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INSTANTLY... | FREE ~ Lite Version Seminar 4
All Seminars Must Be Read In Order! |
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SEMINAR 4: ARTIST MANAGEMENT
Greetings!
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Let's say at present you are still out plugging your song and
positioning yourself to be available to the right people at the
right time. You are doing the legwork...doing more legwork.
You are persistence waiting for the pay off!
And walah...you finally succeed!! You get Bingo Records to
sign a mechanical licensing agreement (via your music publisher's
mechanical licensing agent--the Harry Fox Agency) which will enable
the label to record and sell phonorecord copies (CD's, records,
or audio tapes) of your song!
At this point, the songwriter's work, relative to this particular
song, is done. However, the work to bring his song to fruition
is not. The songwriter will now simply watch while the record
label and his music publisher do their work. It is now when they
will earn their "cut" of the action.
Now is when people and businesses "hook up" and come
together to produce the sellable product...to move on to fruition.
It is like several armies merging together and moving forward
on a wider and more powerful front...all with the same goal and
destination in view.
Understanding how all these merged businesses and people work
together will be your next challenge. You must understand and
know the "whole enchilada"…
The songwriter pushes his song, the music publisher juggles
all the licenses, the label is producing the record, the recording
artist is working hard in the recording studio, and the artist's
manager is "doing his thing." You have now come to the
high traffic crossroads part of the music business!
Here is where you will really need the SMP Membership
Full Text Version of Seminar #4, along with the access it gives
to the SMP Hot Links…you will find out how these players
relate so they can actually "Take Care of Business."
The SMP Membership Full Text Version of Seminar #4 has in depth detail to include these additional topic discussions:
1) The Recording
Artist
Artist Step-by-Step Development -- SMP Hot Link
2) The Artist's
Personal Manager
Artist Management -- SMP Hot Link
Manager
or Talent Agent?
Booking Agents -- SMP Hot Link
Problems with Talent Agencies
The Artist
Manager's role in Promotion and Publicity
Promotion -- SMP Hot Link
Radio - Airplay - Charts -- SMP Hot Link
Publicity -- SMP Hot Link
The Artist
Manager and Related Statutory Regulations
Legal Notes -- SMP Hot Link
The Personal
Manager/Artist Relationship
The Personal
Manager's Fees
Artist Management Agreement -- Form Contract Purchase Online
Ongoing Personal
Manager Evaluation
Go To SMP Membership Full Text Version -- Index List of All Seminars
Get Your SMP Membership Password Here!
If you think you can "get by" without knowing the above information…
Think Again!
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Here is a little adventure story of someone who thought they
could "get by" without knowing….this story is fiction
reality of sorts. The names have been changed to bring humor to
an otherwise sad story.
Girl Bruce, after playing in LA clubs for five years decided
he needed a manager. By coincidence, Johnny Bozobusiness, a local
unemployed "talent manager" approached him after a gig.
He asked Girl if he would be interested in hiring a business agent
to tie up loose ends and maybe pull a few strings in the front
office of one of the majors--Dud Records.
So, they talked.
After lying to each other for a few minutes about previous
accomplishments and dropping each's quota of names, they talked
turkey.
Their agreement went something like this:
Girl: "Johnny I would like you to be my business agent.
You know, shuffle money, coordinate, and keep track of things
in general. I will give you 20% of the gross receipts. OK?"
Johnny: "You got it, it's a deal."
Johnny's no dummy however. He got burned when an artist walked
on a verbal contract last time out.
Johnny: "We'll put it in writing--my secretary will type
it up."
Girl: "Sounds great!"
So, Johnny scribbled down what was said and had his sister
type it up on some fancy 30 pound paper. They signed it and another
artist-manager association was off and running.
About a year later an A&R man from Dud Records signed Girl
to cut an album. It turned out to be a bullet. In a few more weeks
they had a monster on their hands and everybody was wheelbarrowing
the money to the bank. Everybody was happy--right?
Enter Blonde Ambition at "The Drug Abusion Blues,"
or just "The Blues," as it was known locally. It was
the nightclub where Girl, Johnny, and the band hung out.
Blonde Ambition: "Hi Johnny! How come Girl hasn't shown."
Johnny: "He's not coming. He said you guys partied too
hard last night--said to tell you to drop by his place tonight."
Blonde: "Oh, yeah? And what are you up to tonight Johnny?"
Johnny was really up to nothing, but flashed a great idea when
he realized Blonde was flirting with him!
Johnny: "Well, I've often thought of leaving the country.
Maybe go to Saudi Arabia and start a paper route. You know, self-employed,
big money, early retirement..."
They both laughed. Johnny always had a good one-liner. Blonde
liked that about him.
Blonde: "Well, Saudi Arabia is a long way away. But maybe
to get the feel of foreign adventure we could go to Mexico tonight!
I know it's no Saudi Arabian paper route, but it could be the
start of something good!"
Johnny was lost for words for a second. After all, Blonde was
Girl's girl.
Johnny: "I'd love to but I just remembered I have to meet
Girl at my place tomorrow morning at 9 a.m. to go over next month's
gig schedule.
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Blonde Ambition: "We can make it back. I know a place
right on the border. If we leave now we can catch the last hour
of Happy Hour! Come on, I'll drive."
Johnny: "Why...why...why not!"
They dropped Johnny's car off at his place and bolted.
Next morning Girl called Johnny at 8a.m. Just the recorder
answered. So, Girl figured Johnny was down at the corner coffee
shop trying to bury a hangover. He figured he could stop by and
grab a cup himself.
When he pulled in he saw Blonde's car! It reminded him that
she never showed up at his house last night. Then, through the
window, he saw Blonde sitting next to Johnny in a corner booth!
Girl pulled a U-turn and headed home.
He called Johnny's place and left a message on the recorder-"You're
fired!"
Johnny returned home. His answering machine was blinking red.
He played back his messages. He freaked when he heard the notice
terminus.
Johnny quickly looked up an attorney's phone number in the
yellow pages-"First consultation free." He called and
set an appointment.
Johnny met with the attorney that afternoon. He took his contract
with him. The attorney read it over and asked Johnny if he had
kept his part of the contract. Johnny affirmed that he had.
The attorney noticed the contract lacked a termination clause.
He told Johnny it was his opinion that Girl could not fire him
and would have to continue to pay Johnny his 20%. Unless, of course,
Johnny agreed to the firing, or failed to continue to perform
his part of the agreement.
Johnny called Girl and told him what his attorney said. Girl
hung up and called a competent and well respected music attorney.
To make a long story short, the music attorney got the contract
declared illegal by the courts. He proved Johnny had and would
continue to violate state law by performing some of the duties
required in the contract. Namely, when Johnny "coordinated"
Girl's nightclub performances he did so without the proper state
license, i.e., he acted as a licensed talent agent while being
unlicensed.
That is the good news.
The bad news is Johnny was ordered by the court to pay back
$40,000 in commissions he had already received from his illegal
activity.
A week after the bad news the State Employment Department called
Johnny. They told him someone had filed for unemployment compensation
benefits and gave Johnny's name as their employer.
Since Johnny had hired, paid, and fired band members and sidemen
he was recognized by the state as an employer. He consequently
owed back workmen's compensation insurance payments. He also owed
disability insurance payments.
Soon, other government agencies contacted Johnny. He owed back
state income withholding tax, federal income withholding tax,
federal social security taxes...
When the snowball stopped rolling Johnny owed about $70,000.
The leasing company repossessed his Jag. He had to sell his house
and move to a studio apartment near the La Brea Tar Pits. He was
unemployed.
But wait! Is everything that happened in this story gloom and
doom? No! Blonde Ambition moved to Aspen with Girl's music attorney.
She now drives a Jag!
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1) He did not seek competent legal counsel when he drew up
his artist/manager contract,
2) He violated licensing laws,
3) He violated employment laws,
4) He violated tax laws,
5) The attorney he finally did consult after disaster struck was
incompetent in the field of entertainment law, and
6) He became romantically involved with his bosses' girl friend.
The consequences:
1) His "contract" was declared illegal by the courts,
2) He had to pay back $40,000 in commissions already received,
3) He lost tens of thousands in future commissions,
4) He had to pay state and federal agencies $30,000 in back
workmen's compensation insurance,
disability insurance, income
withholding taxes, and employer and employee social security taxes,
5) He lost his job,
6) He lost his house,
7) He lost his car,
8) He lost his high living life-style,
9) He lost his friends, and
10) He lost his shot at "true love."
Of course, Johnny was a loser in every sense of the word. He
suffered from both self deception and legal ignorance.
Yes, unfortunately, it is often the case that artist/manager
associations have ramifications of which one or all parties involved
are in varying degrees ignorant.
Consequences can be devastating!
Be smart…Join SMP Now
and get informed BEFORE you too get burned.
Next session we look at the Record Company and the Recording
Contract.
*R*
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