The Secret Business of Nightclubs

Every city has nightclubs - social venues where people can mingle with strangers, dance with friends, and escape the monotony of life in an environment of darkness, music, and chaos.  As businesses, all nightclubs face the same challenge every week.  If you’re a club owner, how do you make your nightclub desirable?  How can you make your nightclub pop on a regular Thursday, Friday, or Saturday without headliners? 

The answer is promoters.  Promoters are the invisible men and women who work tirelessly to turn clubs from slow, empty venues into packed, exciting destinations every week.  Cities are defined by their nightlife and Chicago is home to some of the best clubs in the world. 

In this Modern MBA exclusive, we’re diving deep into the secret world of nightclubs and club promoters.  We’ll ride along with 3 of the city’s leading promoters in Derrick, Jay, and Eric, observe their hustle, and learn the strategies that they use to throw the hottest parties in Chicago.

0:00 Laws of Nightlife
1:39 Sponsor Break (Kajabi)
3:25 Principles of Promotion
12:51 Designed for Scale
23:27 Clubs Over Tables

[AZaqZaqProduction]

The whole subsidizing women thing really gives new perspective to the saying "if the product is free, you are the product"

[BldnFlmes]

4th grade math teacher moonlighting as a club promoter is the exact type of lore I came here for lmao, I love it

[johanslabbert]

The first two promoters are good but that last guy, wow what a professional.

[dominicspier]

Im socially exhausted just watching this

[miguel]

Eric is a true artist. His creation is really unique and special. Bringing "non-club" people to a club and having them enjoy themselves completely on a Thursday is brilliant. He earns every dollar he makes. Talk about a value add...

[FinancialShinanigan]

Thumbnail got me thinking it's a VICE video lol

[Autotad]

I love that I feel like I’m watching a National Geographic documentary with this. Haven’t been to a club in 15 years but it’s awesome seeing what really happened back then.

[Oceanatornowk]

Damn Modern MBA pulling out the disclaimer for this one

[akjost]

So essentially, when I go to a club, I don't get the priority treatment, and I am paying for the whole thing. Incredible!

[RomelMaldonado]

This is so similar to seeding a game server. People want to go where other people are present. Seeding is where you and your buddies hop on a server and just play together, eventually randoms begin joining and the server gets filled organically.

[aznpwnerp]

Can’t wait for the wendover collab on the logistics of supply chain of girls to clubs lol

[anush_agrawal]

One of the most unique business case study. The quality is off charts.

[yaizudamashii]

What I was impressed with Eric's party was that the partygoers do not look like traditionally club going people. Their race and profiles seem to be out of normal crowds attracted to clubs, and his events expands the horizons for the people themselves and the club expands the clientele on behalf of the industry. Eric is really doing a phenomenal job, from what's shown in the video.

[CCGarland]

Eric is meant to do this! You can tell bringing people together and having a great time is his passion.

[GuRuGeorge]

I used to be a dj and some promoters were even clever enough to ask the ladies what their favourite songs are and he then asked me to play them at specific times. Little gestures like that can go a long way, especially when a night is tough and there aren't as many guests or it gets super warm inside because the AC is broken or whatever reason. In the end it is the tough nights, that define the promoter's skill (and also the dj's skill)

[codingiswhyicryatnight]

I actually LOVE this format. Seeing multiple different people and the ways that they work and accomplish the goals required by the industry in their own ways is so illuminating, and I really hope we get to see and meet more people this way. And kudos to everyone featured on their hard work and their future successes. :-)

[ericbosschicago]

@ModernMBA Great video and awesome experience my guy. Glad you were able to see our world behind the scenes. Really appreciate working with you, thanks for everything! See you in May!

[BenCaesar]

Loved this format! It’s not theoretical breakdowns and spreadsheets which is great on its own but this is on the ground and gives real perspective. And draws parallels to other businesses which is genius. This channel is doing the work for real!
Would be interesting to look at the macro of nightlife as a business as the newer generation is reportedly not going out as much.

[pavelgladkevich]

Wow what an insane amount of effort... seems exhausting to do that every night. Can't believe that second guy manages to do it while also being a school teacher. Major props to Eric too, super cool the atmosphere he cultivates.

[davianoinglesias]

I love Erics model of business, morally and economically. It feels more genuine