Q:What kind of tour pays better, college or nightclub and why?
A: College. Why? Because Colleges are allotted a specific budget each year and they pay bands via a contract. Colleges usually have far fewer bands perform each year and therefore offer a larger fee. They also usually offer hotel or other lodging as part of the contract. This money is always guaranteed by that contract (assuming you don't break it).
Night clubs don't do this, you are lucky to get paid what you verbally agree upon most times. Always check with other bands you know that have played a particular club to see if they did get paid.
Colleges pay by check and not cash, this does pose a little bit of a problem. You HAVE to claim this on your taxes or the IRS man will come a knockin'. :) Nightclubs often pay in cash and well that money isn't really tax free or shouldn't be but I don't know many bands that do actually claim it.