In a festival it is the vendor licenses which make almost as much as the ticket revenue. However, if nobody comes or weather does not cooperate it is very risky. A person could put five to six know vintage acts together and sprinkle in some very cheap fillers and spend less than 35k on the music. You would have to find an outdoor venue which allows overnight camping and had hotels near which could take care of the older festival goers who were not healthy enough to camp. You are looking at 30 bucks a person venue costs and 35 bucks per person music costs for a basis of 65 bucks, and you would set your market at between 1k and 2k tickets at 90 bucks a ticket.
90k to 180k gross revenue, 25k to 50k net profit with 10k vendor fees for a 35k to 60k profit for the investors. However, there are liability exposure expenses, and security beyond the venue negotiated price. Also most online ticket agents are going to take 10%, and rental of sound stages for the weekend are going to cost 5k so you will have additional costs of 14k to 32k on the high attendance end. Now you are only talking about 21k to 28k profit with huge risks of groups backing out, weather cancellations, and increased marketing costs if ticket sales are not happening. However, a big buck guy who is only getting 3% on their money is willing to take risks when you are only talking about 35k outlay to get close to a 100% return in one weekend. Lots of work, but these oldie groups are finding these type of festivals all over the country every weekend during the summer, and music lovers are attending.
90k to 180k gross revenue, 25k to 50k net profit with 10k vendor fees for a 35k to 60k profit for the investors. However, there are liability exposure expenses, and security beyond the venue negotiated price. Also most online ticket agents are going to take 10%, and rental of sound stages for the weekend are going to cost 5k so you will have additional costs of 14k to 32k on the high attendance end. Now you are only talking about 21k to 28k profit with huge risks of groups backing out, weather cancellations, and increased marketing costs if ticket sales are not happening. However, a big buck guy who is only getting 3% on their money is willing to take risks when you are only talking about 35k outlay to get close to a 100% return in one weekend. Lots of work, but these oldie groups are finding these type of festivals all over the country every weekend during the summer, and music lovers are attending.