I think they are seperate, but related things. I agree that the pay should be provided by the venue, and agreed upon before the show, as opposed to the dreaded "playin' for the door." syndrome.
It's up to the bar to decide how they will get the money to pay the band. Cover charges are not out of the ordinary, and are quite frankly a way of life in many towns. The venue has to gauge the burden the market will bear, though. Folks in NYC may not think twice about dropping a $10 cover to see a local band, whereas if a bar tried that in Buffalo, the band would probably be playing to empty seats & barstaff, and the owner would be blaming the band for not drawing a crowd... Tip jars are also a way of life in many places and a very real way for bands to supplement their meager earnings from playing at some of the venues. Many of these venues can get away with paying next to nothing to these bands because there are so many bands to choose from, there's no leverage for the bands to negotiate any more cash. The guy booking for the bar can say, "If you don't want to play for $150 , there's 20 more bands out there that will". And sure as the pope wears a funny hat, one of those bands will take that gig.
It's a hard philosophy for most musicians to adapt to, but many a night, I've been in bands that made more from the tip jar than from the bar. A LOT more. If you're providing a service (music) that the customer likes, there's nothing wrong with letting them throw some cash your way as a way of showing appreciation for your talents. I just hate when the frontman spends more time reminding the crowd about the jar than they spend fronting the band. Nothing wrong with having a jar out there visible, and mentioning that it's there if anyone's interested, but I've seen acts that would stop in the middle of the song and refuse to play until someone dropped a $5 in the bucket. I think that's obnoxious , and more than a little excessive.
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