Curious How to invest in Nightclub/Events

I've been trying to research the process from making initial contact with event planners who organize upcoming events at popular nightclubs.To set up meetings,drawing up contracts,what to look for in the contract and their accounts,is it possible to Negotiate a higher percentage of return on investment if i invest in their upcoming event (and yes that's essentially what I'm trying to do, invest in the upcoming events at nightclub and receive a percentage of the profits and negotiate perks such drinks and food if i decide to go to the event.)

I've been talking to a couple Promoters and a event planner i met at the club about how I can go about this but the most I got was a clueless promoter and a newb event planner who told me bring my money and we will draw up the contract
(which I taught that I had to be crazy, if i just ran into this blind with my money)

Unfortunately after Googling like a mad person for 2 months I found many articles on investing unfortunately none were what I was searching for.

Can someone who has done this before/doing it now,can you give some recommendations on books,courses,websites,other resources or advice from you experiences which I can learn from and implement soon

 

I'd suggest you talk to the owners not the promoters. Many entertainment managers could help connect you with the club managers that could give you the information you seek. Entertainment business is lucrative, so be careful.

 
Best Response
ArcherVice:

Aren't nightclubs and airlines about the worst possible investments you could ever be involved in?

If you do it well, its an absolute cash cow. The TAO's and Hakkasans of the world do very well. People have figured out that its a volume game now, not necessarily about the "exclusivity". Sure, you might get a couple BSD's that drop some serious $$ at the tables, but the real money is on entrance fees and per drink sales. The trick is attracting the crowds and a club customer acquisition cost can be pretty high given how much they have to pay for big name DJ's.

I was reading an article on Jesse Waits, the guy who co-owns XS and Tryst in Vegas. He mentioned that he can pay upwards of half a night's gross on just getting the DJ. Add 100 heads (performers, bartenders, security, table girls, managers), per day rent expense, marketing, equipment rentals, plus God knows what else and its pretty easy to see how EBIT gets to 20%, maybe less.

Think about it, if I'm paying Calvin Harris $400k / show, and he brings in 4,000 people, I'm paying 100 / head. So before the night even starts I've got to make sure everyone spends at least $100 that shows up. Makes you think there's a ton of money in tier2-3 DJ's where they only pay 1/10 of that and drive the same volume.

 

I did a few promotional gigs when I was in college. The economics of it wasn't great (10% of what the bar earned), but you felt important one night a week when deciding who should go on the guest list and not. Friends of mine still do this once a month, but it is not something they make a living out of. Of course, these places are not Hakkasan or XS.

CNBC sucks "This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
 

Back then; 1000 friends on facebook and a cool picture for the event. Now, 10k followers on Instagram and throw in a sideboob.

CNBC sucks "This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
 

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