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Pt. 4: You Want Me to Pay You What?
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Pt. 4 of "Great Managers and How to Find Them"
"You want me to pay you what?!"
Commission: Anywhere from 5% to 20%, with the norm being 15%.
This is how the manager is able to afford to work for you and still pay the phone bill and eat out once in a while. In the early days, it can be tough: The client doesn't have income, which is why he or she wants a manager. The manager essentially works for free until he or she can create financial opportunity and exposure.
At this stage, it's important for all parties to be realistic. In the beginning of his career, manager Chris Moon [Josh Rouse] still worked a second job -- and for as long as it took, so did his client. "I've talked to several people who made big money on big deals," he says. "They still have to work on the side because of the initial investment of getting to that point. Unless the artist gets a signing bonus you can commission, all the money from a record deal goes toward making a record. You can only commission what is actually income, not expenses. That's why it's good to get a publishing deal and get some money up front for you and your client. Either way, you have to have someone administer your publishing or you're never going to take all your money in -- that's a given. So you either sell your publishing or you hold onto it and get an administration deal. In the leverage for that money, you give up ownership for 'x' amount of years."
How many years? "That depends," Moon says. "Do you want to wait to earn the money, or do you want somebody to pay up front? Other than that, income comes only from merchandise and live performance -- and that's where your management efforts should be focused after the deals are done."
As Billions points out, "For every one of those deals, there's 30 other tasks that have absolutely no income related directly to them. For me, the reward is in the relationship itself. Of course there's satisfaction in having something become a success from a fiscal standpoint, but there's a lot of little victories, and lots of little to medium frustrations. You miss out on the fun of managing if you don't see the process as worth it."
Sometimes artists forget how they got to be successful. To them, their first manager transforms into something like an old guitar they want to trade for a shiny new red one. In both sides of this scenario, the artist has forgotten how their old association helped them get to where they are, and that history -- especially the trust and communication built into a manager/client relationship -- is priceless.
This is not to say that you should never change management or fire your manager. If you feel your needs are not being met, or that your interests or money are no longer protected, or if you plain don't like each other anymore, you should part ways. But associating humble beginnings with the "small time" can put you in the hands of someone who wasn't there when you were broke, unknown, and losing faith. Even if things are on the upswing with your next manager, the minute things look shaky, you could find yourself deserted by someone whose allegiance to you began after all the toughest work was done.
'I don't have a problem picking up an artist with no deal; I have a problem picking up an artist without experience.' -- Janet Billig
Coming soon....Pt. 5: How do I get a Manager Interested in Me?
"You want me to pay you what?!"
Commission: Anywhere from 5% to 20%, with the norm being 15%.
This is how the manager is able to afford to work for you and still pay the phone bill and eat out once in a while. In the early days, it can be tough: The client doesn't have income, which is why he or she wants a manager. The manager essentially works for free until he or she can create financial opportunity and exposure.
At this stage, it's important for all parties to be realistic. In the beginning of his career, manager Chris Moon [Josh Rouse] still worked a second job -- and for as long as it took, so did his client. "I've talked to several people who made big money on big deals," he says. "They still have to work on the side because of the initial investment of getting to that point. Unless the artist gets a signing bonus you can commission, all the money from a record deal goes toward making a record. You can only commission what is actually income, not expenses. That's why it's good to get a publishing deal and get some money up front for you and your client. Either way, you have to have someone administer your publishing or you're never going to take all your money in -- that's a given. So you either sell your publishing or you hold onto it and get an administration deal. In the leverage for that money, you give up ownership for 'x' amount of years."
How many years? "That depends," Moon says. "Do you want to wait to earn the money, or do you want somebody to pay up front? Other than that, income comes only from merchandise and live performance -- and that's where your management efforts should be focused after the deals are done."
As Billions points out, "For every one of those deals, there's 30 other tasks that have absolutely no income related directly to them. For me, the reward is in the relationship itself. Of course there's satisfaction in having something become a success from a fiscal standpoint, but there's a lot of little victories, and lots of little to medium frustrations. You miss out on the fun of managing if you don't see the process as worth it."
Sometimes artists forget how they got to be successful. To them, their first manager transforms into something like an old guitar they want to trade for a shiny new red one. In both sides of this scenario, the artist has forgotten how their old association helped them get to where they are, and that history -- especially the trust and communication built into a manager/client relationship -- is priceless.
This is not to say that you should never change management or fire your manager. If you feel your needs are not being met, or that your interests or money are no longer protected, or if you plain don't like each other anymore, you should part ways. But associating humble beginnings with the "small time" can put you in the hands of someone who wasn't there when you were broke, unknown, and losing faith. Even if things are on the upswing with your next manager, the minute things look shaky, you could find yourself deserted by someone whose allegiance to you began after all the toughest work was done.
'I don't have a problem picking up an artist with no deal; I have a problem picking up an artist without experience.' -- Janet Billig
Coming soon....Pt. 5: How do I get a Manager Interested in Me?
Comments
Trust of course is a major component as well, and when that trust is built up and solid in the artist/manager relationship, it is definitely one to keep, and can and has lasted lifetimes in some cases.
BB