10 Chapter Artist Management The importance of Good Management o Labels will help artists to find mgmt o Thoughtful planning for long career o Cost effective to deal with one decision maker on daily activities o Earn more than union scale if management is acquired o Career development and financial planning Discovering Each Other o Believe in the talent of the artist o Be well organized, systematic o Be straightforward, honest and has a reputation to prove it o Be an effective communicator, write well, and is an articulate, persuasive speaker o Be realistic about their expertise. If lacking competence in certain fields will hire outside experts when needed o Has good industry contacts or is busy developing o Shares the artist's long-term vision and career goals Role of Management o Know how to spot a potential star o Strong creative side as well as good business skills o Strong personal ties and trust o Negotiates contracts as well as creative decisions o Good communication skills o Strike a delicate balance between passivity and aggressiveness Financial Relationship o Artist may elect to hire a business manager to handle artist money o Management should hire qualified accountant(s) for artist o Artist agrees in writing to authorize management to handle all of the artist's money. o Controlling expenses artists put on budget Manager's Commission o Earned through artist's gross income o Based on rise and fall of client's income o Going rates from 10 25% depending upon the stature of the manager, income of the artist and the extent of the manager's services Commission Base o Based upon artist's gross income as well as value that the artist receives from the entertainment industry. Examples are: o Royalties; ownership of a production company; TV, film, publishing or record company, merchandising; stock; endorsements; tour sponsorship; commercials; video sales and even gifts. The Money Flow o Address the rules of disengagement o Publishing and recording contracts mgmt is entitled to commission for the full term of these contracts o Sunset clause mgmt % declines over a specific and agreed upon time period
o o o o
potential
Producing the Act What type of artist do we have? To what audience does the artist appeal? Can this audience be expanded What must mgmt do for the artist to fully exploit all of the
o o
Video tape the act for critique Public image makeover for act Advancing the Career o Approaching producers, lawyers, labels, record agents promoters o Improving relationships with top music directors, programmers, retailers, media etc o Being aware of new trends in the industry corporate climate may affect the business decisions made Landing a Recording Contract o Artists engage a manager primarily for this focus o Artist's attorney can recommend that a manger be engaged only if the manager can, indeed, secure a recording deal o Knowing the right label to attract is key Success in landing a recording contract o How strong are the manager's contacts in the industry? o How strong is the manager's team? (lawyer, accountant, support staff) o How strong and unique is the artist's talent? o Is the label signing anyone at this time? o Is the record company empty or full of a similar type of artist? o Does the record company believe in the manager? The Process o Manager makes a frontal attack on label, starting with A&R staff o Manager will try to work with the songwriter-client's publisher. o Manager will focus on independent record companies and producers o Manager arranges for third parties to catch the artist in a showcase or video performance in hopes that the review will make it to a decision maker The Result o If management fails to secure a recording contract, the artist should search in other sectors o Should mgmt secure a contract, then negotiations of a fair contract begins. Securing promotion dollars is key to a fair and equitable contract o Renegotiating of mgmt contract %, or changing to new management based upon this topic Care and Feeding of the Media o Materials impressive looking promo packs with CD's. photos etc o Interviews Label's publicity staff set up interviews that alert audiences of upcoming performance o PR company fees may run $100/week - $6,000 per month
o
Billing Size, emphasis and position of artists' names in print ads
and screen credits Controlling Performances, Negotiating Appearances, Developing Peripheral Income o Limit the frequency of artist's performances to avoid overexposure o Once an artist becomes successful, basing the artist's fee on record sales, media requests and buyer interest. After a track record is established basing the fee on ticket sales in each market o Peripheral Income such as product endorsements, broadcast commercials, merchandising and movie deals o Sponsorship fees may endorse an entire tour o Souvenir merchandisers required to pay from 3% royalties (retail) on each item sold