
EDITORIAL BY STEPHANIE E. JENSEN
Imagine the day you see your favorite bandâs show. Youâre not only listening to their discography on repeat, but are counting every dollar of your spending money, hoping to snag some sick merch. When the moment comes and you arrive at the venue, you scavenge for the bandâs merch table, only to not find it anywhere. You ask around, and realize the band isnât selling merch at the show.
Unfortunately, this has been the reality for many fans, mainly due to merch cuts. More bands refuse to sell merch at shows that take a significant cut, the most recent artist being Falling in Reverse.
What was once a common practice in the business world of music is now a word thrown around on social media and news articles. But what are merch cuts? And why are they a thing in the music industry?
What Are Merch Cuts?
As the name implies, a merch cut is a percentage taken out from a bandâs merchandise sales.
âWhen youâre [booking] a tour, there are contracts between you and all the other bands and the venues. In every American tour, itâs one of those things thatâs in the [contract], like 15 or 25% [for a merch cut]. Itâs different for every venue, especially if they have vendors,â explains Lochie Keough, lead vocalist of Australian metalcore band Alpha Wolf.

âOver time, promoters saw this as a possible revenue stream for them. Now youâre left with a situation where, for some reason, itâs considered the industry standard for a promoter to watch your merchandise manager set everything up, selling on your own point-of-sale equipment all night, and at the end of the night, [say], âYou owe us 20% of what you sold,â which is insane for me. Charging you for space at the venue, and the venues make money at the bar,â explains Northlane guitarist Josh Smith.
The practice differs with every festival and venue.
âThereâs no proper regulation about it [and] there [are] no proper guidelines,â explains Keough.
Are Merch Cuts Necessary? The Case for Festivals and Arenas Versus Small and Mid-Sized Venues
Merch cuts have a purpose. For example, if the venue or festival employs its vendors, a percentage is taken out of the artistâs pay, and those funds will be used to pay the staff members.

âIn the past touring, it was kind of sporadic, or once in a blue moon, we would get hit with a merch cut we would have to pay. In most circumstances, it [was] when we [were] playing a festival. Sometimes they have staff that do counts with whatever youâre bringing in, and they will sell the merch for you,â explains Devin Swank, vocalist of Sanguishugabobb.
Smith also experienced merch cuts in this setting. âWhen we first started to encounter merch [cuts], it was at fairly large venues that would have different merch stalls. So, youâre talking arenas or large festivals. They may have a certain place to sell merch, their own point of sales, [and] sellers. And youâre getting your merch manager to manage stock levels. [The venue staff] is taking on a significant amount of work, so thatâs why they justify the percentage cut from your revenue. Back in the day, they probably thought that was the fairest way to do it.â
In some cases, bands understand when a venue or promoter must collect a merch cut.
âVendors [are] the one reason why we donât care about merch cuts. If youâre handling our merch and selling it throughout the night, then yes, youâre putting in the work so you deserve a cut of that,â explains Keough.
There are still some issues with festivals and venues hiring their own staff to sell a bandâs merchandise. Swank also points out merch tips and how losing those funds can impact a band.
âWhen we go out on tour, weâve had people who do merch for us, or weâll do it ourselves, [and] we get tipped at the merch table. When itâs just us, we split the tips out [to] everyone in the band. When it comes to those big festivals, where they take a merch cut, and they have staff selling the merch, [the festivalâs vendors] keep the tips. They earn those tips because theyâre selling them, but on any other regular show, it would be us collecting the tips,â he explains.
Small and Mid-Sized Venues Taking Merch Cuts
Over time, medium-sized and even some small-sized venues discovered the practice of collecting a merch cut.
âWeâve even got hit with [merch cuts] at smaller, 300-400 [capacity] rooms,â Swank says.
When venues or promoters hire staff to sell merchandise and provide the technology to complete the sale, most argue that taking a merch cut is fair. But why would smaller venues need to collect one if artists bring merch vendors and their POS systems? While thereâs no definite answer, some industry figures have their justifications for charging a merch cut, such as how bands are making a profit on their property.
Still, people have yet to learn why. Every venue or promoter has different policies.
âHaving merch cuts in venues is something we see everywhere now, but it started in the US. It started to trickle down into small and medium-sized venues before that happened anywhere else,â explains Smith. âI donât know if itâs because of certain large conglomerates buying up venues.â
However, Keough has a different answer. âTheyâre never at small venues. Itâs the mid-tier range that say, âOh, we got someone selling it.â And itâs just like, âWe didnât know about that.â You have to ask them if selling [your merch] is entirely necessary or if thatâs another way to, point blank, generate more revenue,â he explains.
When Merch Cuts Become a Problem
âItâs one of those things where you do accept it technically by signing the dotted line and accepting the show. But itâs one of those problems thatâs too deeply rooted and too far gone for you to be like, âNo, Iâm not doing this,â because then the venue is just gonna lower your guarantee. Itâs one of those shitty games that you have to play, but no one really plays it right, anyway,â explains Keough.
And then thereâs the situation where the band doesnât sign a contract that lists a merch cut but will arrive at the venue and find out they must pay one.
âSometimes, they come up to you and ask you for something youâve never heard of before or [was] detailed before,â says Keough. âOne time, [we were] setting up merch, and this venue guy comes up and says, âAll you bands, 20%.â And then weâre like, âUh, we havenât heard about this, go talk to the tour manager.â And he says, âNo, I donât talk to [the] tour manager!â And itâs like, oh, this is [legally] sound. It gets kind of dodgy, sometimes.â
While some promoters will have specific merch cut percentages in their contract, others will up charge bands for every penny they earn.
âThey charged us for the table to sell merch on,â Keough recounts one experience at a show. âThey charged us to bring a table out from one of their storage closets and pull it out so we can have a table to sell our t-shirts on and sell. And then they come back at the end of the show and ask for 20% of merch sales. I donât know what part of that is supposed to make sense other than the promoter filling his pockets up as much as he can.â
Smith has had other random fees pop up when playing a show. âThereâs one particularly bad company in Australia that will charge market rates for the artistâs rider, and youâll be paying $100 for a slab of water.â
Which Venues Are Most Likely to Charge a Merch Cut?
Merch cuts originated from festivals and major venues that hire staff to sell the merchandise. The merch cut is used to pay the staff and cover other expenses to sell the products (for example, if the venue uses its POS system).
There was a time when venues wouldnât charge a merch cut as long as the band brought their merchandising staff and other technology or materials to sell the products. Eventually, venues and promoters started charging a merch cut, with their justifications as to why.
But is there a specific region that takes advantage of merch cuts more than others? Should bands expect to pay a merchandise cut at particular sizes or types of venues?
Keough explains that merch cuts are more common in the U.S. âItâs way more of a thing in America than Australia. Every other venue is asking for money at the end of your merch night. It really screws the budget up. Itâs just not something youâre used to as an Australian band. So, when thereâs this other expense on top of all your other ones, it really starts to dig things down.â
Keough continues. âIn America, they try to skim you, no matter the venue [or] how shitty it is. No matter how much of the stuff they provide or that they donât provide for you, the grimiest dive bar you play, there will be some chump at the end with his hand out like this [holds hand out]. In Australia, itâs only really the nice theaters, stadiums, [and] arenas they will ask you for [a merch cut].â
Even though the US has a big problem with merch cuts, other countries are jumping on the practiceâand are handling the situation in their own ways.
âIn some places, like it happens a lot in the UK, these smaller venues will unnecessarily have their own team of sellers, as well. And youâre expected to pay their wage on top of the merch cut,â Smith says.
âItâs really sort of random in Europe [and] the UK. Thinking about the last tour, I canât remember many people coming up to us, except for random places in Europe. Itâs really random, you donât really know if itâs going to happen or not [regarding paying a merch cut],â explains Keough.
Bands may experience merch cuts infrequently in Australia, but the region presents other challenges.
âIn Australia, weâll promote our own tours. And a lot of the venues we would play at, like 3,000-cap rooms, they will vend our merch [for us] and take 20%. And there are only two venues in that city that size. If you donât like it, you can go somewhere else,â explains Smith.
Other artists have had different experiences in the UK and European markets.
âWhen we did a full European tour, we werenât hit with a merch cut at all,â Swank says. âWe had a great experience, especially in the UK. They didnât ask for a single penny.â
How Merch Cuts Affect an Artistâs Bottom Line
âWe look at merch cuts kind of as robbery,â explains Swank. âUs, the artist, weâre taking money out of our pockets to fund our merch bill. The money doesnât come from our label or management. It comes from our hard-earned money.â
Bands have numerous expenses on tour, and all these costs add up. Merchandising is one of the best ways to compensate for those expenses. Variety states that even bands playing in a mid-sized venue generate $10,000 from merch sales alone. But if a venue charges a 20% merch cut, even the $2,000 the band loses can eat into their touring expenses.
â[With] recent changes in the worldâinflation, gas prices going up, food prices going up like crazy, [and oil changes] and repairs on your [vehicle] also skyrocketingâevery dime you save or come back home with counts and goes a long way. Personally, I view merch cuts as a way of theft. I donât think these venues deserve that kind of money. At the end of the day, when we go home, whatever we make from merch sales [and] our guarantee, thereâs management [and] booking you have to pay. If you have anything leftover from what youâre wanting to save, you can disperse that from everyone in the band. When you take a merch cut, youâre taking money away from the band.â
To offset the costs of merch cuts and make their bottom lines, many bands have increased the prices of their merchandise.
âQuite often, the [prices] have the merch cut built into it,â explains Smith. atVenu estimates the price of a band t-shirt increased from $32 to $35 in 2022. Now, the average cost of a band t-shirt is $34.
How Merch Cuts Affect International Touring Bands
When bands fork over 20% to 25 % of their merchandise sales, it tremendously impacts their bottom line. This devastates bands touring domestically, who must invest in transportation, crew, gas, etc. But this loss is even more severe to international touring artists, who are already spending thousands on visas, legal fees, plane tickets, and their backline.
Smith offers the bleak reality of international touring expenses. âFor an international artist coming to the US from Australia, flights will cost about $10,000 to $20,000 US dollars. We always have to hire a vehicle. On top of that, there are other things such as working visas, which are incredibly expensive. Theyâre about $30,000 for three years. A carnet, which is an import/export document, [is for] all the equipment that we fly over, and we canât enter the US without one of those. We have to put a bond based on the value of all our equipment on that. And if we fill it out wrong, we wonât get our bonds back, which has happened to us, too. Realistically speaking, if we have to apply for a new visa, buy flights, pay a vehicle deposit, and put a carnet bonds down, youâre looking at $30,000 to $50,000 U.S. dollars in the red, before we even strike a single cord.â
Itâs important also to consider the Australian dollar (AUD) versus US dollar (USD) conversion. As Smith explained, they could be spending as much as $50,000 USD before playing a single show. That figure is close to $75,000 in AUD. But what do merch cuts have to do with these expenses?
âWhen youâre losing 10% to 20% of your principal revenue source at the top, for [really] no proper reason (laughs), [it] makes things quite difficult. That could be $30, $40, [or] $50,000 at the end of a tour if weâre doing a month,â explains Smith.
As another Australian musician, Keough agrees. âIt comes to the fact that merch is the number one big breadwinner in the band. Most of the time, you donât get to keep all of [the merch expenses], but itâs the piece of pie that you keep the most of. So, when you already booked the flights, travel, accommodation, and everything else you need to get on a tour, you start slinging shirts. And then thereâs a dude at the venue that goes, âAlright, now I need some of that.ââ
How Others in the Music Industry Are Responding to Merch Cuts
Not all venues support taking a merch cut away from bands. Many are opposed to the practice.

âIâve spent most of my adult life on tour, and the idea of taking a cut of something so essential to a touring musician [is something] I find morally reprehensible. It represents a complete lack of understanding of what itâs like to tour and a crystal-clear example of greedy short-term gains over sustainable mutually beneficial practices,â explains Sergio Da Silva, who handles booking at Turbo Haus in Montreal, Quebec.
Multinational entertainment company Live Nation also made headlines when they announced they will now refuse to take a merch cut from bands. Still, not all in the industry are jumping on Live Nationâs bandwagon. And Da Silva has something to say to them, âYouâve taken such [an] unpopular stance and are doing something so morally bankrupt that I find it hard to believe we can even have [a] conversation about it.â
How Bands Are Responding to Merch Cuts
Bands have been making headlines when they refuse to sell merch at shows. When bands discover massive merch cuts, not selling merchandise is their way of protesting the practice.
Architects vocalist Sam Carter shared a Tweet in February 2023, saying a venue in Melbourne took a 15% merch cut while it took them four hours to get their merch manager a light. In March 2023, avant-garde metal band Igorrr refused to sell merch at the O2 Forum in London due to a 25% merch cut. Progressive metal band Monuments boycotted two venues, not selling merch at a venue in Italy and another in Athens, Greece, due to staggering merch cut percentages. And post-metal band Russian Circles didnât sell merch at a venue in Paris, France on March 22, 2023.
However, this protest comes with a risk. If a band can generate as much as $10,000 at a mid-sized venue, not selling merch entirely runs the risk of losing significant revenue that can be used to fund a tour. Because of that, not every band is willing to lose that potential revenue. âWe would never turn down or walk away from the opportunity to sell our merch,â explains Swank.
There are instances where the band or their merchandising manager may lie to the promoter or auditor to avoid paying an enormous rate, but canât bands negotiate merch cut rates?
âI see a lot of people commentating on social media, how we should negotiate [the rate] in the deal and not have our agent sign a contract [with a] merch rate that weâre not happy with. Thatâs not the way the world works. Itâs either agree to these terms or you have nowhere to play,â says Smith.
That said, other artists have had luck negotiating. âWeâve gotten lucky. We can [negotiate] to give them less money than whatâs promised,â explains Swank. âWeâve gotten lucky where weâre not the headlining band at that venue. We tell them, âHey, we didnât sell much, weâre trying to get off our feet, can we give you this?â Or, âI havenât been [keeping] count, I donât know if you have. Can you take this amount of money?ââ Swank says. âUsually, we try to persuade the staff, and see if they can take something less. The night ends with them getting at least something.â
Keough has had similar experiences. âHalf the time, the venue just sends some random person who works [there] to collect the merch cut. So, theyâre not invested. You just say, âI made $50,â and they say, âRight, cool, give me blah blah blah percent of that.â You can just tell that they know what theyâre doing is wrong, and they feel awkward and uncomfortable with what theyâre doing. So, they just accept what theyâre told and run off.â
But Swank also says that in some cases, working around a venueâs merch practices can also be challenging. âIf you get count in, [meaning] they count the merch youâre bringing in before [you set up] in the venue, youâre kind of screwed. [Otherwise], you could give someone certain a number, and they take a percentage of it. About nine times out of 10, if the staff is there with a clipboard [or a] laptop, ready to collect [a] record of what youâre bringing in, youâre kind of screwed.â
Then, there are times when the band runs out of the venue before anyone can stop them, but thatâs rare. âThe only [time] we ever walked out with avoiding the merch cut was when we were a lot younger and naive, and we just tried to load everything up and haul ass before they [could] even get to us. With how things work now, when you have TMs [tour managers], and there are bands on buses [with a] bus call, you canât leave until some other band [does]. Itâs kind of hard to do that [meaning leaving before paying the merch cut],â says Swank.
So, is there anything bands can do to avoid paying a merch cut? Some bands have also found other options. âIâve heard of bands selling merch outside of the venue, so they can avoid a merch cut,â explains Swank. At the same time, this method isnât the most effective. âYouâre also shooting yourselves in the foot. A lot of times, thereâs no re-entry, and people get hit with that a lot. Theyâre not going to walk outside to get your merch and come back in because you said it on stage. Usually, they look for merch next to all the other bands that are playing that same night.â
Most artists interviewed in this piece said they had to sign contracts stating the merch cut for the night. Because of this, Smith has another approach, which bands can use to their advantage.
âWe always check the contracts, as well. Thereâs been a lot of instances where a promoter told us the merch rate for the night is 20%, and Iâve look at the contract and it [was] 12.5 or 15%. Itâs something worth doing for artists, checking the agreed rate on the contract.â
Buying merch online is always an option, and some bands recommend this method. âWe also push [our] online distro and store. That money goes right into our pockets,â explains Swank.
However, this isnât always an option for fans, especially if the band is international. With shipping, duties, and taxes, these extra costs add up for fans, so many wait to buy merchandise when a band plays their town.
Should Fans Still Buy Merch at Shows?
So, the question remains: should fans still buy merchandise at shows? Most bands featured here have the same answer.
âWe still tell people, âBuy [merch] at the show.â We still push that because we look at it as weâre going to make the most money,â explains Swank.
âI feel like we put that up to the fan now. [By] letting fans and everybody know that venues are taking a merch cut from the bands, thatâs not us telling them âdonât give us your money because theyâre taking a merch cut.â We still need that, too, especially on the road with random expenses, things breaking in the van, [and] equipment breaking. [We] need that cash to get by for that random unexpected stuff,â explains Keough.
Thereâs also something else that fans can do to offset the merch cut. âIf you want to tip extra so the bands have a little more money on top of the shirt thatâs going to have money taken [out], go for it,â suggests Keough.
Fans should feel comfortable buying merch and supporting bands in the way that makes the most sense to them. âWeâre not expecting the fans to fix this. Weâre just bringing it to your attention,â says Keough.
Will Merch Cuts Become Obsolete?
Itâs difficult to answer this question. On one end, Live Nationâs announcement puts us in a positive direction. At the same time, as long as venues get staff to sell merch at festivals and major arenas, merch cuts are inevitable. The key is for more transparency, for bands to know why they must pay a merch cut and for fans to understand that part of the price they spend on a t-shirt will go toward this rate.
âI think itâs really positive that these discussions are becoming more transparent, and itâs something thereâs more talk of. There [are] a lot of secrets in the music industry, now, merch rates [are] the hot topic. I think whenever these issues are addressed, change always happens. Itâs something that weâre starting to see at a grassroots level. Keep pressing people about it and [share] news around if you see it on social media. These conversations should hopefully lead to long-lasting change for everyone,â says Smith.
We can also continue supporting those in the industry, such as Turbo Haus and Sergio Da Silva, who have a band-first mentality. These venues and promoters prove that some are willing to go out of their way to give back to performing artists who bring them business.
Da Silva says it best, âFor acts playing 150/200 [capacity] rooms, making friends with other bands, local promoters, and fans takes up a lot of your social battery. Having to expend any of it begging for a place to stay or wondering where youâre going to eat is a waste of that energy. Us being able to provide those things allows people not [to] stress the small stuff and focus on playing a great show and developing friendships, which in turn will help the next show be better. Whatâs good for the band is good for the fan is good for the venue. Weâre all in this together and should be trying to help each other, not nickel and dime bands over fucking merch percentages.â




















