Sounds like fun. Organising any sort of festival can't be easy and people often lose money on them. The big names need to be paid. My band just played at one and we just got some travel expenses. We do not expect to be paid anyway as we do it for fun. I'd happily do more events in our area.
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Yes, quite the operation to organise these events and there's sure to be a loss to start with. As for playing, if you can get your expenses covered then you can just have fun… good you're getting some gigs!
We got free entry to the festival, so could enjoy the other bands.