Q & A
Each month, MusicBizAdvice.com answers your questions about the music industry.
Who pays
Expenses: Manager or Artist?
Q.
I would like to know: if you have a personal manager and you have to pay
something for your career, does he pay it for you? Thank you!--C
A. It depends on the management agreement between the artist and
manager, and their financial situations. Some managers charge the artist for
expenses at the time of the expense, and others defer expenses until the
artist is creating income. If you're with a beginning manager without much
financial backing, you'll probably be responsible for many or all of your
own expenses from Day One...which provided you have the money, isn't
necessarily a bad thing, because it gives you more control.
(Note: If you have a management consultant instead of a traditional artist
management arrangement, the consultant does not advance or otherwise pay
your expenses, and they are due as they occur.)
Generally speaking, I advise artists to treat any expenses covered by the
manager as an advance, and to always remember that an advance is essentially
a business loan, not the lottery...so at some point, expect to pay it back
from your earnings. Keeping this in mind helps you keep expenses in check by
understanding what things actually cost, and is a line of defense against
potential financial problems later. Artists who end up broke usually have no
idea what's being spent. Artists who keep their money usually know in great
detail.
But more importantly, knowing what's being spent helps keep you from being ripped off by
unscrupulous people. The more you know about your own finances and business
expenditures, the harder it is for someone to take unfair advantage or rip
you off.
Good luck!
Randi Reed
Editor-in-Chief / Founder
MusicBizAdvice.com
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