Scalping concert tickets has long been a common way to turn a profit. But is there a business in reselling tickets for face value?
Some investors think so, and have poured millions into a variety of ticket-exchange startups, as consumer frustration mounts over quick concert sellouts and high prices on the secondary market. (Google announced on Feb. 7 that it will require resellers to be more transparent in their advertising.) To monetize the model, Twickets plans to charge face-value ticket buyers a 15 percent fee, while Lyte marks up refunded tickets but prices them well below the secondary market, undercutting scalpers and attracting interest from concert promoters who want to control their inventories.
"The sweet spot isn't reselling the ticket for what the fan paid," says Lyte founder Ant Taylor, "but driving the cost of a ticket as close to face value as possible."