Ticket Scalping: How Does it Work?

Many people do not understand the business of scalping tickets. They understand that it involves the resell of tickets, but the lines between what is legal and illegal aren't exactly clear. In fact, many people are afraid to buy tickets from scalpers simply because they're afraid they'll be committing an illegal act. This article discusses the matter and clears up the confusion on the multi-million dollar business.

Scalping is the simple act of reselling tickets for a profit, where it's a sporting event or a concert. It's simple economics, really. A scalper buys the tickets low and sells them high for a profit. Many established ticket resell companies choose to refer to themselves as "ticket brokers" rather than "scalpers," although they use the same business methods. "Scalping" has earned many negative connotations over the years. Many people criticize the business because it prevents those who genuinely wish to attend an event from going or they'll have to pay an extra premium to obtain a hard-to-get ticket. Whether you're a ticket broker or a scalper, you are still bound by national and state laws and must operation within those laws to maintain a legal, legitimate registered business.

How does a scalper secure these large blocks of hard-to-get tickets, you may ask? Most scalpers get these tickets prior to an event being on sale or perhaps when something is already sold out. The key in the ticket brokerage business is to have a large sphere of influence. A ticket scalper has a vast network of people that can help such as season ticket holders, individual ticket resellers, and various other ticket contacts. The season ticket holders simply contribute their tickets and will ultimately share the profits with the ticket scalper. Also, it is normal for a ticket scalper to show up at an event without tickets and hoping to buy tickets from fans at below face value so that they can resell them at a profit later on. These hard-to-get and sold-out tickets that are in high demand are exactly what fuels the ticket scalping business. It's also important to note that there is a difference between individual ticket scalpers and ticket brokers. Some individual scalpers do it on a part-time basis, while ticket brokers work full-time and often operate outside of an office or store front. Their business includes an internet website so fans can look at the most up-to-date available tickets, and there's also a call center so that the broker can answer any questions. Consumers are comfortable with this type of business because it allows them the opportunity to interact with the broker and shop around for different prices. Transactions are done in person, as well as over the phone or Internet.

The individual ticket scalper will then take the unsold tickets they acquired and work outside of the event a few hours prior to the start. Many scalpers are regulars at certain venues in the area and fans that often attend sporting or concert events feel comfortable buying from a familiar face. After all, the ticket scalper is running a legitimate business. It's not as if they're offering stolen or fake tickets like a lot of traveling scam artists do. It's these types of scalpers that give the public a bad perception of the business. Often times, regular scalpers will scan the area for people that may be offering illegal or stolen tickets. This could hurt their reputation and they'll do whatever it takes to protect the reputation of the business.

The legal aspect of the business is the part that the general public doesn't understand. One genuine concern of the public when buying tickets on the street is that the ticket is either stolen or counterfeit and they're afraid in participating in an illegal act. It's important for you to understand that these illegal tickets are often purchased on the Internet, because a scam artist is afraid to sell the counterfeit tickets in person because of the surrounding security. These scam artists should not be confused with those who conduct their business well within the federal and state laws.

A ticket scalper is prohibited by law from selling tickets on the property of the event, whether this is a parking lot or common grounds used by the stadium. Each state has their own set of laws regarding how far a scalper must be from the premises. Ticket scalpers can conduct business down the road from the event, as well as nearby sidewalks. In fact, some venues have embraced ticket scalping and have dedicated a portion of space for scalpers to stand. Also, each state differs on limiting the markup that a scalper can place on the ticket. Most ticket scalping laws are decided on by the local and state government.

As for different auction sites like eBay, the state laws are only enforced by the state that both the buyer and seller reside in. There are loopholes, however. Since laws differ from state to state, many scalpers and broker sell their tickets outside of the state. For instance, a scalper may negotiate a ticket price in North Carolina where the markup is limited, but the scalper will drive down to South Carolina for the actual sell of the ticket.

Although many people disagree with the practice of scalping tickets, it's important to understand that it's a business just like any other. If you own a clothing retail store, you get the clothing in at a reduced price and then you mark it up to sell to customers. Ticket scalping is no different. If you're considering buying a ticket from a local ticket broker then be sure to do the research to see if they're a legitimate business entity. Good luck!