Artist Management Agreement

Including the parties’ full names and business addresses is a crucial part of any contract. This verifies that the Artist and Manager are who they say they are, and it provides a means of contact for each.

This section will describe the responsibilities of each party, including the services to be provided by the Manager.^[1] Are they responsible for booking the Artist’s performance travel? Will they act as a Booking Agent as well as a Manager? Including a detailed list of managerial responsibilities eliminates any confusion about the role in the Artist’s career development.^[2]

Examples include:

• Booking engagements;
• Developing marketing strategies;
• Mediating conflicts;
• Negotiating contracts;
• Orchestrating releases (books, films, records, television shows, etc.); and
• Settling engagement fees.

This establishes how and when the agreement will begin and end. Agreements can begin or end on specific dates or when certain events occur. If there is no formal means to end the contract, it is wise to establish a minimum number of days’ notice that one party must give the other party to terminate the agreement.

In a management agreement, it is important to determine the physical boundaries of the manager’s responsibilities to avoid any overlap or confusion. By specifying the physical territory where the management relationship will exist, an artist may have the ability to work with multiple managers.

Many artists engage multiple managers in different territories because a Manager in one territory might have different professional relationships than one in another territory. When an Artist hires a Manager exclusively, it’s commonplace in the entertainment industry to list the territory as “World” or “Universe.”

A manager can be paid in different ways. While there are generally accepted industry standards, each agreement will be slightly different. It is necessary to make clear within the agreement how the artist will compensate the manager.

Set Fee: Some Managers charge hourly, monthly, or quarterly fees. The Bureau of Labor Statistics estimates the median hourly wage for Artist Manager in the U.S. to be $57.74 and the median annual salary to be $120,100.^[3]

Commission: Alternatively, the most common compensation arrangement is through commission. The Manager takes a percentage of all fees the Artist earns from engagements under their management. Manager commission rates in the entertainment industry generally hover between 15-20%.^[4]

Method: The agreement should also establish which payment methods the Manager can accept, such as cash, personal check, ACH, or wire transfer.

Expenses: Include a list of operational expenses that the Artist must reimburse the Manager for funding out of pocket. Some examples include:

• Travel;
• Lodging;
• Food;
• Production Materials;
• Costumes; and
• Visas.