Artist Representation Final Study Guide

Definitions (contracts)

most contracts have important words that need to be clarified. Having vague terms in a contracts allows for manipulation and mischief when one party needs to find a way out of the contract.

Licensing Deal

Grant permission for a company or individual to use a song or an album in a project. In exchange for payment, the copyright owner gives permission in the form of a written agreement know as a license.

360 (Multiple Rights) Deal

recording contracts in which Artis share revenue for not just album sales but concert, merchandise, branding, sponsorship, tour, publishing, and other earning with their label in exchange for more comprehensive career support.

Agent's Fee

-Agents are regulated by the unions: AFM (American Federation of Musicians) for musicians; AFTRA (American Federation of Television and Radio Artist) for vocalist and actors on live, taped and digitally recorded media. - Unions put a cap on how much the agents can charge, namely 10%

Importance of the Planners Vision

-The personality, values, talents, and vision of the planner are always reflected in the finished product. -All plans must account for inevitable setbacks. -No matter how sound an artist's career plan may be it will certainly encounter problems, obstacles, and delays. -When you encounter the inevitable setback, this is when the qualities of persistence, discipline, and follow-through prevail. -Deal with the prospect of resistance at the outset of the planning process. If "no" never comes.. GREAT! But when it does you won't be surprised but prepared and able to do something about it. In the world of artist management, the career plan is by necessity a product of the manager and artist's collaboration. Consequently, the melding of personalities and aspirations of the artist and manager are critically important. Before creating a career plan with your artist you should do another self-appraisal. Ask yourself: Am I a positive-minded person who is wiling to do what it takes to reach our goals? Do I still totally believe in the artist-manager relationship? Do I still want the same things from this relationship? What are my personal strengths and weaknesses? How can I best exploit my strengths and improve my weaknesses?

Artist Manager Code Of Ethics

1. Deal fairly and honestly in ALL matters relating to their client(s); 2. Always look out for the interest of their client(s) 3. Treat all business matters related to their client(s) as confidential; 4. Make an effort to avoid scenarios where a conflict of interest is likely to occur; 5. Encourage clients to seek legal advice prior to signing contracts; 6. Keep durations of management contracts of reasonable length; 7. Conduct research, stay involved in and be well informed about matters relating to the music business; 8. Avoid collusion with other managers that result in actions against the interest of the client(s); 9. Refrain from 'blacklisting' clients or engaging in any other similar behavior; 10. Not receive an unreasonably or unjustifiably high commission; 11. Not take credit for another manager's work; 12. Not exaggerate his or her credentials or affiliations in an effort to woo a client into a contractual relationship; 13. Not encourage clients to breach existing contracts with other managers; 14. Not to engage in libel or slander against client or other members of the music management community

Single Deal

A contract between a record company and an artist or producer providing for one single to be recorded and released, but usually containing options for additional singles and/or albums in the event the single achieves commercial success.

Upstream Deals

A contract in which a major label signs a distribution deal with successful independent label or producer. The label or producer sometimes receives operations funds for signing and developing artist. They get their records distributed and marketed through the major label system. When the indie record reaches a certain plateau the record is "upstreamed" into the major label system.

Performance Clause

A contractual provision requiring a party to perform some service or achieve some goal possibly within a specific time period.

Co-publishing Deal

A deal in which the songwriter and the music publisher are "co-owners" of the copyrights in the musical compositions. The songwriter assigns an agreed percentage to the publisher, usually a 50/50 split

Term

A fixed period of time during which the contract is in force

Minors

A minor is a person who is under the age of legal majority. A contract with a minor is invalid unless a parent or legal guardian co-signs and or signs a separate letter of consent.

American Federation of Musicians (AFM)

A national trade union representing the interests of instrumentalists, conductors, arrangers, orchestrators, copyists, librarians, contractors, cartage, and recording engineers (where there are no jurisdictional disputes with IATSE)

Partherships

A partnership is created when two or more people agree to combine their property, talent, or other resources to establish a business in which each is to be an owner sharing the profits or losses of the business. ADVANTAGES/DISADVANTAGES ‣ Advantages and disadvantages are similar to sole proprietorship with some major distinctions. ‣ Each partner can act on behalf of the business, rendering the business liable for any partner's action within the scope of the firms operation ‣ Partners are liable not only collectively but also individually for all obligations of the business, including liabilities that result from wrongful acts of the other partners ‣ Growth of a partnership can be restricted because all it's members must consent before any additional members are included

Severablity

A provision in a contract stating that, in the event of a judicial determination that parts of the contract are invalid and unenforceable, the valid portions of the contract will remain in force.

Sole Proprietorship

A sole proprietorship is an unincorporated business operation owned by an individual. Advantages: ‣ The owner is the boss ‣ There is little formality or cost associated with the formation of a proprietorship ‣ The business is free to trade and operate anywhere without having to comply with various statutes in each state where they do business ‣ Proprietor is not subject to liability for the actions of others ‣ Individual proprietor is not subject to as many regulatory and reporting requirements as other forms of business ‣ Proprietorship may be granted borrowing power beyond the value of the business, to the extent of the owner's assets outside of the proprietorship Disadvantages: ‣ No one other than the owner can act on behalf of the business ‣ Business has limited decision making capabilities and expertise ‣ The owner is subject to unlimited personal liability for all the obligations of the business ‣ The amount of the investment in the business is limited to the resources of the owner ‣ Proprietorship is subject to termination upon the death or incapacity of the owner ‣ Other forms of business provide certain tax advantages not found in sole proprietorship

Audits

All contracts should allow the receiving party to audit the books of the paying party. (if the manger collects all the money and makes payments to the artist, the artist should be able to audit the manager's books to check the accuracy of payments)

Distribution Deal

An arrangement between an independent label or production company and a major label where the major distribute the indie's product to retailers. In this arrangement the independent label is responsible for manufacturing, packaging, and delivering finished products to the distributer. The Major label usually retains 20% to 30% of the product's wholesale selling price if marketing is done by the indie. These type of deals are generally offered to labels with provable sales histories.

Option (Step) Deal

An arrangement where an artist receives a partial payment towards a creative fee for writing a song for a project (film, tv, commercial etc). The artist submits the songs if, the company approves the song a further payment is made. Final payment is made when the songs is actually used in the completed project.

Sub-Publishing Deal

Basically music publishing deals in foreign territories between a US publisher and a publisher in a foreign territory

Recording Deals

Contracts signed between record labels and artist usually with multiyear or multi-album commitment from the record label to provide the recording budget, approve hiring of producers, SELECT SONGS, oversee the graphic design, manufacture, distribute, market, and promote the record, collect money and make payments.

Production Deals

Deals between labels and producers or producers and artist. In the producer/artist deal a producers finds an artist and produces an album that can be then shopped to a record label. In the label/producer deal the label hires a producer to produce an album for an artist on their label.

Administration Deal

Deals between songwriters/publisher and independent administrators, or between songwriters/publishers and other music publishers. The songwriter self-publishes and licenses songs to the music publisher for a specified term and an agreed-upon royalty split. The music publisher administers and exploits the copyrights for the songwriter. This deal is coveted because the songwriter never transfers ownership of the copyright to the administrator. Instead the administration gets 10% to 20% of the gross royalties received.

Creating Timelines

Goals are worthless unless they are accompanied by a realistic timeline for realizing them. Keep in mind when setting your timeline that everything takes longer than you think it will. So again, plan for unexpected events and setbacks that delay the schedule you set to accomplish certain objectives. Goals should be staggered over long, short, and intermediate periods. Example 6 months, 1 year, and 3 to 5 year goals. All goals should lead to should lead to some ultimate objective

Strategies for achieving goals

If the goal is the target, the strategy is the "how" part of hitting the target. The goal strategy is what the planner conceives as the shortest, most effective rout to a particular point, or goal. Goal strategies will almost always differ from artist to artist, depending on their talent, needs, and circumstances. Past experience, personal motivation, expertise, knowledge of the overall structure of the music industry, and timing all play an important part in strategy.

Assignments

Most contracts will allow the manger to assign their duties and responsibilities to an associate, affiliate, licensee or other company that may buy the manger's company out.

Expenses

Most contracts will call for the manager to be reimbursed for reasonable expenses incurred by the manager on behalf of the artist. This section of the contract would define what "reasonable expenses" are.

Endorsement Deals

Music equipment companies have financial interest in having high profile musicians with album or touring/performing credits endorsing their products.

Standard Contract

NO SUCH THING AS A STANDARD CONTRACT, it's all in what's negotiated

Recommended Initial Contract length

Offer six/nine month trail period before committing to a long term relationship.

Demo Deal

Rare deal in which a record label gives an artist money ($1500 to $5000) to record a demo

Development Deal

Record label A&R will spend about 6 months working with all aspects of the artist's package to try to bring it up to the level where they can commit to spending more money on a full release. Budget ($10,000 to $35,000)

Self Image and the Goal Setting Process

Some people have a subconscious fear of failure. This fear may reveal itself in terms of setting easily attainable goals over a very short period. Others have a hidden fear of success. This fear is camouflaged by choosing goals that are almost impossible to attain. They don't have to worry about success, since their goals will never be accomplished, and then they have a built in excuse. Another important point is the psychological assistance that goals give in the pursuit of success. The fact that goals exist give a good reason to start. Writing down goals is also valuable, periodic reading or repetition of the goal will imprint that objective in the subconscious. Thus conscious actions mandated by the career plan are supported by subconscious thoughts.

The Success Formula

Talent + Exposure + Assets + Marketability + Story = Value Talent: •Your artist should have talent that has mass appeal. •An artist that can connect with a wide audience is more valuable to the "machine" •It's difficult to analyze and evaluate talent because it's subjective •Your client must not just be talented relative to others, but also talented in a way that is relevant and competes in the current music business market. Exposure: •Exposure creates value for your artist in a few ways 1. Exposure leads to discovery 2. Exposure affect the way people perceive the importance of relevance of someone. 3. Exposure gets your artist onto the radar of the "machine" Assets: • Tangible: Intangible • Sound recordings - Image or Brand • Copyrights - "It" Factor • Tickets - Name Recognition •Merchandise - Work Ethic • Video - Sales History • Mailing list - Track Record • Marks and logos - Touring History • Capital - Deals • Music equipment - Contacts Marketability: •Does your artist have a unique and marketable personality that can have mass appeal? •Identify your artist's brand and see that the brand is marketable. •What exciting brands can you establish partnerships with for your artist? •Branding is crucial because you can't rely on the income of sales of recording, you have to generate other income streams based around the brand. Story: •A story is a short, one-line description that sums up what your artist is about. •It's a narrative used to compel someone to want to hear more about your artist. • Simply being a talented musician or having a great voice is not a compelling enough story to attract attention. •A compelling story helps to get media coverage and industry attention. Value: • The value you build for your artist is to influence two groups; (1) consumers and (2) music industry partners and facilitators. • Greater value leads to higher caliber of investors, partners, and facilitators being attracted to your project.

Warranties and Representations

The contract should ask the parties to warrant and represent that they are of legal age and have not been pressured to sign the contract (not under duress) are free to enter into the agreement, are not under disability with respect to their right to execute the agreement, have consulted an attorney, have told the truth about ownership of copyright materials under contract, and are not violating any laws.

Breaches and Disputes

The contract should clearly spell out exactly what constitutes a "breach of contract"

Group members

The contract should spell out whether the manger represents all members of a group even if they individually leave the group to pursue solo careers.

Gaining access to the Gatekeepers

The first dynamic for success, after talent, is access to the industry. Since talent and commercial potential are so subjective, record companies as well as the other distributions channels often rely on top-flight managers to prescreen their talent. Top managers can't ensure success, but they can certainly improve the odds that the industry will pay closer attention. A manager with a track record is a significant factor in labels signing an artist.

Establishing Career Goals

The first part of planning revolves around goal setting. Goals may range from getting a record deal; succeeding on the nightclub circuit; making the charts with a top-10 record; or earning a million dollars in income. Goals vary depending on the not only the needs and desires of the artist, but also on the mutual talents, abilities, and resources of the artist and manger. An appropriate goal should stimulate and motivate the artist toward a particular focused achievement. Avoid setting your sights too high, making the goal extremely difficult or impossible to achieve. However your goals should not be so low that it's quickly accomplished, consequently losing its motivational value. Setting too many goals may create a lack of focus and direction as you try to do too much, which may lead to nothing getting accomplished. You should study the feasibility of each goal and rank it according to priority.

Corporation

The formation of an incorporated business create a new entity capable of doing business in its own name. The new entity is viewed as an artificial person in the eye of the law. Advantages: ‣The major primary benefit of the corporation is freedom of the shareholder (owner of the corporation) from personal liability for the obligations of the business. ‣ The ability to easily transfer ownership through exchange of stock shares ‣ Can exist for a set period of time without being impaired by the death of incompetence of individual shareholders ‣ Can raise large amounts of capital through investments of many shareholders Disadvantages: ‣ A corporation is more costly to form compared to proprietorships and partnerships ‣ Corporations are subject to more governmental regulations, such as requirements of periodic filing of reports and various statements ‣ Because ownership and control of the business corresponds to ownership of corporate stock, minority shareholders are subject to the control of the majority shareholders. ‣ The credit available to a corporation is limited to its own assets and not those of the individual shareholders

Implementing Strategies

The means of implementing the career strategies established are the actual moves you make, the day-to-day activities of an artist's life. These details may account for a month's or even a year's work toward the accomplishment of certain goals. The manager and artist should ask what's being done right now toward accomplishing the predetermined career goals. If a successful future is the goal, then start with having a successful day. Using time efficiently is an important factor in implementing strategies

Commission

This defines how the manger get's paid. Personal managers usually get paid a commission around 10%-15% of the client's gross (or net if negotiated by client) earnings.

power of attorney

This means that the manger can sign and accept contracts, agreements and other related documents on behalf of their artist. ✤ The purpose of power of attorney is to allow the manger to conduct business on their clients behalf even if the client is unavailable at the time. (Client may wish to limit the power of attorney to contracts that aren't exclusive and don't bind the client to a long-term commitment, or don't assign client's rights to sound recordings and copyrights)

Renewals and Extensions

This spells out when and how the contract gets renewed or extended.

What's involved in a manager's self-evaluation?

What do you as a manager bring to the table? ✤ What type of music do you enjoy and have a good understanding of? ✤ What contacts do you have in the industry? ✤ How much money do you have to keep you afloat during the first phase of management when not much money is coming in? ✤ How knowledgeable are you of the music industry? ✤ How many artist are you already managing?

Scope of duties

Your contract will have to spell out the obligations and duties of each individual.

Consideration

Your contract will have to spell out what each side is expected to receive. (bottom line is that each side must receive something in order for the contract to be valid) Almost all management contracts will grant the manger exclusive rights of representation, however, does not stop the manger from representing more than one artist.

Manager is not a licensed talent agent

a clause that says that the manger is not acting as a talent agent. A talent agent is defined as a person who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist.

Sunset Clause

a contractual provision setting a cut-off date to the rights of one party.

American Federation of Television and Radio Artist (AFTRA)

a performers' union that represented a wide variety of talent, including actors in radio and television, radio and television announcers and newspersons, singers and recording artists (both royalty artists and background singers), promo and voice-over announcers and other performers in commercials, stunt persons and specialty acts—as the organization itself publicly stated, "AFTRA's membership includes an array of talent". On March 30, 2012, it was announced that the members of AFTRA and of the Screen Actors Guild (SAG) had voted to merge and form SAG-AFTRA.

Key Man Clause

a provision in the contract that protects a recording artist who signs to a company specifically because of a particular person without whose presence the artist would not want to be bound to the company

Pressing and Distribution Deals

a type of distribution deal in which an independent label delivers finished masters and artwork to the distributer and the distributers then assumes responsibility for manufacturing, packaging, and distribution of the finished product. P&D deals also provide that the distributer handle all marketing of the product and the indie label is paid a royalty (15% to 20% of the product's retail price)

Master Lease Deal

an agreement between a record company and producers where the record company obtains exclusive rights to reproduce, distribute, and sell a recording for a period of time, after which those rights terminate and revert back to the producer.

Value Billing

when a deal gets done the lawyer ask for a fee based on the size of the deal and their contribution to it.

Agent's Role

• Agents in the music business are primarily involved in booking live personal appearances. • They are sometimes involved in commercials, endorsements, tour sponsorship, television specials, and other areas. • They don't participate in or get paid for records, songwriting, or merchandising

The Business Philosophy Of an artist

• An artist/band is a business Creatives, capable of generating multimillions of dollars. • Most artist don't like business • Even if the artist has a love for business, his/her love for creating and performing are much bigger. • Success hides a multitude of sins • If an artist is successful, they can get away with sloppy operations that would bankrupt you if times were bad. • You can make more money by cutting cost than you can by earning income. • No matter how successful an artist becomes, their career is going to have a limited run. • If you take the concentrated earrings of a few years and spread them over a 40 year period: (a) those earrings don't look so impressive and (b) this money may have to last them the rest of their lives.

Group/artist wants out of the management deal

• As a manger, you can usually prevent this from happening by paying your artist adequate attention, not promising things you can't deliver, doing everything you said you would do, keeping them busy and progressing and communicating well with them at all times. • The most common reason artist want out of a deal is that the manger has breached a clause in the contract. • It's your responsibility to spend some time educating your artist about the realties of the music business bet for you sign them. • Stress the importance of formulating a game plan that culminates in the artist being able to earn a living though music, with or without a major label. •If despite all your efforts they still want out of the deal, you should consider parting ways amicably since it will be almost impossible to get them to maintain faith and trust in you and participate in the plan you have laid out if they are unhappy with you and/or the situation.

Manager lacks contacts

• As a new manager, you may find yourself with very few serious music industry connections in the beginning. • Start in your local area and attempt to get to know everybody who is in the music business. • Attend all local music seminars, workshops or conferences that come through your area. • Join any local music associations or organizations that are available. • Utilize the internet and follow music industry sorts • After tackling the local scene focus on the regional, national and international scenes. • You will have to do some research to find contacts outside of your region. www.musicregistry.com • Making deep connections takes a while to accomplish • You will need to build trust between you and a contact before they start takin or returning your calls or responding to emails. • People will wan to work with you if there is something in it for them. (usually money to be made). • No one is interested in simply doing you a favor. • Don't make contact with somebody and immediately start asking for things or sending them files and spamming their email with songs.

The group or an artist breaches the management contract

• At some point in an artist manger relationship a group member or artist will intentionally or unintentionally breach the contract. • If the breach is minor, maybe you just talk to the artist and bring up your concerns. • If the breach is major, first bring the breach to their attention in a manner spelled out in your contract. • Your contract should indicated the amount of time the member or artist has to attempt to remedy the situation, and what you should do if the deadline passes with no resolution. • Attempt to work things out internally and get the situation resolved early. • Attempt to keep it out of the court system if possible, unless the breach involves large sums of money or potential damage to your reputation. • If all parties involved follow the sprit and word of the contract and communicate clearly, breaches can usually be avoided.

As a manger, you're "in over your head"

• At some point, you may feel like you're in over your head • The best way to avoid this is to not promise things you can't deliver • Talk to your artist or group about a realistic game plan before you sign them. • Take time to get on the radar of contacts who can help with your clients movement. • Having lots of industry contacts will help you feel in control and not over your head. • Putting together a team can help alleviate some of the pressure of having to get everything done alone

Decent progress has ben made but you seem to have reached a plateau

• At this point you should take stock of what you have accomplished and try to figure out what the problem might be. • Your contacts may no longer be available to help you • Industry may be done with your artist sound • Your budget may not be sufficient for the task that need to be done • The industry may be flooded with artist that sound just like yours • You may be having a hard time making enough buzz to stand out. • First analyze everything you've done up to this point • Depending on the nature of the artist, either a short break or an aggressive re-boot will be required. • Focus on creative ways to do the things you've been doing, and find ways to add some fresh things to the mix. • Find different incentives to get people to come to your shows and buy your music. • You may have to come up with some additional money to execute your new ideas, or allocate more time to the projects • Maybe your artist needs a new long term strategy, a new sound/style • Maybe play less often in your local area or more often in other areas • Perhaps you need a more aggressive publicity campaign • Maybe you need to do more interviews • Bottom line is, don't keep doing the same thing you've been doing and expecting different results..

One of the group members is not interested in signing the management deal.

• Attempt to find out what the individuals objections are. • They may think you are unqualified • They may have had a bad experience with another manager • May have been warned not to sign with you. • May simply be nervous about signing. • May think they don't need management. • Try to address their concerns if you are interested in signing the group • If something negative has taken place in the past, don't pretend it didn't happen. • There must be mutual trust between manager and artist.

Attorney's Role

• Attorneys negotiate and draft contracts • Register copyrights • Research suspected copyright infringement • Assist in vetting client work to ensure originality • Sort out co-ownership issues when artist collaborate • Litigate for their client over copyright, contract issues, disputes over rights to names or rights to music

Fair Use

• Certain uses are fair within reason and not infringement • Criticism, news reporting, teaching, etc. • Criteria to determine use of a work is a fair use was incorporated in new law. • Purpose or character of use (commercial nature or nonprofit educational purposes) • Nature of copyrighted work • Amount and substantiality of the portion used in relation to the copyrighted work as a whole • Effect of use on the potential market or value of the copyrighted work. • First Amendment versus fair use doctrine • The fair use doctrine is a legal defense to a copyright claim, essentially allows minimal reproduction of copyrighted martial for purposes such a scholarship, research, and news reporting. • Some argue that it conflict with dissemination of information because of the authors monopoly on the rights • Others argue that the copyright protection extending only to the expression of ideas and not the ideas themselves allows free speech to flourish.

Determining Infringement

• Complicated question • Facts: determined by judges and jury • Was it willful (intentional) or non willful (unintentional) • Must show that accuses has access to your work before creating their song.

Copyright duration 1790, 1976 revision, 1998 revision

• Copyright: protection provided by law • 1790: first U.S. copyright law (1909 revision provided copyright protection for 28 years with a provision for a renewal of 28 years total 56 years) • 1976: current copyright revision (Extended the protection to the life of the last surviving author plus 50) • 1998: extended to 70 years past the life of the last surviving author

Somebody spreading rumors about the manager in order to get the artist to leave

• Enemies can appear in the form of a disgruntled ex-employee, an artist whose demo you didn't like, a former group member you fired, a jealous manger, an arrogant A&R rep, etc. • Confront these situations head on and address it early with our client. • If you do everything with the best of intentions, always think about what's in it for your client, and have a good reputation within industry circles, you should be able to minimize this situations as well as find people to help defend you from ay attacks.

Why Register Your Copyright?

• If another artist records the song without compensating the author, the author is able to sue for damages for "copyright infringement" • If the authors work is not registered it will not be able to receive statutory damages (set amount of damages required by law)

Work for Hire

• Works made for hire are works prepared by an employee within the scope of his or her employment or a work specially ordered or commissioned for use as a contribution to a collective work. • This is why we have all musicians that play on a song sign a work for hire agreement (so they can't come back and claim ownership of the song) • Employer is the copyright owner not the composer/ writer

Some group members working harder than others in the group.

• If this is not addressed quickly, this can lead to serious morale issues or even the breakup of the group. • It's possible that some members perceive their contribution to the group to be greater even when it isn't. • One way to handle this situation is to designate task to each member so that all members feel like they are contributing equally to the overall success of the group. • Besides writing, recording, rehearsing, and performing what are some task that can be designated to group members? • Make sure the task are designed so the each member feels that the rest of the members are doing a fairly equal amount of work. • If a particular member seems to be the weak link and the entire project is being held back because of their lack of focus or contribution, you might want to consider discussing getting rid of them. • Removal of a member has to be voted on by the whole group or dealt with in a manner detailed in the groups partnership agreement. • You will alway have to consider doing what's best for the group as a whole.

Keeping the record label focused

• If you don't take steps to keep everybody at the label excited and motivated, you may soon find your artist at the bottom of the priority list and eventually dropped from the label. • You will have to make sure the label is paying adequate attention to you artist and spending the needed resources as promised in the contract. • There may even be times when you have to spend your own money to pay for an independent publicist, tour promoter, radio promoter, etc. • Spend time building your mailing list and working on putting together an independent street team for additional help. • Don't count on the label to do everything for you.

One member is (or more members are) not interested in a deal you've worked hard to line up.

• It is not unusual to find resistance to the deal that is on the table from one or more members of a group or an artist. • Communicating well with the group or artist prior to spending time trying to line up the deals can help avoid much of the resistance on behalf of the group or artist. • Communicating with your artist will let you know how they feel about different types of deals, and have a sense of if they would be interested in signing a deal or not if it materialized. • If you feel strongly about a deal, discuss it with your artist beforehand and explain to them the advantages of the deal as it relates to their long term plans.

Major label recommends that band artist finds new management

• It is pretty normal for a major label to ask the band to sign with an "A-level" management firm before offering them a recording contract. • A-level managers know the game and understand how things get done. • Things at the major label level can move very fast, and windows of opportunity can close quickly before a manager with no clout or connects can take advantage. • A-level managers get their calls returned • Major labels also know that it's easier to communicate with an A-level management firm that they've done business with before. • There should be a clause in your contract that describes what should happen if this situation comes up. • It is often better to release your artist or band for a buy-out fee and limited future commission (based on your sunset clause) from the major label. • Holding the artist back may have them resent you. • On the bright side, you can used the fact that you got them signed along with some of the money you made to sign other artist to your management company. • You will also have some good connections with the major label system that you can use to shop future artist. • If you feel strongly about keeping the artist signed to your management company and feel that there are better ways for them to achieve long term success, then you should make your feeling known and explain the way forward to your client.

How copyright established and who ownership vest with at its inception?

• Key principles of copyright protection • Does not extend to ideas • Only expression of ideas in any fixed tangible medium from which they can be perceived, reproduced, or otherwise communicated. • Protection: granted to original works and exist immediately after the creation of a song on a fixed medium. • However the songwriter needs to formally register the song in order to validate the copyright. • You can't just send a copy of a song to yourself in the mail and consider it copywriter (poor man's copyright) this is not accepted by the courts in America. • It is the unauthorized "exploitation" of a particular artist's expressions of an idea that is prohibited.

Personal Manager's Commission

• Managers typically get from 15% to 20% of earnings from new artist. • Established artist can sometimes negotiate for lower commission rates. • These percentages are generally applied to gross earnings before deducting any expenses. • Virtually every management contract says the manger gets paid on earnings after the term if those earnings are generated under "contracts entered into or substantially negotiated during the term" • Records made during the term of the management deal, the manager gets a commission from sales of these records occurring after the end of the management deal • The manager is paid on records made after the term of a management deal, if the records are recorded under a contract signed during the term.

Attorney's Fees

• Most lawyers don't charge on just an hourly basis. For those that do the rates are from $250 per hour to $700 per hour. • Some charge percentages usually 5%, some up to 10% • Some do "Value Billing" with a monthly "retainer".

Personal Manager Requirements

• Must be knowledgeable about every platform and outlet where music generates income. • Must be patient • Must be realistic • Must be flexible • Needs to be passionate about the music your artist or band is creating/performing • Must be persistent and aggressive when needed • Must have people skills • Must have lots of appropriate contacts • Must be extremely well organized • Should have some money to do your job while waiting for your commission to happen

Personal Manager's role

•The personal manage is the single most important person in the professional life of an artist. •A good personal manager can expand an artist career to its maximum potential. •A personal manager is the general manager and CEO of the business that is the artist • Help the artist with major business decisions. • Help the artist with the creative process. • Promote the artist's career. • Assemble and head the artist professional team. • Coordinate an artist's concert tours • Stay on top of the artist's record label. • Be a buffer between the artist and the outside world

Group member refuses to sign a group partnership agreement

• One of the first things you should do as the manager of a group is get them to sign a drop partnership agreement. • It's much easier to get the group members to agree to terms of an agreement while they are still friends and before a deal or substantial amounts of money are on the table. • A partnership agreement spells out the rights and responsibilities of each band member, indicates how assets are divided, details the procedures that must be followed and principles that must be adhered to. Topics covered in the group partnership agreement may include: • Ownership of the band name and logo • Group member hiring and firing • Group sharing of profits and losses • Ownership of groups sound recordings and publishing • Group termination • Determine the manner in which the group disputes will be handled (counseling, mediation, arbitration, through the courts, etc.) • Get legal assistance to help draft the partnership agreement. • Do it early • If one or more members don't wan to sign it, insist that problems will only be compounded if they wait until later

People attempting to bypass the manager in order to communicate directly with the artist

• Sometimes someone will offer something directly to your client without going through the manager. • Any legitimate business professional should have no problems talking to the manger about anything pertaining to their clients career. • Instruct your client that all communication must go through you as the manger to review and discussion before any action is taken. • As a manager you will need to act as a buffer against these types of individuals and approaches.

Somebody is trying to "cut-in" on your management duties

• Sometimes unintentional, while other times it is intentional and malicious • Cut-ins can come from many places, friend of the band, publicist, radio promoter, record label, etc. But most of the time it's a lawyer. • Many attorneys tend to give career advice when their role is to give legal advice. • While maintaining your management duties, don't be closed off to outside ideas. • Always address issues that have been introduced by outside sources. • Communicate to your clients very early that you will not tolerate other parties acting in the capacity of personal manager. • If things get out of hand talk to your client about why they trust someone else's opines over yours and attempt to correct the situation. • If necessary genteelly remind your client that they signed an exclusive deal with you for management. • Most problems can be avoided with a policy of clear, frequency and open communication.

Manager has problems with another member of the team (publicist, promoter, agent, attorney, producer, etc.)

• Take stock of what the problems are • If the problems are personal and the team member is valuable to the project, find a way to work with them until they can be replaced by someone of equal value. • Most persons issues can be ignored until the end of tour, deal negotiations, show, studio sessions, etc. • If the problem is related to the job performance of the person you hired or retained, you will have to use your position as manger to rectify the situation. • Major performance problems by team members will require you as manger to have a talk with the people you hired and if necessary, fire them if they don't fix the problems. • You must act decisively and quickly in order to avoid long-term damage to both the project and your reputation. • Put your emotions aside and deal with the situation from a business standpoint.

Business Manager's role

• The business manager handles all the artist's money. • They collect the money • They keeps track of the money • They pays the artist's bills • They invest the artist's money • They make sure the artist taxes are filed and paid etc.

Business Manager's Fees

• The fee a business manger is paid varies, depending on the artist's circumstance. • It's customary for the business manger to work on either a percentage basis (5%), an hourly rate, a flat fee or a combination of these. • With percentage deals usually there is a minimum monthly fee between $2000 and $5000 a month but it can be much higher for superstar artist

Bundle of Rights

• The owner's "bundle of rights" • Reproduce copyrighted work (Copies or phonorecords) • Prepare derivative works based on copyrighted work • Distribute work to the public by sale or other transfer of ownership. • Display copyrighted work publicly (musicals, dramatic, and choreographic works etc) • For sound recordings, Perform publicly by means of digital transmission

SR vs VR Copyrights

• There are two copyrights granted for every song that has been recorded to a fixed tangible format. • The PA copyright (belongs to the writers and composer of said song) • The SR copyright (usually belongs to the record label)

The band or artist is spending too much of the budget recording the album

• This applies to managers with artist signed to labels with large recording budgets. • It's your job as the manage to inform your artist not to be production rich and promotions poor. • It doesn't matter how good your recording is if there isn't any money left over to promote it. • Promotion is expensive, your record will be lost without the money to promote it. • Work with a good producer that can help you get the recording finished on time and under budget • Then spend the rest of the money on publicity, promotion and tour support. • Remind your artist that all the money is being charged back to them and will likely leave them unrecouped at the end of the contract term if they don't have any money left to promote the record.

Lack of (or bad) communication between you and your client

• Very common problem that occurs between managers and their clients. • Communication skills are vital as an artist manger. Bad communication creates a space in which others can spread negative stories and misinformation. • Communication is not only important with your client but with all other industry professionals as well. • The manager and client have to be on the same page at all times I order to avoid misunderstandings. • Artist should feel comfortable talking to you about anything that concerns or interest them at anytime • Your clients should understand that all correspondence must go through you at the manager and be discussed before acted upon. • The more credible you are with information the more likely the band will take your communication with them seriously and the more they will look to you for communication instead of outside sources. Remain up to date with industry news.

Copyright Ownership

• Vests initially in the author • Includes six exclusive rights • Multiple authors • Ownership is shared

Musical History

▸ As a manager you will want to take advantage of the past success of the artist while avoiding mistakes and failures of the past ▸ A historical profile should include the artist's past successes as well as failures ▸ Insight into the personal and psychological makeup of the artist along with life experiences can be very helpful in selecting goals and creating a plan for career development

Material

▸ Does the artist write their own songs? If so the chances for a long term record deal are enhanced. ▸ A artist writer is assured a stable source of material because they don't have to depend on other writers to create ▸ If the artist doesn't write its time to have them start (more streams of income)

Image

▸ It is important for an artist to adopt an image that is both comfortable and consistent with their personality and values (so they don't have to fake it) ▸ Coming across as genuine and credible while generating charisma unique to the artist is important to a long term career ▸ Audiences want personality. The substance of that personality (good, bad, weird, strange, etc) is far less important than the unique qualities that define the artist in public. ▸ Image and how effectively that image is projected are virtually identical ▸ Career survival requires both artist and manger to constantly and objectively measure the overall impression the artist makes on their target audience on and off the stage ▸ Hiring a first rate publicist to formulate and control the image is very helpful in this area

Limited Liability Company (LLC)

▸ LLC combines the advantages of limited liability found in corporations with the flexibility, ease of management, and lack of formalities found in sole proprietorship.

Performance Exposure

▸ The artist's present status and past history of personal appearances should be looked into ▸ This includes the type and amount of performing experiences; the type of stage show the artist puts on; a list of the artist contracts with agents, promoters, and club owners and any current bookings

Recording Exposure

▸ The artist's present status and past history of recording should be looked at also ▸ As the manger you should review their current producer(s), recorded material, and affiliations with record companies and executives ▸ Look at previously released material, sales, airplay history, and contacts with radio program directors and DJs ▸ Look at anything relevant to furthering the artist career via recordings, especially producers, A&Rs and other record execs who have expressed interest in the artist ▸ In all the manger and artist should review and critique all of the artist's recordings, both released and unreleased, in order to determine a future strategy.

Sound

▸ The first concern is the artist's sound ▸ Do they have a unique sound or vocal style ▸ Is the sound reminiscent of other well known recording artist? ▸ All artist are influenced by established artist. ▸ It's the managers job to help the artist see the difference between influence and a clone and help the artist navigate

Physical Appearance

▸ Today recording artist are multi-media artist ▸ Physical appearance is a critical factor to career success (fair or unfair) ▸ The commercial music industry is a sight and sound business ▸ How you look and project yourself in video and on live TV is in many instances as important as the song and how you perform it ▸ Fortunately or unfortunately the music business has moved in a direction in which artist, men or women, are either blessed with natural "Good Looks" or, have an interesting appearance ▸ This may be unfair but is the way in todays multimedia world

What makes a contract legally binding?

✤ The party that agrees to do (or refrain from doing) a particular thing must receive adequate consideration, ✤ The undertaking must be lawful (legal) ✤ Obligations must be reciprocal ✤ The parties must be legally competent

Where do you find Artists?

✤ Visit music blogs, ask club owners, promoters, go to open mic events, talk to club DJs, entertainment attorneys, record producers, studio engineers, publicist. (do they know artist who need management?) ✤ Social media: SoundCloud, Twitter, IG, Facebook, artist websites ✤ Personal friends or family that have talent and potential ✤ Go to venues to see independent artist perform live. This give great perspective (how is the audience responding? What needs work? Can you help?) ✤ Artist will make most of their money from touring and performing live, selling merch and signing merchandise deals, licensing their music for film, TV, etc., sponsorships, partnering with brands. ✤ An artist that can't or won't perform live will limit the ways in which you can generate income from multiple streams ✤ Once you find an artist that you think you might be interested in, attempt to see or hear them several times under different circumstances before approaching them or committing to a meeting. ✤ Watch how people react to them as well as how they interact with them. ✤ Ask around about them, about their reputation, work ethic. ✤ When you feel sure about the artist set up a preliminary meeting. Don't make promises or offers in this meeting, keep it casual.

The "Preliminary Meeting" Manager Evaluation

✤ What is the talent level of the potential client? Are they at the beginning, middle or advanced stages of their musical career? ✤ What work will be required to get them ready to market? Where are they in the VALUE formula? ✤ What market demographic are they trying to reach? Age, Sex, country, region, ethnic, etc. ✤ What are their goals? Are they realistic? Will you be able to achieve them in a timely manner? ✤ Do they absolutely love what they do? Are they in it for the money? Are they in it for the fame? (Also do you love what they do? Are you into their music?) ✤ Do they already have any existing deals? ✤ Do they operate as a company or corporation, or do they own any other companies (production, label, publishing etc?) ✤ What assets do they have (copyrights, trademarks, patents, real estate etc.) ✤ What debts have they incurred? (debts and liens can affect commissionable income) ✤ Do they have lots of friends or enemies in the music business? ✤ Have they had a manager before? If so what's the status of that relationship? ✤ Have they previously recorded any songs or been or tour before? If so what's their sales history? ✤ If everything is answered to your satisfaction you can move to the next step and begin negotiating a management contract.