Merch Splits and Venue Merch Cuts
Some venues want 10% to 25% of your merch. When to expect it, how to talk them down, and how to sell more at the table anyway.
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
Some venues take a percentage of your merch sales. This is called a merch cut, merch commission, or merch split. Common rates range from 10% to 25%, though some large venues go higher.
Not every venue does this. Most small clubs and bars don't. But you need to ask before you set up the table, not after someone comes collecting at the end of the night.
Why Venues Take a Merch Cut
The venue's argument: you're using their space, their electricity, their audience to sell your product. They want a piece of it.
The band's reality: merch is often the only thing that makes a show profitable. On a night where your door split is $80, you might sell $200 in merch. A 20% cut on that means $40 going to the venue, which is half your performance pay gone from a revenue stream you brought entirely on your own.
What to Negotiate
Ask before you confirm the show. "What's your merch policy?" is a one-line question in your booking email. Get it in writing.
Negotiate down or out. Many venues will waive the merch cut for smaller acts, especially on weeknights. If they insist, try for 10% instead of 20%. Or negotiate a threshold: "No cut on the first $100, 15% on anything above that."
Look at the whole package. If the venue is offering a generous door split and a merch cut, look at the total package. An 85/15 door deal with no merch cut might be worth more than a 90/10 door deal with a 20% merch cut, depending on how much you sell.
Track your own merch. Count your inventory before and after. Know exactly how many shirts, records, and stickers you sold. If the venue asks for a merch cut, they should only get it on verified sales, not an estimate.
Merch Tips from the Road
Keep your merch priced in round numbers. $10, $15, $20, $25. Making change at midnight slows everything down and increases errors.
Have someone at the table during and after your set. The 20 minutes after you play is when 80% of your merch moves. If nobody is at the table, you're leaving money on the floor.
Accept cards. Square, Stripe, or whatever reader you use. More people carry phones than cash. A card reader on one band member's phone is fine.
Keep the float small. $40 in mixed bills is enough to make change. Don't carry more cash than you need to.
Frequently Asked Questions
What is a venue merch cut?
A merch cut (or merch commission) is a percentage of your merch sales the venue keeps. Common rates run from 10% to 25%, higher at some large venues. Most small clubs and bars don't take one, but you need to ask before you set up.
Can you negotiate a merch cut?
Often, yes. Many venues waive it for smaller acts, especially on weeknights. If they won't, try for 10% instead of 20%, or a threshold such as no cut on the first $100 and 15% above that.
How should a band price merch?
In round numbers like $10, $15, $20, and $25, so change is fast at midnight. Take cards, keep a small cash float, and have someone at the table right after your set, when most merch sells.