Last year, This Is Money posted a Q&A featuring Viagogo. Have a look at what they said and what the actual truth is.
Q: Who are your sellers?
A: The overwhelming majority of sellers on Viagogo are ordinary sports and music fans who are trying to sell on tickets that they can no longer use.
Truth: The overwhelming majority of buyers on Viagogo are ordinary sports and music fans who are trying to buy tickets from other fans that can no longer go to the event.
Q. What percentage of sellers are fans reselling tickets because they cannot attend an event?
95% of people who sold on Viagogo in the past year, sold fewer than 10 tickets. The overwhelming majority of users on Viagogo are genuine sports and music fans selling less than 10 tickets a year. On the site, the average mark up across the majority of tickets listed on the site is around 10% -to 15%.
Around 50% of tickets sold on Viagogo sold at or below the ticket face value. Examples of great deals on the site at the moment include; McFly – you can go and see the boy band from just £15, half the face value price Peter Kay – you can see Peter Kay at the O2 from as little as £24 – face value is between £35 and £42
Truth: This 95% does not reflect the high number of tickets being sold by a small number of sellers. The remaining 5% of sellers are responsible for a disproportionately high number of tickets sold on the site.
Q. Why when there is a big ticket event do reselling tickets appear on your site within an hour of the event going onsale?
If you take festivals for example, a number of big festivals release tickets for the following year almost immediately after the festival has finished. In addition, ‘early bird tickets’ are also released up to 8 months before the festival takes place. During this time, people’s plans change such as booking a holiday, a wedding commitment and Viagogo provides a platform for consumers to resell tickets they can no longer use. What we have found is that the number of tickets listed on the site increases as the event draws closer.
Truth: Viagogo staff used company credit cards to buy a large number of tickets from primary sellers, and then resold them on Viagogo. Viagogo staff also worked directly with external ‘brokers’ who post tickets for sale on Viagogo. This was done through the sales team who maintain a constant contact with these external sellers to maximise profits.
Q. What commission do you make from reselling tickets? / Q. How much do you charge the seller? / How much do you charge the buyer?
Viagogo charges 15% to the buyer and 10% to the seller. This is standard across all events. In addition to our buyer fee we also charge for delivery. The cost of delivery varies depending on the location of the buyer and the seller. For example we charge more for international shipments.
These fees cover the cost for managing the guaranteed delivery of tickets from the seller to the buyer and will cover the cost of maintaining the website, providing customer service to both the buyer and seller, overseeing the delivery of tickets from the seller to the buyer and managing the payment processes on both sides.
Truth: Viagogo charges both ticket sellers and buyers fees. Its ticket buying fees are not listed on the site until customers go to purchase tickets. Example fees for a pair of George Michael tickets on sale at £149.99 each for the Albert Hall in October are a booking fee of £45, shipping of £11.95, plus VAT of £11.39, delivering total fees and VAT of £68.34. Seller fees are listed as 10% plus VAT on that, this would deliver a selling service fee and VAT of £36. Face value for similar George Michael tickets for this date and seats was £50.75 to £72.75.