Given the capacity of the average living room (30 to 40 people), there is no way that anyone can hope to make a profit on such a venture. $20 per person is the maximum that you can charge because let's face it, most folk music lovers are poor and can not afford to pay more than that. Even at full capacity with an additional 10 standees cramped in sardine can style you may just about break even.
Look at it this way. If you had to drive into the city, pay for parking, tolls, gas, a restaurant, tickets for the performance, and a baby sitter, it would cost you the same or more money out of your pocket than what you lose on the concert. Here you get to choose the performer of your liking plus you can invite all your friends and get entertained in the privacy of your own home. The performer, between the gate and the CD sales gets a decent night's pay plus exposure. It is a win win situation for all concerned.
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