Why buying a T-shirt at Forum Melbourne might not support your favourite band

Buying a t-shirt at the merchandise desk has long been the gold standard for supporting musicians in an era of tiny streaming payouts. However, local music fans are discovering that a significant chunk of that money never actually reaches the artists, with venues routinely claiming up to 20 per cent of sales [6].

This practice, known as a merch cut, applies even when bands supply their own staff, use their own payment terminals, and bring their own equipment [6]. As cost-of-living pressures squeeze both touring artists and music lovers, the hidden economics of the merch table are coming under intense scrutiny.

The hidden 20 per cent toll

While major arena shows have long used venue-run merchandise stands, the practice has steadily trickled down into medium and small-sized performance spaces across Australia [6]. Touring acts frequently find themselves handing over 10 to 20 per cent of their gross merchandise revenue to the venue just for the right to set up a table [6].

For many artists, these cuts represent the difference between breaking even on a tour or losing money. Musicians Australia, the union representing local players, has questioned why venues deserve a cut of physical merchandise when they already profit from ticket sales, venue hire fees, and profitable bar sales [6].

Some touring bands are now bypassing venue walls entirely, selling their shirts from the back of parked vans on the street to keep 100 per cent of the sales.

Guerilla tactics on the pavement

Frustrated by these venue levies, some prominent heavy music acts have taken matters into their own hands. Bands like Alpha Wolf and Make Them Suffer have previously called out these venue practices directly from the stage or opted to bootleg their own gigs by selling merchandise to fans on the footpath outside [6].

However, taking the sales pavement-side is a gamble. Artists who sell outside lose the safety of venue security, brave the unpredictable Melbourne weather, and risk being blacklisted by prominent booking agents and venue operators who control future gig opportunities [6].

Supporting live music is no longer as simple as tapping your card at the back of the room, but knowing where the money goes is the first step to keeping the local scene alive. The next time you head out to a show, remember that the most direct way to support an artist might just be buying their record online before you even leave the house.