The Costs & Risks of Being a Ticket Broker

Ticket Provider Fees

Always make sure to incorporate the ticket provider fees in the cost of your tickets. Sometimes Ticketmaster will show the ticket price with fees included on the event page, and sometimes they won’t show until the checkout page.

Seller Fees

Also take into consideration the fees to sell your tickets on Stubhub or Ticketmaster Verified Resale. Tickets are free to list but when they sell, be prepared to pay around a 15% seller fee.

Credit Card Annual Fees

If you have a good cashback or travel rewards card, these often come with an annual fee.

Buyer Beware – No Refunds

There are no refunds for bad buys – if you invest in a show, your decision is final. Ticketmaster does not give refunds on concert tickets unless the show has been cancelled.

Don’t rely on your credit card balance to use as your initial investment in tickets. If they don’t sell before your credit card statement is due, you could be stuck carrying a balance which means paying interest and cutting into your profits.

Don’t invest in events you aren’t familiar with. You know what music you like and who’s popular. Stick with the bands and sports teams you know are popular and invest in those tickets first before experimenting with up and coming acts.

Factors Outside Your Control

Sometimes there are factors outside your control (ie. COVID), bad weather, performers getting sick, cancelled shows and tours, and added shows that you’ll have to deal with. All of these things can impact your bottom line.

Office Expenses

Keep track of your office expenses like your laptop, phone, Internet bill, and general office supplies you use to run your ticket business.

Stay Organized or Lose Money

You’ll need to keep good records of what you’ve invested, your returns, and where your tickets are in the selling process. This will help your business grow.

The sale is not complete until after the show when you’ve received your payment. Sometimes it can take a while to be paid, like after the event has taken place or after your tickets have been delivered. Sometimes this can be months so make sure you can float your initial investment that long before recouping your investment.

You Win Some, You Lose Some

Even with diligent research, you won’t make money on every pair of tickets. Be prepared that you will face losses. Even professional ticket brokers take losses on some tickets. The trick is to diversify so while you might take a loss on some tickets, you’ll make up the difference with others.

Do not get caught up in marketing hype surrounding an event. Focus, go through your research process before you commit to buy. Don’t invest what you can’t afford to lose.