How
to Pay Negative Fees (Make Money)
by Selling Your Tickets Using Ticketor
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Obviously, as any other service,
selling tickets to your event involves some costs. There are 2 main sources of
costs when it comes to ticketing:
1- Ticketing website/service:
To
issue, sell and validate your tickets, you need to have a ticketing website or
service. People will use that service to reserve their tickets and make
payments.
2- Payment processing:
Any
transaction with a credit card or bank accounts involves some payment
processing fees. This fee is usually collected by the payment processor or
services such as PayPal.
How much?
So the question is how much is
the total cost?
The total cost really varies by
the service provider. Some service providers and ticketing websites, charge 25%
to 40% of the ticket price. Some others charge 15% to 20%.
This charge is basically to
cover the transaction fee, building and maintaining ticketing service and
website and to pay the staff that create and upload your events and tickets.
Who Pays The Fees?
The fees should be paid either
by you (the event organizer), the buyer or be divided between organizer and
buyer.
Usually the ticketing service
decides who to charge. Some services charge the organizer. Some other services
advertise that it is free FOR YOU to sell tickets and charge the buyer. Some
services charge both you and the buyer.
You usually don’t have the
option to decide. A few services allow you to decide whether you or the buyer
is going to pay.
Be Aware of Zero Fees:
When shopping around for a good ticketing service, you
usually compare the fees. Don’t get fooled by the services that promote “Zero
fee to you”. Yes! With a small or hidden “To You”!
They usually charge your
customer a huge fee in terms of “Service fees”, “Convenient Fees”, “Shipping
Fees” …
High
fees, directly affects your sale and success of your event. Make sure to always
ask for the “Final Buyer Price”! You may be surprised by what you hear.
Remember that the buyer should pay that amount, not the one you decide as the
ticket face price.
Event organizer usually decide
on the ticket prices, based on supply and demand rules. If you are promoting a
very high demand show or concert, you will set your ticket price to higher
values. But how high? You don’t want to set it too high to lose a lot of
customers and end up with a lot of unsold tickets. The optimal value is the one
that maximizes your sales and revenue.
Now imagine that you come up
with a magical face price of $50 and you find a ticketing service that does not
charge you or charge you so little. Some services will charge
your buyer an additional $11 to $25 on a $50 ticket! Meaning that the tickets will cost much more that what you actually expected.
How to pay negative fees (make money) from ticketing?
Ticketor believes that such high
charges are unfair and unnecessary. It totally doesn’t make sense to spend 20%
to 35% of total sales amount for a great event on ticketing while everything
else including artists, venues, production team, technical team, investors and
advertising costs totals only to the remaining 65% to 80%!
1-
Reduce cost:
That is why we are using innovative techniques to lower
our rates dramatically. We have built tools to give you full control over your
event, so you can easily create your event, add/update tickets, get real-time
reports and as a result save a lot of money.
Our rate is as low as 2.5%. We claim to offer the best rate in the industry. We also allow you to use your own payment
processer (merchant account, PayPal, …). It allows you to directly pay
for the payment processing fees and avoid any overhead. Moreover, another great
advantage is that you get the sales money directly in your account as tickets
sell, meaning several weeks before the event as oppose to other services that
pay you after the event. It will be a big help in paying the event costs.
An average payment processing
method charges around 3% however yours may charge a little bit less or more.
Considering that, your total
cost of ticketing will be around 2.5% + 3% = 5.5% which is far less than any
other ticketing service.
The truth is that most buyers
are used to pay at least 10% to 15% in service charges which is far higher than
your cost.
2-
Give you full control over charges:
Ticketor gives you full control
over charges (service fees, delivery charges, etc.). It means that the same way
that you determine your ticket price, you determine and collect the service fees. Let’s say you
decide certain type of ticket to be $50. You have to also decide how much
service fee is charged for this ticket type. You can choose $0 in service charge which means
you are going to cover all the ticketing fees. You can choose around 5%, meaning that you are transferring the ticketing fees to the buyer. Or you can choose 10%, 15%, 20% or more so the buyer not only
covers the fees, but also pays you extra. If you choose 15%, you are earning
an extra 10% ($5.00) per ticket!
So let’s get to some math:
Example 1:
Ticket face price $50
Number of tickets to be sold: 1000
Ticketing cost per ticket using
Ticketor (assuming 5.5%): $2.75
Service charge per ticket
(assuming 15%): $7.50
Your extra earning per ticket:
$7.50 - $2.75 = $4.75
Your total earning on ticketing:
1000* $4.75 = $4,750 (Extra revenue from ticketing)
Example 2:
Ticket face price $10
Number of tickets to be sold: 2000
Ticketing cost per ticket using
Ticketor (assuming 5.5%): $0.55
Service charge per ticket
(assuming 20%): $2.00
Your extra earning per ticket:
$2.00 - $0.55 = $1.45
Your total earning on ticketing:
2000* $1.45 = $2,900 (Extra revenue from ticketing)
Need some help calculating for your event?
Use the cost calculator on https://www.Ticketor.com/Account/Prices to calculate your exact cost.
Please visit www.Ticketor.com or email us at Sales@Ticketor.com
for more information or assistant.
