Essential Music Management Contract Terms for Artists

Contract Term and Length

The length of your agreement with the music manager is a good place to start. You will need to agree upon a term and a contract cancellation policy. A fair contract term is a one-year agreement, with an option to extend at the end of the year if both parties agree. At that point, you can look at negotiating longer agreements, but a one-year term is a good trial period for both parties. Be sure your contract specifies how both parties can leave the deal.

Exclusivity

The manager will be exclusive to the artist. This means the artist may not hire anyone else to act in the same capacity, with the same authority, or to provide the same services as the manager. However, the artist retains the right to hire:

• A lawyer for legal advice
• A booking agent for employment or booking opportunities
• A business manager to handle the artist’s money

The manager should be flexible and realistic enough to understand that the artist will need others to assist in their career.

Managerial Authority

Another important and highly negotiated set of terms relates to the authority the manager will have to act on behalf of the artist. The manager usually requires authority to:

• Negotiate contracts on behalf of the artist
• Act as the sole representative to third parties
• Accept payment and deposit funds into a bank account
• Pay third parties for services
• Make publicity decisions and authorize the use of the artist’s likeness and name

Payment and Commission

Managers are generally paid a percentage of the band's income, often 15% to 20%. In addition to their percentage, managers should not have to cover any expenses out of their own pocket. Note that there are some revenue streams a manager should not receive a cut of, including songwriting royalties. Any deal between musicians and managers should be negotiated upfront and revisited when significant events occur that could drastically increase or decrease the band's income.