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Art galleries make money one of four ways depending on what type of gallery and what type of art they cater to. Sometimes they do it a combination of ways.
1) They apply for and are given government grants for the continued operation of their business. Very few galleries survive on government grants alone. Most galleries that do win grants are either very large national institutions or very small start-up galleries that supplement their grant money with income from some other source (ie. commission from sold artwork).
2) They rent out their space for artists to show their work. It is not always the gallery that pays the artist to exhibit.
3) The gallery collects pieces of classical or modern art and charges the public a fee to enter and view these pieces. Some examples of galleries that work this way include the Museum of Modern Art, The Louvre, and the Dali Museum.
4) The gallery exhibits an artist's work with the intention of selling some of it. They then take a commission fee out of the total sale price. How much this fee is depends on the gallery and what type of contract the artist signed.
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