Commission structure
With
Judge JulesJudge Jules explains how management commission works - typically 20% - and which expenses can be deducted from live and non-live income.
What's in the course
46 lessons (1h 6m) · 1 free
01. Accounting
Free lesson1:16
02. Termination
1:29
03. Collection societies and letter of direction
0:26
04. Commission structure
You are here2:32
05. Cross platform-multimedia aspects
0:39
06. Expenses
1:10
07. Key man provisions
1:01
08. A manager's obligations
2:33
09. Post term commission
1:30
10. Should a manager be involved in all aspects of an artist's income?
1:40
11. Term
1:46
12. Should a manager manage more than one artist?
1:24
01. Accounting payments and auditing
2:18
02. Ancillary shares
1:58
03. Artist approvals
1:51
04. Artist promotional obligations
1:50
05. Assignment or licence - what's the difference?
3:17
06. Interplay with publishing
0:51
07. Options
1:39
08. Release commitment
1:26
09. Rights in the artist's name and brand
1:26
10. Royalty types
1:20
11. Territory of agreement
1:54
12. Warranties and indemnities
1:37
01. What are the most important areas of a contract for a new artist?
2:11
02. Is it normal that a music lawyer would meet me and listen to my case before charging me?
1:15
03. If a label, publisher or manager approaches me to sign a contract but I dont have the funds to pay for a lawyer, who should pay the legal fees?
1:20
04. Are 360 degree deals good value for an artist?
1:14
05. Am I still protected when it comes to copyright in the NFT or the crypto world?
0:26
06. Should I be wary of a publishing deal?
1:02
07. What protection exists for artists releasing their own music that don't have access to a lawyer?
1:03
Lesson transcript
Understanding Management Commission in the Music Industry
Management commission is, broadly speaking, 20%. There are a few exceptions to that, but I think if I was to look at 90% of management agreements and management relationships in the UK, and indeed in the majority of the rest of the music world, it's a 20% scenario.
Commission Structure
You can divide the commission structure into two categories:
- Live Income
- Non-Live Income
Live Income
The way that live income is commissioned is as follows:
- Take your live income.
- Deduct any reasonable live expenses, which may include:
- Booking agent's fees
- Travel and accommodation
- Tour manager fees
Once these expenses have been deducted from your earnings from gigs, your manager can charge 20% on the remaining amount.
Non-Live Income
There is no provision in the management contract that specifies what those deductibles are, but we all understand the spectrum of costs incurred during touring compared to other income streams, which are commissioned differently.
Shopping List of Deductibles
If you like, there exists a shopping list of deductibles:
- Studio time
- Featured artists
- VAT
- Debts (money owed to you)
- Withholding tax
- Subscriptions paid to the musicians' union
This list is a heavily negotiated element of any management agreement.
Key Takeaways
To sum up, the way that commission is structured is as follows:
-
For live income: Artists deduct any reasonable live expenses, and then the manager charges 20%.
-
For non-live income (which may include tracks, songwriting, endorsements, etc.): You can only deduct items that are on the pre-agreed list noted in the management agreement.
Understanding these elements is crucial for artists and their management teams to navigate their agreements effectively.
46 lessons
1h 6m of structured video lessons
Advanced video features
Slow down, loop a passage, follow along
Mobile, tablet & desktop
Practise wherever you are
100% satisfaction guarantee
30-day money-back guarantee
Meet your guru
Meet your guru
Jules O'Riordan has over 30 years of experience across the entire spectrum of the music industry. This includes nearly a decade as an A&R for the Universal umbrella of labels, 15 years as a presenter on BBC Radio 1, over 150 record releases and remixes in his own capacity as a recording artist, plus a 30-year career as one of Britain's best-known, globally-travelled DJs (Judge Jules), with over 5000 gigs under his belt, plus extensive experience as an event promoter and artist manager at the highest level.
Suffice to say, Jules knows the music industry inside-out, and his clients regard him as a trusted advisor for whom no legal or business affairs challenge or problem is too large or small.
Jules has been a lawyer for 10 years. His practice takes in the entire breadth of the music-focused entertainment industry. His legal and deal expertise includes management, recording, publishing, distribution and label services, music-based apps, games and tech projects, production deals, producers, featured artists, endorsements, merchandising, neighbouring rights, TV/film scores, live performance, events and venue agreements, plus copyright and rights infringement and many other disputes.
Jules's clients include artists, management companies, record labels, songwriters, event promoters, producers, music tech businesses, production companies, live agents, music publishers and DJs. He has spoken on many panels and seminars including ADE, Brighton Music Conference and AIM events, and has been a guest speaker on legal issues across a number of on and off-line media outlets, including BBC Radio 5 Live, BBC Introducing, Financial Times, The Sun, The Times and Mixmag.
Jules speaks fluent Spanish.
Who better to demystify the contracts and deals every musician eventually faces? In his course, Jules turns three decades of hard-won industry knowledge into plain-English guidance, so you can understand the business side of music and protect your work long before you sign on the dotted line.
