The cost of music management companies varies, but most of them will take 15% to 20% of your gross income.
There are other fees and complications to consider. An artist usually requires a music management company because they cannot handle the business aspects on their own. In addition, the companies have more connections in the industry and can secure more deals.
The Contract
Every musician should sign a contract with their company. This will ensure that a set cost is created and followed. Most music management companies will take 15% to 20% from the artist’s income. It is important to have an attorney evaluate the contract and make sure it is fair for both parties involved in the transaction.
Music management companies will take the 15% to 20% from your earnings. This will include record label deals, record sales, ticket sales and other sources. However, not everyone will take money from song royalties or merchandise sales.
Sunset Clause
The sunset clause is usually included in most contracts between music management companies and musicians. It specifies a way for them to break up their arrangement and the compensation that will be received. Sometimes a band or an artist will decide that they need a new company and want to break off the agreement.
Extra Expenses
Some music management companies will have the artists’ income cover extra expenses. If the manager travels with the band or musician, they will usually not have to pay for their expenses during the trip. This is generally included in the contract. It is the artist’s responsibility to pay for their lodging, dining and travel.