Manager Payments and Commissions Most
managers should be compensated anywhere from 15% to 20% of your income. But there are a few managers out
there who will want 25% to 30%, or maybe even more. This really will depend on their reputation and status; like how much
power they have in the music industry to get the deal you want, their proven history of creating success, and so on.
You may want to avoid the person or management firm asking for 30%, but on the other hand, if you clearly see their track record with real evidence of ways they can help bring in more income for you… go with it! After all, it is better for you to receive 70% of $1,000,000.00 (or more) that they help to generate and make happen for
your own pocket, as opposed to you getting to keep 85% of $100,000.00
(or less) a year through a different manager asking for a lesser commission…but you are having to work twice
as hard, twice as much, and dealing with more drama than you prefer.
Gross Payments vs. Net Money You should always try to avoid paying a manager his percentage based on your “gross” or
over-all income without certain expense deductions. Most of the time there will always be expenses that "have to be paid" …many
times before you have gotten paid anything at all. As an artist, many times you should seek to
pay your manager his or her commissions based only on what you actually collect as income …after
any indispensable expenses like tour costs, recording, etc. For example: Say you signed a pretty big record deal with Sony to do your album, and the
total deal was $1,000,000. After you paid recording costs, hire music producers, paid other featured artists and get all the samples cleared, you might have about $300,000
left. Your manager would be entitled to his 20% from that, or $60,000. So basically remember that your manager
should get a percentage of the “net” income.
Note: Sometimes, a manager may act as a tour manager, which means that they should
be entitled to extra money for that job. Also, there are situations that exist where an artist agrees to
pay the manager a higher commission on net income, or a lower commission on gross income.
|
|
