Who does what on an artist's management team?

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Recognizing and evaluating the need for management expertise is a major step in the development of an artist's career. An artist must not only have a unique talent, but a total belief in him or her self and an overwhelming desire to succeed.

"What are the my goals? How much do I want to invest in a music career? And what sacrifices will I make to get there?" are just some important self-evaluating questions.

A professional artist needs professional advice. If you find that bookings are taking much of your time and energy, a booking agent may be hired to secure regular employment through live performances. A booking agent is your salesperson and so he or she should represent you and your band by getting the kinds of engagements agreed upon with the best deal possible.

The booking agent is authorized to act on behalf of the artist. The more bargaining power an artist has, the sweeter the deal-bigger venues, better accommodations and generous performance fees and riders are some of deal points that are negotiated betweenpresenter and agent.

The performance engagement contract is an agreement to perform on a specific date for a negotiated fee. Even though the booker signs the contract, it is ultimately the artist who is responsible for fulfilling the terms of it. Booking agents are paid on commission from 10 to 15 per cent and up to 20 per cent for 'one nighters' of a performer's gross income. A booking agent is usually exclusionary to the artist.

As an artist develops, a personal manager may be engaged to oversee and guide an artist's career through business and artistic development. In order to maximize career potential, he or she is responsible for hiring the other professional team members, such as the booking agent, business manager, publicist, vocal coach, lawyer, accountant, or tour manager, just to name a few.

A personal management agreement lays out the responsibilities of both the artist and the personal manager with a specified term and an option clause that either party can pick up when the contract ends. Recording advances, producer fees and royalties, or tour support monies that a record company provides are not deducted as part of a personal manager's commission. The term of an agreement is generally three to five years. The personal manager is paid a percentage of an artist's gross income, usually from 15 per cent to 20 per cent of all gross earnings before expense deductions. The percentage comes off the top before you divide your share with your band mates.

This calculation is quite revealing. Assume you have four other band members and your band gets $5,000 in performance fees. With a 15 per cent commission of $750 to the personal manager, each band member with five equal shares would get $850 in gross earnings.

A personal manager holds ultimate decision-making power in the artist-manager relationship that must be based on mutual trust, honesty, and achievable goals. After all, it is a business marriage.

A business manager is responsible for all the financial affairs of an artist. He acts as a financial advisor by handling all revenues and issuing payments. Hisrole is to optimize the artist's earning power with personal investments and tax planning. A business manager answers to the artist and is generally paid a percentage of earnings, usually five per cent, or is kept on retainer. The retainer can be a flat hourly, daily, monthly or yearly fee.

Lawyers who specialize in entertainment law are responsible for overseeing the legal affairs, such as recording, publishing, merchandising and sponsorship contracts, by structuring the deals and providing legal advice. An artist should always hire his own lawyer when negotiating their personal manager agreement to ensure his1 interests are well-represented and to avoid conflict of interest. Lawyers are paid an hourly rate, value billed or are on a retainer against the value billing. Depending on the lawyer's contribution, he or she gets a fee rlative to the size of the deal. In any event, the lawyer's fee should be discussed in advance.

Contrary to popular misconception, your professional team is hired by the artist even though they may discover and seek you out.

This column is for reference and education only and is not intended to be a substitute for legal advice. The author assumes no responsibility or liability arising from any outdated information, errors, omissions, claims, demands, damages, actions, or causes of actions from the use of any of the above. Ann Brascoupe owns What's Up Promotions, a company specializing in promoting, booking, and managing Aboriginal artists across Canada. She can be reached at abrascoupe@hotmail.com