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This is a very common question.  Buyers and Sellers want to know if it is illegal to sell tickets over face value.

This simple question is really 3 questions:

1.  Is it illegal to sell tickets over face value?

2.  Is it illegal to buy tickets over face value?

3.   What is the likelihood I will be prosecuted?

Answers:  Maybe, Maybe, and Maybe.

The laws on buying and selling tickets vary by state, but most states allow sellers to set their own pricing, and buyers to decide how much they want the tickets.

In fact, several states including Florida, New York, and Connecticut have recently repealed their laws against “scalping.”  Some repealed the laws because it is hypocritical to say citizens can buy a house, car, baseball card, artwork or a mutual fund and sell it for a profit - but tickets cannot be sold for a profit.

Other states repealed the laws because they were ineffective against sales made over state lines.  Even when states laws do apply, it is very expensive and time consuming to try and investigate an Internet sale of tickets over face value.  It’s much more cost effective to arrest a dozen or so sellers at a game than it would be to locate a dozen sellers online.

But the single biggest reason states are making “scalping” legal is that it actually lowers the average cost of the tickets on the secondary market.

What?

I know - this is counter-intuitive, but consider the following:

1.  When it is illegal, only a few individuals will risk buying the tickets for the purpose of resale.  Because only a few have tickets for sale, and plenty of people still want them, prices go soaring.  (Small supply, large demand.)  Think of illegal drugs.  They would be much cheaper if legalized.  Or alcohol.  During prohibition in the United States, when alcohol was illegal, prices soared making criminals very wealthy.

2.  Making it legal means more people will buy tickets for the purpose of resale.  More tickets in the hands of resellers means higher supply and greater competition.  Increased competition always leads to lower prices because no one wants to have tickets left after the show starts.

3.  More sellers in the market inevitably means mistakes will be made.  New sellers might actually buy too many tickets for an event.  As the event nears, they are forced to lower their price below face value.  In this scenario, the fans pays less than if they bought it direct.  A great example is the NFL.  At least 30% of the games each season can be bought at face value or lower. 

Because I am not an attorney, I cannot give you legal advice.  I can direct you to a great link that will tell you the laws as they relate to you as a Buyer or Seller.

eBay is the largest marketplace for reselling tickets, and therefore has a great tool to help Buyers and Sellers (and eBay) stay legal.

You just need to answer if you are the buyer or seller, where the event is located, and if you reside in the same state as the event.  Click a button and you know your legal fate!

Check it out here:  http://pages.ebay.com/buyselltickets/rules.html

When we first decided we wanted to learn more about buying and selling Tickets - we didn’t really know where to start.

That was 10 years ago.  Years before eBay and StubHub were as huge as they are today.

We contacted a few Ticket Brokers and learned that they hire people to “pull tickets.”   Since many shows have residency requirements, or rules on how many tickets one person can purchase, Brokers use other people to buy tickets for them.

It’s quite simple.  The Brokers usually email their “pullers” the day before the tickets go on sale.  The email contains everything the “puller” would need to buy tickets for the Broker the next day. 

Here is an example:

Hannah Montana, Verizon Center - Washington, DC, On sale 10am tomorrow, Show Date 1/7/08.  Buy any floors Floors, and first 10 rows of lower level.  Even pairs only, no singles.  Ship 2nd day.  $10 per ticket Floors.  $7 per ticket lowers.  Will take all you can buy.

The “puller” simply logs in and buys everything he can that meets the Brokers requirements.

Once the tickets arrive at the “pullers” address, they are reshipped to the Broker.

The Broker pays the “puller” for the tickets costs, convenience charges, fees, shipping, etc and also tacks on the commission stated above.

Usually the ‘puller” is paid in full within 7 days of the original ticket purchase.

Let’s say the ticket puller had 2 credit cards, and the event  had an 8 ticket limit.  And he got lucky and was able to pull all floor seats.  He could make $160 (2 cards x 8 tickets per card x $10 per ticket.)   Let’s say he had one credit card, and only bought 4 tickets, and the tickets were lower level.  Still $28 (1 card x 4 tickets x $7 per ticket.) 

Buying the tickets takes about 5-10 minutes.  Reshipping them is another 5-10 minutes.  $28-$160 for 20 minutes of work.

The best part is you have NO risk.  The Broker has told you that he wants specific tickets, and he has told you what he will pay for them.  You don’t have to worry about anything the broker has to worry about (laws, demand for tickets, marketing, etc.)  It takes all the guesswork and risk out of the equation.

The other big advantage to starting out this way is that you will learn a ton about what shows to buy, what seats to focus on, and some trick and tips for how to get the seats.  Once you get your free education, and build up your startup capital - you can start buying and selling for yourself.

If you are interested, call or email a few Brokers.  Simply ask them if they ever hire people to “pull” tickets.  Explain that you are interested in working with them.  It’s that simple.

Good Luck! 

Think Hannah Montana tickets are expensive?

Earlier this week, Kenneth Donnell from Glasgow paid the unbelieveable sum to watch the band rehearse and perform in the one time gig this December.

 The proceeds benefited the BBC’s annual Children in Need charity drive.

Tickets for the concert were only about $250 face value, but over 1 million people submitted requests for tickets.  Only 20,000 tickets were awarded.

Led Zeppelin split in 1980 following the death of drummer John Bonham.  Bonham died from suffocation after a drinking binge.

The group’s lead singer Robert Plant Plant, guitarist Jimmy Page and bassist John Paul Jones, with Bonham’s son Jason on drums, will headline the act.

The concert is a tribute to Ahmet Ertegun, the late founder of the Atlantic Records label.  He signed the group in 1968.  Led Zeppelin have sold more than 300 million albums worldwide and the group was inducted into the Rock and Roll Hall of Fame in 1995.

As part of his purchase / donation, Donnel will get tickets for the show, be invited to a private rehearsal the day before, and will also receive a signed piece of memorabilia.

Unless it’s a check for about $190,000 - I think he overpaid!