A well-executed merch operation can generate $15-30 per converting fan, making it potentially your most lucrative revenue stream on a unit basis. Beyond direct revenue, merchandise also creates compounding benefits throughout your music ecosystem:

• Walking Billboards: Every shirt worn creates dozens of impressions
• Content Generation: Fans posting about merch creates organic social content
• Community Signaling: Visible merchandise helps fans identify each other
• Data Collection: Merch interactions create opportunities for email capture
• Revenue Diversification: Reduces dependence on streaming or ticket income

Not all merch is created equal. After years of selling merch with my band Tora, clear patterns emerged about what actually sells versus what gathers dust in storage. Additionally you want to think about how much space the items take up and their durability on the road. Posters for example are a great up-sell item but after a run of show they’re usually pretty tattered. 

High-Velocity Products (Focus Here First)

These items consistently convert at the highest rates:

• T-shirts with Tour Dates: The classic backbone of music merch, with 5-10x higher conversion than generic shirts
• Limited Edition Vinyl: Even for digital-first artists, limited vinyl runs create urgency and premium pricing
• Direct-to-Consumer Bundles: Packages combining digital content with physical items at tiered price points
• Signature Items: Products that directly connect to your lyrics, aesthetic, or artist story. One of our best merch products was actually a line of Hot Sauces that we made in collaboration with a local restaurant. It wasn't suitable for international touring, but domestically we sold it all out after three shows.

Low-Performance Products (Approach with Caution)

These traditionally underperform despite their popularity with artists:

• Generic Stickers/Buttons: Low price point rarely justifies production costs
• Undifferentiated Hoodies: High production cost with inconsistent conversion
• Poster Variants: Often suffer from display and transportation issues
• Complex or Fragile Items: Anything requiring special handling creates logistical challenges

This doesn't mean never produce these items, just approach them strategically, perhaps as limited offers or special occasions rather than touring staples.

The Price Anchoring Strategy

One psychological pricing hack consistently drives higher average transactions:

1. Offer products at three distinct price tiers (e.g., $10, $25, $45)
2. Make your middle option the one you most want to sell
3. Include a premium option that makes the middle tier seem like a better value

This classic pricing psychology creates an average transaction value 30-40% higher than single-price offerings, even if few people purchase the premium option.

Converting Browsers to Buyers

One of the most valuable and underappreciated aspects of converting browsers to buyers is the energy of your merch person. If they’re friendly, willing to have a good chat and ultimately upsell products and bundles you can nearly double your merch revenue. It’s worth paying someone (usually a flat fee) to take responsibility for setting up the merch desk and doing the job well. 

• Pre-show Setup: Make sure your merch table is set up before the show! Lots of people don’t want to wait around afterwards and a line will deter them from purchasing.
• The Direct Invitation: Explicitly mention merch availability from stage, ideally 2/3 through your set rather than at the very end
• The Display Hierarchy: Position best-sellers at eye level and arrange products by price tier
• The Bundle Offer: Create time-limited bundle deals specifically for each show
• The Personal Touch: Have band members work the merch table immediately after performing
• The Payment Friction Reducer: Accept multiple payment methods including contactless options

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