App lets you resell ticket if you leave early
Have you ever looked around as you’re nearing the end of a concert and noticed empty seats that were full when it started?
“It turns out fans leave early from almost every event,” says Jaime Siegel, CEO of FlipTix, a ticket-resale app that launched at a Protoje concert June 30 in Scottsdale.
“And by early, I mean people start departing oftentimes as soon as the event begins. It doesn’t really matter what it is, there’s some percentage of folks leaving early.”
And what happens to that concert ticket when those people leave the venue?
Siegel hopes to change the way you answer that.
“Those people leaving early are leaving behind dead space that’s not producing concessions or revenue for the building or the promoter and not providing an opportunity for fans to participate,” he says.
The goal of FlipTix, a proprietary algorithm, is to monetize vacated space at a discount.
How it works is that customers looking to purchase a ticket log onto the FlipTix app and and indicate they’re interested in an event.
As people start to leave, the app sends a notification saying tickets have become available.
People leaving the show will be able to press an “I’m gone” button and electronically transfer their ticket through the app to anyone who wants to watch what’s left of the performance.
“Our marketplace generally becomes live right at the time that doors open,” Siegel says. “If seats aren’t available at the moment, it’s a pretty good bet that seats will become available soon thereafter.”
Anyone who’s downloaded the app, which is available on Google Play and Apple, can check ticket inventory on any FlipTix show and buy a ticket once the show has started.
For now, the app is only being tested at one venue, BLK Live. Shows by acts such as Mark Wills, Faster Pussycat and Phil Vassar are currently on the venue’s calendar.
Prospective customers don’t have to be at the venue to purchase a ticket, says Siegel, who’s a member of the Board of Trustees at the Rock and Roll Hall of Fame and put in 16 years as Sony’s VP of intellectual property.
“They could be somewhere else. It’s all through the app. We deliver a barcode for entry into the concert. And they just walk in showing their barcode — just like if they had a ticket.”
The concept raises red flags for Danny Zelisko, a Valley promoter with 44 years of experience.
“If this exists and people know they can do it and all they have to do is sacrifice part of the show, it would deter some people from buying a full-value ticket,” he says. “I don’t see how somebody could convince me that this is a good thing. I’d be open ears to it. I’d listen. But I don’t like it.”
FlipTix launch at BLK Live
Speaking after the first two concerts, Protoje and Pat Travers Band, Siegel says, “They were both tremendous successes for us. As a beta test event, it’s about testing your technology. It’s about fan awareness. Some of our blasts on social media have had over 1,000 hits, which is huge, for our first couple weeks. We exceeded our metrics at both events in terms of proving our technology, ticket sales and customer awareness.” So how much have people been willing to spend on those gently used tickets?
“At our first two events,” Siegel says, “tickets have typically come out at halfprice – actually a little bit less than halfprice because we don’t have fees. It’s roughly in that range, half-price-ish.”
What’s to keep the ticketholder from returning to the concert and getting back in with a physical ticket?
Siegel says, “There’s no re-entry. Once you leave, you leave.”
What’s in it for the ticketholder leaving early?
“When they list a ticket in our sellers’ portal,” Siegel says, “they’ll get some revenue share back. Right now, when someone leaves, their ticket is worthless. They’ve used all the value. With us, by listing that they’ve left on the app, they will get back a percentage of the ticket price that we sell the flip at. And that revenue will vary based on the event.”
And that revenue may not be cash. It could also be gift cards, T-shirts, or a discount on another ticketing package at that venue.
Why Scottsdale?
The FlipTix headquarters is in Newport Beach, California, which begs the question: Why launch your app at a venue in Scottsdale?
“Because I know the owner of BLK Live, Kevin Johnson,” Siegel says. “Kevin spent a good chunk of his career at LiveNation, where he launched the House of Blues. He’s very tech-savvy and was very excited for the opportunity to be the beta platform. We were very lucky to engage with him.”
FlipTix is currently looking for additional venues in the Scottsdale/Phoenix area to expand into and provide more touchpoints for their customers. In the meantime, BLK Live is the only place to sample this technology.
And bringing other promoters on board could take some work. Live Nation wouldn’t comment on the story. And Zelisko doesn’t like the sound of it.
“If I was an artist, I would not like this a bit,” Zelisko says. “If I’m a hall, I don’t like it a bit. If I’m a promoter, I don’t like it a bit. People should be buying their own ticket at full price to get in to see the show. The hall gets a little bit because maybe they’ll buy a drink or something, but from the promoter and artist standpoint, they’re both being deprived of their deserved income.”
He also isn’t sure the customer will see the value in it.
“At 8:30 or 9 o’clock at night, people are gonna race down to a concert hall or an arena to see the last part of a show for a fraction of the price? It seems really odd,” he says.