Stop the Merch Cuts: Why Touring Bands Should Refuse to Pay Venue Merchandise Fees

You pay $15 to have a t-shirt made. You sell it for $20. That should be a $5 profit per shirt. But if the venue takes a 15% merchandise cut, they take $3 off the top. That leaves you with just $2 profit per shirt.

Now factor in that you might have flown to this show, and checked an extra bag just to bring merch—often costing $50 or more. That means you'd need to sell at least 25 shirts just to break even on transporting your merch. For many artists, that means their night’s work results in zero profit—or even a loss.

Meanwhile, the venue is making money hand over fist on ticket fees, drinks, concessions, and often a portion of the door. But are they cutting you 15% of the bar? No. They aren't handing over a cut of the beer your fans bought while watching your performance. So why should they get a cut of something they had nothing to do with producing, printing, transporting, or selling?

For many touring bands, especially those without label or corporate support, selling merch is the only way to cover the basic costs of the road. The t-shirt table might pay for tomorrow’s gas or tonight’s motel. When venues skim off the top, they’re taking money that was never theirs to begin with.

Let’s be honest: the venue profits off the crowd you draw. They sell tickets because people want to see you. They sell drinks because people are there for your show. Without the artist, the venue is just a room with a bar. So when they take a slice of your merchandise earnings, they’re cashing in on labor they didn’t do.