Artist Management Agreement Template

The relationship between an artist and their manager is one of the most important partnerships in the entertainment and creative industries. A talented manager...

What your Artist Management Agreement Template contract covers

01Party identification — Legal names and contact information for the artist and manager.
02Manager's duties — Specific obligations (advising, negotiating, coordinating, promoting).
03Artist's duties — Cooperation, availability, and professional conduct.
04Commission rate — Percentage of gross or net income, clearly defined.
05Commissionable income — Which income streams are subject to commission and which are excluded.
06Exclusivity — Whether the arrangement is exclusive and the scope of exclusivity.
07Term — Initial term, option periods, and conditions for exercising options.
08Performance benchmarks — Minimum results the manager must achieve for option periods to vest.
09Expenses — How business expenses are handled (manager-absorbed, reimbursed, or shared).
10Power of attorney — Whether the manager has authority to sign agreements on the artist's behalf.

How to use this template

  1. 01

    Define the parties. Identify the artist (individual or entity) and the manager (individual or management company). If the manager is a company, include a key-person clause identifying the specific individual who will manage the artist.

  2. 02

    Describe the manager's duties comprehensively. List every function the manager will perform: career advising, contract negotiation coordination, securing opportunities, brand development, public relations oversight, financial coordination, and day-to-day business management. Use "best efforts" language to set an actionable standard.

  3. 03

    Define commissionable income. List all income streams subject to commission (recorded music, live performance, merchandise, endorsements, publishing, licensing, film/TV, digital content, sponsorships). Specify exclusions (e.g., songwriting income on songs written before the agreement, income from non-entertainment employment).

  4. 04

    Set the commission rate. Industry-standard rates range from 10% to 20%, with 15% being the most common for established artists and 20% for developing artists. Specify whether the commission is calculated on gross or net income.

  5. 05

    Establish the term. Set an initial term (typically 1-3 years) with option periods (1-2 years each) that are exercised by the manager, the artist, or mutually. Tie option periods to performance benchmarks (minimum income thresholds, album releases, touring activity).

  6. 06

    Draft the sunset clause. Define the post-termination commission schedule. A common structure reduces the commission rate by one-third each year for three years after termination (e.g., full commission in year 1, two-thirds in year 2, one-third in year 3, then zero).

  7. 07

    Address expenses. Specify whether the manager absorbs their own overhead or is reimbursed for approved expenses. Set a threshold above which expenses require the artist's prior written approval.

  8. 08

    Include power-of-attorney provisions (carefully). If the manager needs authority to sign routine contracts (e.g., performance agreements), grant limited power of attorney for specific categories with a dollar cap. Never grant unlimited power of attorney.

Full template text

ARTIST MANAGEMENT AGREEMENT
Date: _______________

PARTIES
This Artist Management Agreement ("Agreement") is entered into by and between:
Artist: _____________ ("Artist"), professionally known as _____________, with a mailing address of _____________
Manager: _____________ ("Manager"), doing business as _____________, with a mailing address of _____________
Key Person (if Manager is a company): _____________ shall serve as the primary individual responsible for managing the Artist's career.

CLAUSE 1 — ENGAGEMENT AND EXCLUSIVITY
The Artist hereby engages the Manager as the Artist's exclusive personal manager in the entertainment industry, including but not limited to music, live performance, recorded media, digital content, merchandising, endorsements, and related activities ("Entertainment Activities"). The Manager accepts such engagement and agrees to perform the duties set forth herein.
This engagement is exclusive. The Artist shall not engage any other personal manager for Entertainment Activities during the term of this Agreement without the Manager's prior written consent.

CLAUSE 2 — MANAGER'S DUTIES
The Manager shall use best efforts to advance the Artist's career, including but not limited to:
(a) Advising the Artist on all matters relating to the Artist's Entertainment Activities, including creative direction, branding, and public image.
(b) Coordinating with the Artist's booking agent, attorney, accountant, publicist, and other representatives.
(c) Reviewing and advising on contracts, deals, and business opportunities presented to the Artist. The Manager shall not provide legal advice but shall coordinate with the Artist's attorney on legal matters.
(d) Seeking and developing opportunities for the Artist in recording, performing, publishing, licensing, endorsement, and media.
(e) Overseeing the Artist's day-to-day business affairs as they relate to Entertainment Activities.
(f) Managing the Artist's social media presence and digital brand in coordination with the Artist's approval.
(g) Preparing and maintaining budgets and financial reports related to the Artist's Entertainment Activities.

CLAUSE 3 — ARTIST'S DUTIES
The Artist shall:
(a) Devote sufficient time and energy to their Entertainment Activities.
(b) Attend meetings, rehearsals, performances, and promotional events as reasonably required.
(c) Cooperate with the Manager's efforts and make timely decisions on business matters.
(d) Conduct themselves professionally in all public and industry interactions.
(e) Promptly notify the Manager of any offers, inquiries, or business opportunities received directly.

CLAUSE 4 — COMMISSION
The Artist shall pay the Manager a commission of _____% of the Artist's Gross Income from Entertainment Activities.
"Gross Income" means all income, compensation, fees, royalties, advances, guarantees, bonuses, and other earnings received by the Artist from Entertainment Activities, before deduction of expenses, taxes, or other costs, but excluding:

  • Income from non-entertainment employment
  • Gifts and inheritances
  • Investment income unrelated to Entertainment Activities
  • Songwriting/publishing income on works created before the date of this Agreement (if applicable)

The commission shall be calculated and paid as income is received by the Artist. The Artist shall pay the Manager's commission within _____________ days of receiving the commissionable income.

CLAUSE 5 — TERM
The initial term of this Agreement shall be _____________ year(s) from the date of execution ("Initial Term").
The Manager shall have _____________ option(s) to extend the term for additional periods of _____________ year(s) each ("Option Period(s)"), provided the following performance benchmarks are met during the preceding period:

  • The Artist's Gross Income from Entertainment Activities equals or exceeds $_____________ during the preceding term/option period, OR

The Manager shall exercise each option by providing written notice to the Artist at least thirty (30) days before the expiration of the current term or option period.

CLAUSE 6 — SUNSET CLAUSE (POST-TERMINATION COMMISSIONS)
Upon expiration or termination of this Agreement, the Manager shall continue to receive commissions on:
(a) All income derived from agreements, contracts, and commitments entered into or substantially negotiated during the term ("Existing Deals").
(b) Income from Existing Deals shall be commissioned as follows:

  • Year 1 after termination: _____% (full commission rate)
  • Year 2 after termination: _____% (reduced rate)
  • Year 3 after termination: _____% (further reduced rate)
  • Thereafter: No further commission
    (c) The Manager shall not earn commission on new agreements entered into after termination that are not renewals or extensions of Existing Deals.

CLAUSE 7 — EXPENSES
The Manager shall bear their own overhead expenses (office, phone, general travel). The following expenses shall be reimbursed by the Artist upon submission of receipts:

  • Travel expenses for trips specifically undertaken on the Artist's behalf (pre-approved by the Artist)
  • Promotional materials and marketing costs (pre-approved by the Artist)
  • Third-party professional services retained on the Artist's behalf (attorney, accountant, publicist)
    Expenses exceeding $_____________ individually or $_____________ in aggregate per month require the Artist's prior written approval.

CLAUSE 8 — POWER OF ATTORNEY
The Artist grants the Manager limited power of attorney to:
[ ] Endorse and deposit checks payable to the Artist for Entertainment Activities income
[ ] Sign performance agreements and appearance contracts with a value of $_____________ or less
[ ] Sign routine administrative documents on the Artist's behalf
The Artist does not grant the Manager power of attorney to:

  • Sign recording contracts, publishing agreements, or management/agency agreements
  • Enter into agreements exceeding $_____________ in value
  • Take any action that creates a financial obligation exceeding $_____________ without the Artist's express written consent

CLAUSE 9 — ACCOUNTING AND AUDIT
The Manager shall maintain accurate books and records of all income received and commissions collected on the Artist's behalf. The Manager shall provide the Artist with quarterly statements within thirty (30) days of each quarter's end.
The Artist shall have the right to audit the Manager's books and records upon thirty (30) days' written notice, at the Artist's expense. If the audit reveals a discrepancy of more than ___% in the Manager's favor, the Manager shall bear the cost of the audit and promptly refund the overpayment.

CLAUSE 10 — KEY PERSON
If the Key Person identified in this Agreement ceases to be actively involved in the day-to-day management of the Artist's career (due to departure from the management company, disability, or other reason), the Artist shall have the right to terminate this Agreement upon thirty (30) days' written notice.

CLAUSE 11 — TERMINATION
(a) By Either Party for Cause: Either Party may terminate this Agreement upon thirty (30) days' written notice if the other Party materially breaches any provision and fails to cure within the notice period.
(b) By Artist for Non-Performance: The Artist may terminate if the Manager fails to meet the performance benchmarks set forth in Clause 5 during any term or option period.
(c) By Artist — Key Person Departure: As provided in Clause 10.
(d) By Either Party — Disability: If either Party is unable to perform for a continuous period of _____________ days due to disability or incapacity.
(e) Upon Termination: All rights and obligations terminate except for the sunset provisions in Clause 6, the accounting and audit provisions in Clause 9, the confidentiality obligations, and any accrued but unpaid commissions.

CLAUSE 12 — CONFIDENTIALITY
Each Party shall keep confidential all non-public information about the other Party's business, finances, and personal affairs. This obligation survives termination of this Agreement.

CLAUSE 13 — REPRESENTATIONS AND WARRANTIES
Each Party represents that they have the legal authority to enter into this Agreement and that this Agreement does not conflict with any other agreement to which they are a party.
The Manager represents that they are not a licensed talent agency and will not procure employment for the Artist in jurisdictions where such activity requires a talent-agency license, unless the Manager holds such a license.

CLAUSE 14 — DISPUTE RESOLUTION
Any dispute arising under this Agreement shall first be submitted to mediation. If mediation fails to resolve the dispute within thirty (30) days, either Party may pursue binding arbitration in _____________ (city/state) or litigation in the courts of the State of _____________.

CLAUSE 15 — GOVERNING LAW
This Agreement shall be governed by the laws of the State of _____________.

CLAUSE 16 — ENTIRE AGREEMENT
This Agreement constitutes the entire understanding between the Parties and supersedes all prior negotiations and agreements. Amendments must be in writing and signed by both Parties.

SIGNATURES
Artist: ___________________________ Date: _______________
Printed Name: ___________________________
Manager: ___________________________ Date: _______________
Printed Name and Title: ___________________________

Contract guide

What Is an Artist Management Agreement?

An artist management agreement is a legally binding contract between an artist (musician, actor, visual artist, influencer, or other creative professional) and a personal manager. The manager agrees to guide, advise, and promote the artist's career in exchange for a commission — typically a percentage of the artist's gross income from entertainment-related activities.

The agreement defines the manager's duties, which may include securing performance opportunities, negotiating contracts with labels, publishers, agents, and brands, advising on creative and business decisions, coordinating with attorneys, accountants, and booking agents, managing public relations, and overseeing day-to-day business operations. Importantly, the manager is not a booking agent (who procures employment) or an attorney (who provides legal advice); the manager is a strategic advisor and business coordinator.

Artist management agreements are used across the entertainment industry: in music, film, television, theater, visual arts, literary arts, and the rapidly growing creator and influencer economy. The specific terms vary by industry, but the core structure — duties, commission, term, exclusivity, and termination — remains consistent.

The agreement is significant because of the financial and career stakes involved. A manager who earns 15-20% of an artist's gross income has a powerful financial interest in the artist's success. Conversely, an artist who signs with the wrong manager may find themselves locked into a long-term contract with someone who is not delivering results. The agreement must balance these interests by providing clear performance expectations, reasonable exit provisions, and transparent financial terms.

Why You Need an Artist Management Agreement

The entertainment industry operates on relationships, trust, and handshake deals more than most other industries. But handshake deals fall apart when money, creative differences, and career direction are at stake. A written management agreement provides the structure that informal arrangements lack.

Commission clarity prevents the most common and most destructive dispute in artist-manager relationships: arguments about money. The agreement specifies exactly what the manager earns a commission on, at what rate, and for how long. Does the commission apply to gross income or net income? Does it cover merchandise, publishing royalties, live performance income, brand endorsements, and acting roles? Does the commission continue after the agreement terminates (a "sunset clause")? These questions must be answered in writing.

Duty definition protects the artist from a manager who collects commissions but does not actively manage the career. The agreement should list the manager's specific obligations — attending meetings, reviewing contracts, coordinating with the artist's team, and using best efforts to advance the career. If the manager fails to perform these duties, the artist has a contractual basis for termination.

Term and termination provisions protect both parties. The artist needs the ability to leave if the manager is not delivering results. The manager needs a long enough term to develop the artist's career and recoup their investment of time and resources. Most agreements use a multi-year initial term with option periods that vest based on the manager achieving specified performance benchmarks.

Exclusivity determines whether the artist can work with other managers simultaneously. Most management agreements are exclusive, meaning the artist can have only one personal manager. Some may carve out specific areas (e.g., the artist has a separate manager for their acting career and their music career). The agreement must clearly define the scope of exclusivity.

Post-termination rights, particularly the sunset clause, are among the most negotiated provisions. After the agreement ends, the manager typically continues to earn commissions on deals negotiated during the term and on income derived from those deals, often on a declining scale over several years. Without clear sunset terms, disputes can persist for decades.

Key Components of an Artist Management Agreement

  • Party identification — Legal names and contact information for the artist and manager.
  • Manager's duties — Specific obligations (advising, negotiating, coordinating, promoting).
  • Artist's duties — Cooperation, availability, and professional conduct.
  • Commission rate — Percentage of gross or net income, clearly defined.
  • Commissionable income — Which income streams are subject to commission and which are excluded.
  • Exclusivity — Whether the arrangement is exclusive and the scope of exclusivity.
  • Term — Initial term, option periods, and conditions for exercising options.
  • Performance benchmarks — Minimum results the manager must achieve for option periods to vest.
  • Expenses — How business expenses are handled (manager-absorbed, reimbursed, or shared).
  • Power of attorney — Whether the manager has authority to sign agreements on the artist's behalf.
  • Key person clause — If the management company has multiple managers, identifying the specific individual who will manage the artist.
  • Sunset clause — Post-termination commission schedule.
  • Accounting and audit rights — The artist's right to review financial records.
  • Termination — For cause, for convenience, and upon specific events (disability, bankruptcy).
  • Dispute resolution — Mediation, arbitration, or litigation.
  • Governing law — Which state's law applies.

How to Write an Artist Management Agreement

  1. Define the parties. Identify the artist (individual or entity) and the manager (individual or management company). If the manager is a company, include a key-person clause identifying the specific individual who will manage the artist.

  2. Describe the manager's duties comprehensively. List every function the manager will perform: career advising, contract negotiation coordination, securing opportunities, brand development, public relations oversight, financial coordination, and day-to-day business management. Use "best efforts" language to set an actionable standard.

  3. Define commissionable income. List all income streams subject to commission (recorded music, live performance, merchandise, endorsements, publishing, licensing, film/TV, digital content, sponsorships). Specify exclusions (e.g., songwriting income on songs written before the agreement, income from non-entertainment employment).

  4. Set the commission rate. Industry-standard rates range from 10% to 20%, with 15% being the most common for established artists and 20% for developing artists. Specify whether the commission is calculated on gross or net income.

  5. Establish the term. Set an initial term (typically 1-3 years) with option periods (1-2 years each) that are exercised by the manager, the artist, or mutually. Tie option periods to performance benchmarks (minimum income thresholds, album releases, touring activity).

  6. Draft the sunset clause. Define the post-termination commission schedule. A common structure reduces the commission rate by one-third each year for three years after termination (e.g., full commission in year 1, two-thirds in year 2, one-third in year 3, then zero).

  7. Address expenses. Specify whether the manager absorbs their own overhead or is reimbursed for approved expenses. Set a threshold above which expenses require the artist's prior written approval.

  8. Include power-of-attorney provisions (carefully). If the manager needs authority to sign routine contracts (e.g., performance agreements), grant limited power of attorney for specific categories with a dollar cap. Never grant unlimited power of attorney.

  9. Add accounting, audit, dispute-resolution, and termination clauses. Ensure the artist has the right to audit the manager's books, and provide clear termination procedures for both parties.

  10. Have both parties' attorneys review the agreement. Entertainment law is specialized, and both the artist and the manager should have independent legal representation before signing.

Free Artist Management Agreement Template

ARTIST MANAGEMENT AGREEMENT

Date: _______________


PARTIES

This Artist Management Agreement ("Agreement") is entered into by and between:

Artist: _____________ ("Artist"), professionally known as _____________, with a mailing address of _____________

Manager: _____________ ("Manager"), doing business as _____________, with a mailing address of _____________

Key Person (if Manager is a company): _____________ shall serve as the primary individual responsible for managing the Artist's career.


CLAUSE 1 — ENGAGEMENT AND EXCLUSIVITY

The Artist hereby engages the Manager as the Artist's exclusive personal manager in the entertainment industry, including but not limited to music, live performance, recorded media, digital content, merchandising, endorsements, and related activities ("Entertainment Activities"). The Manager accepts such engagement and agrees to perform the duties set forth herein.

This engagement is exclusive. The Artist shall not engage any other personal manager for Entertainment Activities during the term of this Agreement without the Manager's prior written consent.


CLAUSE 2 — MANAGER'S DUTIES

The Manager shall use best efforts to advance the Artist's career, including but not limited to:

(a) Advising the Artist on all matters relating to the Artist's Entertainment Activities, including creative direction, branding, and public image.

(b) Coordinating with the Artist's booking agent, attorney, accountant, publicist, and other representatives.

(c) Reviewing and advising on contracts, deals, and business opportunities presented to the Artist. The Manager shall not provide legal advice but shall coordinate with the Artist's attorney on legal matters.

(d) Seeking and developing opportunities for the Artist in recording, performing, publishing, licensing, endorsement, and media.

(e) Overseeing the Artist's day-to-day business affairs as they relate to Entertainment Activities.

(f) Managing the Artist's social media presence and digital brand in coordination with the Artist's approval.

(g) Preparing and maintaining budgets and financial reports related to the Artist's Entertainment Activities.


CLAUSE 3 — ARTIST'S DUTIES

The Artist shall:

(a) Devote sufficient time and energy to their Entertainment Activities.

(b) Attend meetings, rehearsals, performances, and promotional events as reasonably required.

(c) Cooperate with the Manager's efforts and make timely decisions on business matters.

(d) Conduct themselves professionally in all public and industry interactions.

(e) Promptly notify the Manager of any offers, inquiries, or business opportunities received directly.


CLAUSE 4 — COMMISSION

The Artist shall pay the Manager a commission of _____% of the Artist's Gross Income from Entertainment Activities.

"Gross Income" means all income, compensation, fees, royalties, advances, guarantees, bonuses, and other earnings received by the Artist from Entertainment Activities, before deduction of expenses, taxes, or other costs, but excluding:

  • Income from non-entertainment employment
  • Gifts and inheritances
  • Investment income unrelated to Entertainment Activities
  • Songwriting/publishing income on works created before the date of this Agreement (if applicable)

The commission shall be calculated and paid as income is received by the Artist. The Artist shall pay the Manager's commission within _____________ days of receiving the commissionable income.


CLAUSE 5 — TERM

The initial term of this Agreement shall be _____________ year(s) from the date of execution ("Initial Term").

The Manager shall have _____________ option(s) to extend the term for additional periods of _____________ year(s) each ("Option Period(s)"), provided the following performance benchmarks are met during the preceding period:

  • The Artist's Gross Income from Entertainment Activities equals or exceeds $_____________ during the preceding term/option period, OR

The Manager shall exercise each option by providing written notice to the Artist at least thirty (30) days before the expiration of the current term or option period.


CLAUSE 6 — SUNSET CLAUSE (POST-TERMINATION COMMISSIONS)

Upon expiration or termination of this Agreement, the Manager shall continue to receive commissions on:

(a) All income derived from agreements, contracts, and commitments entered into or substantially negotiated during the term ("Existing Deals").

(b) Income from Existing Deals shall be commissioned as follows:

  • Year 1 after termination: _____% (full commission rate)
  • Year 2 after termination: _____% (reduced rate)
  • Year 3 after termination: _____% (further reduced rate)
  • Thereafter: No further commission

(c) The Manager shall not earn commission on new agreements entered into after termination that are not renewals or extensions of Existing Deals.


CLAUSE 7 — EXPENSES

The Manager shall bear their own overhead expenses (office, phone, general travel). The following expenses shall be reimbursed by the Artist upon submission of receipts:

  • Travel expenses for trips specifically undertaken on the Artist's behalf (pre-approved by the Artist)
  • Promotional materials and marketing costs (pre-approved by the Artist)
  • Third-party professional services retained on the Artist's behalf (attorney, accountant, publicist)

Expenses exceeding $_____________ individually or $_____________ in aggregate per month require the Artist's prior written approval.


CLAUSE 8 — POWER OF ATTORNEY

The Artist grants the Manager limited power of attorney to:

[ ] Endorse and deposit checks payable to the Artist for Entertainment Activities income
[ ] Sign performance agreements and appearance contracts with a value of $_____________ or less
[ ] Sign routine administrative documents on the Artist's behalf

The Artist does not grant the Manager power of attorney to:

  • Sign recording contracts, publishing agreements, or management/agency agreements
  • Enter into agreements exceeding $_____________ in value
  • Take any action that creates a financial obligation exceeding $_____________ without the Artist's express written consent

CLAUSE 9 — ACCOUNTING AND AUDIT

The Manager shall maintain accurate books and records of all income received and commissions collected on the Artist's behalf. The Manager shall provide the Artist with quarterly statements within thirty (30) days of each quarter's end.

The Artist shall have the right to audit the Manager's books and records upon thirty (30) days' written notice, at the Artist's expense. If the audit reveals a discrepancy of more than ___% in the Manager's favor, the Manager shall bear the cost of the audit and promptly refund the overpayment.


CLAUSE 10 — KEY PERSON

If the Key Person identified in this Agreement ceases to be actively involved in the day-to-day management of the Artist's career (due to departure from the management company, disability, or other reason), the Artist shall have the right to terminate this Agreement upon thirty (30) days' written notice.


CLAUSE 11 — TERMINATION

(a) By Either Party for Cause: Either Party may terminate this Agreement upon thirty (30) days' written notice if the other Party materially breaches any provision and fails to cure within the notice period.

(b) By Artist for Non-Performance: The Artist may terminate if the Manager fails to meet the performance benchmarks set forth in Clause 5 during any term or option period.

(c) By Artist — Key Person Departure: As provided in Clause 10.

(d) By Either Party — Disability: If either Party is unable to perform for a continuous period of _____________ days due to disability or incapacity.

(e) Upon Termination: All rights and obligations terminate except for the sunset provisions in Clause 6, the accounting and audit provisions in Clause 9, the confidentiality obligations, and any accrued but unpaid commissions.


CLAUSE 12 — CONFIDENTIALITY

Each Party shall keep confidential all non-public information about the other Party's business, finances, and personal affairs. This obligation survives termination of this Agreement.


CLAUSE 13 — REPRESENTATIONS AND WARRANTIES

Each Party represents that they have the legal authority to enter into this Agreement and that this Agreement does not conflict with any other agreement to which they are a party.

The Manager represents that they are not a licensed talent agency and will not procure employment for the Artist in jurisdictions where such activity requires a talent-agency license, unless the Manager holds such a license.


CLAUSE 14 — DISPUTE RESOLUTION

Any dispute arising under this Agreement shall first be submitted to mediation. If mediation fails to resolve the dispute within thirty (30) days, either Party may pursue binding arbitration in _____________ (city/state) or litigation in the courts of the State of _____________.


CLAUSE 15 — GOVERNING LAW

This Agreement shall be governed by the laws of the State of _____________.


CLAUSE 16 — ENTIRE AGREEMENT

This Agreement constitutes the entire understanding between the Parties and supersedes all prior negotiations and agreements. Amendments must be in writing and signed by both Parties.


SIGNATURES

Artist: ___________________________ Date: _______________

Printed Name: ___________________________

Manager: ___________________________ Date: _______________

Printed Name and Title: ___________________________

How to Use This Template

  1. Download the template in Word or PDF format.

  2. Enter the parties' information, including the Artist's professional/stage name and the Manager's business entity.

  3. Identify the Key Person if the Manager is a management company with multiple managers.

  4. Define the commission rate in Clause 4 and list all excluded income categories.

  5. Set the initial term and option periods in Clause 5, along with performance benchmarks for option exercise.

  6. Draft the sunset schedule in Clause 6 with declining commission rates over the post-termination period.

  7. Set the expense approval threshold in Clause 7.

  8. Define the scope of power of attorney in Clause 8 carefully and conservatively.

  9. Have both parties' entertainment attorneys review the agreement independently before signing.

  10. Sign in duplicate and store securely. Provide copies to the Artist's attorney and accountant.

FAQ

FAQs

The industry standard ranges from 10% to 20% of gross income, with 15% being the most common. Developing artists with little existing income may agree to 20% to incentivize the manager's investment of time. Established artists with significant leverage may negotiate 10% or less. The commission should be calculated on gross income (before expenses) in most cases, though some agreements use net income for specific income streams like touring.

A sunset clause defines the manager's right to receive commissions after the agreement terminates. Without a sunset clause, the manager could argue they are entitled to commissions indefinitely on deals they negotiated. With a sunset clause, the commission typically declines over two to three years and then ends. This protects the artist from perpetual commission obligations while fairly compensating the manager for deals they set up.

Only if the agreement includes a termination provision that allows it. Most agreements permit termination for cause (material breach by the manager), non-performance (failure to meet benchmarks), or key-person departure. Termination for convenience (without cause) is less common and may trigger the full sunset commission schedule. Review the termination clause carefully before signing.

A personal manager provides broad career guidance, business management, and strategic advice. A booking agent (or talent agent) procures employment — gigs, tours, acting roles, and similar opportunities. In many states (notably California and New York), booking agents must be licensed. Managers who procure employment without a license may violate state labor law, and the artist may be able to void the agreement. The contract should clearly state that the manager will not act as a booking agent unless licensed.

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