Merch

Merch (short for merchandise) is the product sold to fans at concerts and tours — t-shirts, hoodies, hats, posters, vinyl, and anything else with the artist's name or artwork on it. For many touring acts, merch revenue is a significant income stream that can rival or exceed performance fees.

How merch works on tour

Most tours travel with a dedicated merch person (or team) who handles inventory, sets up the merch booth, manages sales during the show, and settles with the venue at the end of the night. The merch person tracks what sold, what's running low, and coordinates restocking.

The merch split

Venues typically take a percentage of merch sales — anywhere from 15% to 35%, negotiated as part of the deal memo. This "merch commission" is a significant venue revenue source and a point of negotiation during the advance. Some artists negotiate a lower split or a cap. The specifics are confirmed during settlement.

Soft merch vs. hard merch

Soft merch is typically clothing and accessories (t-shirts, hoodies, hats). Hard merch is music — vinyl, CDs. The categorization of items like posters, pins, and stickers can vary by tour. The distinction matters for inventory tracking and sometimes for venue merch split calculations.

Merch as a business

For mid-level touring acts, merch can generate more per-show profit than the performance guarantee. Smart tour managers and merch companies treat it as a business within the business — tracking per-head averages, optimizing product mix, and timing drops to tour dates.