how much should management get?

[maryslittlesecret]

Hi, all. I know I've seen this number a dozen times, but I can't remember what a standard or fair percentage is for a management company to get from an artist? The reason I ask is this...

We're currently unsigned, but we have a management company that's interested in shopping us. They are a small but legit firm -- they just got a band in our area and style a deal with a well known major-label imprint...

They sent us a 'letter of intent' which says: if they find us a deal within 12 months, we agree to sign with them full-time and they recoup a certain percent from our advance. If they don't find us a deal in that time, we can walk away without owing them a thing... Seems like a fair deal to me if the percent is in line. Am I being ignorant or naive?

Anyway, before we sign on, I just wanted to get your guys thought on this and get a reminder on what is a 'standard' percent for mgt. Let me know. Thanks!

J

 

[mikeh]

Anywhere from 10% to 20% depending on the contract (or whatever agreement is established).

It's been years since I had management representation and at that time I paid 10% - but my manager did spend a significant amount of time (and personal expense) in promoting the act.

Certainly having a clause that allows you to terminate the deal in 12 months works to your advantage.

The value of management representation all depends on your confidence in your act and your ability to manage/promote yourself. If you don't have the skills, contacts or motivation, then it's worth having someone do the job.

Like any contract (in particular an entertainment business contract) you would be wise to spend to have an attorney (with knowledge of entertainment contract law) review before you sign.

It may seem like a large cost on the front end - but it can save considerable risk on the back end (a bad contacrt can lock you in for years (and prohibit you from signing or recording with anyone else).

Good luck!!!

 

[Dani Pace]

The 10% to 20% sounds about right. The variation will depend on how many services and how often these services are provided. Some agents include promotion costs and some do not, this is an option you need to consider, it often depends on how much you want to pay for in advance. As with any contract, have an attorney examine and explain the contract to you before you sign. Also an attorney will be able to include an escape clause to the contract, if it doesn't already have one. You never know, a better deal might come along the day after you sign so you don't want to get locked into something that may not allways be to your advantage. You might also want ot include a "check list," of some sort, just to make sure that you are recieving the services that you are paying for. If you are like most of us, you would rather devote your time and energy to the music, so having someone else take care of the business end will be to your advantage. Just be sure to do business with someone (or a company) that you can trust and depend on to give you what you are paying for.

 

[maryslittlesecret]

Well, these guys are on the high end apparently -- they want 20%, plus recoup any costs incurred in getting us a deal.

As an unsigned band from the Midwest, we're more interested in their ability to get us a deal. If they can land us something that we're happy with, we kind of figure they deserve to be our management. We've got little power when it comes to promoting ourselves considering our location.

And it seems as if the letter of intent is open ended. They've said that we don't need to pay anything unless we sign a deal and we don't need to sign a deal that we're not comfortable with, so we don't feel too 'trapped'. I think we'd want some sort of an escape clause for a full contract, but not sure if it seems necessary with this letter since its only a 12 month term (unless they get us something worth signing).

Any other thoughts and advice? We're leaning toward signing this letter, so please let us know if there are any other things we should ask/think about...

J

 

[Dani Pace]

Another thing to consider might be... band members sometimes come and go, so make sure they are signing the band and not individual members, that way you wont have to worry about paying for services that someone besides yourself is recieving.