I have time at work today to disagree with people, so I will

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But first I’ll say, if it’s a cover band I agree 100%. I’d never do a free show, playing covers, for exposure. That pure BS and all it will do is affirm that your band isn’t worth paying.
Playing original music is an entirely different story. New original bands invest way more money in their band than they’re likely to even come close to getting back in the first year. If you gave me the choice of playing to 50 people where each band memeber might make $20 to $50, or to play in front of 350 people for free, I’ll take the 350 every time. I think that anyone letting their pride get in the way of that is making a very unwise business and marketing choice.
I learned that through experience, being that pride filled guy. Playing in front of 50 paying friends does less than zero for your band. It often hurts it, in fact, because it uses up favors ya might one day really need. Throw those 50 people in a club packed with 350, and they’re much more likely to come back next time. 50 friends in a big crowd also gives that crowd permission to love what you’re doing, but that’s a whole nuther topic...