If you read the previous post on Management deals you will see that i said i would post something to help artists on constructing their deals with managers contracts. Lets do this!
Records:
- The manager gets paid only on records recorded and released during the term (not on any others) trust me, this is best for you!
- Another alternative is that the manager gets a half commission (e.g, if the manager has 15%, it’s reduced to 7.5%) on records recorded during the term but released afterwards. The theory is that the manager only does half the work overseeing the recording, but not overseeing the release and promotion.
Publishing:
- The manager is paid only on songs recorded and released during the term. Best solution for artist!
- The manager gets a half commission on songs recorded during the term and released after.
- The manager gets a half commission on songs written during the term but recorded afterward. This at least cuts off participation in songs written after the term under contracts made during the term.
Final Cutoff
Try to have a fixed date after which all commissions end, no matter what. Try three to five after the term; settle for no more than seven.
Another reason why you should pay attention to the commissions you pay after the term is the fact that, after the term you will need to hire a new manager.
Business is business….as you can imagine, there aren’t too many managers who will want to work for free, and they’re fewer artists who want to pay 15% gross to two managers (30%).
Therefore, its very important to limit or eliminate commissions after the term. In truth, most new new managers will probably take a reduced commission on earnings that another manager is commissioning. But they’re only going to do this for, say, the first album or the first tour.
Read previous post on Managers deals here - http://bit.ly/ORmXSr
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