::  Posts  ::  RSS  ::  ◂◂RSS  ::  Contact

Contra Pay Variability

February 26th, 2014
money, contra  [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:

Absolute scale corrupts absolutely

The Internet has gotten too big. Growing up, I, like many computery people of my generation, was an idealist. I believed that better, faster communication would be an unmitigated improvement to society. "World peace through better communication,"…

via apenwarr August 19, 2019

Traces

At naptime Anna listens to recordings of novels recorded by Jeff’s grandmother. It is the main way she will know Winnie, as it is the main way I have ever known Winnie. Some of the recordings are missing parts, and Suzie often fills in the first few sente…

via The whole sky August 18, 2019

One Night Ultimate Werewolf

I really like One Night Ultimate Werewolf (ONUW), and recommend trying it out. The Daybreak expansion is also good (but I’d skip the later games in the series). App For those who’ve played a lot and wish the night took 20 seconds rather than a few minutes…

via The sideways view August 18, 2019

more     (via openring)

More Posts:


  ::  Posts  ::  RSS  ::  ◂◂RSS  ::  Contact