Essentially: a manager handles your business and shapes your career and an agent finds you work(concerts, shows, etc.).
Entourage fans: Vince’s manager is E and his agent is Ari.
Manager Basics: What is a manager “supposed” to be doing with your career?
A manager is “supposed” to advise and counsel clients (aka artists, writers, musicians) in regards to the following:
1. Literary and music material
2. Producers, mixers and engineers
3. Publicity, public relations, and advertising.
4. Managers help craft an artists image during photoshoots, wardrobe choices, makeup, etc.
5. Selection of and acting as an intermediary between artist and everyone else including lawyer, booking agent, business manager, etc.
6. Some managers can also collect money for artists.
Basic Terms of Manager Contract:
Exclusivity:
The “Exclusivity” clause in a contract establishes whether the artist will have one manager or is allowed to have multiple managers. Most times a manager can or will have multiple clients and the clause will only limit the artist’s ability to employ additional managers and not the manager’s ability to seek additional artists. Most managers prefer to be the exclusive manage because they often spend massive amount of time developing an artist’s career and do not like to bump heads with additional managers (limited exception: business/financial managers)
Commission/Payment:
Commission clause sets up a percentage of the artist’s gross income to be given to the manager. The industry norm for managers is 10% of gross income. However, some successful managers ask for as much as 15-20%. If your manager is receiving more than 20% you are likely in a bad deal.
Length of Contract:
One year is short, 2-5 years are the norm with options to renew if the artist obtains a certain amount of revenue, and 7 years is generally the maximum. CA law limits personal services contracts to a maximum of 7 years.
Sunset Clauses:
A “Sunset” clause is a tiered down diminishing income stream for a manager after she stops managing aband/artist.
EX: Manager gets 50% of the commission in first 2 years after contract expires, then 25% for the next 2, then 10% the next 2, then nothing. It’s all a matter of negotiation.
Early Exit Clause:
If a manager has not produced enough revenue for the artist by a certain time specified in the contract, and the artist is not satisfied with her manager, an early exit clause allows the artist to terminate the agreement before the end of the agreement.
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