A record company will cover the expenses of a tour that exceed a tour’s revenue. Note, however, that tour support is almost always recoupable from artist royalties.
The New Formula for Success in the Music Business
The old method of promoting a new act in the music business was for a record company to invest at least $500,000 in studio time with a good producer, the cost of a good video, the advertising budget, and the cost of the first promotional road tour.
