Glossary › Guarantee
Guarantee
A fixed fee the artist is paid for a show no matter how many tickets sell.
A guarantee is the fixed amount the promoter agrees to pay the artist for a show, whatever the ticket sales. It is the simplest deal and the most common one for developing and support acts.
Guarantees often appear inside bigger deals. In a versus deal the artist gets the guarantee or a percentage of the net, whichever is higher. In a guarantee plus deal, the artist gets the guarantee and then a percentage of the money above a set break-even point.
A deposit (often a share of the guarantee) is commonly paid ahead of the show, with the balance paid at settlement.
Example
The offer reads "$750 guarantee, 50% deposit due 30 days prior." The agent invoices $375 a month ahead, and the TM collects the remaining $375 at settlement. (EXAMPLE numbers.)
Watch for
What's included. A guarantee may or may not include production, hotel or a meal buyout. Check the contract and the advance.