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Advice on starting a tribute band

This is true, but the really good tribute bands are playing the casino circuit, i.e., real livable wages.

This is true and a borderline "residency" scenario in some locales like Vegas: one venue (...maybe more?) where the audience changes on a daily basis. Danny Miranda (BOC) covered the Vegas-based "We Will Rock You" Queen tribute...just one example. "Yacht Rock Review" is another that's doing well on the casino / larger venue circuit...it's a stellar show. Not quite a "tribute" band but you get the idea.

Riis
 
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This is true, but the really good tribute bands are playing the casino circuit, i.e., real livable wages.

Some of those are not really bands, but a collective of musicians hired to play as that band for that show. Classic Albums Live comes to mind... Those guys show up all over the place and most of them do way more than just play on the casino circuit.
 
Whatever it is, it’s the most lucrative way to make bank playing cover tunes these days.

The most successful bands I'm in will play in front of hundreds of people and can charge $20+ at the door. We're not playing bars; we're playing legit venues. We get to make a lot of people have a ton of fun; having tons of people going wild and screaming the lyrics back at you is a rush. I get women a decade+ younger than me throwing themselves at me after the show (this doesn't matter but the attention is fun). We can play for as little as an hour and still net upwards of $1,500.

I'm a pretty good songwriter and used to be in some really good bands. Writing and playing my music means a lot to me. But we'd be lucky to play in front of a lot of people and they certainly didn't know our material in large #s. I've quit bands when they went on tour because I like having housing and food.

I thought primarily playing covers was lame until 2019 and I hadn't done it since high school. But this is really, really fun. And anybody can make a case that pretty much everything in music is lame if they want to. The boundaries of what is "good" and "real" is super subjective. I know people who mix both original and cover/tribute bands (along with teaching and other activities) to make enough money to get by. They generally llike/love the music in the cover and tributes so there's so passion in with the money.
 
To be successful and make $$…..
The musical ability to play the songs, correctly.
The look. The front man / woman has to have it. One or two more of the group helps.
The right clothing. If the band like AC/DC has been around a long time, the “early look” vs now and if playing the early catalog look like the early years ( The Beatles in 64 vs in 70 )
The show on stage. Does the band have things that they are known for ? Look at as many clips on u-tube as ya can.
Backline look. Van Halen tribute with a Fender Twin. Use the correct guitars & Basses. Color too. Like a play, it’s your stage, props.
Your agent. There are some I hate to say “good ones” but…..
We used one that booked all over the USA , Mexico, and ….. they have 100+ acts and some are awesome. They paid very well. Fly-away shows sure but they will use groups close to the venue so to have 5 of the same is good for them if located all over the map.
Once you are “ready” get involved with another band or two that work along your genre,
80’s classic rock for example. Many clubs will have two or three bands per night. Have a tight 1 to 1.5 hour set as well as 2 hours. Once you develop a following you’re not as dependent on working as a “team” with other bands. The club or agent will book your band and fill in the opening and closing bands or….
Learn the market. A lot of casinos around ?? How many clubs in your area book Tributes ? You can’t play the same place too much.
After 13+ years I’ve picked up quite a bit.
 
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Don't forget Dread Zeppelin with Tortelvis!

Dread Zeppelin - Wikipedia
Of course, then there’s Lez Zeppelin, Zeparella, Mac Sabbath, Brown Sabbath and Mini-Kiss. I was just trying to stay within the Acca Dacca parameter. It’s interesting how there’s so many other all-female AC/DC tribs, Black Sabbath as well. I used to work with a woman who fronted an all-female Misfits trib, Ms.Fits, but Danzig made them change the name.
 
A thought on developing the set list. In order to make the song choice simpler and prevent arguments, pick a tour, Back in Black for example. Use that setlist. Easy. Watch the tour footage and recreate that tour.