What is a Deposit in Live Events?

A deposit is part of a fee paid in advance to secure a booking, such as a promoter paying part of an artist's fee or a client paying part of a venue hire fee. Deposits show commitment and reduce the risk of the other side losing money if a show is cancelled. The amount, due date and refund terms are agreed when the booking is confirmed.

How deposits work

Most deposits follow the same pattern:

  1. Agree the amount: the deal memo or hire agreement sets the deposit, often a percentage of the fee.
  2. Invoice: the agent or venue sends an invoice with a due date.
  3. Pay: the promoter or client pays before the date, often well ahead of the show.
  4. Hold: agents usually hold artist deposits in a client account until the show.
  5. Deduct: the deposit is taken off the balance at the settlement or final invoice.

Tracking which deposits are due, paid and outstanding is easier with invoices in Crescat.

Artist deposit vs venue hire deposit

An artist deposit is paid by the promoter to the artist's agent to secure the act. A venue hire deposit is paid by a hirer to the venue to secure the date, for example for a venue for hire or promoter hire.

What deposit terms usually cover

  • The amount or percentage
  • The due date
  • Where it is held
  • When it becomes non-refundable
  • What happens if either side cancels
  • How it is deducted from the final amount
  • Whether it is held by the agent or paid to the artist

Frequently asked questions

How big is a typical artist deposit?

Often 50% of the guarantee for many shows, though it varies by artist, agent and market. Festivals may pay deposits months in advance. New or untested promoters may be asked for a larger deposit, or the full fee upfront.

Is a deposit refundable?

It depends on the contract. Deposits are often refunded if the artist cancels, but kept if the promoter cancels without good reason.

Why do venues take a hire deposit?

It secures the date and covers the venue if the hirer cancels late, when the date is hard to rebook. Some venues also take a separate damage deposit, returned after the event.

Related terms