Four major players
Personal Manager
Business Manager
How many songs should a demo have?
3 or 4
Why is it important to have best song first?
It creates an impression
Who is the first person on the artists team?
Attorney or Manager
Why should an artist be cautious about getting a lawyer to shop for CD?
they are not obligated; will not risk their credibility
What should you do to screen sharks?
Look beyond sales pitch, keep on probation, look for references, ask your team.
What 2 roles compare to personal manager?
COO or General Manager
What are the 7 items listed as major aspects of the manager’s job?
helps with business decisions
creative process
promotion & publicity
assemble other people on team
work with booking agent
liaison with record label
buffer for outside world
Typical range of commissions of a manager
15% and up
Typical term of management
3-5 years
Sunset clause
Limits manager’s income after termination
Key man clause
if person you hired dies, retires or leaves company, you can terminate contract.
Role of business manager
oversees financial aspects
what credentials are needed for business manager?
Errors and Emission Insurance
(no other required)
How are business managers usually paid?
15-20% based on Gross or Net
Value Billing
Lawyers fee is based on deal he negotiates with label
Amount held by attorney deducting by services
CLients options when attorney reveals conflict of interest
Wave the conflict
Hire another attorney
Role of an agent
find work for artist
What unions regulate agents?
all of them (depends on type of work)
What does franchising mean?
Agent is certified by the Union to represent
What is the standard fee for an agent?
10% of gross
what can record company do if a member leaves the group?
Keep the rest
Keep solo
Drop the band
or any combination
Most important asset of a band
Name (Brand)
What are some of the major issues that should be addressed in a group contract?
Business entity
or any problem that will need to be handled in the future
How is the band’s name legally protected?
What does a distributor do?
Distributes records
What does the A do?
Finds talent for label
What does the promotions department do?
get songs on radio
4 Major Labels
What is a true independent distributor?
not owned by label
what does the term record include?
audio and audio-visual (any form)
What are the two meanings of master?
one song or whole album
Labels compute artists loyalties based on what?
percentage of wholesale price
what are free goods?
records given to any retailers; dumping royalties for artists
What is “reserve against returns”?
Labels keeps what artist makes until they figure out what sold
What is “liquidating the reserve”?
account for what sold and give artist statement
What is recoupment?
taking what artists made and applying it towards the amount they advanced to the artist
what does union scale mean?
minimum amount paid to union workers
are advances returned if not enough records sold?
what is cross-collateratization?
label can recoup advance from any past or future deal with them
gold album
platinum album
what does a bullet on billboard mean?
moving up
what is the purpose of an escalation of royalties?
incentive to sell more
what does “all-in” mean?
artist responsible for paying producer and mixer
what is a fund?
recordings costs and any advances
what is a “formula for advances”?
automatically increases or decreases deal on future albums based on sales
pay or play
play your music or pay you off (union members)
difference between firm albums and option albums
Firm – company obligated to record
Option – not obligated
what is a demo deal?
demonstration recordings for label
(paid by label)
what does commercially satisfactory mean?
labels thinks it will sell
what does technically satisfactory mean?
what is a controlled compassion clause?
labels demand discount on artists that write their own music and compostions
what is the purpose of a guaranteed release clause?
if they shelf the record, you can walk
production coordinator
works for producer
what are record one royalties?
producers paid from the first record sold
how is the producer paid?
advance and royalties 3-5%
who usually hires the producer?
do mixers usually receive flat fees or royalties?
usually flat fees (royalties if creative contribution)
what does exclusive mean?
artist cannot work for anyone else
what is a sideman performance?
non featured appearance
which unions receive payments per record?
what are accountings?
detailed royalty statements to artist
what is a one-stop?
middle man that deals wit record label
rack jobber
leases floor space for non returnable record sales
what is a loan out?
talent forms company that represents them, so it will protect them against lawsuits
inducement letter
document signed by artist saying they will perform in contract for label
what is a licensee?
license with label to sell record
what is a independent production agreement?
independent label signs for distribution with bigger label
what is a joint venture
what is a P deal?
Presage & Distribution
manufacturing distributes
Actors Equity Association (Equity)
Actors, Live Shows
American Federation of Musicians (AFM)
News, Broadcasts, etc.
Directors Guild (DGA)
Film, Directors
Publisists, recordings, etc.
Screen Actors Guild (SGA)
Film or film style
Writers Guild of America (WGA)
Scripts, stories for film or tv shows