Determining whether or not to pay for a slot can be difficult for many bands, whether new or seasoned veterans. Some bands absolutely refuse to do this, because it is against their policy to pay for what they feel they should be paid to do. Some will do it for the right show/circumstances, and others will do any show, regardless of monetary negotiations, because their biggest concern is playing as many shows to as many people as possible.
Research the Event
Factors such as tour support, album distribution and positive past show experiences in the area should all be considered first. The show's reputation itself is just as important. Consider whether or not the show itself has been recurring for a number of years, how many attendees are usually present and whether or not members of the press and record label’s A&R representatives have been invited. Also, checking to verify the headliners stated are booked do in fact have that show listed on their tour is highly advisable.
Research the show and the promoter's history first before making contact or replying to a proposal. Since some promoters have notoriously bad reputations, like providing bad/cheap equipment and technicians and not keeping the show on schedule, asking other bands their personal and past experiences is a wise investment of time.
Recoup the Investment
Most P2Ps cost quite a bit less than Ozzfest,* which typically costs about $75,000 for a spot for the duration of the tour, but nonetheless can prove to be expensive for many struggling musicians. Ensuring vending space will be allotted for the duration of the show is crucial, since fans may not be ready to make a purchase immediately before or after the band has performed, especially if it runs more than a single day.
Also, selling the tickets provided may prove to be difficult if the band does not have a strong fan base in that area. A suggestion is to hit up message boards of fans who plan to attend, and offer the tickets at a discount. Offering a discount on the tickets will help sell more, and it also has the potential of attracting new fans. By mailing the tickets with a bit of autographed swag or even a CD, it'll ensure the recipients get into that band’s music and look forward to seeing them perform.
Get It in Writing
Above all, the most important aspect of this negotiation is to get everything in writing. Any large show should provide bands with a run-down of everything included in the show itself, even if it's in email form. That includes everything discussed above, plus how the show will be promoted (radio, flyers, ads, etc.), if the show is fully insured, right down to where the band park, and if they'll feed them. Always email the promoter any dialog, in order to ensure proof of what was said and agreed upon.
* One of many Ozzfest performers, The Haunted, conducted an interview which briefly cited its P2P stance
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