We do understand that performers would prefer a guarantee - we just can't afford to pay it out of our pockets if the gig flops.

When I was involved in running a folk club I did the books, prepared a cash flow forecast and gave the booking secretary a budget based on what we had in reserve plus a worst case estimate of what we would expect to take on average. With good records I could make reliable estimates of the turn out for any particular guest.

Once you are paying people you are running a business so you need to be clear about your finances and clear about your objectives.