The venue deal is the foundation of every live music event, and getting it wrong can turn a profitable show into a financial disaster before a single ticket is sold. I’ve negotiated hundreds of venue deals across Australia, and the biggest mistakes I see from newer promoters almost always come down to not understanding the different deal structures and their implications.

Let me walk you through the main options.

The door deal

A door deal means the venue provides the room, PA, sound engineer, and bar operations, and takes a cut of the door revenue. Typical splits in Australia range from 70/30 (promoter/venue) to 90/10, depending on the venue, the night, and the promoter’s track record.

The advantage of a door deal is low risk for the promoter. If nobody shows up, you haven’t paid venue hire. The downside is that you’re sharing revenue when the show does well, and the venue controls the bar (which is often where the real money is).

Door deals work best for smaller shows, newer promoters building a track record, and experimental programming where attendance is uncertain. They’re also the standard model for most pub gig arrangements.

Key negotiation points: Push for a higher promoter split if you’re bringing your own PA or sound engineer. Ensure the deal clearly states what “gross door” means — before or after ticketing fees and GST. And clarify who pays for the sound engineer and door staff.

The room hire

Room hire is the opposite end of the spectrum. You pay a flat fee for the venue — typically $500-$5,000 depending on the room and the night — and keep 100% of the door revenue. The venue makes its money from bar sales.

Room hire gives the promoter more control and more upside, but also more risk. If the show tanks, you’re still paying for the room. This model works when you’re confident about ticket sales and want to maximise your return.

Key negotiation points: Negotiate the hire fee based on the night of the week. A Tuesday hire should be significantly cheaper than a Saturday. Ask what’s included — PA, sound engineer, door staff, and lighting can be additional costs on top of the base hire. And always clarify the minimum bar spend expectations; some venues will impose surcharges if bar revenue falls below a threshold.

The guarantee versus deal

This is the most common structure for mid-level to major shows. The promoter guarantees the venue a minimum payment (often based on their typical bar take for that night), and in exchange keeps the door revenue. If the bar revenue exceeds the guarantee, the venue keeps the difference. Some deals add a “versus” component where the venue gets the guarantee OR a percentage of gross revenue, whichever is higher.

Key negotiation points: The guarantee amount should reflect a realistic bad-night scenario for the venue, not their best-ever Saturday. Push back if the guarantee is set at peak-night levels. Understand whether the versus percentage applies to just the bar or to all venue revenue including door.

The co-promotion deal

In a co-promotion, the venue and the promoter share both the costs and the revenue. Typical splits are 50/50, with the venue contributing the room, staff, and PA while the promoter handles booking, marketing, and ticketing.

This works well when both parties bring genuine value and want to share the risk. It’s less ideal when the contributions are unequal, because the 50/50 split can feel unfair to whichever party is doing more of the work.

Key negotiation points: Define exactly what each party is responsible for and what costs each party bears. Put it in writing. I’ve seen co-promotion deals fall apart because of ambiguity about who was paying for marketing, or who was responsible for the sound engineer.

General negotiation advice

Know your numbers. Before you walk into a venue negotiation, know your expected attendance, your ticket price, your expected bar spend per head, and your break-even point under each deal structure. Venues respect promoters who understand the economics.

Bring your track record. If you’ve successfully promoted shows at other venues, bring the numbers. Attendance figures, bar revenue from previous events, and evidence that your shows bring a spending audience.

Don’t bluff. The Australian venue circuit is small, and everyone talks. If you promise 500 people and deliver 50, that reputation follows you. Better to be honest about expected attendance and negotiate a deal that works for both parties.

Get it in writing. Even if it’s just an email exchange, document the deal terms. A handshake deal works fine until there’s a dispute about who pays for the broken monitor or the spilled beer on the mixing desk.

The venue deal sets the financial framework for everything else. Get it right, and the rest of the promotion is about execution. Get it wrong, and you’re fighting the economics from day one.