Artist Management Contracts Explained: Don't Sign Until You Read This

Written by Ramsey Brown.

For an artist, getting a manager is a huge step in your professional music career. There are many advantages to securing a manager and signing a management contract, but if you don't know what to look out for in the agreement, the deal could cost you some serious drawbacks. 

Being uninformed can lead to being taken advantage of, so it’s important to do some studying and research before jumping head first into a management deal. You’ll need to find out exactly what type of contract you are being offered and educate yourself on how it will ultimately affect your career in the long run. 

In this post, we are going to explore what exactly artist management contracts are, the pros and cons of having one, what to look out for in the agreement, and overall inform you on how to get the best deal possible. If you are an artist who is looking for a manager or have recently been approached by a management company, this article will give you all the information and details on what to look out for before committing.

If you're new to working as an artist, it's important to understand what will happen if you and your manager decide that the relationship is no longer sustainable. Some companies will allow the artist to come back for renewed terms, while other companies are known to fire artists after a certain period of time without providing any reason as to why or giving them any chance to prove themselves again.

It's important to know how long you'll be able to work with your manager, as this can sometimes be one of the biggest determining factors when choosing a manager. The longer you're able to work with a manager, the more likely it is that they will be able to help you achieve your career goals. Most management agreements range from two to three years with options to extend longer or terminate the length sooner.

Job expectations and responsibilities will always vary from artist to artist and will largely depend on where the artist is at in his or her career. Most contracts are notoriously vague in this area, majority of them simply state that the manager is obligated to advise and guide the artist and push their career forward with any means possible. 

If you are a newer artist or band, the manager should be promoting you to labels, trying to get you gigs, and generally trying to get your career off the ground. For artists who are further along, managers may be responsible for day to day affairs like booking hotels during tour stops, advising on music, or acting as the liaison between recording labels, press, or booking agents. 

It’s always important to have a specific outline of detail of performance expectations and also a standard or benchmark for results. A manager's responsibilities could be anything to help benefit the artists and is not limited to anything, as long as it is agreed upon and written in the contract.

Managers and management companies typically charge 15-20% in commissions for each of their clients. Depending on the manager’s level of clout, they may require a higher percentage. It's important for artists to pay attention to commission rates and what your manager will actually be taking a cut from. A manager could take a cut from album sales, tours, appearances, recording deals, or anything else an artist would make money from. 

There are also managers looking for an overall percentage of the top or the artist's gross income. There should be an agreement that this number or percentage can be changed or negotiated throughout the term of the contract, depending on certain criteria.

Managers will be expected to do certain things that will require them to come out of their own pockets. A key point of an agreement should detail how the artist will reimburse the manager for these expenses. It is practical for an artist to pay managers on a weekly or monthly basis for the overhead spent. Managers should also always provide receipts for any expenses they expect the artist to pay back. 

Another common rule of thumb is to set a certain amount or cap that your manager can not spend without it being approved by you first. This helps expenses not get out of hand and that there is no dispute down the road if you feel your manager is spending too much money.

It's common for artists to want their contracts to be renewed so they can continue working with their current manager. This can often provide artists with the security of knowing that their career is protected by an experienced professional who has proven themselves time and time again. It can also help them build strong relationships with professional managers who might have connections in high places within the music industry.

However, it's important for artists to keep in mind that not everyone is able to work well with managers and record companies. This doesn't mean that they're not successful artists, it just means that they may not be happy with the agreements that they've made with management companies. It's also important for artists to understand what will happen if they decide to terminate their contractual relationship between them and a company or manager.

Many professional managers will ask their artists to sign incentives that will allow them to receive rewards if the artist is able to meet certain goals or milestones. 

This can be a good idea, but it's also important for artists to protect themselves from any confusion or disagreements surrounding bonuses by finding out:

• How long an artist has to wait before he is able to claim his bonus payments.

• What the expected percentage of fees will be if an artist is able to sign a contract.

• Possible restrictions or conditions for when and how the manager will be able to use commissions earned on behalf of an artist. For example, the manager may need to use these funds within a certain amount of time, or may not allow the artist to withdraw their money at all.

As mentioned above, it's important for artists to understand what happens if they decide that they no longer want to work with a manager or company. The biggest question that artists need to ask themselves is whether they are able to terminate their relationship with a manager or company easily and without any complications.

It's natural for artists to want to work with managers who they trust and who will be able to help them meet their goals. However, if an artist doesn't feel like he or she is getting the help they need, it's important that they can easily end their working relationship so that they're able to find a new manager within a reasonable amount of time.

This agreement should be clearly outlined in the contract before signing. If either party should feel that for any reason they want to terminate the agreement, they are able to do so without any complications to follow.

Many artists are under the impression that their recording companies will pay commissions on behalf of an artist's earnings in the music industry. However, this is not the case. Artists are often required to pay their manager or management company a commission payment on top of any royalties earned from the song. 

This is called a 'commission fee' and can amount to 10% or more of any earnings made by an artist on a single song. When artists are offered contracts with managers, they should ensure that they're aware of how much money that they'll have to pay the manager in commission fees from their royalties, as well as if there are any restrictions or conditions placed upon these fees.

It's possible to ask for an increase in the amount of commission that is paid each time a new song or album is released. It's important for artists to understand what commissions are and how they will be used on their behalf.

When signing a manager, artists are agreeing to let the manager take care of certain responsibilities and take actions on the artists behalf. This could include signing paperwork, booking appearances, making press statements, and more. Artists should specify and look out for anything specific they do or do not want the manager doing on their behalf. 

For example, Power of Attorney would give your manager the right to sign documents or paperwork and give them the ability to make executive decisions when you are unavailable. This can either be a good thing or a bad thing for the artists, and is something that you would need to set restrictions on. 

You may look out for or want to mention that the manager or management team does not have the power to do things such as force change on your physical appearance or sound of your music. Any power given to the manager is something built and agreed upon trust.

A sunset clause states that there is a certain amount of time after a contract end date where the manager must be paid a commission. A sunset clause gives the manager the right to collect commission from any other contracts they secured for the artist during the initial contract term. 

Sunset clauses are not necessarily unfair as they typically have the reputation of being. If a manager worked on a project or deal for the artist, it’s reasonable for the manager to earn profit from it even if the manager and artist decide to go separate ways. 

However, like anything else in a contract, there should always be limitations and restrictions on the details of the sunset clause. A sunset clause begins as soon as the management agreement ends. There should be a set amount of time and percentages that the old manager will make. Typically you’ll find the sunset commission percentage will decrease over the years it is in place for, hints the name sunset clause. 

Ideally an artist would not want a sunset clause included in their contract, but this is sometimes a non-negotiable aspect for managers. If your management team does have a sunset clause in place, artists should always negotiate for the least amount of time possible.

Many artists choose to wait until they have a record deal or have released an album before they decide to hire a professional manager. However, it's important for artists to understand that while it can be tempting to wait to hire a manager until they have solid opportunities in place, it's often better to hire a professional early and develop their career from the ground up rather than waiting until later on. 

If you are asking yourself if you should hire a manager or not, then the answer is probably yes. If you are concerned about the money, just remember that managers don’t make money unless you do. It is their job to put you into positions to make a profit and build up your career in the process. 

More often than not, a manager will seek you out or be someone close to you who truly believes in you and your music. However, if you decide to seek out a manager yourself, you should choose someone who has a proven track record of helping multiple artists with their careers. This will make it easier for an artist to feel confident that he or she is able to work with someone who has the connections in the music industry and the experience needed to help them reach their goals.

Before bringing someone on board to your team, ask yourself what exactly you are looking to achieve by hiring them and question them about how exactly they plan to get you there.  

© 2023 Omari MC, LLC.  All Rights Reserved.

© 2023 Omari MC, LLC.  All Rights Reserved.