A&R and Manager Advice

Do Music Managers Get Royalties

Do Music Managers Get Royalties

Beginning a career in music is no easy task and, like most things in life, it’s better when you're not going at it alone. That's where a music manager comes in. With their expertise, they can negotiate contracts, schedule performances, and promote artists. But there’s always the question of, “Do music managers get royalties?” To answer that, let’s delve into the world of music management and royalties.

Understanding Music Management

A music manager acts as the middleman between the artist and the music industry. They might handle contract negotiations, represent their client in business affairs, and shape the artist's career.

Manager's salary

Music managers are typically paid a percentage of the artist’s gross income, which may range from 10% to 25%. However, these rates are often open to negotiation and can vary depending on the manager’s experience and the artist’s career stage.

What Are Royalties?

In the music industry, royalties are usually paid to the songwriter and the performer for the creation and distribution of their music. They make money every time their song is broadcast on radio or TV, played in a public venue, or used in a commercial or movie. There are different types of royalties such as performance royalties, mechanical royalties, and synchronization royalties.

Performance Royalties

These are paid when a song is performed publicly, either through a radio station, a live performance, or a streaming platform.

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Unlock the key to your music career. This game-changing resource puts over 3,000 of the most influential music industry contacts at your fingertips.

Connect directly with the top A&Rs, Music Managers, Producers, Record Labels & Booking Agents who can elevate your music to new heights. With all the content information you need, including email addresses and phone numbers. Don't just dream of success, make it a reality.

Embrace Music Industry Insider and open doors to limitless opportunities in your music journey.

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Mechanical Royalties

These are paid each time a copy of the song is made. This applies to physical CDs, vinyl, or digital downloads.

Synchronization Royalties

These are paid when a song is used in a film, TV show, or commercial.

Do Music Managers Get Royalties?

The short answer is, it depends. The music manager’s contract will dictate whether they receive royalties. More often, managers are paid a percentage of the artist's income and not from the royalties. Nonetheless, some, especially those working with independent artists, may have a deal set up to receive a percentage of the royalties as well.

Do Music Managers Get Royalties Example:

Take the example of a band who's just signed with a small independent label. Their manager has crafted a contract in which they receive 20% of the band’s total income and 10% of their royalties. Every time the band's song, "Indie Anthem", is played on a mainstream radio station they earn $100 in performance royalties, their manager will receive $10, in addition to their percentage of the band's overall earnings.

Frequently Asked Questions

What is the role of a music manager?

The role of a music manager is to guide the professional career of artists in the music industry. Their responsibilities typically include negotiating contracts, organizing tours, giving strategic career advice, managing promotions, and connecting artists with music producers, publishers, and other industry professionals.

Do music managers get royalties?

Music managers do not typically receive royalties that are meant for artists, songwriters, or producers. However, they may negotiate a percentage of an artist's earnings, which can include earnings from royalties as part of their management contract.

How do music managers make money?

Music managers make money by taking a commission from the gross income of the artists they represent. This commission typically ranges from 10% to 20%, depending on the services provided and the agreement reached with the artist.

What is the difference between royalties and management fees?

Royalties are recurring payments received by artists, songwriters, and producers for the use of their intellectual property, such as song play on the radio. Management fees, on the other hand, are the earnings that managers receive for their services rendered to an artist, usually as a commission of the artist's overall earnings.

Can a music manager claim royalties on behalf of an artist?

A music manager can assist artists in collecting royalties by ensuring that proper registration is done with performance rights organizations, but they typically do not claim royalties themselves. They make sure their clients receive the royalties due to them without directly claiming them.

Is it common for managers to negotiate for a percentage of royalties in their contract?

It is not common for managers to directly take a percentage of royalties, but rather a percentage of the gross income which may include the artist's earnings from royalties. This arrangement ensures that the manager is invested in the artist's total career success, rather than just one stream of income.

Do music managers get paid if an artist's work is not generating revenue?

If an artist's work is not generating revenue, a music manager may not receive payment if their commission is solely based on the artist's earnings. Some management contracts may include alternative forms of compensation, but typically a manager's income is tied to an artist's success.

What should an artist consider before signing a management contract?

An artist should consider the reputation of the manager, their experience, the extent of their network, the specific terms and conditions of the management contract, the manager’s expectations, and the commission percentage. It is essential to clearly understand all contract terms and negotiate conditions that are fair and beneficial.

How long do music management contracts typically last?

Music management contracts can vary in length, but they often last between one and five years. Some contracts may include options for extension. It is important for artists to agree to a term that allows enough time for the manager to make a significant impact while also giving the artist flexibility for their future career choices.

Can an artist terminate a management contract early?

Artists can potentially terminate a management contract early if there are breach-of-contract clauses that allow for it or if both parties mutually agree to part ways. It's important to have clear termination clauses in the contract to address potential disputes or changes in the working relationship.

What happens to a manager's commission if an artist decides to retire or leave the music industry?

If an artist retires or leaves the music industry, the manager's commission would typically cease when the artist stops generating new income. However, some contracts may include post-term commission clauses, allowing managers to continue receiving earnings for a certain period on the projects they contributed to during their management tenure.

Are there any circumstances where a manager might receive more than the standard 10-20% commission?

In some circumstances, a manager might negotiate a higher commission if they provide additional services or make a particularly significant impact on the artist's career. However, such arrangements should be negotiated carefully and detailed in the management contract.

Do managers have a say in the creative process of the music?

While managers typically focus on business aspects, some may provide creative input as part of their overall strategy for an artist's career development. However, the level of involvement in the creative process is typically agreed upon by both the artist and the manager and can vary greatly.

Is it advisable for artists to have separate managers and agents?

It's generally advisable for artists to have separate managers and agents because they serve different functions; a manager handles career guidance while an agent books concerts and appearances. This separation allows professionals to focus on their area of expertise and avoids conflicts of interest.

How does a music manager's role differ from a music publisher's role?

A music manager's role involves overseeing an artist's career and business affairs, while a music publisher's role focuses on managing the copyrights of songs and compositions. Publishers ensure that songwriters receive royalties and fees for their works' usage.

Can a music manager handle legal disputes for an artist?

A music manager can assist in managing legal disputes by advising the artist and coordinating with lawyers, but they cannot provide legal representation unless they are also a licensed attorney. Legal matters typically require specialized legal professionals.

What qualifications or experiences should a good music manager have?

A good music manager should have a strong understanding of the music industry, excellent networking and negotiation skills, experience in marketing and promotions, and a proven track record of successfully managing artists. Formal education in music business or management can also be beneficial.

How are international revenues handled by a music manager?

International revenues are typically handled by the manager in the same way as domestic revenues—by calculating their commission based on the agreed percentage of the artist's gross international earnings. They may work with sub-publishers or foreign agencies to ensure proper collection of these revenues.

Does a new artist need a music manager?

While not required, a new artist can greatly benefit from a music manager who can guide them through the complexities of the music industry, help build their brand, and accelerate their career growth. However, an artist should assess their own needs and career stage before committing to management services.

How should an artist approach a potential manager?

An artist should approach a potential manager professionally, with a clear understanding of their own career goals and prepared materials like music samples, a press kit, and performance history. It's important for the artist to research the manager's background and ensure that their styles and visions align.

What can an artist do if a conflict arises with their manager?

If a conflict arises with a manager, the artist should first attempt to communicate and resolve the issue directly. If this is not possible, review the management contract's dispute resolution clause. Mediation or legal action may be necessary depending on the nature of the conflict and terms of the contract.

Thanks for taking the time to learn with Lyric Assistant. At the heart of the music industry lies a fascinating world of contracts, negotiations, and, of course, royalties. While traversing this world can seem daunting, remember that knowledge is your first step towards making informed decisions. Remember to share this article with your musician and aspiring artist friends to enlighten them about the realities of music royalties. Meanwhile, check out our other guides on Lyric Assistant about more aspects of the music industry!

Music Industry Insider 2024: The Ultimate Contact Handbook

Unlock the key to your music career. This game-changing resource puts over 3,000 of the most influential music industry contacts at your fingertips.

Connect directly with the top A&Rs, Music Managers, Producers, Record Labels & Booking Agents who can elevate your music to new heights. With all the content information you need, including email addresses and phone numbers. Don't just dream of success, make it a reality.

Embrace Music Industry Insider and open doors to limitless opportunities in your music journey.

trustpilot 1

Music Industry Insider 2024: The Ultimate Contact Handbook

Unlock the key to your music career. This game-changing resource puts over 3,000 of the most influential music industry contacts at your fingertips.

Connect directly with the top A&Rs, Music Managers, Producers, Record Labels & Booking Agents who can elevate your music to new heights. With all the content information you need, including email addresses and phone numbers. Don't just dream of success, make it a reality.

Embrace Music Industry Insider and open doors to limitless opportunities in your music journey.

trustpilot 1

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About Toni Mercia

Toni Mercia is a Grammy award-winning songwriter and the founder of Lyric Assistant. With over 15 years of experience in the music industry, Toni has written hit songs for some of the biggest names in music. She has a passion for helping aspiring songwriters unlock their creativity and take their craft to the next level. Through Lyric Assistant, Toni has created a tool that empowers songwriters to make great lyrics and turn their musical dreams into reality.

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