Commission On Income They Didn't Touch - Traps & Scams Every Musician Must Avoid

Someone just told you they are owed commission on money you never received. You want to laugh, then cry, then burn the contract. Welcome to the world of unearned commission claims in music. These claims are sneaky, often legal looking, and usually rely on sloppy contracts or dirty language that gives someone the right to slice into your income even when they did not earn it.

This article is a survival guide for modern musicians and artists. We will explain the common scams, demystify legal words, provide real life scenarios, and give a step by step plan you can use to spot traps, fight bogus claims, and protect your money. We are vulgar about nonsense and serious about cash. Expect sarcasm, real examples, and practical templates you can use now.

Why This Happens

People in music make money in many ways. They also try to get a cut of all of it. Some of those people are legit, like a manager who introduces you to a label and negotiates a deal. Some are parasites who twist language so they get paid when someone else does the work.

Two basic problems create this mess.

• Ambiguous contract language that leaves room for broad interpretation of "income" and "commission."
• Recoupment and cross collateral clauses that let a company or person take income from one source to cover advances or expenses from another, sometimes without clear accounting.

If you do not understand terms and how money flows in our industry, you will sign away slices of income you never even knew existed.

Key Terms Explained

Some words sound fancy. They are used to trick you. Here is plain English for the terms that matter.

Commission

This is a percentage paid to a person for introducing work or earning money for you. Common commissions are paid to managers, booking agents, and sometimes promoters. A commission should reflect actual work done that generated the income.

Recoupment

Recoupment means someone who paid you money up front gets to recover that money from future earnings before you see profit. Example, a label gives an advance. The label then recoups that advance from your royalties. This can be totally fair, but becomes a scam when the math is murky or when recoupment is applied to earnings that should not be part of the deal.

Gross Income versus Net Income

Gross income is money before expenses. Net income is what remains after costs are deducted. Contracts that give someone commission on gross income are dangerous because costs can be inflated or fake. Always try to limit commission calculations to net income or to narrowly defined revenue streams you control.

Royalties

Royalties are payments for use of your music. There are many types of royalties. Mechanical royalties pay when a song is reproduced. Performance royalties pay when a song is publicly played. Sync fees are paid when music is used in film, TV, or ads. Each royalty type has its own path and accounting. Someone claiming commission on sync fees they did not negotiate is a red flag.

Performance Rights Organization or PRO

PRO stands for Performance Rights Organization. These are companies like ASCAP, BMI, and SESAC in the United States, and PRS in the United Kingdom. They collect public performance royalties and distribute them to songwriters and publishers. PRO money is sacred and traceable. If someone claims commission on PRO money they did not register or collect, ask for proof.

Admin Deal

An administration deal is when you hire someone to collect publishing royalties on your behalf and take a fee. Admin deals should state what they will collect, the fee percentage, and whether they can take a commission on money collected by other partners. Watch for clauses that let them take a cut of everything you ever make.

360 Deal

A 360 deal gives a label a slice of many revenue streams, including touring, merch, and publishing. These deals can be safe for established artists, but for early career artists they often mean you will be paying commission on income the label did not help create. Read with a lawyer.

Common Scams And How They Look

Scammers wear suits and they also wear hoodies. Here are the most common ways people try to get commission on income they did not earn.

Blanket Commission Clause

This is a clause that says the person is entitled to commission on all income earned by the artist. It sounds fine until you see that income includes sync, publishing, mechanicals, merchandise, endorsement deals, and sometimes revenue from side projects. That blanket is usually too wide unless the person legitimately handled all those areas.

Real life example

An artist signs a one page management agreement with a well connected manager. The manager negotiates a small local deal. Later the artist gets a commercial sync and a separate license negotiated by a music supervisor. The manager claims 20 percent of the sync payment because the contract said commission on all income. The artist assumes the manager must have earned it. That is false. The manager did no sync work. Yet the contract gives them a cut.

Commission On Gross Income With Fake Expenses

Someone takes commission on gross income, then deducts expenses before paying you. The bad actor can create vague expenses or inflate costs. If the contract does not give you auditing rights, you are blind.

Real life example

A boutique publisher claims they will collect money and then pay artist net after expenses. They list "administration fees" and "processing fees." The artist sees tiny checks and no clear report. The publisher has been withholding a large slice under unclear line items.

Recoup Then Commission Double Dip

Here a label or company recoups an advance from your royalties and still charges commission on those same royalties while recoupment is in effect. You end up paying on money that first went to pay back someone.

Real life example

Label gives a touring support advance to a band. The label recoups from record sales. The manager then takes commission on the same record sales. The manager negotiated nothing for record sales. The band is losing money on the tour and on sales.

Retroactive Commission Claims

Someone inserts a clause after the fact, or claims that their verbal work entitles them to past income. If the claim is not in writing, you have strong defenses. Watch out for language that says verbal agreements count. In most legal systems, written agreements win when they clearly contradict oral promises.

Real life example

A promoter tells you they will promote your show and you will pay 10 percent of ticket sales. The show sells out before the promoter does any work. The promoter then demands 10 percent of advertising income from the host venue, claiming their early pitch created value. The artist refuses. The promoter sues. If you have no documented agreement, you can fight this claim.

How To Read Contracts Like A Human With Teeth

Contracts are traps if you do not read them. Here is a reading method that takes you from naive to safely suspicious.

1. Highlight every instance of the words income, revenue, proceeds, royalties, or earnings. Ask what each word includes. The contract writer will often define them. If they do not, demand definitions.
2. Circle all percentages. Find where the percentage is applied. Is it on gross or net? Does net have any allowable deductions?
3. Find recoupment language. Who gets to recoup and from what streams? Can recoupment cross different income types?
4. Check audit rights. You need the right to inspect accounting with a third party auditor. If you cannot audit, you cannot verify.
5. Look for retroactivity. Does the agreement claim commission on past income from before the signature date?
6. Search for assignment and sub license clauses. Can the person assign their rights to someone else? That is how a small agreement becomes a vampire tax.

If any of these items are vague or one sided, mark them for negotiation or removal. Use plain language edits. Offer alternatives. If they push back, hire a lawyer. Your time is worth more than their ego and our industry is full of people who will steal your future earnings while you are still figuring out taxes.

Practical Contract Edits You Can Propose Right Now

Below are simple edits in plain language that make agreements fairer. Use these as starting points in emails or negotiations.

Limit Scope Of Commission

Instead of commission on all income, propose commission only on revenue directly generated by the person. Example language you can use in conversation or email.

Suggested language

"Commission applies only to deals that you negotiated and closed on behalf of the artist, documented in writing, and that identify the artist and your role in the deal."

Define Income Streams

Make a list. Name the revenue streams and specify which are included. Examples of streams.

• Recorded music sales and streaming.
• Publishing and mechanical royalties.
• Performance royalties collected by PROs.
• Sync licenses for film, TV, and advertising.
• Merchandise sales.
• Endorsement and brand deals.

Then state clearly which of those streams, if any, the agent receives commission on.

Gross versus Net

If the person insists on gross commission, add strict definitions for allowable deductions and require itemized accounting. Better option is to insist on net commission where you can see and audit deductions.

Add Audit Rights

Require the right to a third party audit at least once each year, with the auditor chosen by the artist. Limit the auditor cost to the party that loses the audit. That stops frivolous audits.

Cap Retroactivity

Reject any retroactive commission claims. If a person did work previously, require written evidence and a capped look back period, such as six months prior to signing.

Prohibit Assignment Without Consent

Do not allow the person to assign their rights to someone else without your written permission. This prevents rights being sold to creepy companies.

What To Do If Someone Claims Commission On Money You Did Not Receive

Keep calm. Do not text your entire contact list. Follow this plan.

1. Ask for documentation. Demand the contract clause that entitles them to the commission and a breakdown showing exactly how the money passed through their hands. If they cannot produce the documents, you have the upper hand.
2. Check your own accounts. Look at your PRO statements, your distributor dashboard, and your bank records. If money never flowed through the accused person, the claim is weak.
3. Send a recorded letter. Not a passive aggressive DM. A formal written reply that requests proof and states you will take legal action if necessary moves the needle fast.
4. Get a lawyer. A short letter from counsel often ends nonsense. You do not need to spend a fortune. Many entertainment lawyers will do a limited scope review for a fixed fee.
5. Use dispute resolution in the contract. If your contract has mediation or arbitration clauses, use them. These processes are faster and cheaper than full litigation.
6. File for a court order if needed. In egregious cases, you can sue for declaratory relief to establish your rights. This is a last resort but sometimes required to stop someone bleeding you dry.

How To Audit Your Own Revenue Trails

When someone claims commission on invisible income, the answer is visibility. Here is how to find where money came from and who touched it.

PRO Statements

Check your account with your Performance Rights Organization. They show performance royalties collected by source. If you see no record of a claimed payment, that is evidence.

Distributor Dashboards

Platforms that distribute recorded music, like DistroKid, TuneCore, and CD Baby, show payments and splits. Look at split sheets and payment dates. If someone claims the distributor paid them, ask for a transaction ID and payee name.

Publisher Statements

If you have a publisher or an admin company, ask for detailed journal entries for any claimed income. They are required to show how funds were allocated and what deductions were applied.

Bank Records

If large payments are involved, bank transfer records can prove whether cash ever touched the claimant. If money was routed through a company account then split, you can trace the chain.

Third Party Tracking

For sync deals, there are often contracts that list payees. Ask the licensee or music supervisor for a copy of the payment confirmation. Many companies will share this when they see a genuine dispute.

Negotiation Scripts For When You Are Being Pressured

When someone humiliates you with a demand for commission, respond with calm and paper. Here are scripts you can adapt.

When the Claim Is Vague

"Please provide the written clause in our agreement that entitles you to commission on this income. Also provide the accounting that shows the payment flowing through your account. I will review and follow up within 10 business days."

When the Claim Relies On Oral Promises

"I am happy to consider any contribution you made. Please provide dated emails, messages, or invoices that document the work and the agreed compensation. Without documentation I cannot agree to retroactive payments."

If They Threaten Legal Action

"If you proceed, please direct your counsel to my lawyer. I prefer to resolve this with documentation first, then mediation. If you have a legitimate contractual right, present it now."

What Good Managers and Agents Should Be Paid For

Not all commission is bad. People who earn it add value. Know what to expect so you do not get scammed by someone pretending to be helpful.

• Manager should earn commission for career building, introductions to labels and publishers, and ongoing strategy. Manager commission is usually 15 to 20 percent of earnings they help generate. Always specify the streams and add sunset clauses. A sunset clause limits commission for a time after termination.
• Booking agent earns commission on shows they book. Industry standard varies but is often 10 to 20 percent of live fees.
• Publishing administrator can take a percentage of publishing they collect because they do the admin work. Typical admin fees are 10 to 20 percent. That is reasonable as long as the admin company only takes a cut of what they collect and provides full accounting.

If someone claims commission on streams, they should have a clear role in placing, pitching, or promoting that release. If they did none of the above, they should not be paid.

Sunset Clauses and Why You Need One

A sunset clause limits a manager or agent commission for a defined period after the relationship ends. Without it, the person could earn commission on legacy deals forever. This is how small deals become passive income for managers and parasites overthrow economies.

Suggested sunset language

"Manager commission shall apply to deals negotiated during the term and shall terminate 12 months after the agreement ends for touring and 24 months after the agreement ends for recorded music sales and licensing, unless otherwise agreed in writing."

How To Fire Someone Who Wants Commission On Nothing

Firing a person who claims future commission requires strategy. Do it wrong and you will be paying them by accident until the end of time.

1. Check the contract. Find termination clauses. Some contracts require notice. Some allow immediate termination for cause.
2. Send formal notice. Use recorded mail or email with read receipt. Keep records.
3. Negotiate exit terms. Offer a short transition payment in exchange for a signed release that clears future claims. This is often cheaper and faster than litigation.
4. Get a release on all claims. A release is a legal document where the person agrees not to pursue further claims. Make sure it covers future income that could be claimed.
5. Watch for clawbacks. Even after a release, someone might try to sue. Keep your records and consult a lawyer if a new claim appears.

Checklist: Protect Your Income

• Read every contract fully before signing.
• Define income types clearly in writing.
• Insist on audit rights and itemized accounting.
• Limit commission to revenue the person actually generated.
• Avoid blanket language that covers income you never discussed.
• Cap retroactivity and require written proof for past claims.
• Include a sunset clause for management commissions.
• Do not allow assignment of rights without consent.
• Keep all emails, messages, and invoices related to deals.
• When in doubt, seek a lawyer for a fixed fee review.

Records You Must Keep

Paper is your friend. Keep everything and organize it. Here is what to store and for how long.

• Signed contracts and amendments. Keep permanently.
• Email threads with offers, terms, and approvals. Keep at least seven years.
• Distributor and PRO statements. Keep at least seven years for accounting and tax purposes.
• Bank records and payment confirmations. Keep seven years.
• Split sheets for co writers and producers. Keep permanently.

When To Call A Lawyer

Not every disagreement needs legal fireworks. Call a lawyer when any of these are true.

• The claimed amount is substantial in relation to your income.
• The contract language is vague and the other party refuses to clarify.
• The person threatens litigation or files a claim.
• There are repeated attempts to collect commissions from multiple revenue streams.
• You want to sign a 360 deal or long term exclusive agreement.

Many lawyers offer limited scope representation or flat rate contract review. This is affordable and worth it. Think of a small fee now as an investment that saves future royalties.

Examples Of Fair Contract Language

Use these as models. They are plain and focused. Ask for edits to make them specific to your situation.

Commission Scope

"Agent shall receive commission only on fees for live performances and support services that Agent directly procures and presents, and only for shows that occur during the term of this agreement."

Administration Fee

"Administrator will collect publishing royalties on behalf of the songwriter and will be paid 12 percent of net monies actually collected by Administrator. Administrator will provide quarterly statements and allow a certified public accountant to audit records annually upon request."

No Retroactivity

"This agreement does not grant Agent any rights to income earned prior to the effective date of this agreement. Any claim for past services must be supported by dated written documentation and will be limited to six months prior to the effective date."

Real World Stories So You Do Not Think This Is Just Fear Mongering

We spoke to three independent artists who handled bogus commission claims. Names changed because lawsuits are real and so is embarrassment.

Case One: The Manager Who Wanted Everything

A singer signed a two page management agreement at a cafe. The manager promised to get them gigs and playlists. Two years later the singer signed to an indie label for a small advance. The manager then claimed commission on the label advance and on future published royalties. The contract used the phrase all income. The singer hired a lawyer who negotiated a settlement where the manager kept commission only on live gigs they had actually booked. The lesson is do not sign vague agreements over coffee.

Case Two: The Publisher That Ate Your Sync

A band uploaded a song to a publisher for admin. The publisher claimed they had exclusive administration rights and then took a commission on a sync they did not place. The band contacted the licensee and got a copy of the invoice and payment routing. That documents showed the sync payment went directly to the label. The publisher then backed off when presented with clear evidence. The lesson is trace payments and demand proof.

Case Three: The Booking Agent Who Claimed Venue Cut

A DJ signed a brief agent agreement. The DJ booked a festival slot directly through a promoter who had never worked with the agent. The agent later demanded commission claiming they introduced the promoter. The DJ had email chains that proved direct negotiation. The agent sued. The case settled quickly because the DJ had good records. The lesson is keep emails and get everything in writing.

Protect Your Team Too

People around you matter. Producers, co writers, and engineers need protection from predatory claims.

• Use split sheets at every session. This is a document that records who wrote what and the percentage splits for publishing.
• Have written producer agreements for beats and stems. Include buyout terms or royalty percentages.
• Register songs with your PRO and with the mechanical rights agency so there is an official record of ownership.

Closing Tools And Quick Templates

Practical tools you can copy and paste into emails or use in negotiations.

Request For Documentation Template

"Please provide the written contractual clause that entitles you to commission on the payment dated [insert date]. Provide an itemized accounting showing how the payment passed through your entity and the exact commission calculation. I will review this with counsel and reply within 10 business days."

Simple Release For Exit

"In exchange for a one time payment of [amount], the signing party releases all claims related to commissions, royalties, and income arising from activities up to the date of this release. Both parties agree this release resolves all disputes and no further claims will be made."

Use a lawyer to tailor this so it is binding in your jurisdiction.

Final Action Plan You Can Use Today

Do this now. Do not let the panic emoji be your advisor.

1. Gather all contracts, emails, and statements relevant to the claimed income. Organize them by date.
2. Request documentation from the claimant using the template above. Keep communication written.
3. Check your PRO, distributor, and bank records to trace the money flow.
4. If the claim lacks proof, send a firm reply stating you deny the claim pending documentation and that you will pursue legal remedies if necessary.
5. Hire a lawyer for a limited review if the claimant persists or the amount is meaningful.
6. Fix future risk by adopting the checklist and contract edits in this article.

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