What is Artist Management?

1. Gatekeeper and a spokesperson

2. Team architect

3. Artistic Direction

4. Administration and small things

3 Main Steps to Building an Artist Team

1. Choosing a recording deal

2. Choosing a publishing deal

3. Choosing agents & promoters

How the Artist/Manager Relationships are Structured
Contracts and Splits?

The management deals are mostly informal, as the legal status of the manager remains very vague: in France, for example, up until recently, managers had to be officially acknowledged as agents. There are many ways in which artists and managers deal with the paperwork. However, one thing remains constant – managers earnings are a percentage of the total artist's revenue.

What is the average commission for talent management?

 

The common average rate we’ve observed is around 15%, but it can differ depending on the scope and specific needs of an artist. The scale of some careers, for example, requires a business manager and a "normal" manager to collaborate, separating the business side from the career strategy. In that case, each of the managers gets a 10% rate, bumping overall management costs to 20%. Besides that, the contract can include an additional 5% rate to cover the manager’s expenses on travel, business dinners and so on.

How the split change in the course of the artist’s career?

As the artist's revenue grows, the artist/manager splits tend to become more and more favorable for the artist. This is justified by the gross gain – generally speaking, it's better to make 10% on $1 million, than 20% on $100k. However, as artists evolve into large international acts, it also becomes much harder to manage them.

How long is a normal artist manager contract?

The standard length of the management contract is three years but it can vary from 2 to 5 years on a case by case basis. Most contracts also include a "Sunset" clause.

What is the Sunset clause?

The "Sunset" clause allows the music manager to get a share of the artist's revenue after the management contract expires (for 18 to 24 months on average). The “sunset” clause is instituted so that the manager can benefit from their initial investment of time and resources in an artist — before they fully peak. In a way, “sunset” clause is the management equivalent of the "duration of rights" in the recording deals – the fixed period when the recording company owns and exploits the recording to make up for initial investments

Likewise, most managerial work is done pre-release rather than post-, while the cash-flows are generated at the end of the cycle. For example, artists usually tour for 12 months after the album has been released and the promotion strategy has been implementation.

Here are some examples of how the “Sunset” clause can be structured:

  • Six months with standard rate, followed by six months with a 50% reduction, followed by six months with a 75% reduction.

  • Twelve months with 100% of the manager's initial rate, followed by twelve months with a 50% reduction.

© 2020 by Beachside Media Group.