Main menu

Pages

How to start a company/website to sell tickets online

How to start a company/website to sell tickets online


On the high end (big venues, high-profile events, huge volume), the ticketing industry is an oligopoly with substantial obstacles to entry (cash, customer relationships, infrastructure), and it's very competitive on the low end (tons of small companies can make the tech work and they fight each other over clients). Find a solid niche or be prepared to invest heavily in the problem.


The technology is the (largely) simple part.


Selling tickets online is a simple technical challenge to address. It is, at its most basic, a shopping cart.


You're selling an event ticket rather than a widget. Shopping cart lessons are available for any programming language (PHP, Rails, whatever). It becomes more difficult when dealing with highly sought-after events with limited quantity. You must ensure that you only sell the merchandise that is currently available, nothing more and nothing less.


Pending transactions are accounted for and tickets are reserved (to avoid selling the same ticket twice) until the transaction is completed or canceled, or until a countdown timer expires. You make and distribute bar codes, and you have the ability to scan them at the venue to allow single entry (this becomes more difficult with many points of entry and a lack of dependable internet connectivity, but that's a topic for another post).


I'd start by looking for a client who can sell 60k tickets on your platform in a single year, let alone for a single event.


Is this thing on?


What is your distinct competitive advantage? I'd look closely at the competition environment of whichever vertical and geographic market you're contemplating. Who are your rivals? Is there actually a chance for you to steal market share, and how much would that market share cost you? You will invest money to construct your product, but you will also most likely incur considerable client acquisition expenditures.


Perhaps you've previously researched your target market and determined that there is an opportunity waiting to be capitalized on. If so, congratulations, and please disregard the rest of this.


Modern ticketing is more about financing (and sales) than it is about technology (at least in competitive marketplaces). The large corporations with high-profile clients pay their clients a lot of money in order to earn and keep their business (in the form of signing bonuses, advances, investments in technology infrastructure, and sizable rebates for every ticket sold). This requires a lot of money.


When compared to other high-tech businesses, the technology that drives the world's largest ticketing corporation was built decades ago and is not exactly cutting-edge.


Because it doesn't have to be. It simply has to function (i.e., allow users to buy event tickets, pay money to event organizers, offer sales reports, and allow scanning/checking in at the event).


So, assuming you agree with me that developing a better mouse trap isn't going to help you take clients from the big companies, and assuming you don't have a few hundred million dollars under your bed to invest in purchasing clients away, what can you do?


One possible path forward


If you're already in this and need to find out how to safeguard and maximize your investment, my best recommendation is to identify which of your competitors' clients are underserved by their existing service providers. Which client segments are at the bottom of the totem pole? These are clients on whom you could establish a solid/consistent company, but who aren't particularly significant to their current provider.


Ticketmaster is the major ticketing firm in the United States and several other countries around the world. That hasn't stopped other companies from starting and flourishing in areas other than Ticketmaster's concentration, with some of them being acquired by Ticketmaster or someone else.


When Ticketmaster was mainly focused on arenas and larger venues, TicketWeb began selling tickets online in 1996 and created a client base of clubs and other small venues. Ticketmaster bought TicketWeb four years later. [The TicketWeb founders went on to found Ticketfly. Here's more: A $22 million plane ticket | WIRED]


Flavorus was one of the companies who sold tickets for electronic dance music performances back when most of them took place in warehouses and other out-of-the-way places. Flavorus was acquired by SFX Entertainment last year and is still growing (SFX to Add Premier Ticketing Company with Agreement to Acquire Flavorus).


Perhaps there is a chance to create a firm in a market that is currently underserved by larger/richer corporations. Who knows...they might buy you. Ticketmaster has expanded through acquisition in a number of countries. (Ticketmaster acquires Sherpa.be, a Belgian ticketing company)


Best wishes as you navigate your course.


Thank you 


Comments