Managers and promoters

Two words that can strike terror into a musician.  But rest assured bad reports you hear and read about are not the norm.

For the manager, the main question you need to be asking yourselves is do you need a manager? And if not yet, when?

The manager will get you more publicity, radio play, media appearances etc than it is likely you would yourself.  However as much as he or she may love music they are not going to be doing it for free.  So it is almost a catch 22 situation - you need someone to help you step up but until you step up there will not be funds to pay the manager.  Managers will generally be paid a percentage, but you need to have the income coming in for him to get his cut.  

A word of caution though - do not just employ a manager because it is the norm.  If your gigs and publicity are not going to improve, then why give away 20%?
However if you are going to get work and new opportunities from management that you would not have had otherwise then it is not difficult to see it is a good idea.  Some bands reluctantly  pay the 20% to the manager in sufferance but you have to remember - your 80% is income you would not have seen without the manager.
A manager with the right contacts can obviously help with the process of securing a record deal.  Even if you do not have one when you are approached regarding a deal, then is definitely the time to appoint one.  Very few bands / musicians would want to be dealing with the business side at that point.
As well as directly dealing with the music industry, your manager will also build a team of professionals that they, and you, can work with so ideally you do not have to think about any side of your band other than the music.
A dilemma facing your decision to go with a manger is how do you know if they are any good?  Well, unfortunately finding a manager is not like finding an accountant where you can see qualifications and know he can do the job.  Word of mouth is probably the most important recommendation.  If you know someone who has had a big impact with another band then that can be worth its weight in gold.  However, the manager will work closely with the band and no matter how good a manager is, if the band and manager are heading in different directions or do not gel, the arrangement will not work.  Personality is a major factor in deciding your appointment.  Part of the manager's job, initially at least, will be to try and look at and improve  what you are doing from an objective stance. It is easier to accept criticism, however constructive, from someone you listen to. and respect!  Additionally you will be placing a great deal of trust in your management team so it is important to realise that if that is not likely to happen with a particular manager, then it is better not to go down that avenue.

The specifics

Commission - negotiable but generally 15 or 20 per cent.  Always better to have an agreement where it is paid on nett income.  If it is done on gross, then you will pay the percentage before costs are deducted so in reality you are paying out more than the actual percentage.

Contract length - some management companies will insist on, or at least try to secure, a long term contract.  Again negotiable and the musician has to make sure the contract is beneficial.  Nothing worse than being locked into a management agreement which does not help your career.  A "performance clause" is not uncommon whereby the manager is set goals, such as obtaining publishing or record deal, and if these goals are not met within the specified time, then the musician has the write to terminate the contract.

Contract exclusions - it is worth thinking about what the contract will cover.  In one sense it may be, or at least seem to be, beneficial if all activities are under one roof so to speak.  However the musician does not want to be giving away a percentage of work they are already doing - session work, radio, TV, etc.  For new work it is different but it is a good idea to have your existing working activities written into the agreement.  Furthermore, in the unfortunate event of legal disputes, this will be a big factor in determining what input the management had.  It can hardly claim to have done x and y for the musician if it states in the initial contract that the musician was already engaged in these activities.

Financial - making sure everything financial is done in a right and proper way.  Ideally the musician will have a financial representative who will pay the manager their due percentage.  However if this is not the case and the manager receives income before distributing it to the musicians and other beneficiaries, it is vital to have access to the management accounts and the ability to have them audited.  Clauses should be included in your contract that define when the musician is to be paid the money.  For example after gigs, after record company advances, etc.  
Whilst we all hear stories about musicians ending up not getting what they thought was due, this can easily be avoided by having the right clauses in the contract in the first place.



So to promoters....

Some have described them as a necessary evil.  A little harsh maybe, but you must bear in mind it is their business and the reason for any business is to make money.  As with the managers, don't be put off because a promoter is making money off your music.  He will get his percentage but the bulk of it will be yours and it is likely it is income you would not have otherwise had.  As long as the promoter takes a percentage then in a way you cannot lose - which is why i cannot emphasise enough, never pay a promoter up front.  Any promoter who is even a little confident of his and the venue's ability to attract audiences will not need that.
Many venues will book all their gigs through a specific promoter - it is easier for the venue to not have to worry about the booking of bands.  So in these cases you cannot do without the promoter.  Other promoters may book gigs in an area or town.  This is all very well and in a lot of cases could result in many bookings but be aware some may want an exclusive arrangement with you.  Unless the promoter can guarantee a number of gigs, avoid this type of arrangement.  Whilst the promoter may indeed get you several gigs a month, you could also lose out as you have to turn down other offers.