10 Things Your Ticket Broker Won't Tell You

1. "We thrive on your confusion."

In recent years you might've noticed the options for buying tickets to concerts, sporting events and the theater have been expanding. First there are the venue box offices and event promoters, which sell seats directly to the public. Next comes what's called the primary market, including giants like Ticketmaster that contract with venues and promoters to sell seats at their events. Finally — and this is where things get really confusing — there's a growing secondary market for reselling tickets, including sites like StubHub (a Craigslist-style marketplace where people can sell tickets they've bought) and Onlineseats.com (which buys tickets for resale to the public).

The primary market is still the most common way to get tickets; it brought in $21 billion in 2007, versus $5 billion for the secondary market. But by 2012 the latter is expected to double its sales, according to Forrester Research. The problem is, the resellers' market is the Wild West of ticket sales, rife with opportunity as well as scam. And most folks don't even know there's a difference between primary and secondary sellers, says TicketNews.com publisher Crystal Astrachan. The upshot: When buying tickets, what you don't know can hurt you.

2. "You may be better off buying tickets the old-fashioned way."

A major reason for the growth of the secondary marketplace is the fact that people are willing to pay big bucks to see their favorite artists or teams perform. According to Forrester Research, three out of five consumers paid more than face value when buying tickets online through a secondary seller. Right now ticket prices simply aren't set as high as what they're worth on the open market, says Sucharita Mulpuru, a retail analyst at Forrester: "That's why you have a second market." Take the Super Bowl. Tickets to last season's game went for an average $3,540 on StubHub, versus $700 and $900 at face value.

The recent relaxation of antiscalping laws in 44 states — including big ticket issuers like California, Nevada and New York — has contributed as well, basically providing a free market for resellers. But that's not necessarily a good thing for consumers, says Mulpuru, who warns that eventually, the primary market will catch up and start chargingmore. "That's where this is all headed," she says. So what's the safest route for consumers? Stick to the box office or Ticketmaster when possible, until the ticket industry sorts itself out.

3. "You've got season tickets? Ka-ching!"

The secondary market has been a boon to season-ticket holders who want to sell their seats for a profit. Sean Pate, corporate communications head for StubHub, estimates 60 to 70 percent of sports tickets on the site are from season-ticket holders. But there's an important variable when it comes to price: Is the franchise any good? Seats for the Boston Celtics, one of the hottest teams in the NBA this season, went for an average $97 on StubHub, a 48 percent increase over average face value, according to Team Market Research. But owners of Miami Heat seats, one of the league's worst, were lucky to break even, Pate says.

The real money is in NFL tickets, says secondary reseller RazorGator CEO Jeff Lapin. Resale prices for football can easily be double, triple or, in the case of the Green Bay Packers, four times face value. If you happen to own season tickets to the New England Patriots, however, the team allows only face-value resale to people on its waiting list. "We state clearly that the reselling of tickets is a revocable offense," says a Patriots spokesperson. But that hasn't stopped the flow of tickets. "They're one of our best sellers," says StubHub's Pate.

4. "Our motto: 'If you can't beat 'em, join 'em.'"

TicketMaster, the largest ticket seller in the world, sold an estimated $8.3 billion worth of tickets in 2007, roughly 40 percent of all ticket revenue in the primary market, according to Mulpuru. But with the secondary marketplace on the rise, Ticketmaster has hedged its bets by creating its own fan-to-fan ticket-reselling platform, TicketExchange, and purchasing TicketsNow, the third-largest online reseller. "Ticketmaster has intentionally tried to vilify the secondary market for years, making it seem like an underground black market," says Pate. "But buying TicketsNow validates the growth and future of the secondary market."

The result? Sean Moriarity, president and CEO of Ticketmaster, says the move "will allow us to provide a safer, more reliable and efficient resale experience." Indeed, Ticketmaster's new involvement in the secondary market has introduced more consumer protection there. But make no mistake: "You've got to be very, very careful when buying tickets for big-time events," says Stephen Happel, professor of economics at Arizona State University. "Make sure the fine print says you're guaranteed a ticket."

5. "Broadway tourists are such easy marks."

Part of the problem is the size of Broadway's theaters, which have from several hundred seats to 2,000 — tiny compared with sports stadiums or amphitheaters. While there are fewer seats, the same number of brokers are snatching up tickets for the hottest events, jacking up prices. Another factor is the falling dollar, which has spawned an influx of international tourists to New York. According to The Broadway League's annual report, show attendance by foreign visitors rose almost 40 percent from the 2006 to 2007 season. So what's your best bet for scoring seats? Cohen suggests the theater box office or primary source www.broadwaytickets.com. If you don't mind the line, you can also get up to 50 percent off tickets at one of the TKTS discount booths in New York.