The Manager’s Corner- November
by Chris Daniels
I’ve managed my own band for 30 years and I’m in the Colorado Music Hall of Fame. All that’s nice but today’s music business is changing at light-speed and you have to be more engaged in the ‘biz’ than ever. Some things have not changed, careers are still built on some tried and true elements: great music, performance and timing. But today’s artists must work harder than ever to succeed. The good news is that we have new tools to help young musicians grow their fan base. The book I wrote for the course I teach at CU Denver on artist management is called “DIY: You’re Not in it Alone.” While you are ultimately responsible for your own career, these days it’s essential to make the most of all the help that is offered along the way.
This column’s focus has been about how to manage your own career. But this month I’ll review management itself and managers. The first thing to know is that managers have three major concerns in this new millennium that play a key roll in their interest in a prospective client. (1) They want to work with artists who are ‘viable’ in the marketplace… often called ‘baby bands’ in the trade lingo. These are bands you might see playing rooms like the Bluebird or the Fox Theater. There are about seven ways to gain that viability – most of which I’ve covered in previous issues of CMB. (2) Because of the ‘death’ of record revenue, managers have to look at the artist’s ability to generate revenue, usually from playing live, to cover the manager’s expenses before making a commitment to the act. (3) Real “star power” is what the manager is looking for – very few have that. As a result managers tend towards a ‘volume business’ model… working with many acts at one time in order to stay in business.
As far back as the1800s and Minstrel Shows, the manager’s job was to put the artist’s business house in order while simultaneously coming up with a vision and plan for how to exploit the artist’s talent. Good and bad examples include Joe Glasser (Louis Armstrong), Peter Grant (Led Zeppelin), Jon Landau (Springsteen) and Lou Perlman (NSync). Some were fantastic and some were criminals. Until about 2005 managers were gatekeepers who took control of the careers of their clients from the ‘dues paying days’ to the ‘salad days’ of fame and fortune. The virtual collapse of record deal revenue and the internet shifted the paradigm. Anyone can reach an artist directly, and the artist can go directly to the fan. So managers look for ‘baby bands’ – somebody you might see out on the Vans Warped Tour – that have their poop-in-a-group. There are approximately seven things that define that, (a) the music and talent is exceptional (b) the act has its marketing together (Facebook, Youtube, Instagram, Twitter, Website etc.) (c) the act has at least one well recorded EP or album in the marketplace (on iTunes, Spotify, Youtube and selling well from stage) (d) they have a live following – people in more than their local market who will buy tickets to a show and the act has the ability to go on tour and get to those gigs and survive the road (e) the act has it’s business house in order including their publishing and songwriting all the way to having a company formed – or at the minimum a band agreement (f) they are selling merch (g) they are continuing to get better at what they do – songwriting, performing, recording, marketing all of it. For managers, some, and preferably all of these elements are important.
Oddly enough, this empowers the act. In a real sense we are living in a time where, if you don’t need a manager, because you are getting all these things done DIY, that is when you attract management. So the question is, why should you give away 15% to 20% of your gross revenue to a manager? And the answer is simple – and two-fold: (1) because you want somebody with POWER in your corner (2) if you have gotten this far you are probably pretty close to overwhelmed and you really do need to start putting your team together. Should a manager be the first team member you add? Probably not – early on a booking agent with POWER is far more likely to advance your career with better gigs and more money … but a manager is a close second and often times the person who finds you that good booking agent. In case you don’t know this, it is not legal for a manager to be a booking agent in five states and it is not a good practice no matter where you live. Why? The issue is more complicated than this article has space to review, but it is because of the potential of ‘conflict of interest.’
So you are at this point of success and wanting a manager, where do you find one? Assuming one has not come to you it’s a matter of research. First there are the various trade outlets that offer that information at a price. Billboard, Celebrity Access and Pollstar all put out industry “guides” that have the listings of every manager worth paying money on the planet. Second, look at similar acts to yourself and see who manages them. Third is old-fashioned word of mouth. Talk to the promoters in the venues you play, other bands you work with as opening acts or “gig-swap” situations, studio owners where you record (the owners sometimes even manage bands) and read the trade papers in your town. What managers are doing good things for artists? All these take some research but it is time well spent.
Once you are in contact with a perspective manager you need to research a number of things. The most important is the POWER of the manager in the industry. Look at who else they manage and what they have done for that person’s career. Listen to who the manager wants to work with on your project. If he/she is talking about taking your project to their friends at Universal Records find out if any of his/her other acts are signed to Universal. Do your research BEFORE you start to negotiate with a manager. We have all heard “talk is cheap” and that is more relevant to managers than anybody else in the music business. Because any wing-nut can put out a sign or internet website saying they are a manager or management company does not mean they have any POWER in the business or any real connections. You want somebody who has landed the deal for others, has a track record and as Cuba Gooding Jr. screamed in the old “Jerry McGuire” movie – they can ‘show you the money!!’
Last but not least – there are any number of levels for management and manager pay. The standard is a three to five year contract. That’s old time thinking. These days it is more common to see contracts that allow for greater options in the length of a management agreement. The standard pay is 15% to 20% of all gross revenue. That is still pretty much standard though there are other ways to do it. Some of the options include various combinations of things. For example I do project management – where I work with an act for an album cycle that involves touring etc. That is done with an expenses-plus arrangement where I get a monthly fee plus a commission on anything above what the band has already produced with their own efforts. So I get ‘back end’ on the deal once I have brought them more than what they could do themselves plus a monthly fee. The duration is one year or album cycle (which ever is longer) with the mutual ability to terminate or alter the terms of the contract after that “period.” Other options are “partial” management where the act is taking care of all their “day to day” business and the manager is working strictly on “new business” – and that term is very clearly defined in the contract. These contracts are not something that make most managers happy so they will usually want a higher percentage 20% to 25% on all the revenue streams that their work involves. So, for example, if a manager in a partial-management deal creates a contact with an agent who brings the band a connection to get on the Vans Warped Tour for 48 shows in 57 days at $500 a show the manager may get 25% off the top for bringing you that opportunity. The most common management contract is for “total management” where the manager is involved in all the decisions – is really the head “operations manager” for your “company” and takes 15% to 20% off the top. If you are in this or any other situation where you are offered a management contract – GET AN ENTERTAINMENT LAWYER – to negotiate that contract. There are several in Colorado and the Denver/Boulder area and they have negotiated deals for the Lumineers, The Flobots and many more.
Once you have the kind of talent that is recognized by a management company or a good manager, it can be the keys to the kingdom. But you have to keep your eyes wide open. You can look up the articles about the 3-million dollar out-of-court settlement between The Fray and their manager to see how important it is to have a good lawyer that can negotiate on your behalf. The Colorado music scene is attracting some amazing interest from major music industry players and it is an exciting time. If you have your poop-in-a-group and are out there functioning as a viable ‘baby band’ there is every reason to expect you will have offers of management. Do your homework. Research the manager and their company. Ask questions. Know your options. And never ever sign a contract without having a good entertainment lawyer review if – a lawyer that works for YOU and not your prospective manager.
Category: Shop Talk
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