When it’s time for an artist to tour, the manager has to create a budget for how much money there is to spend on the tour. First, he has to find out how much money the record label is willing to promote the album release. Then, he calculates how much money can be spent on marketing, using social media and other outlets.

Preparing in Advance

After that, he needs to figure out how many people will attend each show.

The manager will use other factors like the location of the show, the draw of other acts that are playing at that venue or festival at that time, and any other promotions

Keeping the Business Alive

The annual concert tours are a great way to keep the music industry alive. Touring is a huge financial commitment for musicians, but it’s also an incredibly lucrative source of revenue. According to Forbes, the top 100 highest-grossing tours in 2016 grossed $3.48 billion and sold 21.9 million concert tickets.