, artists compensate by reducing assortment, limiting quantities, or avoiding high-risk items—reducing upside even when demand is strong.
What changes outcomes
- Make commerce event-scoped (clear authorization and close dates)
- Use purchase-verified access to reduce leakage and disputes
- Increase demand visibility through verified transactions
Core pages
How it works: /how-it-works
Technology: /technology
Next in the series: Operational failures at merch booths →