Talent Buyer vs. Buying In-House

Example scenarios

This example is presented at an 8% fee only because we offer reduced pricing from the average 10% to 15% that has been the standard for the last 20+ years. Since we have started offering a reduced rate along with introducing our training program, we have noticed that a select few of our “competitors” have implemented similar rates of 8%. In an effort to influence certain clients and keep them from reviewing our training program they have gone as low as 7%.


Example #1

Using a Third Party Talent Buyer

* $40k budget for one show
* Talent buyer fee 8% = $3200
* New budget less fee = $36,800

Now let’s say your talent buyer gets a price quote of $35k for Wynonna Judd. It is now your talent buyers job to do what is in the best interest of your casino by counter offering say maybe $27k to $30k. Keep in mind this will take extra work and will also mean less money for them. If the talent buyers intent is to decrease their company profits by helping you save money this is the places it is supposed to happen.

Which of these options is most likely to occur?
  1. The talent buyer works hard for you and comes back to you with a negotiated price that is $5k to $10k less than your original budget proving they are willing to make less money and do more work.
  2. The talent buyer charges the casino the full $40k and then contracts Wynonna at $35k leaving an undocumented $1800 on top of their $3200 fee that neither you or the direct agency know about.
  3. The talent buyer negotiates a lower price of $32k but still charges the casino $40k and creates an undocumented $3800 on top of their $3200 fee that neither you or the direct agency know about.
  4. The talent buyer comes back to you and says “we need more money Wynonna costs $45k”. They then book her at $35k and create an undocumented $8800 on top of their now $3700 fee that neither you or the direct agency know about.
Possible financial loss to fee = $3,200.00 up to $12,500.00

The opportunities for dishonest practices and presenting misleading information are almost endless if you are unable accurately audit and track the pricing of your talent buyer. The scenario presented is all too common and usually involves prices being doubled, tripled and even more.


Example #2

Buying In-House

* $40k budget for one show
* Talent buyer fee 0% = $0
* New budget less fee = $40k

Now your in-house employee, manager, and or marketing director get a quote of $35k for Wynonna Judd from her direct agency. It is now your employee’s job to do what is in the best interest of your casino by counter offering say maybe $27k to $30k. Keep in mind this will take extra work but by no means will it mean overtime. It takes on average of 30 to 45 minutes to book a national show, and that includes time for negotiation and signing contracts. Sure some agencies will make you wait a day or two for dramatic purposes to get more money but they know, you hold the money and the repeat business they need to continue remaining profitable and productive. They also recognize and respect the fact you are contacting them directly and not relying on an outside entity to represent your establishment, community, and brand.

The only options that can occur?
  1. Your in-house employee works hard for you and comes back to you with a negotiated price that is $5k to $10k less than your original budget. They also avoided $3200 in fees by not using the outsourced help.
  2. Your in-house employee has many extra options that may prove to be successful that may not have been available through a third-party buyer because they were priced too low and would not generate the same profit margin, or they are now an option due to the lack of third-party fees.
Possible financial loss to fee: $0

Going direct eliminates the opportunity for dishonest business practices and provides the opportunity of establishing relationships with international companies.

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