From the course: Music Law: Recording, Management, Rights, and Performance Contracts
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Paying the manager
From the course: Music Law: Recording, Management, Rights, and Performance Contracts
Paying the manager
- The Management Agreement provides for the managers payment, known as a commission. This is expressed as a percentage of revenue after deductions, usually 10 to 15 percent, and occasionally as high as 20 percent. Management agreements usually state that the commission will be taken from the artist's gross income. The use of the term "gross income" is misleading because it implies income before any deductions, while the management commission is almost always calculated after deductions are made. Keep in mind that the more that is deducted before the manager calculates the commission, the more money the artist keeps. In other words, it's not necessarily the size of the commission, whether it's 10 percent or 15 percent that matters. It's possible, for example, that a 10 percent commission with no deductions may sometime result in smaller payments to an artist than a 15 percent commission with many deductions. So, what should be deducted before the manager gets a commission? Or put…
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