Dynamic Pricing vs. Commission-Based Selling: Where Should Your Margin Go?
The UK government is cracking down on unauthorized resale. Fans are revolting against price surges. The "Oasis backlash" proved one thing: pushing loyal fans to the brink for an extra few pounds destroys brand value.
But you still have a venue to fill and costs to cover.
If you can't rely on scalpers buying bulk, and dynamic pricing turns your audience against you, what is the strategy? The answer lies in where you move your margin.
It’s time to stop looking for Ticketmaster dynamic pricing alternatives that just rebrand the same problem. Instead, shift the financial model entirely.
The Trap of Dynamic Pricing
Dynamic pricing works on paper: demand is high, so price goes up. Simple economics, right?
Wrong. In the events world, it's an emotion killer. When a fan waits three hours in a queue only to see a £80 ticket jump to £350, they don't feel lucky to get a seat. They feel exploited.
The result:
- Short-term gain: You make extra revenue per head.
- Long-term loss: You damage trust, risk PR disasters, and alienate your core community.
The Alternative: Commission-Based Selling 🤝
There is a better way to clear inventory without punishing your attendees: Stable prices with variable commissions.
Instead of raising the price for the fan (Dynamic Pricing), you keep the ticket price stable but increase the commission paid to the seller (your Reps) for hard-to-shift inventory.
The Math: How it Works
Let’s look at the financials. You have 100 tickets left for a Tuesday night event. They aren't moving.
Scenario A: Dynamic Pricing (The Old Way) You lower the price to shift them, annoying people who paid full price earlier. Or, you rely on "platinum" surges on your best nights to subsidize the weak ones. The fan loses.
Scenario B: The Commission Model (The TicketPlug Way) You keep the ticket price at £20. But, you tell your network of reps: "Sell these final 100 tickets, and I'll double your commission from £2 to £4 per ticket."
The Outcome:
- The Fan pays £20. They are happy. No surge pricing. Fair value.
- The Rep is motivated. They work harder, hit up their group chats, and hustle because the reward is higher.
- You clear the inventory. You sacrificed £2 of margin to the seller rather than extracting it from the buyer.
Why Network Effects Beat Algorithms
Algorithms guess demand. People create it.
By using a first-party, authorized platform that leverages social circles, you are building a risk-free sales force. You aren't dumping tickets on a secondary market; you are empowering real people to sell to real fans.
- Scalable: Turn 5 reps into 500.
- Organic: Tickets are sold via trusted recommendations, not aggressive ads.
- No upfront cost: You only pay the commission when the ticket sells.
Keep Your Reputation (And Your Revenue)
The era of scalping and surge pricing is ending. The government knows it, and fans demand it.
Don't fight for the last penny of the ticket price. Invest that margin into a network that works for you. When you incentivize the seller rather than penalizing the buyer, everybody wins. 🚀
Stop fighting the algorithm. Start building your network.