How do art galleries compensate the artists they exhibit Do the galleries purchase the art or consign it

How do art galleries compensate the artists they exhibit? Do the galleries purchase the art or consign it?

I am interested in opening a gallery and am curious about the economics of the process. It would seem to me that either the galleries buy all the works they are going to show and then mark them up when they sell them to the public. Otherwise, I would assume that the artists consign the work to the galleries - but the economics of that seem worse for the artist - i.e. a guarantied sale is better. What are your thoughts?

Other Answers:

The usual fee is a GROSS 40% TO A 60% OF THE ARTIST'S PRICE!
I don't deal with curators nor agents. The money they claim to need to sell the work is astoundingly gross. I don't care what reasoning they use as an excuse to gouge us but I refuse to pay a salesman more than 10% of my earnings to sell my hard work.
It is a shark infested business you are entering into. The back stabbing is rare, they actually come right at you face first and rip your guts out. Rarely are the curators or agents kind enough to stab you in the back.
I've been in the business since the mid seventies and I am horified by some of the things I've seen by the profession you are thinking of entering.
Of course comeing from Toronto's west end and watching the "wannabe's" take over Queen west and Parkdale? I've seen too much to trust your profession.
It is nice in a patronizing way, and it is glitzy to the neophyte, but it all becomes jaded rather quickly and the business is rather cut-throat in a dozen small ways.
My professional opinion is that they galleries, curators, and agents take way too much money from the artist.
I don't envy your'e decision.