Optimism

Guarantee vs backend: how live show deals pay

A live show offer is a guarantee versus a backend: the artist earns whichever is greater – the promised guarantee, or their percentage of the net box office. On a strong night the backend wins, and that's the number everyone commissions on.

The guarantee

The guarantee is the promised fee – the floor. Win or lose, sold out or half empty, the artist gets it. It’s the number that makes a show safe to book.

The backend

The backend is the artist’s share of net box office – the door after the venue’s costs (the “nut”) come out. A typical split might be 85% of net box office to the artist. On a night that sells, that percentage can run well past the guarantee.

The “versus”

Here’s the part that trips people up: the artist doesn’t get the guarantee plus the backend. They get the greater of the two. Say the guarantee is $4,000 and the deal is 85% of net box office. If the room nets $7,000, the backend is $5,950 – so the backend wins, and the artist earns $5,950. If the room only nets $3,000, the backend is $2,550, the guarantee protects them, and they still get $4,000.

Why it matters for commission

Everyone – the agent and the manager – commissions on the higher number. Commission the guarantee and forget the backend, and you’ve undercharged on exactly the nights worth the most. The whole point of the “versus” deal is the upside; the mistake is only ever looking at the guarantee on the offer and never reading the settlement.

Run your own numbers

The free show commission calculator does this live: enter a guarantee, the net box office and the backend split, and it shows which side wins and what everyone – agent, you, the artist – takes home. For the bigger picture, see the guide to manager commission.

Common questions

What is a backend on a show deal?
The backend is the artist's share of net box office – the door after the venue's costs (the nut) come out. The artist earns the greater of the guarantee or the backend.
What does 'guarantee vs' mean on an offer?
It means the artist is paid the greater of two numbers: the guaranteed fee, or a percentage of net box office. On a strong night the percentage beats the guarantee.
Do you commission the guarantee or the settlement?
Whichever is higher. If the backend beats the guarantee, the agent and manager both commission on the settled amount, not the guarantee.

Stop doing this math by hand

Optimism reads your deals and settlements and runs every commission across your whole roster – shows, tours, royalties and deals – so you always know what you’re owed.

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