There are few things more important in the music industry than finding the proper management and making money. In this blog post, we will discuss the various ways that musicians can find the right manager and also the ways that successful musicians can become managers themselves. By taking heed to this advice, musicians can significantly increase the chances of finding success within the industry.
How Managers Make Money
The first step toward making money in the music business is to understand how it is that managers make money. In most cases, managers receive a commission based on the total amount of income that the musician generates and this amount is typically about 15-20% of the gross revenue. This money can be made from playing gigs or the money that is paid to the musician from the record company as royalties. In addition, much of this revenue also comes from the sale of various merchandise and income that is accrued from tracks that are used in movies and commercials. It is for this reason that most managers will go above and beyond to ensure that the musician is generating as much money as is possible. In the end, this works out for the benefit of both the musician and the manager.
The foremost problem for managers is the fact that it usually takes new artists a bit of time before they start seeing a real financial gain and more often than not, these artists are struggling financially, so management has to use their personal funds to keep the musician afloat. In order for managers to feel secure spending money to help further the career of the musician, they will often take items to act as a sort of collateral against the money being borrowed. This collateral can range from physical goods, such as instruments, or other revenue sources, such as taking equity in songs that are to be copyrighted. By doing this, musicians will be forced to share the profits that are garnered from their music with the manager until all debts have been settled. On the other hand, the manager is taking a financial risk by inputting their own money as they stand to lose everything if the musician never finds financial success. There are some that do not agree with this concept but many times there is no alternative for the musician.
This brings on the necessity of the musician to decide if they feel that it is worth the risk to include the manager in the copyrights of their songs. Many in the industry feel that this is bad business. The important thing when determining whether to share profits with management is that you choose a manager that is going to put in the effort and work hard to make the musician successful. Before committing to any contract, meet with the manager and find out what steps they are going to take to try and promote and publish your songs. If they do not have a definitive plan, then it is wise to hold off until a better opportunity presents itself.
The ability to hold off and wait for better things to come is not always an option when you are struggling as a musician. It is very tempting to sign the first contract that comes your way, in the hopes that eventually it will work out for the best. However, this can be wishful thinking and it can lead to added financial struggles. Always do diligent research before parting with anything regarding musical equipment or song copyrights.
The Power of Money
It is no secret that money is the motivating factor for both the musician as well as the manager. After all, the manager could be putting up a lot of their own money in the hopes that the musician will become the next big thing. As a musician, it is worth finding a manager who has the ability to advance substantial amounts of money, so that you can rest assured that they will have the funds necessary to properly promote your music.
If you hire a manager that does not have a lot of money to work with they could have a difficult time being effective. There are many inherent costs associated with getting a band on a major label, such as the cost to record the music, transportation fees, and equipment expenses. This can add up to a significant amount of money at the end of the day. If a manager is willing to invest in the band then this is a good indicator that they feel the band might be able to find success.
Once the band is signed, there may be some financial relief for both the musician and the manager, however, the record label will not cover all expenses, so it is often left to the manager to come up with the funds to cover additional expenses. For instance, some record labels will pay for a publicist so that the band can gain exposure, but this is not always a guarantee. Essentially, when the manager invests money for a publicist, they do so with the hopes that the increase in publicity will lead to more income for the band and thus, the manager. If these publicizing tactics do not work, the burden often falls to the band, and this can be difficult to overcome.
Of course, seasoned managers who have been through the system before are typically aware that it may take several years before a band starts making enough money to cover all related expenses. They invest with the thought that eventually the period of financial famine will subside and they will be able to recoup all of the money that they initially invested, even though this can be years into the musician’s career.
Summary
In the end, it is certainly better to hire a manager who knows the ins and outs of the business, but more importantly one who also has a passion for music. Another thing to consider before hiring a manager is to make sure that they have the ability to put forth significant amounts of money during the early stages of the band. This way you can be sure that the manager will do everything necessary to increase the exposure level of the band, including investing in new equipment, hiring a publicist, and booking shows at worthy venues. Furthermore, as a musician, you will need to have a set of goals in mind that you are hoping to achieve and communicate those ideas with your manager to ensure that they feel the same way. It can be difficult to find a manager who encompasses all the qualities that you may be looking for but it is vital that you do not sacrifice your values when hiring a manager.