Funding / Guide: Collecting Tips for Music Venues
Collecting Tips at Your Music Venue: Overview
- Purpose: Help music venues set up simple, effective systems for collecting tips from customers in-person and online.
- Focus areas: Physical tip jars, card/terminal tipping, QR codes, tip buttons on websites, livestream tipping, and fair distribution policies.
- Outcome: More support for staff and artists, increased revenue, and a smoother experience for guests who want to show appreciation.
1. Clarify Who the Tips Are For
- Staff tips: Tips for bar staff, servers, door staff, cloakroom, etc.
- Artist tips: Tips for bands, DJs, sound engineers, or specific performers.
- House vs artist split: Decide if tips are:
- 100% for staff
- 100% for the artist(s)
- Split between house and performers (e.g., 50/50)
- Transparency: Clearly tell customers where tips go:
- “Tips support our bar team.”
- “All tips go directly to tonight’s performers.”
- “Tips are shared between the venue team and artists.”
2. Traditional Tip Jars at the Venue
- Placement:
- On the bar counter (high traffic).
- At the merch table or stage edge for artist tips.
- Near the exit with a “Thank you!” sign.
- Design & signage:
- Use clear containers so people see existing tips.
- Add simple, bold signage: “Tips for the team!” or “Support the band!”
- Consider fun prompts (“If you love live music, tip here.”).
- Security:
- Keep jars within staff sight at all times.
- Empty regularly into a secure till or safe during busy nights.
- Use weighted or anchored jars in crowded spaces.
- Pros: Simple, cheap, intuitive for customers.
- Cons: Cash-only; less effective as more people go cashless.
3. Card & Terminal Tipping In-Person
- Integrated POS tipping:
- Enable prompting on card terminals (e.g., “Add a tip?”).
- Offer preset amounts (e.g., 10%, 15%, 20%) plus “No tip” option.
- Use staff training to always hand the terminal to the customer, not press buttons for them.
- Tip-only transactions:
- Set up an item like “Staff Tip” or “Artist Tip” in your POS software.
- Allow customers to tap card or phone just to leave a tip, even if they’re not buying a drink.
- Distribution settings:
- Ensure your POS system can report tips separately from sales.
- Configure staff profiles so tips can be pooled or assigned by shift.
- Pros: Works for cashless guests; can significantly increase tipping amounts.
- Cons: Transaction fees; requires proper POS setup and staff training.
4. QR Code Tip Stations in the Venue
- How it works:
- Create payment links through providers like PayPal, Stripe, Buy Me a Coffee, Ko-fi, or a dedicated tipping app.
- Generate QR codes that point directly to these links.
- Print and display the QR codes around the venue.
- Placement ideas:
- On tables, menus, and bar mats.
- On posters near the stage (“Tip the band” QR code).
- On the back of staff lanyards or badges (“Tip your bartender”).
- Messaging:
- Use short copy: “Scan to tip the band,” “Scan to tip our team.”
- Clarify destination: “All tips go to tonight’s performers.”
- Pros: Fast, contactless, works with phones, easy to link to multiple accounts (bar vs artist).
- Cons: Requires data/wifi; needs clear instructions for less tech-savvy customers.
5. Adding Tip Buttons on Your Website
- Why website tipping matters:
- Allows supporters to tip even when they’re not physically at the venue.
- Works well for fans watching livestreams or checking your event listings.
- Creates an ongoing income stream between shows.
- Where to place tip buttons:
- Homepage: A small but visible “Support the Venue” or “Leave a Tip” button.
- Event pages: “Enjoy our shows? Tip the venue or the artists here.”
- Livestream / video pages: “Tip during this show” link next to the video player.
- Footer or navigation: Persistent “Support Us” or “Donate/Tip” link.
- How to set up a tip button (simple method):
- Use a payment provider (PayPal, Stripe, Square, Buy Me a Coffee, Ko-fi, etc.).
- Create a “donation” or “support” page/link with:
- Preset amounts (e.g., $5, $10, $20) and a custom amount field.
- Optional message field for supporters.
- Embed their button or copy their HTML snippet onto your site.
- Style the button to match your branding (colour, font, size).
- Suggested button text:
- “Support Live Music”
- “Tip the Venue”
- “Tip Our Team & Artists”
- “Buy the Venue a Drink” (fun, informal)
- Best practices:
- Keep the process to as few clicks as possible.
- Make sure the page is mobile-friendly.
- Include a short explanation of where tips go: “Your tips help pay our staff and keep grassroots music alive.”
6. Digital Wallets & App-Based Tipping
- Supported payment methods:
- Apple Pay, Google Pay, and other mobile wallets.
- Local payment apps (e.g., popular regional banking or QR payment apps).
- Implementation:
- Ensure your payment processor supports one-tap wallet payments.
- Test the flow from mobile devices: scanning QR → tip amount → payment.
- Consider short URLs for social media bios (“Tip us: venue.com/tip”).
- Pros: Fast, frictionless, especially on mobile; ideal for quick impulses to tip.
- Cons: Depends on tech stack and payment gateway compatibility; transaction fees apply.
7. Tipping for Livestreams & Online Events
- Integration with streaming platforms:
- Use built-in features (e.g., “Super Chats,” “Stars,” or platform-specific tipping).
- Include external links in the description (PayPal/Stripe/Ko-fi tip pages).
- Display QR codes on screen during the stream (“Scan to tip”).
- On-screen prompts:
- Occasional verbal mention: “If you’d like to support the venue and artists, the tip link is below.”
- Lower-third graphics with a short URL or QR code.
- Split arrangements:
- Agree with artists in advance how livestream tips will be divided.
- Communicate this to viewers (e.g., “All tips are split 50/50 between artists and venue.”).
8. Communicating About Tips Without Awkwardness
- Signage tone of voice:
- Friendly and grateful, not pushy: “If you’d like to support…”
- Align with venue personality (serious, playful, DIY, classy, etc.).
- Staff language:
- Train staff to inform, not pressure: “You’ll see a tip prompt on the screen; it’s totally optional.”
- Discourage staff from pressing tip buttons on customers’ behalf.
- Artist messaging:
- Performers can gently remind audiences: “If you enjoyed the set, feel free to tip using the QR on the table.”
- Keep it light and appreciative, not guilt-based.
9. Tracking, Accounting & Tip Distribution
- Separate tip reporting:
- Configure your POS and online payment tools to tag tips separately from sales.
- Export reports regularly to track how much was collected and when.
- Tip pooling policies:
- Decide how tips are shared (equal split, hours worked, role-based weighting).
- Apply policies consistently and explain them clearly to staff.
- Artist payment:
- Use clear spreadsheets or band settlement sheets to show tip income for each show.
- Pay promptly after the event and provide a breakdown.
- Tax and legal considerations:
- Check local regulations on tip reporting, payroll taxes, and service charges.
- Decide whether tips are processed through payroll or distributed separately.
10. Testing & Improving Your Tip Systems
- Experiment with placement:
- Move QR codes and jars to different spots and track differences.
- Try putting tip prompts on drink menus or posters.
- Test messaging:
- Compare serious vs playful text (“Support our staff” vs “If we made your night, toss us a tip”).
- Highlight specific goals: “Tips help us pay fair artist fees.”
- Monitor data:
- Look at average tips per show or per customer over several weeks.
- See whether certain events, genres, or times of day generate more tips.
- Ask for feedback:
- Informally ask regulars if the tip options are easy to use.
- Adjust based on their experiences and suggestions.
11. Tip Collection Checklist for Music Venues
- In-venue setup:
- Tip jars placed and clearly labelled.
- Card terminal tipping enabled with preset options.
- Tip-only POS item created (“Staff Tip”, “Artist Tip”).
- QR code tip posters printed and posted.
- Online & website:
- Tip/support page created with payment provider.
- Tip buttons added to homepage, event pages, and footer.
- Short URL and/or QR code created for social bios and livestreams.
- Policies & communication:
- Clear decision on who receives tips (staff, artists, both).
- Written tip distribution policy shared with staff and artists.
- Staff trained to mention tip options in a friendly, non-pushy way.
- Admin & review:
- Accounting system set up to track tips separately.
- Tax/legal guidance checked for your region.
- Regular review of tip levels and system performance.