For example, this month I'm opening for Queensryche at a great (for performance) venue
First of all, grats on the show. That is a hell of an opening gig.
I find your story interesting because I would think at that level, if you are opening for a international act like that, the promoter or venue wouldn't expect you to pay.
We get about 10% of each ticket sale so we must sell every one of the 200 tickets we were given to even make a bill each; there are 6 bands on the bill, and bands are ranked by ticket sales - obviously after months of prep and advertising we don't want to go on first.
That is an insane amount of tickets! Sunset Strip clubs usually don't ask for more than 50 tix for a headlining slot on a weekend. That's pretty nuts. Add on top of that the fact there are 5 other bands competing for the slots. That's a hell of scam the promoter has going. I've played half-@$$ed festivals where they did this; basically funneled the money up to the "headliner" from the opening local acts, but no where near that many tickets.
I want to get a better idea of where you are at.
Has your band toured outside of your state before?
Do you have a CD or tracks on bandcamp for sale?
Do you have any videos on YouTube?
Here's why this matters-
If you are an act just at the beginning of your careers, this could be a great opportunity, but if you don't have the social media presence for people to latch on to after seeing you, then your money and performance are going to fall on deaf ears. If you are local-ish band that tours around to other cities on your own dime, this would be a great way to get your name out to a bigger audience, UNLESS you are already very well known in the area you are playing. If you are already a nationally known act that tours semi-regularly, it really sucks that you have to dump that much money.
How P2P can work for you-
Sometimes you have to invest a little. Playing little dive bars around your home town ain't gonna cut it. You can put a few hundred dollars into a music video, a recording, or putting yourself in front of an internationally known act that is doing pretty well for themselves right now. You can think of it as paying for advertising. Its a gamble; everything we do is.
My band plays a World Famous club about once a year that is P2P. The first time we ate a few tickets but the experience was awesome. The 2nd time, after a lot of tweaking of the band, we sold all of our tickets, and blew the doors of the place. In my humble opinion, we showed up the headliner; like bad. We are planning a third show with bands we picked and now we are the headliner. We aren't getting paid by the club, but now we have a solid enough fan base to cover our costs.
In the world of YouTube hobbyists, the P2P model allows them to scratch something off their bucket list. If I was in High School and could have afforded to play a famous club I would have crapped my pants. If I'm a bunch of guys that want to say they've done it, I don't have a problem with that since it keeps the doors open and you always need openers.
How P2P works against you-
If you aren't ready for it, and can't bring in a crowd, you are wasting your money. A big famous stage is cool, but it will eat you alive if you aren't careful. The patrons of venues like that aren't there to listen to you wank. This isn't your local bar. You better have something to show for yourself or you are going to have a lot of angry eyes looking at you.
It perpetuates a vicious cycle. Thankfully few Hollywood clubs are P2P anymore. There are a handful of big names that do it, but like I said, they are synonymous with the music scene world wide. Tourists go to them just to say they saw a show there. Those clubs can do what they want, and if you don't want to play there, they are OK with that. The ones that do pay local acts will barely give you enough to cover your parking and gas, but that is still netter than not getting that money and having pay for that stuff anyway.
If you play originals, aren't an nationally known act, are in a big city, and play anything heavier than coffee house muzak, you've either played for free or paid to play. Anyone that tells you differently is fudging a detail, or remembering the "good old days" of many, many decades past. The music industry (if you can call it that) is a lot like Uber; even though you do all the work, put miles on your car, and pay for your gas, Uber insists that they are the focal point. At this point labels are leeches that use their connections to advertise your band and do nothing else. Music has been commoditized and the artists left to fend for themselves. The party, in short, is over for everyone not in the 0.1% of pop acts. This is the new normal. Your 9-5 is now the financier of your music.