How a manager makes their money
Lesson time: (0min 45sec)
Judge Jules explains how artist managers earn their money: commission, typically 20% of an artist's profit rather than gross income.
Course preview
This lesson is part of the course Legals & Deals: The Basics of The Music Industry
Watch a preview of the full course below.
Lesson transcript:
Understanding Managerial Compensation in the Music Industry
So, managers make their money in the shape of commission.
Sometimes, I feel that lawyers like me forget just how much money an artist needs to be earning in order to generate the minimum wage for a manager.
Typical Management Commission
- Typical management commission is 20%.
- We'll discuss this in further detail later, but it's important to note:
- Generally speaking, it's 20% of an artist's profit, not the overall money that they earn.
Profit Threshold
To put it in perspective, your artist needs to be making a profit of about $100,000 a year before you earn $20,000 a year.
The Minimum Wage
- That is the minimum wage for managers.
- For this reason, good managers generally do not just manage one artist; they manage a few.
Conclusion
Managers' remuneration is wholly based around commissioning what their artist earns.
About the instructor
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. read more