Artist Management Final- Green

What is the typical commission rate for a Business Manager? Tour Manager? Artist Manager? Booking Agent?
Bus. Manager- 5%
Tour manager- salary
Artist Manager- 10-20%
Booking Agent- 10%
Who is licensed by the state to book artists?
TA/Booking Agent
Can the Artist Manager book their client to do a show on The Today Show?
Yes
What is the industry standard length of an AM contract?
3-5 years
When working with minors in TN, NY, & CA, what percent of amount is put in the trust for them?
TN & NY- 15%; CA- 25%
When working with minors in TN, three things must be done in order to validate the contract with the AM. What are they?
1- have the contract approved by a judge
2- have the judge oversee it every year
3- have a parent/guardian signature
Explain the Sunset Clause:
You get less % as time goes on; the manager earns an agreed upon % (commission) after the contract ends
What is a Power of Attorney?
Gives the right to sign for an artist (bills, contracts, etc)
What are the 4 Powers? Give an example for each:
1-Power of Access
2- Power of Body of Work
3- Power of Most Recent Success
4- Power of Money
What are the 4 functions of a Manager? (in order)
Planning, Organizing, Leading & Directing, Controlling
What are the 4 parts of the Planning Process?
1- Goal
2- Strategy
3- Tactic
4- Timeline
T/F: An artist has the right to put a cap on the amount of expenses a manager can spend on their behalf
TRUE
Other than the personal manager, who are the other 4 primary members of the artist’s team?
Booking Agent, Tour Manager, Business Manager, & Attorney
What are the 4 sources of income in the songwriting/publishing stream?
performance, mechanical, sync, print
Which of the 4 sources of songwriting/publishing stream does Terrestrial Radio stations pay for?
Performance
Which company does internet radio pay their royalties through?
SoundExchange
In the publishing stream, what is the standard rate a record company pays for use of songs sold? What type of license do they use?
9.1 cents; mechanical
In the publishing stream, if an artist is also a songwriter on their own album, what type of composition do they use?
Controlled Composition (the record company negotiates)
In the publishing stream, what is the monetary amount if the artist is also a songwriter on their own album?
6.825 cents
In Live Entertainment, who does the Booking Agent negotiate concerts with?
Promoter
Calculate the GP:
Concert Hall seats 500 people
250 seats at $10
250 seats at $20
GP:
(250 x 10)= $2,500
(250 x 20)= $5,000
2500 + 5000= $7,500

gross potential= $7,500

Given the GP is $7,500, which is better?
75% of door vs $5,000
(7500 x .75) = 5,625
so, it would be $5,625 vs. $5,000

you would choose the 75% of door because it is greater

T/F: If a Manager is managing an artist at 10% commission, the AM makes commission off of tour support
FALSE
What is the royalty rates for a new artist, established artist, and a major artist?
new- 13-16%
est. – 20%
maj.- over 20%
What makes up a SWOT Analysis?
Strengths, Weaknesses, Opportunity, Threats
(S & W are internal) (O & T are external)
What is an example of a weakness in a SWOT Analysis?
artist can’t write
What is an example of an opportunity in a SWOT Analysis?
singing the National Anthem at an NBA game
What is an example of a threat in a SWOT Analysis?
cancelling a tour
What are the 4 alternative Business Models?
LLC, Incorporation, Partnership (LLP), Sole Proprietorship
Which of the 4 alternative Business Models would be best for protecting personal assets?
LLC
What are the 4 Tools of Entrepreneurship?
Education, Experience, Vision, & Business Plan
T/F: An Artist pays commission to the Manager and Booking Agent from their NET earnings
FALSE
T/F: A Tour Manager’s number one priority is taking care of the Artist on the road
TRUE
T/F: Most Business Managers are also certified public accountants
TRUE
T/F: The Tour Manager is hired by the Artist’s Manager and is paid out of the Manager’s commission
FALSE
T/F: Tour Managers on larger tours are often given an annual salary
TRUE
T/F: It is recommended that an Artist hires an Entertainment Attorney before signing with a manager or management firm
TRUE
T/F: When a Manager signs an Artist to the management firm where they work, the Artist’s commission still goes directly to that Manager and not to the firm
FALSE
T/F: The job for a Tour Manager begins the first day of the tour
FALSE
In industry standards, an AM gets a percentage of the Artist’s earnings from which revenue streams?
concert bookings, publishing, & record sales
In industry standards, a Booking Agent gets a percentage of the Artist’s earnings from which of their revenue streams?
Concert Bookings
At a large management firm, an Artist may be assigned both a Career Manager & a Day-to-Day Manager. What 3 things would most likely be handled by the DTD Manager?
1- spending time in the studio with the artist
2- handling situations w/ the promoter when TM can’t
3- taking the artist to appointments
Out of the 4 functions of Management, which is best defined by “assembling the necessary resources to carry out a plan & put those resources into a logical order”?
Organizing
Which of the 4 functions of Management is best defined by “taking the resources needed to reach goals and use them efficiently to achieve success”?
Leading & Directing
Which of the 4 major powers is an example of “radio programmers have power with their listeners by deciding which songs to play and the # of spins for that song”?
Power of Access
Which of the 4 powers is best defined by “the power of legendary status artists such as Aretha Franklin, MJ, Paul McCartney is found in this”?
Power of Artist’s Body of Work
T/F: Being a manager is immensely time-consuming, but the financial rewards come quickly to make up for all of the hard work
FALSE
T/F: Once you have identified your goals, the next step is to come up with the plan on how to achieve them
TRUE
T/F: One of the controlling functions of management is leading the team to stay on track with the plan
FALSE
Which function of management is monitoring how effectively the plan is being carried & making any necessary adjustments to advance the plan?
Controlling
What is the main focus of the exploitation from the Record Label? Publisher?
Sound recording; the song
What does “All Success Leaves Clues” mean?
It is about the clues that others see; look at people you consider successful and repeat what they did.
What is the focus for an Artist Manager?
To focus on developing long-term goals and careers for their artists.
What are 4 things that managing an artist can be influenced by?
Economy, Technology, Social, Politics
Explain the principle “Power Carries a Responsibility to Give Back”: Give an example
Artists and people who have had success in the music business should use their talent to improve the quality of life of those who need help. This will help aid in efforts to raise money for world hunger, flood/earthquake victims, or pay medical bills for a needy family.
Give a real-world example of what the following statement means: “The agendas of many people on the music business determine whether you matter to them”
It depends whether you are relevant to them or not. If you’re put on the backburner because you’re not on the forefront of their mind, then maybe the market isn’t ready for you or you are already past the market.
What are 3 things that create stress for an Artist Manager?
1- constant pressure to plan & try alternatives
2- when a style prefers order and predictability; they must always be ready to react
3- they are ultimately responsible for every performance; they don’t have set office hours
How many years does a Manager usually spend developing a new artist before seeing any real income from royalties, publishing, or even ticket sales?
3-5 years
Which of the 4 powers are an example of “booking agents have this power because their relationship with prominent promoters & concert venues”?
Power of Access
Which of the 4 powers is an example of “successful tours, music downloads, & songs that find acclaim in their ability to earn give power to those responsible”?
Power of Artist’s Latest Success
Major record labels’ ability to dominate (influence) award show nominees, performers, & even awards can be found in which of the 4 powers?
Power of Money
T/F: Most new artists are unable to pay their manager’s expenses when they start working together
TRUE
How long can record royalties take for an artist to earn from release date?
2-3 years
T/F: Hard work doesn’t guarantee success in the music business, but it is doubtful you will succeed without it
TRUE
Is an artist’s family a gatekeeper?
No
T/F: Money can provide access through any of the Gatekeepers you are trying to get to
FALSE
T/F: An Entrepreneur is someone who has a view for a new business and a new idea of how to make it successful
TRUE
T/F: A broad education of a Bachelor’s is necessary for those wanting to pursue a successful career in the Music Business
FALSE
T/F: A company’s vision statement defines what the company is today
FALSE
T/F: An Entrepreneur’s Vision Statement is an expression of where your business could be in some defined future
TRUE
As an Entrepreneur Manager, a budget for your personal living expenses doesn’t include what?
travel to shows
T/F: Most Artists don’t need a Manager until they are prepared to become a commercial artist
TRUE
T/F: After developing a business plan, it’s recommended that an Entrepreneur Manager should determine how much $ they need to survive for 1 year without making a profit
FALSE
T/F: Among the attributes of the younger generation is having the ability to be very patient in pursuing and achieving success
FALSE
What is the best example of a LONG-TERM goal for a brand new artist?
Headlining a tour
What are 3 examples of SHORT-TERM goals for a new artist who is already signed to a record label?
Recording an album, writing songs, and signing with a booking agency
What are the 4 Market Segmentations?
1- Demographic
2- Geographic
3- Psychographic
4- Behavioristic
Of the 4 Market Segmentations, which is the easiest to identify?
Demographic
Which segmentation is best defined by “dividing a market up by the lifestyle characteristics of music buyers”?
Psychographics
Which segmentation is best defined as “dividing the markets by looking at why consumers engage with a product”?
Behavioristic
A ______ is the artist’s name and everything associated with it
brand
A(n) _______ is the way people feel about the artist
image
Which of the 4 Alternative Forms of Business is “a formal business form that requires filing a charter with a state’s secretary of state”?
Corporation
An Individual’s Right to Publicity means that people have the right to control the commercial EXPLOITATION of their name, image, or likeness
TRUE
Strategies are the things the Artist and Manager do every day to implement the tactics in order to achieve goals
FALSE
After an Artist develops individual strategies, they need to establish a TL to accomplish them
TRUE
T/F: The objective in a meeting with the record label is for the Manager to convince those in the meeting that their Artist is unique and the best new talent out there
FALSE
T/F: The meeting isn’t about you, the Manager, or about the Record Label. The meeting is about the Artist.
FALSE
T/F: The one thing that Ethics and Payola have in common is that they are both regulated by laws
FALSE
T/F: Payola is when someone offers a radio station something of value to play a song without disclosing the payment on their air or to the station manager
TRUE
T/F: Breakeven for the ARTIST means the artist’s fee is equal to the expenses associated with doing the show
TRUE
When both are on a large tour, does the Road Manager take direction from the Tour Manager?
YES
Where would a Manager go to get statistical info on how well the record label is doing as a whole?
All Access
Which of the Basic Fee Structures is “artist gets paid an agreed upon amount; typically done on soft ticket shows”?
Flat Guarantee
Which Basic Fee Structure is described as “artist gets paid an agreed upon percentage of the ticket sales”?
Straight Percentage
What is the total the box office actually takes in for all sales for the event before any expenses have been taken out of the total?
Gross at Settlement
What 3 things would be included as part of the Performance Contract?
technical rider, cancellation clause, advertising approval
T/F: An Artist’s contract with a Record Label is on a non-exclusive basis
FALSE
Does the Record Label provide all financing necessary to create the sound recording for the Artist?
YES
T/F: The expenses being charged to the Artist are payable back to the Record Label ONLY if the recording earns adequate income from the project to pay them
TRUE
T/F: The recording contract requires the Artist to pay for ALL of the costs of recording an album
TRUE
T/F: Artist Advances are “loans” against future anticipated royalties
TRUE
T/F: An Artist Manager is ALLOWED to take commissions on the Artist’s Advance
TRUE
T/F: An Artist Manager CANNOT commission the recording costs used to make the artist’s album
TRUE
T/F: An Artist Manager CANNOT commission the tour support given to the Artist
TRUE
T/F: Royalties paid to the artist from the sale of their single or album, are a percentage of the wholesale price of the recording
TRUE
T/F: Regarding royalty pay-out, singles earn 3/4 the rate of an album
TRUE
If an Artist is paid 10% royalty for each album sold through iTunes, and the wholesale price is $7.00, then the artist earns how much in royalties each time an ALBUM is sold?
(7 x.10)
= 70 cents
If an Artist receives a $25,000 Advance and the Recording costs were $75,000, how much money in commissions would their Manager earn if they were a 20% manager?
(25,000 x .20) = $5,000

(since a Manager cannot commission off of recording costs, and can commission off of an Artist’s Advance)

T/F: An Artist signed to an “all-in” contract means that the specific royalty rate being paid to the artist includes the royalty payment to the producer of the recording
TRUE
T/F: The responsibility of paying the record producer is the artist’s and is done through the artist’s royalty earnings
TRUE
T/F: If an Artist decides to create a music video, they must pay for the entire amount out of their advance
FALSE
T/F: In a record label’s 360 deal, it gives the record company a license to use the artwork created for the album for the other products
TRUE