First published in Drum Media, 1999.
So you’re doing OK. You’ve landed a few gigs, sold some t-shirts, even scored some coverage in the local street press. But suddenly you’re spending more time sorting the business than playing the music itself. Maybe it’s time for a manager.
Ideally a manager takes care of both the business and administrative aspects of your career, providing advice and direction as it develops. Keep it in mind that your best friend or your main squeeze will not always make the best manager. You need to choose wisely and get the deal in writing! Here’s some tips:
Choose the right manager.
Do you want someone to manage the finances, or provide creative direction? How well do they know the industry? How well do they know your kind of music? What are their contacts? Do they manage anyone successful? How much time will they have to look after you? Is the manager licensed? In New South Wales, the Entertainment Industry Act provides a compulsory licensing system for all managers, including regulation of commission rates and managing artist finances. Using a licensed manager prevents you from getting ripped off!
How long will the management last?
Agreements generally specify an "initial period" of 1 to 2 years, followed by an option to extend the arrangement. You may agree that mutual consent is required for any option to be exercised if the manager has not met certain performance goals, such as securing a recording deal. Either the manager or the artist will then have the right to terminate the agreement by giving advance notice - usually 1-3 months - to the other party.
What is your manager responsible for?
The manager’s prime responsibility is to find you work! In doing so, they may deal with everything from publicity and promotion, to business administration, accounting, negotiating recording and publishing deals, organising tours, liaising with booking agencies, or even co-ordinating record and video production. The precise scope of your manager’s duties should be carefully considered. When it comes to the expected standard of performance, most agreements should state that the manager will use their "best endeavours". Be wary of contracts that place little or no obligation on your manager to get you work.
What are the responsibilities of the artist?
The management relationship should be one of mutual respect and trust. In return for your manager’s "best endeavours", the agreement should reflect your co-operation with any arrangements they set up, including rehearsals, gigs and interviews, provided that they are career-relevant, and reasonable notice is provided. Usually, managers have exclusive management rights, and artists agree not to appoint another manager within the territory covered by the agreement. Make sure you’re not tied up by any previous management agreement.
What territory does the management cover?
A manager should only be appointed to represent you in the places where he or she has established business connections. Think locally to begin with - the territory can always be expanded later. If the management agreement is to be "world-wide", it’s common practice to allow the manager to appoint "co-managers" to represent you overseas. Co-managers usually take a split of the principle manager’s commission, or divide territories so each co-manager receives a full commission on their own territory, but nothing for work done elsewhere. Make sure any appointment requires your approval before it gets the green light.
What powers should the manager have?
This is really important. Your manager has the power to lock you in to both the best and worst of commitments. You need to have clear limits on those powers, for example, by giving prior approval before your manager seals any deals. Busy managers often appoint another "personal manager" to look after artists. If the agreement allows for this, make sure the appointment is subject to your approval, or you can pick the replacement.
What is the manager to be paid?
Usually a commission of 15% to 20% of the artist’s entire income. Fees for certain activities are capped under the Entertainment Industry Act. The Act also lists a number of things that must be excluded before the manager takes their cut, including meal and travel allowances, and holiday pay. Record company "advances" for recording costs, or booking agent commissions should not be included when calculating commissions. NSW managers must have a trust account to hold your money and must keep (and provide) accurate accounting records. The trust account must hold a bond (usually $2000), and you have to be paid within 14 days, Note that once the management agreement ends, the manager is generally entitled to a decreasing commission on income they have generated for up to three years.
For more info, call the Department of Industrial Relations Licensing Unit on (02) 9243 8884. In in other states and territories, call your department of industrial relations to check whether similar regulations have been introduced. Check out the Music Management checklist.
