This is one example of how brokers who exaggerate their connections to top Korean talent are hurting the business, with the producer of the anticipated event learning this painful lesson firsthand.
The concert, which neared a seven-figure dollar cost—vastly inflated by overpricing from their partner-brokers—was canceled after selling just a few hundred tickets in a venue that holds thousands, due to poor planning and a weak lineup.
An isolated event? Not quite.
There have been past cases where marketing teams with huge budgets failed to vet their middlemen just for a chance to secure a top Korean star amid the K-wave.
So how can brands and marketing teams avoid getting burned?
A glaring red flag is when these agents insist on signing the contract between the local brand and the broker instead of directly with the artist’s management in Korea.
This is where the overpricing happens. Some brokers and promoters reportedly earn up to $1 million per deal, even when the Korean artists charge a fraction of the amount.
The rest is basic due diligence: do your homework, check the track records of your partners, and ask around. It’s a very small industry, so word travels fast.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
