I do a massive amount of work with indie bands in Melbourne and Bandcamp/Physical Records/Merch is the only way a lot of them make money (other than the rare big show). Most tours lose money.
I want to support the artists, so i usually get one if I liked the show, but sometimes I wish they would get more creative with merch options. I know there's an upfront cost and focusing on t-shirts is a pretty safe option. But I just love it when they get creative with patches, stickers, hip flasks, rings, belt buckles, skulls, necklaces, booty shorts, all kinds of stuff.
It may be a little bit odd, since I usually don't like obvious branding and advertising, but doing something different will absolutely make me consider buying more merch.
But it feels sort of condescending to just hand them money at a show.
Though I think a lot of places around here have a beer allowance for performers. I'll give it a go, though :-)
One man and a guitar have much lower overheads than a four-piece band with a trailerload of equipment - you can't take a drum kit as cabin baggage. The band have to sell four times as many tickets to make the same revenue per person.
Even if a band can draw a bigger crowd and sell more tickets, the economics are still stacked against them. Small venues generally provide a house PA system and lighting rig, but larger venues don't. Equipment hire or a touring road crew take a huge bite out of ticket sales. Bigger venues also offer less favourable terms to artists, because they're far more likely to have a local monopoly.
I think this is a hugely overlooked factor in the decline of rock music. Young musicians are smart enough to realise that drummers and bass players need to be paid, but drum machines and looper pedals don't.
I sold $330 worth of tickets (small sunday night show), paid the soundperson $160 ($40 an hour), $50 for poster design and printing and then $100 to hire a set of drums... works out that each band ends up with $5???