What is a Ticket Broker?
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If you've ever tried to get tickets to a concert, only to find them sold out three minutes after they went on sale, look no further than a ticket broker. With legions of employees both in line and online, a ticket broker has the resources to buy more tickets and buy them faster than an individual. If you can't find tickets to an event, chances are a ticket broker has them.
Many states have laws prohibiting the sale of tickets for more than face value. Some states have laws that specifically forbid a ticket broker to do business. With the worldwide access of the Internet, a ticket broker can operate in a state that allows him or her to do business, and sell tickets to concerts, shows, and events from all over the world.
A ticket broker makes money based on supply and demand. There is an artificially small supply of event tickets, because a show only plays so many dates and there are only so many seats at a venue. This allows a ticket broker to control a significant portion of the supply of tickets, and charge ten times the ticket price or more.
The ticket broker employs a group of buyers to purchase tickets for a particular event. The buyers stand in line at points of sale or use the Internet to make online purchases. The employees deliver the tickets to the ticket broker, who then resells them, usually through a website, at a huge markup. When people are unable to find tickets to the event, they turn to the ticket broker.
Of course, there are multiple sides to the discussion. Ticket brokers claim to be providing a service. They say that by purchasing a large number of tickets and selling them at an extreme markup, they are only providing a true market economy. Their claim is that if people want to see a show badly enough to pay ten times the face value of the ticket, the ticket broker is justified in selling the ticket for that price.
Opponents of ticket brokers claim that because there is a very limited number of tickets, the brokers are providing unfair competition. They say that the ticket broker is cornering the market. These opponents do not believe that it is ethical of the brokers to act as middlemen, hoarding tickets and demanding an artificially high price without providing any significant service.
Some states have laws that agree with the ticket broker's desire to make a profit. Other states support the ticket buyer's desire to buy tickets at face value. You can bet that if there were a discussion on the issue, a ticket broker could get you a seat.
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New: Discuss this ArticlePosted by: econobiker
Problem is not the scalpers- it is the method that venues sell tickets. The actual artists would benefit more from auctioning the tickets off to the highest bidder. Then the true market value would be established. Poof- no more scalpers or brokers.
The ticket auction could go to a defined date before the event say 2 to 4 days. Then people could be emailed their seat confirmation to be printed out and then scanned in when they arrive at the event. This would be similar to what the airlines do with thousands of passengers on hundreds of flights per day... Posted by: mikebigado
The after market in event tickets is a legitimate business and is also huge. I liken it to any type of business related to supply and demand. If you don't like the high price of gasoline stop driving and ride your bike. If you don't like the high price of concert or sporting event tickets stay home and watch TV or listen to the radio.
Posted by: anon13879
The ticket brokers, in terms of the actual selling of the tickets, do not provide a necessary service to anyone. The tickets would have been sold through Ticketmaster et al, if the ticket brokers were not there; hence no service. All they are doing is cornering a market that has a very limited supply by buying up a huge chunk of said supply, and reselling it. I don't see how that's any different from buying up all of a product from local stores (eg - Best Buy) and reselling them on the street for more than was paid, and I certainly don't see the difference between a ticket broker and a scalper on the street.
Also, using the concept of 'the demand justifies the action,' is silly, as it could be applied to any number of illegal activities (eg - drugs, child pornography, etc) The thing I have the most problem with is the software advantage, as that clearly should be outlawed. Posted by: jomar928
Brokers are offering tickets on line for $11,000 to $15,000 for Celine Dion Tickets. Why so high and can they get near that price. In Atlantic City, N.J.
Editor's reply: i did a quick search for celine dion tickets for her atlantic city show...yes, there were tickets up for sale for over $11,000 USD, but there were also other tickets available in the $190-$600 range. of course, it only takes one person who is willing to pay $11,000! i don't know if the concert is "sold out," but if it is, find a reputable ticket broker who is charging a "fair" price!
Posted by: anon9073
Ticket brokers are nothing more than legal scalpers. While I understand the concept of supply and demand, many brokers have an unfair advantage by using illegal software to bypass security measures on major websites. Ticketmaster recently sued the developers of a software that allowed brokers to do exactly that - bypass the public and purchase large blocks of premium seats. Have you been to a 'sold out' concert lately? There are tons of empty seats in the closer sections, and people slyly try to move up while avoiding security. I attend at least a dozen major shows a year, and always see this happening. The empty seats are courtesy of our friendly neighborhood ticket brokers - the same guys who hire 'old school' scalpers to empty their inventory outside the venue the night of the show. So YES, ticket brokers are nothing more than glorified scalpers. They would sell you air and water if they could. I believe there should be laws in place limiting how many tickets a resale establishment can flip. I say fine them for making it nearly impossible for the average joe to get a decent seat at face value.
Posted by: anon8650
Are you kidding me? I miss the old days when you got to a ticketmaster site a bit early, stood in line and could be guaranteed a great seat, because you were there the second tickets went on sale. Brokers are thieves. It's that simple. To make an argument that you are providing a service is an outrage. My only satisfaction now is the fact that these people are miserable, sad human beings who will never stand a chance at being truly happy as long as they continue to choose this path in life.
Posted by: anon5991
Ticket Brokers = Legal Scalpers = Crooks. They have removed the opportunity for a family to attend any event. That includes sports and concerts. Have you ever wondered why tickest go "on sale" saturday morning at 10:00 AM and are sold out at 10:03 AM the same day? The brokers and their so called "employees" have bought them all up and are more than happy to sell you those $100.00 face value tickets for $275.00. Do the math...a middle class family of four wanting to attend a Red Sox game could probably do that if they were able to purchase 4 tickets at face value (let's say $40/ea x 4 = $160) but once the brokers get hold of the tickets you'll be lucky to find 4 seats together and if by chance you do find four together the cost would probably be $135/ea x 4 = $540 (against Tampa Bay not The Yankees) now putting the cost of the tickets outside the budget of the middle class family of 4. Have you ever noticed how many kids you see at a Red Sox game at Fenway Park?? Not many, and this is one of the reasons why. Ticket Brokers are nothing more than legal scalpers and in my opinion are one level lower than POND SCUM!
Posted by: anon2975
Ticket brokers don't provide a service to anyone but themselves. They're greedy, pure and simple. If someone wants tickets, they can go online and buy them. Nobody NEEDS a ticket broker to buy up all the available tickets 4 seconds after they go on sale and then mark them up 3 or 4 times. How does that help anyone except the jerk who's ripping off all the fans?
Posted by: anon802
Why does no one every complain when a ticket broker loses his shirt and has to sell tickets for half of cost? Bottom line, its about risk reward and supply demand... end of story. If a person wants to get tickets at face value then they should buy full season tickets, suffer long losing seasons to get decent seats or stand in long lines to get tickets when they go on sale to the general public.. Personally I would prefer to pay a broker to do all that for me so I can enjoy the few games I attend a year in good quality seats.. I guess the guy selling parking outside the venue or the guy selling peanuts is a scalper too? We are ALL scalpers.. and I can assure you we don't go to work for free and nor should a person who works to aquire good seats and sell them should. So anyone who has a problem with scalpers should move to Russia, because the last time I checked we weren't a socialist state.
Posted by: anon238
A Ticket Broker is as legimate as a Stock Broker which is very different from a ticket scalper. The ticket scalper usually takes the unsold inventory from the local Ticket Broker and sells them the day of the event either at the venue or near the venue. The prices depend on the demand so sometimes the tickets can be less expensive.
The article needs more facts and less opinion. It lacks proper research with regards to the law. I feel like the overall tone regarding Ticket Brokers is unnesessarily negitive.
The truth is that Ticket Brokers and Ticket Scalpers are providing a service to millions of people nationwide and worldwide. Simply put, if there wasn't a need then they wouldn't be there.
I'd like to see this article reviewed and re-written in a more objective manner.
Editor's reply: After reviewing your suggestions and the article, I feel that our expert provided a balanced discussion of ticket brokers and their trade. There are both benefits and drawbacks to ticket brokers and their effect on the market of event ticket sales.
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