Q & A
Each month, MusicBizAdvice.com answers your questions about the music industry.
What Managers and Agents Do, How Much
They Get, and Whether or Not You Need Both:
Q: What's the difference between a manager and an agent? What does
each one do and how much do they make? Do I need both?
A. To simplify, we'll
say "manager" even though several people from one management firm may actually
be handling different responsibilities for an artist. The same goes for "agent;"
several people at an agency may handle different aspects of the artist's career. That
said...
A manager plans the big picture of the artist's career ("Where do you want to be in
five years?") and manages the day-to-day responsibilities of the artist's business
life. A manager is the artist's representative and handles relations with the label,
talent agency, touring personnel, and anyone else associated with the artist's business. A
manager works closely with the artist's publicists and stylists to create and maintain the
artist's image.
A manager also manages certain aspects of the artist's personal life. For example, if the
artist has a performance-related injury, such as vocal strain, it's up to the the manager
to find the best doctors and arrange medical care.
Commission arrangements vary--particularly if the manager has advanced the artist money to
cover expenses. The days of 10% commissions are long gone, 20% being the lower end of the
norm. 30% isn't unusual, but anything over 30%, and the artist is likely to make the least
money of everyone involved with his or her career. But, there are many different types of
commission structures, based on the artist's needs, financial situation, and potential for
a long career path. There's a lot of overhead in artist management, and long distance and
cell phone bills alone have the potential to bankrupt a small management company.
An agent is in charge of finding employment for the artist (think "employment
agency"). Offers come in to the agent from talent buyers (concert promoters), and the
agent discusses them with the manager, who decides which offers are best for the artist's
long-term career goals. Then the agent negotiates the contracts and handles the day-to-day
interaction with the talent buyer leading up to the show.
It's important to note that in California and New York, it is illegal for a manager to
procure employment; only a talent agent can legally negotiate an employment contract. This
is to prevent managers from earning double commissions so that one individual or firm
doesn't earn the majority of the money from an artist's career.
Agency commissions vary from 10%-15%, 15% being the norm.
Does an artist need both a manager and an agent to be successful? Absolutely. But whether
you're actually ready for both depends on the number of people you can draw to a show, how
many shows you're currently booking per month, and how much you're earning from them. The
decision on whether to hire the manager or agent first depends on your immediate career
goals ("immediate" being within the next year to eighteen months). If the focus
is on getting signed to a label, you'll want a manager or entertainment attorney first. If
the focus is on earning money by playing live, acting, etc., you'll want to hire an agent
first. The catch-22 is, the best agencies don't accept music clients who aren't signed to
a label--and most agents prefer to work with managers, who understand business.
Q&A Home
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Answers in the MBADC Q&A are to be taken as general advice only and are not intended
as a substitute for legal advice from a competent entertainment or intellectual property
rights attorney.
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