Secondary Markets Are Strategic Markets
The secondary market tends to be a mystery to most sports business folks. It’s almost as if they ignore it out of indifference, unsure what to make of it.
Let me start off by saying that secondary markets exist all around you, in everything that you do. The difference is that aside from ticket sales secondary markets, every other secondary market doesn’t have guys with gold chains and criminal records.
At least, that’s what most people think of when they look at a ticket sales secondary market.
Those stereotypes may exist on the fringes in ticket sales secondary markets, but they are not the norm. They are actually further from the norm, as technology changes thing. And the street guys you see hustling tickets on stadium corners will always be there, but they will have fewer inventory in which to sell.
Ticket sales secondary markets are the new tech game. They are a revolution in revenue generation. And the transactions carried with them are at a level of goods, much like stock transactions, except that there is an expiration date attached to them.
The majority of ticket sales volume is produced now by high level companies, less by the local guys who cannot carry that much inventory or guarantee that much sale. This is where it becomes strategic. This is where pricing mechanisms and customer data could be helping teams enhance their revenue growth.
When teams ignore the secondary, or those working for teams don’t think it matters to them, they deny the reality of the situation. Even at the smallest teams, in minor league markets, a secondary exists for its tickets. Maybe those trades exist, but they are at a smaller rate.
And executives at those teams should be looking at them, seeing what abounds in the marketplace.