Let's start by looking at some basic definitions that anyone working on the street needs to be aware of.
If you try to draw a line between the three activities above, you might start to see the problem that buskers frequently encounter. Governmental agencies are familiar with vending and panhandling, and often mistakenly lump busking into one of those categories. After all, you're receiving money from passers by. They're either buying goods, or giving because they're generous. Buskers don't see it that way at all.
A busker generally works hard for the money he makes. He isn't looking for handouts from kind and generous souls in the same manner as a panhandler. He is, in fact, selling something. The something, however, isn't so cut and dry. A busker sells entertainment. I like to think of it as selling smiles and memories. There's no tangible exchange of goods. In many municipalities, anyone collecting money on the street is required to have a permit and collect sales tax, but most of those places only offer vendor permits. Those taking money without a permit are automatically in the same class as panhandlers or tax evaders. A busker trying to get around this by applying for a vending permit runs into the issue of trying to collect sales tax on non-tangible items. You can see how we can talk in circles over the issue. As a result, buskers are forced to work in places where invitations have been extended or to be constantly looking over their shoulders for the cops.
The balloon busker, the person entertaining crowds through the use of balloons, has an even harder time distinguishing himself from the street vendor if he finds himself only getting tips from those that get balloons. Almost anyone will tell you that sounds like the balloon artist is selling his work. It's just a matter of semantics, but you try to explain it to the cop whose job it is to hold you to the letter of the law.
If the legal issue isn't enough, consider this last point. Even the most talented performers can find themselves earning almost nothing on the street. Remember, busking is all about earning a living from people that have enjoyed your show. If you think it's hard to convince the cops that what you're doing is a legitimate way to make money, try convincing people on the street to part with the cash they have on hand.
If you're new to busking, I've likely confused you by my opening remarks. I talked about how appealing the street is for me, while still describing the street scene as being an incredibly difficult place to work. The fact is, while difficult, it can be the most rewarding form of work. The very thing that scares most people is the thing that I like most. The only people that stay to watch your show are those that genuinely enjoy what they're seeing. Those first few minutes are rather trying. That's when you have to convince them to stay and play along. But once they're watching, you know you've won them over. When that show ends, and you have a crowd around you applauding and giving money, it's not because they're being polite. It's because they want to do it. Every time my street show ends and I can look into the smiling faces of my crowd, I know I've done something right. If I look and see that there is no crowd, I know that I need to improve, but I don't have to answer to a disappointed audience that paid admission to watch.
It's not easy, but if you stick it out and develop a show that works on the street, you've got something to be proud of. You'll know that your income has been earned. Most importantly, after all of the hours put into developing that show and learning how to work with your crowds, your performance and audience interaction skills will be greatly enhanced for your work in other venues.