Does Ticketmaster pay out instantly?

Ticketmaster is one of the largest ticket sales and distribution companies in the world. They sell tickets for concerts, sporting events, theater shows, and more. Many venues and event organizers use Ticketmaster as their exclusive ticket provider. This means if you want to buy tickets to an event at a Ticketmaster-contracted venue, you have to purchase through Ticketmaster.

With Ticketmaster handling so many ticket sales and acting as an intermediary between venues and fans, one common question is: Does Ticketmaster pay out instantly to event organizers when a ticket sells? Or is there a delay in when the money is transferred? Here is a closer look at how Ticketmaster’s payout process works.

How Ticketmaster’s Payouts Work

In most cases, Ticketmaster does not pay out instantly to clients when a ticket sells on their platform. Instead, they tend to pay out clients on a regular schedule through what are known as “settlement” payments.

Here is a general overview of how the payout process works:

• When a ticket is sold on Ticketmaster, the money from the customer initially goes to Ticketmaster.
• Ticketmaster deducts their fees and commissions from each ticket sale.
• On a weekly or bi-weekly schedule, Ticketmaster will bundle together all ticket sales for a client from the previous period.
• From this bundled amount, they deduct their fees and send the remainder to the client as a “settlement” payment.

So in most cases, venues and event organizers do not receive payouts instantly after each ticket sells. The payments are bundled and settled on Ticketmaster’s predetermined schedule.

Exceptions and Special Cases

While delayed settlement payments are the norm for Ticketmaster payouts, there are some exceptions in special cases:

• High-volume clients – For very high-volume venues, teams, theaters, etc. that sell a lot of tickets through Ticketmaster, custom payment arrangements may be negotiated. In some cases, these high-volume clients could potentially receive faster payments, even instant payouts in some situations.
• Live events – For live events happening in real-time, like concerts or games, Ticketmaster can arrange for faster payouts. This allows venues to have access to proceeds more quickly after the event to cover expenses.
• Prepaid events – In some cases, Ticketmaster will provide upfront payments to clients well before an event if they need access to cash flow for expenses. This is more common with very large, expensive productions like major concerts.

So while delayed settlement payments are the standard, Ticketmaster does have flexibility with high-volume, frequent clients to offer more instant payment arrangements in special cases if needed.

Advantages for Ticketmaster

From Ticketmaster’s perspective, there are a few key advantages to delayed payouts compared to instantly paying clients:

• They can hold onto the money longer and earn interest on it in between sale and payout.
• It allows them to deduct their fees before dispersing payments.
• Bundling sales helps manage cash flow and forecasting.
• Reduces overall transaction fees compared to per-sale payouts.

The settlement structure benefits Ticketmaster as a large corporation handling ticketing for thousands of venues and events worldwide. It helps them manage cash flow while still providing a valuable service to clients.

How Fast Are Ticketmaster Payouts?

If settlement payments are not instant, how long does it typically take for Ticketmaster clients to receive payouts?

Here is an overview of the common Ticketmaster payout timeframes:

So standard payouts run every 2 weeks for most venues and organizers. The very largest clients may receive weekly payouts, sometimes even daily. For live events, faster payouts are prioritized. And upfront advances can be wired out 30+ days before an event.

Tips for Faster Payouts

If you are a Ticketmaster client hoping to receive payouts faster, here are some tips that may help:

• Ramp up sales volume – higher sales means more leverage to negotiate expedited payment terms
• Ask for wire transfers – these clear faster than paper checks in the mail
• Request prepaid advances – get a portion of proceeds before event to help cash flow
• Use Client Central portal – online payment info can speed up processing
• Build relationship with rep – veteran reps can find ways to expedite payments for good clients

Developing a solid sales track record and building relationships with your Ticketmaster rep is key for receiving payouts faster. Proving your event’s success can open doors to quicker payment terms over time.

Downsides of Delayed Payments

While Ticketmaster’s settlement schedule makes sense from their business perspective, delayed payouts can create challenges for some event organizers and venues. Potential downsides include:

• Can strain cash flow waiting multiple weeks for revenue
• Less flexibility to quickly reimburse upfront event expenses
• Interest lost by not having immediate access to ticket revenue
• Overreliance on Ticketmaster to manage money flow

For smaller clubs, theaters, teams, etc. delayed payments from Ticketmaster can be manageable. But for big, expensive event productions it can become very problematic not having proceeds for weeks until settlement.

Alternatives for Faster Payment

If delayed Ticketmaster settlements are an issue, potential alternatives could include:

• Renegotiate your contract – push for faster terms if sales warrant it
• Use other ticketing platforms – some competitors pay out faster than Ticketmaster
• Sell direct-to-consumer – avoid third-party platforms altogether
• Invoice sponsors/donors – get revenue from other sources before event
• Crowdfund production costs – use fan contributions to fund upfront expenses

Switching ticketing providers or selling direct-to-consumer cuts out the middleman and can mean faster access to proceeds. But for major venues and top tours, Ticketmaster still often makes the most sense despite the payment lag.

Pro Tips for Managing Delayed Payouts

If you have to work within Ticketmaster’s delayed payout structure, here are some pro tips for managing:

• Get payment calendars in advance – never be surprised by settlement dates
• Plan budgets accordingly – account for 2+ weeks until payment
• Use Client Central – track sales and payments in real-time
• Request wire transfers – much faster access to funds than paper checks
• Ask for reporting customizations – tailor reports to your accounting needs
• Auto-reconcile sales and payments – reduce manual data entry and errors

Understanding Ticketmaster’s payout cadence and factoring it into operational plans is key. With good reporting and forecasting, delayed payments can be managed smoothly.

Will Ticketmaster Move to Instant Payouts?

Could Ticketmaster eventually move towards instant payouts to clients as technology improves?

It seems unlikely that Ticketmaster will shift away from delayed settlement payments any time soon, for a few reasons:

• Their current system and cash flow works very well for their business model.
• Enables them to deduct fees before paying clients.
• Transaction costs would likely increase with per-sale payouts.
• Clients are generally satisfied with bi-weekly or weekly payout cadence.

From conversations with Ticketmaster reps, they have no current plans or timeline to move towards real-time payouts. The focus seems to be finding ways to speed up payouts through faster transfers, rather than instantaneous per-sale payments.

However, some analysts think real-time payout technology will eventually reach the ticketing industry. As financial processing improves and costs come down, the pressure on Ticketmaster to instantaneously pay clients may increase over time. But for now, the delayed settlement schedule remains the standard.

Case Study: Instant Payouts for Live Nation

While Ticketmaster rarely pays out instantly, one major exception is with Live Nation Entertainment.

Live Nation Entertainment was formed in a 2010 merger between Live Nation and Ticketmaster. While the two companies operate semi-independently, they are both part of Live Nation Entertainment’s live events ecosystem.

For major concerts and festivals promoted by Live Nation, Ticketmaster has the capability to instantly pay out ticket sales revenue. Rather than waiting through settlement schedules, proceeds from Live Nation ticket sales can be instantly transferred within the parent company.

This allows Live Nation to have real-time access to cash flow for its high-expense concert productions. The money can be used to pay artist guarantees, cover production costs, and finance touring logistics without waiting for Ticketmaster’s delayed payouts.

The instant payout arrangement only exists because of the two companies’ shared ownership under Live Nation Entertainment. All other Ticketmaster clients still go through the standard bi-weekly settlement process.

But it demonstrates that real-time payouts are possible on the Ticketmaster platform. For their highest-volume, highest-importance client, they’ve created an instant payment structure. This suggests that over time, expedited payouts could potentially become more common.

The Bottom Line

In summary, Ticketmaster does not normally pay out instantly to clients when tickets sell through their platform. Rather, they bundle together sales and pay out clients on a bi-weekly or weekly schedule through settlement payments.

High-volume clients may be able to negotiate more frequent payouts, and some limited instant payment arrangements exist in special cases. But delayed settlement is the standard for the vast majority of Ticketmaster’s venue and organizer clients.

This system works well for Ticketmaster’s business model and cash flow needs. But it can create challenges for some smaller clubs, theatres, and event producers who have to wait extended periods to receive revenue.

Looking ahead, real-time instant payout technology may eventually come to the ticketing industry. But for now, Ticketmaster remains committed to the delayed settlement schedule that has served them well for decades.