How to Read a Deal Memo
A deal memo is the handshake in writing. What should be on it, the lines that should make you ask questions, and how to write one yourself.
By Team Roadi · Updated · 3 min read
Part of How Bands Get Paid: The Indie Band Money Guide, from The Indie Band Survival Guide.
Quick Reference
A deal memo is the document that outlines the financial terms of your show. It's not a full contract, but it's the written agreement between you and the venue or promoter about how the money works. Think of it as the financial handshake in writing.
If you don't have a deal memo, your deal exists only in an email thread, a DM, or someone's memory. That's fine until settlement, when two people remember two different numbers.
What a Deal Memo Contains
Every deal memo should include:
Show details:
- Date
- Venue name and address
- Load-in time
- Soundcheck time
- Doors time
- Set time and length
- Curfew (when all music must stop)
Financial terms:
- Deal structure (door deal, guarantee, vs deal)
- Exact percentages or dollar amounts
- Ticket price (and whether there are different price points)
- What expenses come off the top and their dollar amounts
- Deposit or advance amount (if any)
- Payment method (cash, check, electronic)
- When payment happens (night of, next business day, net 30)
Other terms:
- Number of comps or guest list spots
- Merch policy (is there a venue cut?)
- Hospitality (food, drinks, green room)
- Backline available
- Parking details
- Lodging (if provided)
What to Look For
Vague expense language. If the deal memo says "reasonable production expenses" without dollar amounts, that's a blank check. Ask for specific numbers. "Sound: $150. Door person: $75." Those are real numbers you can verify at settlement.
Merch percentage. Some venues take 10 to 25% of your merch sales. This should be in the deal memo. If it's not mentioned, ask. Don't find out when someone from the venue walks up to your merch table at the end of the night asking for a cut.
Comp limits. "Reasonable guest list" means different things to different people. Get a number. If the venue is comping 30 people on a 100-cap night, that's 30% of your potential door revenue gone.
Ticket price discrepancies. If advance tickets are $12 and door is $15, your door deal percentage might apply differently to each pool. Clarify this.
Payment timing. "Net 30" means they'll pay you within 30 days. For a band that needs gas money tonight, this is a problem. Clarify before the show, not after.
If There's No Deal Memo
You can make your own. Send an email with all the agreed terms and ask the venue to confirm. Something like:
Hey, just confirming the details for Saturday:
- 80/20 door split, $10 cover
- $150 in production expenses off the top
- 4 comps for the band
- No merch cut
- Cash settlement night of show
- Load-in at 6, soundcheck at 7, doors at 8, we play at 9:30 for 45 minutes
Can you confirm this is all correct?
When they reply "looks good," that email thread is your deal memo. Screenshot it. Keep it on your phone. Bring it to settlement.
Frequently Asked Questions
What is a deal memo in music?
A deal memo is the written summary of a show's financial terms: deal structure, percentages or guarantee, ticket price, expenses, comps, merch policy, and payment method and timing. It's shorter than a full contract, but it's what settlement is checked against.
What are the red flags in a deal memo?
Vague expense language like "reasonable production expenses" with no dollar amounts, an unmentioned merch cut, an uncapped guest list, unclear rules for advance versus door ticket prices, and payment terms like net 30 when you need to be paid the night of the show.
What if the venue doesn't send a deal memo?
Write your own. Email the venue every agreed term (split, cover, expenses, comps, merch, payment, schedule) and ask them to confirm. Their "looks good" reply makes that thread your deal memo.