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In fact, several states including Florida, New York, and Connecticut have recently repealed their laws against “scalping.”  Some repealed the laws because it is hypocritical to say citizens can buy a house, car, baseball card, artwork or a mutual fund and sell it for a profit - but tickets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Other states repealed the laws because they were ineffective against sales made over state lines.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

Ticketmaster has always been the powerhouse when it comes to Ticket sales directly to the public.  Most venues, concerts, and sports teams use Ticketmaster to handle the initial sale of tickets.

Having said that, Ticketmaster has never been a player in the secondary ticket market.  Instead, billions of dollars are spent on tickets via eBay, StubHub, and Ticket Brokers.

Times are changing:  Ticketmaster now allows fans or Brokers to sell tickets through TicketExchange.

The concept is simple.  You go to Ticketmaster and look for tickets at face value.  If they are unavailable, you can click on the TicketExchange tab, and see if Tickets are available from other Sellers who have listed them on Ticketmaster for resale.  Most events are available, but not all.

Fans and Brokers can set their selling price anywhere they want, and Buyers are able to see the Sections, Rows, and Seats available.  Both the Seller and Buyer pay fees that are typical with any ticket transaction (although they vary by event.)

Buyers pay with their major Credit Card and are dealing directly with Ticketmaster, not the Seller.  I consider this a major advantage to buying tickets through TicketExchange.  Once you have completed payment, your tickets will be shipped either via UPS or e-mail - your choice.

There are other major advantages  for using Ticketmaster’s TicketExchange.  First, sometimes there are great deals to be found.  Like any site where fans list tickets - most tickets are prices accurately, but some are way overpriced and some are underpriced.  This can be an excellent opportunity to buy tickets at face value or lower.  If you are wondering why fans sometimes price their tickets too low - the answer is usually one of the following:  they don’t know what the market value is for the tickets, they don’t want to risk breaking the laws for selling tickets, or they are simply fans wanting to help other fans.

Possibly the largest advantage to buying tickets through TicketExchange is that they are the only tickets on the secondary market that are 100% guaranteed to be authentic.  That’s because when you sell your tickets on TicketExchange, you have to provide the barcodes on the original tickets.  Ticketmaster verifies their authenticity before placing them for sale.  Once purchased, Ticketmaster cancels the original barcodes, and issues new barcodes for your new tickets. 

Next time you need tickets for a sold out event, check out Ticketmaster’s TicketExchange:  http://www.ticketmaster.com/ticketexchangehome/