that's definately part of it... but my point is more that the venue doesn't owe the band anything if the band isn't helping the venue make more money. most certainly, crappy bands that no one wants to see aren't drawing crowds, and therefore don't deserve payment.
If the club agreed to pay the band then the club does owe the band something, they owe them compensation for services rendered. If the band is that crappy then the club owner should not have hired them.
but this is mostly directed to people here on the site who seem convinced that their band should get paid for every gig, even their first gig with their band or their band's first time in a city/venue or what not. and even more so to the people who complain about the payment they recieve for their gigs not being enough.
If the band and establishment agree to specific compensation amount then it should be honored. Just because its a bands first gig doesn't mean they are a sub-par band either. They could be spectacular.
In all my years of playing (23) I've found that the better bands don't and will not usually play the whole in the wall dives that only pay $25 - $50 a person. It's always the crap to mediocre bands that play the type of gigs. Another huge factor that determines rate of pay IME is the style of music you are playing. Classic rock, rock, and metal bands will not get into the more upscale, better playing clubs because it's not music you can dance to.
So, IMO/IME you have to place that blame on the band itself. But regardless if the club/band agree to a rate of pay then no matter how crappy the band is then they should be paid at the nights end for services rendered. If they are fired by the club half way through the night or whenever, then they should still receive a percentage of whatever the total compensation was worth. EX: Play 1/2 the night then you only get half of the pay.