|
This
article appears courtesy of Gods of Music (www.godsofmusic.com)
The purpose of this site is to help music lovers
like yourselves to find quality original music
on the internet. Each review contained
within will contain an active link to the
artist's web site where you will be able to
download the full MP3 song file.
By
Phil Frazier
What's
the difference between a Manager and a Shopping
Agent (Signing Agent)? The short answer: A
Manager usually shops a band to Labels and for
other contracts. A Shopping Agent only shops.
A Manager usually earns a
commission of the actual gross earnings of
everything regarding the artist being
represented. The average commission rate is 15%.
Gross earnings means earnings before taxes or
deductions of any kind. The Manager's commission
may include royalties of CD Sales, Publishing
royalties, merchandising sales, live
performances, film revenues, endorsements, any
other revenues the artist garners in
relationship to the Manager's representation.
Some Manager's take a commission from advances,
although in my view they should not do so. The
responsibilities of a Manager are wide ranging,
as has been written about in previous articles.
The Shopping Agent has only a specific task of
making a good faith effort of securing the
Artist various contract offers. It is the
Artist's responsibility to provide the Shopping
Agent with whatever is required to work on this
endeavor.
The Shopping Agent is not a consultant or in any
way a promoter of the Artist unless that role is
decided upon by the agent and the Artist.
Most Artists do not have a problem with the
Manager receiving 10% up to 20% of the Artist's
earnings, yet many begrudge the Shopping Agent
of receiving a commission. I have heard comments
like: Why should a Shopping Agent receive such a
high Commission, such as 10% of a Recording
Advance for just making a few phone calls, which
results in a Recording Contract offer? Of
course, this does not take into account a number
of possible factors, such as the many years that
the Shopping Agent has been in business, the
knowledge accumulated, the contacts accumulated,
the savvy and sales skills that a Shopping Agent
may possess. Also, it may require many more than
several phone calls or sending out a few
packages.
Even so, setting aside any of those factors, I
say it does not matter if it takes six months of
hard work for a Shopping Agent to secure a Label
offer or other sorts of contract offers or one
hour. The bottom line is: The deal. Could the
Artist have secured that?
The Commission of a Shopping Agent varies in
amount and kind. A standard fee is between 10 to
15% of a Recording Advance. It may also be 10 to
20% of the Advance of the first full CD Release
& single CD release. It could be three points (
one point equals 1% ) of the Royalty Rate of all
the releases of that Recording Contract that the
Shopping Agent has secured. This could be three
percent of a 15% Royal Royalty Rate, which is
20% of that. Shopping Agents can ask for
whatever they wish. There are no restrictions.
laws or rules about this. A Contract and Legal
advice are strongly advised before anyone moves
forward with this type of situation.
As a Manager and Shopping Agent,
I always insist that Artists which I have sent a
Contract to, seek the best legal advice they can
afford. I have it written into the Contract that
they have been advised by me to seek legal
representation or waived their own right to do
so. Of course, it is foolish not to seek legal
advice before signing a Contract, yet I know of
many who have not done so to save money or they
claim that they could not afford to do so.
This article is not meant to be full explanation
regarding the topic. It is a brief overviews. I
strongly encourage all artists to read at the
minimum three books on the music business. If
you cannot afford to buy books, please do not
use this as an excuse. Public Libraries do have
books on the music business. OK I am a little
sarcastic at times but I am serious, as well.
Phil Frazier
About
the Author: Co-owner of Hard Boiled Records and
Dynamo Publishing. Artist and musician, Phil
Frazier draws from a wide range of experience in
bringing his expertise to the music scene,
including Recording Studio Credits and Live
Performance Engagements. Phil, whose songs range
from Rock/Pop, Classic Rock, Alternative
Country, Blues and Easy Listening, is presently
on GMM records. phil_frazier2003@hotmail.com

|