Creating a Band - Part X, Management & Representation

One of the most storied creatures in popular music is the near-mythical manager, a figure who labors intensively for the band's prosperity, while also being a character worthy of intense scrutiny. Having the right manager can lead the band to fame and fortune, but having the wrong manager can lead the band directly to obscurity and debt, and so understanding the duties of the manager and the qualities that make management work with the greatest efficiency are key elements to the group's success.

A manager is a person who oversees the business aspects of the band, not only because the band would then be allowed to focus on making music, but also because a qualified individual will understand the business side more fluently, and could make things more efficient. Managers have a tremendous amount of responsibilities on their shoulders, and this challenging title can't simply be handed to anyone. In part ten of the "Creating a Band" series, we'll make sure you pick the right person for the job, and we'll also discuss other forms of representation that the band might encounter as it climbs the ladder of success.

Let's begin with a definition of the manager's duties. A good manager will monitor and directly handle money, develop and maintain the band's schedule, book shows and plan/ book tours (or work directly with a booking agent), manage the band's staff, oversee and/ or directly manage the band's marketing efforts, negotiate with other organizations (venue owners, record labels, etc.), and handle any and all other business-related affairs not mentioned here. They also work closely in the fields of artist development (the group's transition into the business world), managing the band itself (settling disputes between members, ensuring the equipment is well-maintained, etc.), and seeking out new potential sources of fans. And while a good manager will handle all of these facets of the group, a great manager will also serve as a sort of cheerleader and parental figure for the band, keeping everyone's spirits high, creating motivation out of nothing, and proving the best outcomes from the worst possible situations. It's a very tall order, with with an equal blend of prudence and luck, you'll find the right person for the job.

When should the band start looking for a manager? There isn't really a right or wrong answer to this question... it depends on the band, the manager, and the ambitions of the group as a whole. For those musicians who have a knack for dealing with venue owners and handling the band's budgeting, a manager might not be needed until the group has already released an album and/ or is planning their first tour. For musicians who aren't too capable of handling money, booking shows, dealing with venue owners, etc., a manager should be acquired before the first paying gig is scheduled. Look at the band's short-term goals, and your shared abilities to reach those goals, and that should give you a good idea of whether or not the band needs a manager yet.

Your band's future manager (or management service/ company) will take a percentage of the band's gross or net earnings as payment. For those of you who don't remember these terms from your school days, gross profit is the total sum of all of the band's income, while net profit is the total amount of profit left after everything has been paid for. For instance, let's say the band was just paid $500 for a gig. This means you have $500 in gross profit. But the band had to travel to reach the gig, so you've got $200 in expenses, including truck rental, gasoline, food, etc. This means you have $300 left, and that $300 is your net profit. We can do this for a whole month, too. Let's say the band earns $1,000 in a month, through gigging and album sales. That month, the band has $750 in expenses, going toward studio rent, the electricity bill, equipment maintenance (strings, sticks, picks, etc.), vehicle rentals, etc. This means the band's net profit for the month is $250.

If the manager is being paid a percentage of the gross profit, the amount they earn should range between 5% and 15%. If they're taking a percentage of the net profit, the amount should range between 10% and 25%. You should always offer a percentage of the net, and only accept paying a manager a percentage of the gross if they're willing to guarantee their work (for instance, the manager is willing to agree to not accept payment unless the band makes a certain amount of money in a given week or month, or certain conditions are otherwise met). If a manager is insistent on their paying paid from the band's gross profits, then you should be wary of them and question whether or not you want to work with them; a good manager will be confident enough in your band, as well as in their own abilities, that being paid a percentage of the net is of little concern to them.

It isn't unreasonable or rude to suggest that a manager be placed on a brief trial period, where they earn nothing until proven results are gained. This is especially true if the band is doing okay without management; if you're consistently banking net profits annually, a manager who does nothing would be profiting from your hard work without really contributing anything to the band's profitability, and that stinks! During this trial period, the manager's pay might be set aside and held until their work starts to show merit and profit. Make sure that the trial period is fair, offering the manager enough time to get the job done. If the band is already earning decent money and already has fans, then a trial period of two weeks with "locked pay" is acceptable. If the band isn't very successful yet, a trial period of one to three months might be more suitable.

After finding the right manager, your next step should involve the signing of a contract that clearly defines the roles of the manager, the terms under which the manager will be paid, the precise percentage of the band's profit that the manager will earn (and any conditions related therein), and the terms under which the band has the right to release/ fire the manager, change the percentage offered as payment, etc. It is strongly advised that the band hire a lawyer to write up this contract. Don't sign anything that hasn't been fully read and comprehended by everyone in the band, and never assume that someone is looking out for the best interests of the band, and use that as an excuse to only skim over the finer print. Read and understand every single word, and if you don't understand something in the contract, look it up online or contact a lawyer to have it explained to you in detail.

As the band grows and reaches new echelons of fame, there will be other types of representatives the band will want to work with. The band's manager should already know what all of these titles are and what they mean, but it doesn't hurt for the band to understand them as well!

A&R Rep: An Artists and Repertoire representative is an employee of a record company who works with the band to negotiate a record deal and sign them to a label. Your management should deal with A&R reps should they approach your band.

Booking Agent: A booking agent's only responsibility is to book gigs and/ or tours, and to make sure the band is properly and fairly paid for their work.

Producer: A producer is an individual who manages the band's recording efforts after the band has acquired a recording contract.

Promoter: A concert or tour promoter is an individual (or company) that designs, plans, books, manages, and promotes/ publicizes a concert or tour. Promoters will work with your band's manager, tour manager, booking agent, and publicist (or whichever of these are applicable) to make sure that a given concert or tour goes down without a hitch.

Publicist: a publicist's job is to make sure the band receives as much press exposure as possible, and that all of that press exposure paints the band in a positive light. They play a direct role in shaping the band's image, style, and fan interpretations (how fans view the band), and as such, they play an integral role in building and shaping the band's fan base.

Tour Manager: A tour manager is responsible for the band while on the road. They handle "advancing" (contacting venues and concert/ tour promoters to make sure everything is going smoothly), the band's touring budget and accounting, booking hotels, planning where the band will get food and whatnot, and most importantly, making sure everyone and everything is running either perfectly on schedule or ahead of schedule. A quality tour manager will familiarize themselves with numerous routes to and from the various destinations of the band in each and every city, will learn about local emergency services and response times,and will attempt to find fun ways for the band to pass time in each of the different cities, based on that band member's own tastes. If the band has roadies, the tour manager is their chief supervisor, and it's also the tour manager's responsibility to make sure the equipment is unloaded safely and properly, set up and operated professionally, and then loaded securely and safely before the band heads to its next destination.

That surely seems like a lot of people, doesn't it? Well, as your band grows in popularity, you're going to end up dealing with quite a few different people. Many bands who reach this level of operations will end up hiring massive crews of people; representation, roadies, instrument technicians, sound engineers, stage-hands, photographers, and more. If you meet someone who announces themselves with a title, spend some time online researching that title and what precisely it means, so you don't end up paying someone for a service you don't need (or worse, a service that doesn't do anything!).

Coming Up Next: In part eleven of the "Creating a Band" series, we'll discuss some of the basics of touring, and walk you through booking, planning, and promoting your first series of gigs on the open road.