Making Lindens as a Club Owner

I spent 25K lindens this weekend (not including rent, deco) on our grand opening. I do not regret it bit I can't do that every weekend (wanted to make a big splash)

Our club is a stand alone hobby, thus no mall attachment, ads, rent or the like to offset costs.

However it would be nice to find some way to offset our cost to a degree for DJs, rent, staff, contests, etc.

Here are some ideas either I thought of or been suggested to me. I'd like the vets here take on this and any other ideas one may have, thank you.

a. Small cover charge (25L or so). I have heard two sides of this debate. One a cover charge drives ppl away, OTOH if you have a hot DJ or popular events guests won't mind paying if theres ways for them to make a return in the cover (xploder, contests, door prizes etc)

b. have a scripter/modeler create unique 'drinks' for your bar (obviously using ones already available would be pointless) for 10L each or so. After 15mins or so they 'empty' and self destroy.

c. Take a cut from the xploder

Thanks for any input.

sell passes

Sorry, but you are relegated to taking a percentage of tips and relying on donations, or charging small fees for little things. You'll never make it all back unless you attach the mall/rentals or have some very generous benefactors who don't mind tipping.

You may have missed this thread because of the obscure title, but it does offer a lot of advice pertaining to clubs:

Other suggestions is a Donation Box where visitors and indeed regulars could donate to help offset the club costs, or negotiate for the club to receive a percentage of staff tips.

I used to dance at a very popular nightclub in my early days (it's true!). The owner spent a lot, and even having an attached mall, never did well. It was a huge money pit. He ended up ditching the club and kept the mall, and does far better. So in short, clubs tend to be a money drain.

I can't imagine anyone paying to go to a club in SL no matter how good the DJ or musician. There's just too much competition.

You could try the drink idea, but I doubt it would work. Just my opinion. I wouldn't buy one. We eliminated bartenders altogether in our club and no one misses them.

The club I work does take a small percentage out of the popper. It's not much but helps just a little.

Donation does get used especially if we pimp it out regularly throughout our events. Not as much as we'd like but it helps.

If you really want to offset the cost of the club, I haven't seen anything yet that works other than vendors and even they usually don't. Clubs cost money and are for fun typically, not for profit.

I'm not saying it can't be done, just that it would be the great exception rather than the rule.

OK, I have often wondered about this idea. If you use it, please keep me updated.

The cover charge usually *does* drive away the customers but what if you sell percentages of the club? So much for 9%? Then all you need is 6 investors (you keeping the majority of the shares) and hand out dividens at the end of the quarter (if there is anything).

If the club takes off, you are then majority holder and can consider buying back the shares at some agreed profit for the holder. If the club is a money pit, well.... its a money pit divided by 6.

Tell me what you think? JulieAnne

WSE?

As long as the club's losing money, you could keep selling shares. Sell 20 people 50% each. Just don't make the club entertainment a musical about Hitler or you'll end up like The Producers.

Charge retailers a fee to promote a product of theirs during events.

Nice idea and may work for some except I have only been in business a short time and have no shortage of clubs asking me to donate items to give away to club patrons, which I do from time to time. I wouldn't pay to promote my items at a club since so many are willing to promote me at no charge.

Basically every club in SL is too big for its income.

And the owners always make the error of thinking if they just EXPAND business, land, employees, etc they will make money.

When in reality they just make it harder to meet their HUGE costs of business.

Ive yet to see a club with a handle on costs. And Ive been involved, worked at, known owners, of many.

I have said this before "learn to enjoy the color red"

No way would I sell shares in club. Too many fingers in the pie, too many ideas how every one wants to do it. Fight, fight, fight and then you lose your friends and they are gone. The best way to lower your expenses is to do as much by yourself as possible. Then after a month or two and you can't deal with it anymore either rent it out or sell the club.

Believe me, I am not being cynical this is the truth. The best way to go into the opening of a club is to tell yourself that you are doing it for pleasure not money.

I wish you the best of luck.

I thought about voice ads for the DJ sessions but never actually tried it

might try it with an upcoming thing I have happening soon

basically a retailer (or whatnot) would send me either a pre recorded ad, or a written ad, that I would either play while DJing (ad spots) or if it is the written one, I would record the ad and play it on the air.

(of course written ones would have a surcharge for the voice recording, which depending on what price they pay determines if they get a copy of it)

thought of it but never actually tried it

If anyone out there is interested in putting their ad on the air please get in touch with me (im or pm, or notecard prefered)

I still have to check with the owners of the place I will be DJing at to see what they think

What Lisa said.

Making sponsorship agreements with retailers is the only realistic way to make a club a pay for itself.

If you don't want a mall, set up a few small vendor stands outside for cheap rent. It'll bring a little income in.

That's a really interesting idea. I'd be interested in hearing how that goes over.

Wait wait wait wait WAIT. What's this? A link that WORKS?

Did they fix the forums while they were down???

oooooo

coco

IMHO the best way to make a club profit it to theme it.

I've worked at tiny clubs, huge clubs, and everything in between, the only time I have seen a profitable club from the owners point of view is when it has been themed and done well.

My interest in clubs leans towards the kinkier side of things, there are lots of them as well, but far less than normal clubs, as a result I know a couple that are quite profitable. (and I also know a number that are like ghost towns).

A friend recently moved from one of these clubs to managing a new one. It's far more "interactive" for the patrons than others, thats their unique selling tool.

I stumbled across a mud wrestling ring got an idea and suggested it to my friend, they have been doing well with that, again something unique.

Overall I'd say there are 7 really important things to do:

1. Unique Selling Point - Why should someone go to your club?
2. Try and have it running 24/7, nothing worse than an empty club
3. If you have dancers, make sure they can emote well. (perhaps even train them in emoting/building a dancing body/etc)
4. Make sure people feel like its "home" to them.
5. Make it fun.
6. Don't try and grow huge. (fatal mistake)
7. Have a members/friends/groupies group, make announcements to the group, maybe even special offers, but don't be constantly in their face.

Doing those things, and of course getting people to visit in the first place and you might be able to get to break even on the running costs reasonably soon.

Thats my guide to building a profitable place, but then who am I? No one really so you might want to take it all with a pinch of salt.

They have to because they want rewards for people coming in the door

TRAFFIC

since people often pick clubs by the traffic number

Which leads to traffic gaming, etc.

The only people I know who have clubs and also make money do so from rental properties.

Clubs are ALWAYS a money pit.

My new place is entirely non-commercial and I don't actually care if it gets traffic ... it's there for like minded people to have somewhere on the beach to hang out on. By like minded I mean BDSM without nonsense.

However, the cost is quite low and I am happy to shoulder it ... it's no more than it would cost to have that as my home and helps me support one of the most ethical Estate owners.

Mitzy, your point #7 is the case for ANYWHERE I think. If somewhere expands into something else outside it's borders (for instance creates a garden and other things which don't HAVE to leech numbers ... or just look pretty from the original place's viewpoint) then that is ok. Anywhere I have known which was successful and then tried to expand invariably becomes less pleasing and often just loses it's original vibe. And becomes another mall in the process.

The easiest way to pay for a club is probably the least fun. "Camp" your real life job for an extra hour occasionally with the idea that you'll use that hour of pay to buy lindens to run your club. Either that or try to get good at beating the games that some places offer. Trying to run a profitable club in a world where nobody can taste the drinks is a losing proposition from day one. You've got to do it for fun or not at all.

Great point.

Soon as someone invents virtuhol ... were set.

Nope. Some links work if you type img instead of url in the []