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Another 20 Questions: Artist Manager Agreements

September 13, 2014

Music Technology Policy

Commission Rate: 15% or 20% of Commission Base

Commission Base: Artists will want to make the “Commission Base” as close to a net number as possible, the managers will want to have it be some form of modified gross. For tour income, the typical deductions would be for the cost of sound and lights, opening acts or musicians, some tour personnel, promoter commissions, sometimes booking agency commissions. On merchandise created by the artist to be sold at shows, the artist would get to deduct the cost of merchandise, credit card fulfillment fees, hall fees. On recording funds, the artist could deduct recording costs, producer fees and royalties, mixing costs, musicians, vocalists, arrangers, engineers, vocal coaches, outboard gear, instrument rental. On songs, commission should be excluded on co-writers and any publishing that has to be given up to a third party, such as on a soundtrack where the studio…

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