What is a Guarantee?

A guarantee is the minimum fee a promoter agrees to pay an artist for a show, whatever the ticket sales, set out in the booking contract and paid at or before settlement. With a guarantee, the promoter carries the financial risk if the show doesn't sell.

How a guarantee works

A guarantee runs through the whole booking:

  1. Offer: the promoter offers a guarantee to the artist's agent, sometimes with a share of ticket income on top.
  2. Negotiation: the fee is agreed based on the artist's draw, the venue size and ticket price.
  3. Deposit: the promoter often pays part of the guarantee in advance, commonly half, when the contract is signed.
  4. Settlement: the balance is paid on the night or shortly after, once ticket sales and costs are reconciled.

Tracking deposits and balances across many shows is easier when payments sit with each event, which is why many promoters manage invoices in Crescat.

Guarantee vs door deal vs versus deal

A flat guarantee pays a fixed fee. A door deal pays the artist a percentage of ticket income, with no minimum, so the artist carries the risk. A versus deal pays whichever is higher: the guarantee or a percentage of net ticket income. Versus deals are common for established acts.

Example versus deal

  • Deal: £2,000 guarantee versus 80% of net box office
  • Tickets sold: 300 at £15 = £4,500 gross
  • Agreed show costs: £1,500
  • Net box office: £3,000, and 80% of that is £2,400
  • £2,400 is higher than £2,000, so the artist is paid £2,400

Frequently asked questions

Is the guarantee paid if a show is cancelled?

It depends on the contract. If the promoter cancels, they usually still owe the guarantee. If the artist cancels, they usually return any deposit. Cancellations for reasons outside anyone's control are covered by the contract's force majeure clause.

When is the guarantee paid?

Often a deposit, commonly 50%, is paid when the contract is signed and the rest at settlement on the night. Larger tours may set different payment schedules in the contract.

What is a guarantee plus bonus?

Some deals add bonuses on top of the guarantee if ticket sales pass agreed levels, such as an extra fee at sell-out. This gives the artist upside without the complexity of a full versus deal.

Related terms