How do entertainment managers get paid

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Learn about our editorial policies. Updated on February 09, Your Privacy Rights. Firstly, I just need to say that standards vary by country or state or province or relationship. There are so many kinds of agreements out there, so the best thing to do is take what you learn in this video to a LOCAL entertainment attorney, or at least an attorney within your country, to help you before you sign any financial agreements. Alternatively, some managers will do a percentage of NET revenue.

The most common expenses taken off are in relation to live performance. When negotiating a NET deal, though, the tough part is figuring out what expenses are being taken off. I spent 7 months negotiating this exact scenario last year and then we never came to a conclusion and ended our partnership. The bottom line is that there are SO many different possibilities when it comes to negotiating management commissions and how much a manager will make.

And so on. Most managers can only directly manage up to 3 artists unless they have a strong team behind them, who are doing most of the work. Or are you willing to invest the time for a longer-term payoff? Thus, in this scenario, you would be paying two management commissions: one to your former manager and the other to your current manager.

To counter this long period of time in which the manager would otherwise be entitled to payments, you may want to negotiate your commission payments so that they aren't continued too long after the agreement is over. An example of one of many possibilities here may be that the manager would be entitled to full commission on the first album, half 50 percent of the otherwise commissionable percentage on the second album for managing the first half of the album cycle , and no commission for the third and fourth albums.

Language specifying this arrangement would have to be included in the agreement. It would be ideal to include another provision in the agreement where post-term commissions do not last in perpetuity called a "sunset clause" and the commissions get lowered, like a sunset, over time to where they eventually disappear.

For example, during the first year after the term, the rate is 75 percent of the commissionable rate; during the second year after the term, the rate is 50 percent; during the third year, 25 percent; and in the fourth year and beyond, there are no further commissions paid to the former manager.

As you can see, this area of the agreement needs to be well thought out, as there are many variations here to be explored and properly addressed, particularly with your attorney. While this series addresses some key points of the management agreement, it's recommended you work with a lawyer to help properly structure the agreement and who can help navigate through all the nuances, particularly the thorny post-term commissionable income area.

You and your manager should also have separate lawyers to avoid a conflict of interest and to ensure that the attorney is representing solely your interests. Paramount to everything is finding the balance in the agreement, which reflects you and your manager's mutual trust and shared vision.

Barry Heyman is founder and principal attorney of Heyman Law. Barry has been practicing music, entertainment, intellectual property copyrights and trademarks , and new media law for over 14 years. For more information, please visit the law firm website at heylaw. How is a manager's share calculated? What does a manager get paid for? Can managers continue to get paid even after the contract is up?