• Posts
  • RSS
  • ◂◂RSS
  • Contact

  • Contra Pay Variability

    February 26th, 2014
    contra, money  [html]
    Attendance at dances fluctuates for all sorts of reasons, which means there's a lot of variability in how much money comes in. Dances usually handle this variability somewhere between two extremes:
    • fixed price: the performers (band and caller) are promised a fixed amount. When attendance is high the dance keeps the surplus and saves it to cover the shortfall with future dances with lower attendance.
    • percentage: the performers are promised a fraction of the revenue before any expenses.
    Offering a fixed price insulates performers from factors outside of their control like bad weather, scheduling, or just whether people happen to come. When the dance can absorb risk by spreading it across many nights that seems pretty valuable. On the other hand, there are bands that consistently bring in more dancers, and changes in attendance based on the band are not something you want to insulate bands from.

    The model I like best is a hybrid of the "fixed price" and "percentage" approaches. Guarantee the performers a fixed amount and if there's money left over after paying guarantees and fixed expenses give them most of it. A good place to set the guarantee is one where you lose money maybe one in five dances, and then make sure the organization keeps a large enough share of profits that the books balance.

    Comment via: google plus, facebook

    Recent posts on blogs I like:

    The Gift of It's Your Problem Now

    Recently a security hole in a certain open source Java library resulted in a worldwide emergency kerfuffle as, say, 40% of the possibly hundreds of millions of worldwide deployments of this library needed to be updated in a hurry. (The other 60% also …

    via apenwarr January 1, 2022

    The container throttling problem

    This is an excerpt from an internal document David Mackey and I co-authored in April 2019. The document is excerpted since much of the original doc was about comparing possible approaches to increasing efficency at Twitter, which is mostly information tha…

    via Posts on December 18, 2021

    Experiences in raising children in shared housing

    Sometimes I see posts about people’s hope to raise children in a group housing situation, and it often seems overly optimistic to me. In particular they seem to expect that there will be more shared childcare than I think should be expected. Today I talke…

    via The whole sky October 18, 2021

    more     (via openring)


  • Posts
  • RSS
  • ◂◂RSS
  • Contact