Maintain Your Market Value During Tough Economic Times

Every entertainer has a perceived market value - thePerforming for any type of audience at any dollar
amount of money people are willing to pay for youramount takes time and energy. If you're scrambling
services based on their past experience with you oraround chasing low-paying gigs all over the country,
their name recognition of you. Unfortunately, duringyou're going to be too short on time and too
tough economic times many entertainers feel theyexhausted to get yourself into a higher fee bracket.
must reduce their fee in order to get the gig. TheyIt's very difficult to break this cycle once you get
think short-term and become a "gig pig" rather thaninto that rut. You're better off spending your time
adopt a long-term philosophy of protecting theirmarketing to higher paying crowds. Do the math. It
value. Whatever your perceived market value is, youtakes five $1,000 gigs to get the same income as
must protect it, nurture it, and grow it despite theone $5,000 gig. That's five times as many days away
current economy. Lowering your price in thefrom home, five times as many travel days, five
short-term economic recession hurts your long-termtimes the work, etc. Let's say your target income is
profitability. Granted, you need money now to pay$20,000 a month. That means you either need to get
your bills, so it might be easy to justify lowering yourfour $5,000 gigs or twenty $1,000 gigs. Think of the
rates. There are other ways to make someextra hustling, traveling, and the wear and tear that
short-term money to fill in any gaps in income, suchtwenty gigs in one month will have on you and your
as a temporary part time job. Even better, startfamily.
saving some money so you have a cushion to fallDoing fewer shows for a higher value will give you
back on when times are tight. Whatever you do, ifmore time to be at home with your family and
you want to build your reputation, you need to turnfriends. It will also afford you the time you need to
down gigs that could hurt or inhibit your long-termdevote to getting more $5,000 gigs. If you're
pricing. As you work your way through the currentconstantly traveling and performing, it's difficult to
recession, keep the following best practices in mind.promote and network, which are the exact things
1. Don't change your price; change who you marketyou need to do to reach that next level.
to.5. Be realistic.
If your current target market can no longer affordYou have to find that sweet spot where your
your fee, offer your services to a new market whoperceived market value intersects with your ability to
can afford you. If you are a corporate entertainer,deliver. Therefore, when setting your fee, don't
for example, and your fee is $5,000, that's a lot ofrandomly pick an exorbitant price out of the air and
money for a company who paid $1,500 for thestick to it at all costs. Do a reality check. Maybe
holiday party entertainer last year. For a companyyou're not worth $20,000 a show...at least not yet.
that paid $10,000 for their entertainment, however,Maybe you need better promotional materials. Maybe
$5,000 is a steal. If you work fairs, don't waste timeyou need a better act. For $20,000 a show, you
and money marketing to one- and two-day events.probably need both! Simply find your "sweet spot,"
Go for the three-week fairs in Texas, California, andhold to that minimum, and push it.
the massive Calgary Stampede Fair in Canada. These6. Grow organically.
are the ones with bigger budgets who can affordBefore you become a $20,000 act, you have to do a
your fee. Likewise, if you work birthday parties,lot of shows for $1,000, and then a lot for $2,500,
target wealthy neighborhoods. If you work schools,and then a lot for $5,000, $7,500, $10,000, etc. And
target wealthy school districts. Economic pain isthat's the way it should be. In order to handle the
relative. So shift your focus to the target marketsaudience, the venue, and the pressure to deliver the
that consider your current fee a great deal.value that comes along with a $20,000 price tag, you
2. Just say "no."will need the years of experience and professional
In order to be perceived as a $10,000 entertainer,development that naturally flow from so many
you must turn down the $200 shows. Here's ashows under your belt and so many years in the
common example: An agency you have neverbusiness. You will also need to win the trust of your
worked with before offers you a show for $200.client or event planner before this responsibility is
Your normal rate is $2,500 plus travel. For whatevergiven to you. Slow and steady is the way to go.
reason, you accept the $200 gig. Regardless of whatPush yourself constantly, but enjoy the climb.
you said to the agency on the phone ("Okay...but7. Know the exceptions.
just this one time") or how you justified taking thisAre there exceptions to these rules? Of course. You
gig in your head ("My fridge is looking pretty bare")may choose to reduce your fee for family, friends, a
that agency now has you pegged as a $200 act.good cause, etc. However, here's the best advice: If
They're certainly not going to think of you when thata gig can't pay much and you have personal reasons
$5,000 gig comes in. Always remember that whenfor taking it, make it a charity show. It's a nice thing
you do a successful show at $5,000 you get moreto do, and it looks great too. When people hear that
shows for $5000. When you do a successful show atyou "donated your time," they'll think you're a saint.
$200 you get more shows for $200. When you doEven better, you're avoiding all those potential
say no, don't avoid the conversation and tell themmisunderstandings and conversations about reducing
you're booked on that date. Explain your reasoning.your fee in the future. Now when someone sees you
Remind them that your price is X. It may takeperform at the fundraiser and contacts you for a
several gig turn-downs, but eventually the agenciesshow, you're starting with a clean slate. Also, if a
and bookers will learn that you're serious about yourfundraiser wants to pay you $200 for your act,
price.suggest that they take that money and make a
3. Don't equate dollars to minutes on stage.donation of $200 to the organization in your name.
Many entertainers think they have to lower theirIt's a win-win for everyone.
price for short performances. They say, "Well, it'sStay True to Your Value
only a 25-minute spot, so I'll do it for half the price."Performing for cheap doesn't just hurt you financially
Yes, it is a 25-minute spot, and you're used to doingthat one time - it hurts for the long-term. Realize that
50 minutes. At first glance, it may appear that you'reclients or agencies who happen to get you for cheap
doing half the work, but the show is on a Friday nightone night don't think "Maybe it was just this once" or
outside Boise. You're still packing for the show, flying"Maybe she's trying to get extra money for
to Boise, renting a car, doing a sound check,Christmas shopping." They just think you are cheap,
delivering the show, packing up after the show,and then they tell others about this great cheap act.
staying at a hotel overnight, returning the car, flyingNow you're pegged as a cheap entertainer. Granted,
back home, and unpacking. That's a full two-days ofnot every cheap booking will directly impact your
your life, not to mention any prep work you did forcareer in immediate ways you can see. These
the show in terms of writing, tailoring your material,patterns develop, however, and you get trapped in
supplying promotional materials, preparing contracts,them. Twenty years later you're doing the same
etc. Plus you missed your Friday night date with yourshtick and wondering why you can't get your fee up.
wife and your child's soccer game on SaturdayThe bottom line: You can't verbally convince
morning.someone they should be privileged to have gotten
Remember that in addition to your show, you areyou for a certain dollar amount. Actions speak louder
being paid to be away from family and friends and tothan words. If you don't normally perform for that
travel. The show is the enjoyable part - or at least itlittle, then turn it down. Whatever you do, don't give
should be. If it's not, then rethink your career choice.yourself away.
4. Spend your time more wisely.