As I mentioned in earlier posts, I used to be a ticket broker. The job was a lot tougher then one might think. If you are thinking about being a ticket broker, you might want to consider just being an affiliate and here is why.
When you are a ticket broker and someone purchases another ticket brokers tickets off of your website, you will profit an average of 25% per ticket. Now the company that is in charge of your website and database ( database explained Here ) will charge you an automatic 3% of the PURCHASE PRICE, not 3% of the 25% that you just profited.
Example: On a $100.00 order, you will make an average of 25% so your profit would be $25.00.
You will not be charged 3% on that $25.00. you will be charged 3% on the total order which is $3.00.
So now your profit is only $22.00
The next people that want to gauge at your profits are your credit card processors. They will charge you about 2.25% of again, the total order, so now you can take off another $2.25 off of your $22.00 profit which will give you $19.75.
Now I am not saying that $19.75 is a bad profit off of one $100.00 order but there are many other hidden costs involved such as office space, administration fees, a 1 800 number, employees and many other things.
The biggest head ache by far though is CASH FLOW. You need a lot of money to be an online ticket broker. First off, you have to find a credit card processor. There are places like paypal that you can use but being able to accept credit cards gives your website a lot more credibility. What most people do not know is when you are starting out new with credit processors, they will give you a limit on haw much money you can accept. In most cases it is only about $20,000 - $30,000 per month. That may seem like a lot but it really isn't. The average order for a ticket broker is $400.00. If you only average 3 orders per day, you are already hitting your limit. It usually takes a minimum of 2 days for the credit processor to transfer your money into your account which brings another headache.
When a customer purchases tickets from your website, you will be notified of the order. You have to call the ticket broker who is holding the tickets that have just been sold and make them aware that you want to purchase their tickets. Yes, you have read that right. You have to actually work both sides of this transaction. In addition to processing the order from your customer, you have to make up a purchase order and either e-mail it or fax it to the ticket holding broker along with your customers shipping label. So you need money to purchase these tickets from the holding broker. Again, the average order that a customer places is about $400.00, so that means on average, you are paying $300.00 to purchase these tickets from the holding broker. With 3 orders per day, that is $900 that you have to be responsible for and remember, you will not get that money back for a minimum of 2 days.
Also when you are a ticket broker, you are responsible for your customers orders. You must deal with ALL customer service issues. A lot of times, customers are unaware that you are charging more then face value and when they receive their tickets, they see the face value on the ticket and become very disgruntled. It does not matter how many times it is mentioned on your website or in your purchase agreements that you sell tickets for more then face value, If they are angry enough, they will try to do a charge back and in most cases they will win.
It is just a lot of money and headaches and personally, I am happy just getting 7%-10% from various brokers in a ticket broker affiliate program. I do not have to have a lot of cash on hand, no office, no 1-800 #, no employees and no credit card processors. I just have to market my ticket broker affiliates and they will do all of the grunt work.
The Chicago Bulls have had a lot of hard luck in years past. Even though they finished with one of the worst records in the NBA, they did not get the lottery pick slot that they wanted. They picked number 7 and chose Kobe White. Bulls fans are starting to get impatient and they are hoping that this years team will at least compete for a playoff spot. Tickets to the Chicago Bulls are still kind of hard to get. Chicago Bulls Tickets have been hard to get since the Jordan years because Chicago Bulls fans love their team.
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2 comments:
So you’re sick of paying through the nose for good seats to your favourite concerts? Maybe you just want to make a little extra cash on the side. Becoming a ticket broker is fun and exciting, and the best part is, you can do it from the comfort of your own home!
This guide will teach you how you can become a ticket broker so you can buy and sell concert tickets and make money doing it.
Learning this business it´s easy, because exist a guide to show her how buy and sell tickets successfully... Source: The Ticket Broker Guide
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