Managers, Managers, Managers...
So, you’ve played a few gigs, have some dedicated fans, and may have your own web site! Cool. You can see a future in your music, and have started to think about getting a manager.

Who would be best suited, and how do you set up the management relationship? And what should it involve - exactly what does a manager do for you? Apart from tell you you rock! Getting one of your friends involved is one option, or you might want to hire someone with band or management skills. How do you get the right person, and get the relationship right?

Check out the “Managing” page of the “WAM Guff - Notes for Young Players” section for more info on these issues.

Essentially, a manager acts on your behalf in promoting, booking and securing work or deals for you, in return for a commission and reimbursement of some expenses. Some managers will simply book gigs and others might try to get you a distribution deal throughout Europe!

Note: these pages are written from a band or artists’ perspective, not a manager’s. Sorry man.

Choosing a Manager
If you’re serious in the increasingly competitive music industry, it is important to look at the skills and potential of a manager in a number of areas, like you might for any “professional”.

Your pal may have plenty of enthusiasm, but consider the aspects a manager should have, like:

• Qualifications - do they have qualifications in business, accounting or management?
• Experience - are they handling bands already or have experience in managerial roles?
• Time - can they commit sufficient time to the band in addition to other commitments?
• Contacts - do they have contacts with record labels, booking agents or overseas etc?
• Results - if they are established, have their existing bands done well and been happy?

Depending on your plans (and the contract), you want to make sure you get the right person!

Management Contract
Once you’ve done your research, asked around and found someone you think will work well with you, and get results, how should you go about creating or formalising the relationship?

It is best to have a written management contract that clearly sets out the rights and obligations of both the band and your manager. You will be entering into a close working relationship, so to reduce the potential for disputes or problems down the track, the various aspects of your relationship should be clearly defined. See the “Contracts Generally” section for more info.

A management agreement is your manager’s agreement to provide management services to you in return for a commission and repayment of expenses. There are several key areas for you to consider, and there is no such thing as a “standard contract”. It is always negotiable!

Term
The term of a management agreement is usually structured so there is an initial period of 1 to 2 years, followed by various options to extend, often in the discretion of the manager. Stick with a period of time you are happy with and, ideally, require your consent for extensions.

It's a balance - a short term might not give your manager any incentive. Too long might suck.

In any case, there should be a termination clause. This should allow you to terminate if your manager is not performing his or her obligations under the contract, within a reasonable time. You can also include other grounds or reasons to terminate. If your manager is inexperienced, or you’d like to see how things work out, you may consider including a “trial period”, where either of you can terminate immediately (by giving written notice) in, say, the first 3 months.

Territory
The “territory” referred to in a management contract is the area your manager must cover, or if its an exclusive deal (described below), the area he or she has exclusivity as your manager. It can often be a good idea to start with local territory first (WA or Australia, or NZ too, eh?), or only have the manager represent you where he or she has business contacts or experience.

It’s also a balance - a larger territory may provide an incentive, but may also stop you getting a separate manager who is experienced or better connected in a different part of the world.

It’s common to allow a manager to appoint a “co-manager” to represent you overseas. A co-manager’s appointment should really be subject to your prior approval. Any co-manager will usually split the total commission, representing the work done outside the manager’s areas, which means you are not paying the commission twice, but do get reach beyond our shores.

Exclusivity
Most management agreements will state that the manager has been appointed as “exclusive” manager for you, meaning that you can’t appoint or use any other manager in the “territory”. If you want a new manager, you’ll need to terminate the contract, or pay your manager out!

Even with exclusivity, contracts often allow a manager to look after other performers as well as you. Whilst this is more or less standard, consider including a clause that requires your manager not to devote too much time to other artists as to jeopardise your interests or career, and when you do your “manager research”, assess if they might already be overcommitted.

Your Manager’s Powers
You should think very carefully about the scope of “powers” you wish to give your manager.

It is important to limit what you authorise or empower your manager to do in the contract, so that, for example, you have to give your approval before your manager locks you into a major recording deal or touring commitments. You should also consider whether the powers apply throughout the music industry only, or right throughout the broader “entertainment” industry.

If the manager wants to appoint a ‘personal manager’ to help look after you or a ‘business manager’ to deal with all financial matters, that appointment should require your consent.

Manager’s Obligations or Duties
The way manager’s obligations are expressed in contracts is important for two reasons. First, it makes it clear what is or isn’t expected. Second, depending on the termination clause, your ability to terminate may depend on your manager specifically breaching these obligations. If the obligations are vague or incomplete, you may not be able to enforce “non-performance”.

A manager should be required to use “best endeavours” to do things like promoting the band and developing the band or artist’s career, getting contracts with labels or publishers, booking gigs, overseeing sponsorship and merchandise and even co-coordinating videos and DVDs. At the least, the requirement can be “reasonable endeavours (or efforts)” but that is lower.

The specific obligations or duties should be clearly set out in the contract relating to all of the things you are expecting your manager to do. Depending on your manager’s qualifications, if you would prefer to appoint a separate accountant, then this might also be worth setting-out.

Artist’s Obligations
An artist’s obligations in a management contract are generally minimal: to co-operate and do things a manager arranges to promote the band, including publicity, performances, tours etc, where it is reasonable for them to do so, and of which reasonable notice is given to the band.

The contract should also allow band members to pursue other employment - if they wish to!

Commissions and Payments
This is always a hot topic! Commission rates are generally 15-20% of the gross earnings of the band or artist. Certain sums such as advances from record companies for recording costs, or booking agent commissions, can be excluded when calculating the manager’s commission.

The percentage you agree with your manager is really up to you - remember, it's an incentive! Equally as important as the percentage is the amount from which it is a cut. Think about it... 10% of anything you earn could be higher than 20% of gross income from record sales only.

It is not uncommon for a manager to be paid decreasing rates of commissions for 1 to 3 years after the contract ends, to acknowledge the work they put in during the contract. Your call... It doesn’t have to be included, but again, the time periods and the percentages are negotiable.

A manager may also be reimbursed for expenses incurred on behalf of the band (but not their own office or administrative expenses - that’s what a commission is for, for crying out loud!). These payments should require the band’s prior approval, especially above a minimum level.

Dispute Resolution
From time to time, issues such as performance commitments or finances can come to a head between band and manager. It’s a good idea to have a mechanism in your contract, which allows each of you to resolve the problem before it ends up in court! Mediation services, like those offered by the Arts Law Centre of Australia are a good mechanism to use, with a clause in the contract directing the parties off to mediation if a dispute occurs and can’t be resolved.

Managers in NSW
Even though these pages deal with Western Australia, if you are entering into a management agreement with a manager who is based in NSW, certain aspects such as commission rates and managing artist finances are regulated by the Entertainment Industry Act 1989 (NSW). Speak to your lawyer to check whether your management agreement conforms to that Act.

Other and in Summary...
A clause preventing a manager from assigning the contract (i.e. the manager’s role) to anyone else is definitely worth considering, so you don’t end up stuck with someone you don't know!

The information above is only an overview of management contracts, and as the saying goes, “the devil is in the detail”. It is definitely best to get legal advice on a management contract.

Further Information
Good info on managers is available on the “Managing” page of WAM’s “Notes for Young Players”.

A checklist of issues to consider before entering a management agreement can be obtained (by order) from the Arts Law Centre of Australia along with other music management info. A more general overview of the sorts of issues to consider is also available from their website, as is the information of mediation referred to above.

A detailed analysis of the provisions in a management agreement and other bits of info are at the StarPolish site. But, be aware that this is a US website so will be more typical of the US industry standard than what might apply in Western Australia. Use it at your own risk!

Insight into managers is available from the Australian International Music Manager’s Forum.

Managers, Managers, Managers...
So, you’ve played a few gigs, have some dedicated fans, and may have your own web site! Cool. You can see a future in your music, and have started to think about getting a manager.

Who would be best suited, and how do you set up the management relationship? And what should it involve - exactly what does a manager do for you? Apart from tell you you rock! Getting one of your friends involved is one option, or you might want to hire someone with band or management skills. How do you get the right person, and get the relationship right?

Check out the “Managing” page of the “WAM Guff - Notes for Young Players” section for more info on these issues.

Essentially, a manager acts on your behalf in promoting, booking and securing work or deals for you, in return for a commission and reimbursement of some expenses. Some managers will simply book gigs and others might try to get you a distribution deal throughout Europe!

Note: these pages are written from a band or artists’ perspective, not a manager’s. Sorry man.

Choosing a Manager
If you’re serious in the increasingly competitive music industry, it is important to look at the skills and potential of a manager in a number of areas, like you might for any “professional”.

Your pal may have plenty of enthusiasm, but consider the aspects a manager should have, like:

• Qualifications - do they have qualifications in business, accounting or management?
• Experience - are they handling bands already or have experience in managerial roles?
• Time - can they commit sufficient time to the band in addition to other commitments?
• Contacts - do they have contacts with record labels, booking agents or overseas etc?
• Results - if they are established, have their existing bands done well and been happy?

Depending on your plans (and the contract), you want to make sure you get the right person!

Management Contract
Once you’ve done your research, asked around and found someone you think will work well with you, and get results, how should you go about creating or formalising the relationship?

It is best to have a written management contract that clearly sets out the rights and obligations of both the band and your manager. You will be entering into a close working relationship, so to reduce the potential for disputes or problems down the track, the various aspects of your relationship should be clearly defined. See the “Contracts Generally” section for more info.

A management agreement is your manager’s agreement to provide management services to you in return for a commission and repayment of expenses. There are several key areas for you to consider, and there is no such thing as a “standard contract”. It is always negotiable!

Term
The term of a management agreement is usually structured so there is an initial period of 1 to 2 years, followed by various options to extend, often in the discretion of the manager. Stick with a period of time you are happy with and, ideally, require your consent for extensions.

It's a balance - a short term might not give your manager any incentive. Too long might suck.

In any case, there should be a termination clause. This should allow you to terminate if your manager is not performing his or her obligations under the contract, within a reasonable time. You can also include other grounds or reasons to terminate. If your manager is inexperienced, or you’d like to see how things work out, you may consider including a “trial period”, where either of you can terminate immediately (by giving written notice) in, say, the first 3 months.

Territory
The “territory” referred to in a management contract is the area your manager must cover, or if its an exclusive deal (described below), the area he or she has exclusivity as your manager. It can often be a good idea to start with local territory first (WA or Australia, or NZ too, eh?), or only have the manager represent you where he or she has business contacts or experience.

It’s also a balance - a larger territory may provide an incentive, but may also stop you getting a separate manager who is experienced or better connected in a different part of the world.

It’s common to allow a manager to appoint a “co-manager” to represent you overseas. A co-manager’s appointment should really be subject to your prior approval. Any co-manager will usually split the total commission, representing the work done outside the manager’s areas, which means you are not paying the commission twice, but do get reach beyond our shores.

Exclusivity
Most management agreements will state that the manager has been appointed as “exclusive” manager for you, meaning that you can’t appoint or use any other manager in the “territory”. If you want a new manager, you’ll need to terminate the contract, or pay your manager out!

Even with exclusivity, contracts often allow a manager to look after other performers as well as you. Whilst this is more or less standard, consider including a clause that requires your manager not to devote too much time to other artists as to jeopardise your interests or career, and when you do your “manager research”, assess if they might already be overcommitted.

Your Manager’s Powers
You should think very carefully about the scope of “powers” you wish to give your manager.

It is important to limit what you authorise or empower your manager to do in the contract, so that, for example, you have to give your approval before your manager locks you into a major recording deal or touring commitments. You should also consider whether the powers apply throughout the music industry only, or right throughout the broader “entertainment” industry.

If the manager wants to appoint a ‘personal manager’ to help look after you or a ‘business manager’ to deal with all financial matters, that appointment should require your consent.

Manager’s Obligations or Duties
The way manager’s obligations are expressed in contracts is important for two reasons. First, it makes it clear what is or isn’t expected. Second, depending on the termination clause, your ability to terminate may depend on your manager specifically breaching these obligations. If the obligations are vague or incomplete, you may not be able to enforce “non-performance”.

A manager should be required to use “best endeavours” to do things like promoting the band and developing the band or artist’s career, getting contracts with labels or publishers, booking gigs, overseeing sponsorship and merchandise and even co-coordinating videos and DVDs. At the least, the requirement can be “reasonable endeavours (or efforts)” but that is lower.

The specific obligations or duties should be clearly set out in the contract relating to all of the things you are expecting your manager to do. Depending on your manager’s qualifications, if you would prefer to appoint a separate accountant, then this might also be worth setting-out.

Artist’s Obligations
An artist’s obligations in a management contract are generally minimal: to co-operate and do things a manager arranges to promote the band, including publicity, performances, tours etc, where it is reasonable for them to do so, and of which reasonable notice is given to the band.

The contract should also allow band members to pursue other employment - if they wish to!

Commissions and Payments
This is always a hot topic! Commission rates are generally 15-20% of the gross earnings of the band or artist. Certain sums such as advances from record companies for recording costs, or booking agent commissions, can be excluded when calculating the manager’s commission.

The percentage you agree with your manager is really up to you - remember, it's an incentive! Equally as important as the percentage is the amount from which it is a cut. Think about it... 10% of anything you earn could be higher than 20% of gross income from record sales only.

It is not uncommon for a manager to be paid decreasing rates of commissions for 1 to 3 years after the contract ends, to acknowledge the work they put in during the contract. Your call... It doesn’t have to be included, but again, the time periods and the percentages are negotiable.

A manager may also be reimbursed for expenses incurred on behalf of the band (but not their own office or administrative expenses - that’s what a commission is for, for crying out loud!). These payments should require the band’s prior approval, especially above a minimum level.

Dispute Resolution
From time to time, issues such as performance commitments or finances can come to a head between band and manager. It’s a good idea to have a mechanism in your contract, which allows each of you to resolve the problem before it ends up in court! Mediation services, like those offered by the Arts Law Centre of Australia are a good mechanism to use, with a clause in the contract directing the parties off to mediation if a dispute occurs and can’t be resolved.

Managers in NSW
Even though these pages deal with Western Australia, if you are entering into a management agreement with a manager who is based in NSW, certain aspects such as commission rates and managing artist finances are regulated by the Entertainment Industry Act 1989 (NSW). Speak to your lawyer to check whether your management agreement conforms to that Act.

Other and in Summary...
A clause preventing a manager from assigning the contract (i.e. the manager’s role) to anyone else is definitely worth considering, so you don’t end up stuck with someone you don't know!

The information above is only an overview of management contracts, and as the saying goes, “the devil is in the detail”. It is definitely best to get legal advice on a management contract.

Further Information
Good info on managers is available on the “Managing” page of WAM’s “Notes for Young Players”.

A checklist of issues to consider before entering a management agreement can be obtained (by order) from the Arts Law Centre of Australia along with other music management info. A more general overview of the sorts of issues to consider is also available from their website, as is the information of mediation referred to above.

A detailed analysis of the provisions in a management agreement and other bits of info are at the StarPolish site. But, be aware that this is a US website so will be more typical of the US industry standard than what might apply in Western Australia. Use it at your own risk!

Insight into managers is available from the Australian International Music Manager’s Forum.