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November 10, 2009 5:44 PM PST

Will Craigslist drive scalpers out of business?

by Matt Rosoff
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Ticket scalping has been a hot topic in the music industry for years, causing a lot of uproar and complaints among music fans.

The sad fact of the matter is that lots of parties in the music industry try to sell secondhand tickets for a markup. Ticketmaster owns a premium resale service called TicketsNow. It also owns a resale exchange, TicketExchange, which lets any individual (including scalpers) buy or sell a ticket. Even artists and managers frequently take their allotments and sell them on broker sites for a markup, as The Wall Street Journal has reported.

Worst of all is the fan club scam, where fans pay for the right to get in line for presale tickets--but joining the club doesn't necessarily get you a ticket before the scalpers have snapped them all up, as Keith Urban fans in Nashville recently discovered.

I can't get too angry, though. I haven't bought a ticket from a scalper in years, and I've never gone through a ticket broker. I get good seats well after they go on sale and can usually get into sold-out shows. And they almost never cost me more than the original retail price.

It's not magic: it's Craigslist. I wait until a few days before the show, then run a search for the band I want to see. Inevitably, I find a few people who bought a ticket then had an irresolvable conflict. These are normal people--not scalpers, just fans like you and me--and they almost always settle for what they paid, or even less. If I'm not happy with the price, I move on--there always seem to be more sellers, especially the on day of the show.

You can't get tickets to this Friday's Pixies show through the official site for the venue, STG Presents, but there are plenty of tickets at fair prices on Craigslist.

This month alone, I've scored floor seats to Steely Dan well after they were gone from Ticketmaster's site, and a pit ticket to Friday's Pixies show, which is entirely sold out. I've had such good luck that I'm considering abandoning Ticketmaster and other ticket sellers completely. The seats are better, they're the same price or cheaper, and I'm usually helping a fellow fan out of a jam.

There are ticket brokers and other professionals gumming up the ads on Craigslist, but you can scope them out pretty quickly--they often list ticket prices as $1 (because they're actually selling lots of tickets at different prices) or have some other giveaway like an overly generic headline ("Great seats") or obviously inflated prices. Regular fans tend to list the exact seat number in the ad and a price that's pretty close to what they paid.

There will always be some demand for professional ticket brokers; people who want to impress an important business client with great seats don't want to wait until the last minute and risk striking out. And for some shows, fans would rather sacrifice a body part than sell their tickets--I'm thinking of the early shows on the 2007 reunion tour by The Police, for instance. But for many shows, Craigslist is a far better deal than the professional sites. Which makes me wonder how long they'll last.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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Will Craigslist drive scalpers out of business?
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by zerobeta November 10, 2009 6:22 PM PST
Hate to break it to you but a lot of those people are ticket brokers/speculators.
Reply to this comment
by basraw November 11, 2009 9:47 AM PST
did you even read the article?

understand it before you speak!

I used CL to see a WWE ticket for a seat one day when the 3rd person in my group had a conflict. Got close to face value. I was happy and he was happy to be down in the front..
by master_mind413 November 10, 2009 8:03 PM PST
dont trust craigs list never have never will to many scams to many deaths to many roberies for my taste ill stick to ebay or amazon.com
Reply to this comment
by BigGuns149 November 10, 2009 8:31 PM PST
I can understand prefering Amazon, but ebay? Ebay is just as scammy if not more so than Craigslist.
by tektaktyks November 10, 2009 9:52 PM PST
ebay is not as bad as craigslist..come on. sure there are shady deals but you get some protection with paypal ...
by geebocom November 11, 2009 9:48 AM PST
geebo.com has a fraction of reported incidents as that of cl. in fact, since going live nearly 10 yrs ago there has only be one (1) reported incident of scamfoolery.
by Copperfall November 10, 2009 8:48 PM PST
How do you complete a ticket transaction on Craig's List? A person could send money off to who-knows-who and get nothing in return! At least on eBay, PayPal pays the seller before the tickets are sent.
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by faceless128 November 10, 2009 11:55 PM PST
Most deals on Craigslist are completed in person. You don't just send money off!!
by SEXYDIVERGUY November 10, 2009 9:54 PM PST
I wound up with 4 extra Stones tickets a couple of years back due to a misunderstanding and had got myself a near front row ticket for myself.

I sold two to friends listed the other two on kijiji (like Craigs list)..at cost. These were premium seats that could have fetched $700.00 ea. I sold at face value...interesting that people offered to pay me more.
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by mike-fansnap November 10, 2009 9:55 PM PST
All parts of the the ticket resale market are booming including concert tickets and especially the sports market (where all the teams and now leagues have endorsed marketplaces) . It is just a matter of customer segmentation. Value conscious non-service sensitive buyers use Craigslist, which is basically internet-enabled street scalping. Fans get a chance at a bargain by meeting a stranger somewhere, paying cash, but taking the chance that the tickets are fake. eBay represents the mid-tier where fans get the benefit of using paypal and seeing seller ratings but they still have to deal with auctions and arranging logistics with the seller. Less risky, and more convenient. The high end is StubHub. Toll free customer service, money back guarantee, managed logistics and pick up offices. No risk. It all depends on what you want to pay for.
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by cvaldes1831 November 11, 2009 1:31 AM PST
Mike is right. Craigslist is basically Internet-enabled street scalping.

Heck, I see street scalping at classical concerts. Relatively little risk of counterfeiting or fraud at these events, it's typically onesies or twosies for a hot performer.

You can really see the legit users on Craigslist when the act has multiple shows at the same venue. Many just want to trade dates and will do a flat one-to-one swap (general admission tickets, I'm talking about).
by davidmcelroy_dotmac November 10, 2009 11:15 PM PST
Why in the world is it a "sad fact" that people are trying to make money on tickets? Why are tickets any different from ANY other commodity that's in limited supply? People buy land in certain places and hope the value goes up so they can make a profit. It's the same with tickets. The market determines the value. If brokers buy a bunch of tickets for an event that ends up not being very popular, consumers can actually pay less than face value at times. (I've done that with football tickets when the brokers end up having to dump tickets at the last second at a loss.) It's just a simple market, like anything else. Yes, there are scammers involved in any business, but the basic business -- buying and selling tickets in an effort to make a profit -- is a reasonable and logical business. When there's fraud, we ought to go after that. But when it's just honest buyers and sellers making transactions based on what the market will bear, that's nobody's business but theirs.
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by DragonStab November 11, 2009 5:29 AM PST
Spoken like a true scalper.
by basraw November 11, 2009 9:48 AM PST
same thing with airline seats.

prices go up the closer you get to the flight date, and seat availability
by davidmcelroy_dotmac November 11, 2009 12:27 PM PST
@DragonStab: Perhaps you could try using some logic in your reply next time. Your ad hominem approach doesn't do much to advance your case. I presume it's because you HAVE NO LOGICAL CASE, so it's easier to make up things about the person who IS making the rational argument.
by setjeff15081947 November 12, 2009 2:55 PM PST
This is the most reasoned, thoughtful comment I've seen, including most of my own, on C-Net or, for that matter, on most other sites.
"davidmcelroy_dotmac" ... Thank You For Taking A Few Moments Of Your Time To Post This Insight Often Forgotten In Our We-Want-To-Be-Taken-Care-Of Society.
"What the Market Will Bear" is an imperfect, but best we know of, mechanism for rewarding, and punishing, the Risk-Takers a vibrant economy, and country, sorely needs to flourish.
by biffhenerson November 11, 2009 5:33 AM PST
I will never do business with Craigslist. Although scalping is legal here, I buy all of my tickets through a local vendor's web site. I have never had any problems finding seats and parking in prime locations to any event in the country. The local vendor has earned my trust and provides excellent service. One less thing abouth which to worry. If I'm ever in the market for a hooker housekeeper, perhaps I will try a different web site.
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by wellsgt November 11, 2009 6:27 AM PST
The real scalpers are Ticketmaster and LiveNation
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by cbscowards November 11, 2009 9:07 AM PST
agreed. Ticketmaster brings innovations like "convenience fees" if I want to print out my own ticket and save them money in staffing costs.

It burns me up every time I buy a ticket from them when they are the exclusive seller and then see the list of fees and charges they tack on. They are worse than the airlines.
by krosafcheg November 11, 2009 7:54 AM PST
livenation also sometimes has one day sales. I saw Blues traveler a couple weeks ago for $10 per tic.

and you don't do business with Craigslist, you do business with the person selling the ticket. (scalper or not)
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by frankz00 November 11, 2009 7:56 AM PST
Short answer: YES!
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by aesculus09 November 12, 2009 4:28 AM PST
be cautious using craigslist. there is an article on LA Weekly about a guy who scammed close to 1.000 people on fake U2 tickets recently. if you get scammed, after you report it to the authorities, submit the fraudster's email address to suspectedscammers.com. we publish fraudster email addresses on our homepage as a reference for people doing business on the internet. submissions to the database and searches through the database are anonymous and free. if you get scammed, help prevent the scam artist from striking again by posting his email address on our website.
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by dkeller2 November 14, 2009 5:48 PM PST
Most of you will call me a "scalper" - which I am.

CL is not a threat to scalpers. It is too hard for the average user to compare seats and prices. Many other sites out there are specific to the ticket buying process.

People like me buy a lot of the inventory and sell them through the non-CL sources.

Speaking of scalpers - why the hate? When someone buys ans sells a house we call them a "house flipper" and give them a TV show. Why not "ticket Flippers" See more commentary at http://www.MyTicketSite.com
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by E_J_W November 15, 2009 9:07 AM PST
Hi. To find the best deal on show or sports tickets, you really need to look at all sources, Craigslist, Ticketmaster, Resellers, and ebay. This is far from a perfect market! Zebratickets.com is a site that actually searches both the primary and secondary ticket sellers and presents all the options on one page for you. Not only does this save you time, but it insures that you see all the options for a particular show on an even playing field. You can then make an informed decision as to whether to buy through a legitimate reseller or an independent seller on Craigslist.
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by jackfrompenn November 23, 2009 11:01 AM PST
I bought tickets from craigslist and when I showed up to purchase them from the buyer, I had a gun held to my head. anyone who complains about paying a broker a fee for purchasing tix is a moron! especially on CL. talk about a risky proposition.
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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