Notes on the Music Industry
Section 2 | Managing Music

Management
Ninety nine per cent of all people just starting out in music, and a lot who have been around for a while as well, have only one real option when it comes to the music business. They must look after their own affairs, in other words - self manage.

In the early days, a member of the band, or a friend, will probably perform the job of manager. This is not ideal. It is your job as artist to create and perfect your music. You cannot do this if you are attending to all the business details as well.

A good manager can have a powerful influence on your career. He or she will solve problems, save you time and make you more money. Good managers are worth their weight in gold - literally! Choose carefully.

Things Managers Do
Managers do an awful lot. Everything from laying out an entire career plan, to detailing and negotiating with every company and person within the music industry. The record company, publisher, agent, accountant, lawyer, tour manager, road manager, travel agent, unions, musicians, journalists etc etc.

Trusting Your Manager
A good Artist / Manager relationship must be built on a mutual belief in each other's capabilities, and a strong trust.

Look for a manager with a good reputation. Ask around. You'll need him or her to become a friend, a guardian, a parent, an agent, a visionary and someone who pays attention to detail. When you find a professional band manager you like, trust them. They will prove themselves as soon as possible. Sit down and go through everything. Tell the manager what you want to achieve and all the details of your band so that they get the full picture fairly quickly. Don't hide anything, be honest and up front.

If the talks go well you then take the next step - drawing up an agreement or contract that states who does what and for how long and for how much.

The main points in a management contract are: 1. The manager's duties, general and specific 2. The manager's fee or percentage (generally 15 -20%) including, a) how much and when the percentage is paid b) amount and nature of the expenses to be paid by the artist/s c) whether a percentage still applied to certain deals after the expiry of the general contract. 3. The term of the contract and options for renewal 4. Artist's guarantees (that you are free and clear to sign) 5. Provision for accounting and financial procedure.

These are the main points and will generally be submitted to you in a contract by the prospective manager. Don't sign anything before you have shown it to your lawyer - this is too important a step to take without professional advice. A short agreement (perhaps a year) will give both parties a chance to assess the relationship.

Now That You Have Signed....
...the work begins. You and your new manager must now sit down and create a career plan. Firstly you must decide on business structures - company, partnership, co-op; who owns the trademark or trading name; which bank to use; which lawyer will represent the act; which accountant, investment adviser etc.

But remember, the manager is not "all powerful". They are working for you. You must decide if business decisions compromise your music or not.

Choose carefully, communicate closely and make your manager your friend. If disagreements arise, separate the emotional issues and talk it out. If you find it difficult to talk to your manager, you've probably got the wrong one!.

Money Matters
Everything financial must be recorded on paper. All receipts and detailed records of each gig need to be kept and you may wish to have an accountant do your tax for you. This will usually save you a lot of money, and remember, your accountant's fees are a tax deduction!

The Law
Lawyers are a necessity. Most established artists have a tale to tell about the dreadful deal signed in a moment of youthful enthusiasm. Most were so thrilled to be offered a deal to make records that they signed deals that, today, would be thrown out of court under trade restriction provisions.

When you are starting out lawyers' fees seem expensive, but being tied up in a bad deal, or attempting to get out of a bad deal, can cost you a lot of money. If you can't afford a lawyer don't forget that the Musicians' Union offers a free legal advice service (first consultation) to Members, and free advice on publishing and recording contracts is available from the Australian Copyright Council. WAM can also assist with general advice and in steering you to a lawyer experienced in music law.

Contracts, company structures and disputes are areas where loss is involved, approach them as professionally as you would your music - employ an expert!

Shop around, get quotes and, above all, find someone you like dealing with.

Insurance
Insurance is vital to protect your equipment, your business, those who work for you and those who come to see you.

First and foremost make sure that you take out "top" cover on your personal equipment. If you are buying on hire purchase, borrow a little more. Your instruments are often irreplaceable, but at least you'll have the peace of mind of knowing that you can purchase reasonable replacements if any are stolen, lost or damaged.

Make sure that venues you play in carry public liability insurance. If not, take it out yourself. Remember, you are responsible for any personal damage suffered by people attending your shows. Why spend the rest of your life paying damages when you can be covered for very little cost.

Depending on the level of your operation, some of the areas of insurance you should consider are - instruments and equipment, workers' compensation, vehicles, cancellation/non-appearance, personal property, rain, personal accident and sickness, travel.

Notes on the Music Industry
Section 2 | Managing Music

Management
Ninety nine per cent of all people just starting out in music, and a lot who have been around for a while as well, have only one real option when it comes to the music business. They must look after their own affairs, in other words - self manage.

In the early days, a member of the band, or a friend, will probably perform the job of manager. This is not ideal. It is your job as artist to create and perfect your music. You cannot do this if you are attending to all the business details as well.

A good manager can have a powerful influence on your career. He or she will solve problems, save you time and make you more money. Good managers are worth their weight in gold - literally! Choose carefully.

Things Managers Do
Managers do an awful lot. Everything from laying out an entire career plan, to detailing and negotiating with every company and person within the music industry. The record company, publisher, agent, accountant, lawyer, tour manager, road manager, travel agent, unions, musicians, journalists etc etc.

Trusting Your Manager
A good Artist / Manager relationship must be built on a mutual belief in each other's capabilities, and a strong trust.

Look for a manager with a good reputation. Ask around. You'll need him or her to become a friend, a guardian, a parent, an agent, a visionary and someone who pays attention to detail. When you find a professional band manager you like, trust them. They will prove themselves as soon as possible. Sit down and go through everything. Tell the manager what you want to achieve and all the details of your band so that they get the full picture fairly quickly. Don't hide anything, be honest and up front.

If the talks go well you then take the next step - drawing up an agreement or contract that states who does what and for how long and for how much.

The main points in a management contract are: 1. The manager's duties, general and specific 2. The manager's fee or percentage (generally 15 -20%) including, a) how much and when the percentage is paid b) amount and nature of the expenses to be paid by the artist/s c) whether a percentage still applied to certain deals after the expiry of the general contract. 3. The term of the contract and options for renewal 4. Artist's guarantees (that you are free and clear to sign) 5. Provision for accounting and financial procedure.

These are the main points and will generally be submitted to you in a contract by the prospective manager. Don't sign anything before you have shown it to your lawyer - this is too important a step to take without professional advice. A short agreement (perhaps a year) will give both parties a chance to assess the relationship.

Now That You Have Signed....
...the work begins. You and your new manager must now sit down and create a career plan. Firstly you must decide on business structures - company, partnership, co-op; who owns the trademark or trading name; which bank to use; which lawyer will represent the act; which accountant, investment adviser etc.

But remember, the manager is not "all powerful". They are working for you. You must decide if business decisions compromise your music or not.

Choose carefully, communicate closely and make your manager your friend. If disagreements arise, separate the emotional issues and talk it out. If you find it difficult to talk to your manager, you've probably got the wrong one!.

Money Matters
Everything financial must be recorded on paper. All receipts and detailed records of each gig need to be kept and you may wish to have an accountant do your tax for you. This will usually save you a lot of money, and remember, your accountant's fees are a tax deduction!

The Law
Lawyers are a necessity. Most established artists have a tale to tell about the dreadful deal signed in a moment of youthful enthusiasm. Most were so thrilled to be offered a deal to make records that they signed deals that, today, would be thrown out of court under trade restriction provisions.

When you are starting out lawyers' fees seem expensive, but being tied up in a bad deal, or attempting to get out of a bad deal, can cost you a lot of money. If you can't afford a lawyer don't forget that the Musicians' Union offers a free legal advice service (first consultation) to Members, and free advice on publishing and recording contracts is available from the Australian Copyright Council. WAM can also assist with general advice and in steering you to a lawyer experienced in music law.

Contracts, company structures and disputes are areas where loss is involved, approach them as professionally as you would your music - employ an expert!

Shop around, get quotes and, above all, find someone you like dealing with.

Insurance
Insurance is vital to protect your equipment, your business, those who work for you and those who come to see you.

First and foremost make sure that you take out "top" cover on your personal equipment. If you are buying on hire purchase, borrow a little more. Your instruments are often irreplaceable, but at least you'll have the peace of mind of knowing that you can purchase reasonable replacements if any are stolen, lost or damaged.

Make sure that venues you play in carry public liability insurance. If not, take it out yourself. Remember, you are responsible for any personal damage suffered by people attending your shows. Why spend the rest of your life paying damages when you can be covered for very little cost.

Depending on the level of your operation, some of the areas of insurance you should consider are - instruments and equipment, workers' compensation, vehicles, cancellation/non-appearance, personal property, rain, personal accident and sickness, travel.