Unclear Split On Vip/Meet-And-Greet Revenue - Traps & Scams Every Musician Must Avoid

VIP packages and meet and greets are cash machines for artists when done right. They are also legal and accounting landmines when left to verbal promises, lazy contracts, and shady promoters. This guide removes the smoke and mirrors. You will learn exactly how revenue should be carved up, what sneaky tricks people use to steal your money, how to write plain English contract language that protects you, and real world moves you can use on the next tour.

Everything here is written for busy artists who want to keep their focus on the music while protecting their bank account. We explain every term and give scenarios you will recognize from real life. Expect sharp examples, negotiation scripts you can use on the phone, and a checklist you can copy into an email and send to a promoter right now.

Why VIP and Meet and Greets Are So Messy

VIP packages combine two revenue streams. There is ticket revenue and there is extra bundle revenue. Bundles might include a meet and greet, a photo, a signed item, priority entry, and sometimes a piece of merch. That mix of ticketing revenue and product sales makes splits complicated.

Promoters, venues, and ticketing platforms each have a role. Each can claim a slice of the pie. Without explicit definitions in writing you will argue over math later. Arguments are boring. Lawsuits are expensive. Losing money is humiliating. This guide helps you avoid all three.

Key Terms You Must Know

• VIP stands for very important person. In our world it means a paid package that adds extras to a regular ticket. Extras can be a meet and greet, photo, signed poster, early access, or a spot on stage. Say VIP and people picture velvet ropes and overpriced lanyards.
• Meet and greet or M and G means fans get to meet an artist usually face to face for a short period. It can be one on one or group based. It often includes a photo opportunity and sometimes a quick autograph.
• Gross revenue is total money collected before expenses, fees, refunds, taxes, and chargebacks.
• Net revenue is money left after specified costs are deducted. What counts as a cost is negotiable. Costs can include credit card fees, ticketing fees, production costs, merch costs, or promoter overhead.
• Guarantee is a fixed payment promised to you by a promoter or venue. It is the minimum you receive regardless of ticket sales.
• Door deal means payment is based on what was sold at the door plus a share of ticket revenue. That is different from a guarantee.
• Comp means complimentary ticket. If comps are counted as revenue you might be robbed of your cut even though no money changed hands.
• Chargeback is when a fan disputes a charge and the money is taken back from the merchant. Chargebacks can be used by scammers or by careless customers. They eat revenue long after the show.
• W9 is a US tax form that an artist or contractor fills out to receive payments that may require a 1099 reporting at year end. W stands for worksheet. You will want to get a W9 from a promoter or provide your own when necessary.

Common Revenue Split Structures

Promoters often use a few basic split models. Know them so you can spot the scam when it shows up.

Model A Gross Split

Revenue is split on gross sales before expenses. This is artist friendly. If the promoter says gross split make sure they specify whether ticketing fees, taxes, and refunds are deducted first.

Model B Net Split After Costs

Revenue is split after deducting costs like ticketing fees, credit card fees, production costs, and merch cost of goods. Net splits are frequently abused because costs are vague unless defined precisely. Promoters love net splits because they can inflate costs.

Model C Retail Cut for Merch Bundles

Here the VIP bundle is treated like merch. The promoter sells the bundle and gives you a retail cut based on cost of goods or a pre agreed percentage. This is common if a third party handles VIP products. Retail cuts must be paired with clear accounting and itemized reports.

Model D Fixed Fee Per VIP

Promoter pays you a fixed fee for each VIP or meet and greet ticket sold. This is simple and clean when the fee is reasonable. It prevents creative accounting that eats your share.

Common Scams and Traps

People will invent ways to keep your money if you let them. Here are the classic plays and how to stop them.

Trap 1: Ambiguous Net Meaning

Promoter: We will split net VIP revenue 50 50.

You: That sounds fair.

Reality: Net after what? Their admin fee, a production surcharge, merch cost, a 20 percent overhead allocation, refunds, fake line items, travel expenses, catering, and taxes. After they deduct everything there is no revenue left. You get a fake pat on the head and a small check three months later.

Fix: Insist on a definition. Example language you can use now in an email.

Define VIP gross revenue as total revenue collected from VIP ticket sales before any fees except mandatory ticketing platform fees and sales tax. Define net VIP revenue as VIP gross revenue minus only the following listed costs with receipts. No other deductions allowed.

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Trap 2: Counting Comps as Sales

Promoter can mark complimentary tickets as VIP sold units and then report a low average price. If they count comps as sales your percentage of per unit revenue drops. This is especially common for group meet and greets where staff, friends, and sponsors get comped passes.

Fix: Add a clause that only paid VIP tickets count toward revenue calculations. Also require an itemized ticket manifest showing ticket type and payment status.

Trap 3: The Invisible Vendor

A third party sells VIP packages and keeps the money off the books. They might claim they paid the promoter who then claims you were paid. Money vanishes. Sometimes the third party is a legitimate company that goes out of business with your cash strapped merchandise in storage.

Fix: Control the sale channel. If a third party is used require funds to be held in escrow or require the third party to pay you directly using your merchant account. Require proof of payment and statements before the show and immediate settlement after the show.

Trap 4: Bundled Ticket Confusion

Promoter sells VIP bundles that include general admission plus the meet and greet but reports only the ticket face value and treats the rest as value added. They then deduct the cost of the meet and greet as an expense so you see nothing left to split.

Fix: Require line item reporting. Each VIP package must have a clear face price assigned to ticket and to add ons. Or negotiate a per VIP fee that ignores the internal allocation.

Trap 5: Inflated Cost of Goods

If the promoter or a third party claims cost of goods for signed posters and photos you will want to see invoices. Promoters sometimes use grossly inflated costs to reduce net revenue. They may include labor costs that are actually your team expenses.

Fix: Require receipts and vendor invoices. Cap the eligible cost of goods at a reasonable rate you both agree to in writing.

Trap 6: Late or No Settlement

Some promoters pay months later. Others pay never. A late settlement creates cash flow problems when you pay your crew and photographer.

Fix: Put payment deadlines into the contract. Include interest for late payments and a right to withhold performance for nonpayment if it is safe to do so. Require a deposit before the show and a final settlement within a fixed number of days after the event.

Trap 7: Chargebacks After Settlement

Even after settlement the ticketing platform can process chargebacks. Promoters might try to pass chargeback risk to you. That is unfair because chargebacks are mostly caused by ticketing platform issues and are outside your control.

Fix: Allocate chargeback risk clearly. Either the promoter eats chargebacks or you set aside a small reserve held for a fixed period to cover potential chargebacks. Agree which transactions can be charged back and for how long.

Real World Scenarios You Will Recognize

Scenario A: The Phantom Split

Band gets told VIP revenue will be split 50 50. After the show band receives a small check with a mysterious accounting report. Several items in the expense list read artist promo fee and catering. The band did not agree to those. The promoter claims these were required for the event. The artist gets nothing.

Lesson: Everything that affects net revenue must be pre approved in writing. If someone wants to add a cost after the fact veto it until you see the invoice and get a signed acknowledgment.

Scenario B: The Third Party Vanishes

A ticketing startup sells VIPs and collects money. The startup closes operations three weeks before the show. The promoter says they only got a portion of the money and cannot find the remainder. The artist is left out of pocket for photographer fees and travel upfront.

Lesson: Never rely solely on a startup or unknown vendor to hold funds without escrow or direct deposit to your account. Require W9s and proof of insurance and insist on direct payment or escrow.

Scenario C: The Photo Op Shortage

Promoter sold more VIPs than scheduled photo slots. Some fans got refunds and some fans got scene time with the merch table. The artist spent time photographing five people while the rest were told to take selfies. Fans were angry and asked for refunds from the artist through social channels.

Lesson: Contract must specify per VIP unit what is required. If a VIP includes a photo and an autograph you must specify the time slot length and the maximum number of VIPs. Promoter should be responsible for oversales and refunds if they oversell slots.

How To Negotiate Like a Human With Money

Negotiation is not war. It is not begging either. It is direct commerce. Use plain English. Keep a friendly tone. Be firm. Here are scripts you can use on email or on the phone.

Script for Initial Offer Reply

Thanks for the offer. I am happy to do VIP packages. For clarity and fairness we will use the following terms. VIP revenue means money collected for VIP packages, not tickets alone. We will split VIP gross revenue after mandatory ticketing platform fees. No other deductions unless pre approved in writing. Please confirm and send a draft contract.

Script When Promoter Pushes Net Splits

I prefer a gross split or a per VIP fixed fee. Net splits are hard to audit and open to disputes. If you must use a net split list the exact cost categories with caps and require receipts. Otherwise I will take a per VIP fee of X per unit or a 60 40 split on VIP gross revenue. Your choice.

Script for Escrow or Deposit

I require a deposit of 30 percent of the expected guarantee or an escrow arrangement covering VIP sales. Final settlement will be paid within 14 days after the event. If you cannot do that we cannot proceed. This protects my crew and photographer who must be paid on time.

Clear Contract Clauses You Can Copy

Below are sample clauses in plain English that you can paste into a contract or email. Each clause is short and specific. Use them as is or adapt to your situation.

Definition Clause

VIP Gross Revenue means all money received by promoter from the sale of VIP packages for the event identified in this agreement. VIP Gross Revenue excludes any funds received for general admission tickets that are not part of a VIP package. Mandatory ticket platform fees and sales tax will be deducted from VIP Gross Revenue prior to splitting. No other deductions are allowed unless expressly listed in the Eligible Deductions clause with supporting invoices.

Eligible Deductions Clause

Eligible Deductions means the following items only and only up to the amounts shown with receipts required within 7 days of settlement. 1 Ticket platform fees at actual cost. 2 Sales tax paid on VIP transactions. 3 Direct cost of goods sold for VIP items with supplier invoices. 4 Pre approved production costs directly attributable to VIP fulfillment with supplier invoices. Any other cost is not eligible.

Settlement Timing Clause

Promoter will provide an itemized settlement and pay the artist their share within 14 calendar days after the event. Settlement will include a CSV file showing ticket type, ticket price, payment status, and any refunds or chargebacks. Promoter will hold a reserve of no more than 5 percent for up to 60 days to cover chargebacks. Any reserve held beyond 60 days will earn interest at 6 percent annually payable to the artist.

Audit Rights Clause

Artist has the right to audit promoter records related to VIP sales and settlement for a period of 12 months after settlement on reasonable notice. Promoter will provide access to ticketing reports, merchant statements, and vendor invoices. If the audit reveals underpayment of more than 2 percent the promoter will reimburse audit costs up to $1000.

Oversale Clause

Promoter agrees not to oversell VIP packages beyond the capacity set by the artist team. If promoter oversells and cannot provide the contracted VIP experience the promoter will either provide a full refund to affected fans and pay artist the per VIP fee for those units or provide equivalent replacement experiences approved by the artist team.

Photo and Time Allocation Clause

Each VIP ticket includes one meet and greet and one photo opportunity. Group size per photo is limited to X people. Each fan will receive a maximum of Y seconds of autograph or photo time. Promoter will schedule time slots to ensure the contracted number of VIPs can be fulfilled. If promoter fails to provide the promised experience the promoter will refund the affected VIP buyer and compensate artist at the agreed per VIP rate.

Accounting Example With Numbers

Numbers demystify things. Here is a clean example showing how a gross split compares to a net split.

• VIP face price 150 USD
• VIP tickets sold 100
• VIP gross revenue 15 000 USD
• Ticket platform fees 5 percent of VIP gross 750 USD

Scenario A gross split 60 40 artist 60 percent

• VIP gross after platform fees 14 250 USD
• Artist share 60 percent 8 550 USD
• Promoter share 40 percent 5 700 USD

Scenario B net split 60 40 after costs with vague costs

• Promoter deducts cost of goods 3 000 USD inflated
• Promoter deducts production fee 2 000 USD
• Promoter deducts staff fee 1 000 USD
• Net revenue 7 250 USD
• Artist share 60 percent 4 350 USD

Same headline percentage. Very different take home. This is why you want gross when possible or clear caps on eligible costs when net is used.

Practical Steps To Protect Money Before The Tour

1. Insist on a written contract that includes VIP definitions and settlement timing.
2. Require a deposit to cover production and photographer fees.
3. Decide who sells the VIPs. If the promoter sells them insist on escrow or direct deposit to your merchant account.
4. Specify per VIP what is included and how long each fan gets with you. This prevents overselling and fan rage.
5. Require itemized settlement statements and CSV exports of ticket data.
6. Agree who bears chargeback risk and for how long reserve can be held.
7. Get audit rights for at least 12 months and cap promoter fees for audits if they are found to have underpaid you.
8. Pre approve any vendor that provides VIP products and require invoices or receipts for all eligible costs.

Practical Steps To Protect Money On The Day

• Have a printed manifest of VIP buyers that the promoter or ticketing provider brings at show check in.
• Station your manager or a trusted person at sign in to verify tickets and report oversale immediately.
• Take photos with your phone as an admin backup so you can verify fans who were present if disputes occur.
• Collect signatures where possible acknowledging fans got what they paid for especially for refunds or replacements.
• Keep receipts of any cash expenses you pay so they cannot be later added to your cost list without documentation.

Tax and Legal Considerations

VIP and meet and greet revenue is taxable income. You will likely need to report it to tax authorities. If you are working as an independent contractor expect to receive 1099 forms in the United States if you earn over a threshold with a promoter. That is why W9s and trackable payments matter.

If a promoter demands you provide a W9 before paying that is normal. If a promoter refuses to provide a W9 to you that is a red flag. If a promoter asks you to accept cash to avoid taxes walk away. That is illegal for both of you.

Consider using a separate business entity and an EIN for your artist business. An LLC is common. Talk to a music business attorney or an accountant about the best structure for your location and situation. Proper taxes protect you and your crew and keep promoters honest.

What To Do If You Think You Are Being Scammed

1. Ask for an itemized settlement and vendor invoices for cost items.
2. Audit the transaction data. Compare the ticket manifest to the settlement report and daily merchant statements.
3. Email a formal request for payment with a deadline and cite the contract clause that requires settlement within a fixed number of days.
4. If the promoter ignores you escalate to the venue owner or the ticketing platform that processed the payments. Ticketing platforms often have records and can sometimes reverse faulty settlements or mediate disputes.
5. Hire a local attorney for a demand letter if significant money is at stake. Sometimes the threat of legal action triggers payment.
6. File a claim in small claims court for smaller amounts. It is cost effective in most jurisdictions if you have clear documentation.

Checklist You Can Copy Into an Email

Use this checklist as a minimum set of terms to confirm before agreeing to VIP sales.

• Who sells VIPs and who collects the money
• Definition of VIP gross revenue with mandatory exclusions only
• Split percentage or per VIP fixed fee
• Eligible deductions list with caps and invoice requirement
• Deposit amount and payment schedule
• Final settlement timing and method
• Reserve and chargeback handling rules
• Audit rights and duration
• Oversale mitigation plan and refunds
• Per VIP deliverable and time allocation
• Contact information for ticketing platform and vendor invoices prior to show

Frequently Asked Questions

How should VIP revenue be split

The cleanest approach is to split VIP gross revenue after mandatory ticket platform fees and sales tax. That means you agree on the split based on funds collected for VIP packages before subjective costs are deducted. If gross is not possible because the promoter pays vendors then negotiate clear caps and receipts for any deductions. Alternatively ask for a per VIP fixed fee which is simple and avoids accounting drama.

Can promoters legally deduct development or overhead costs after the fact

They can if you agreed in writing. Never accept vague statements about overhead. If a promoter claims they can deduct bookkeeping fees or a general overhead percentage ask for a cap and require receipts. Put it in the contract.

What if VIPs were oversold and fans did not get the experience promised

The promoter is responsible for oversales unless your contract shifts that risk to you. Demand refunds for affected fans and compensation for your time. Insist on a written plan for replacements and make sure the promoter handles the refunds. If fans come to you for refunds direct them to the promoter and keep a record of all communication.

How long should final settlement take after the show

14 to 30 days is standard. Shorter is better because you need to pay crew and vendors. If a promoter wants 60 to 90 days push back and ask for a deposit to cover immediate crew costs. Require interest for late payments in the contract to discourage delays.

What documents should I require to audit VIP sales

CSV ticket manifest with ticket type and payment status, merchant settlement statements from the ticketing platform, vendor invoices for any deducted costs, a copy of the ticket sales page that shows pricing and quantities, and the final settlement calculation. Make sure the contract gives you audit rights.

Should I sell VIPs through my own store or let the promoter do it

If you can sell VIPs through your own store or merchant account that is ideal. You control the money and the data. If the promoter insists on handling the sales require escrow or immediate forwarding of funds and full reporting. Control of the sales channel reduces risk and speeds settlement.

Do I need a lawyer for every VIP contract

You can use template clauses for many shows. For large tours and complex deals hire an entertainment attorney. At minimum have a lawyer review any contract that includes net splits or significant vendor relationships. The small cost up front can save you huge headaches later.

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