1 / The relationship
What is an artist management agreement?
An artist management agreement puts the working relationship between an artist and a personal manager in writing. It usually says what the manager will do, which income the manager can receive a percentage of, how long the relationship lasts, who can approve deals, and what happens when the relationship ends.
A useful agreement does not replace good judgment or trust. It records what both sides expect while they are still working well together. That matters because a manager may help with career plans, releases, brand work, touring, building the team, making introductions, and coordinating deals across several sources of income.
From the artist's side
You are describing the help you are paying for, keeping control of final decisions, and setting a clear way to leave if the relationship stops working.
From the manager's side
You are recording the time, relationships, and day-to-day work you plan to invest over the long term, along with how you will be paid.
2 / Timing
When is a written agreement needed?
A handshake can feel sufficient when little money is coming in. It becomes less reliable when a manager is regularly doing important work, opportunities are arriving, or the artist has several sources of income. Writing down the agreement before the work grows can protect both sides when they later remember a conversation differently.
It is a sensible time to put the relationship in writing when:
- The manager is regularly handling career plans or deal conversations.
- The artist has started receiving meaningful payments.
- A label, touring, brand, publishing, or distribution opportunity is active.
- The artist is a group and everyone needs to understand how management works across its members.
- Either side is paying money in advance or taking on regular expenses.
- The artist and manager are discussing an exclusive relationship.
3 / Roles
A manager is not the same as a booking agent
A personal manager usually looks at the artist's whole career: giving advice, coordinating the team, helping choose which opportunities to pursue, and supporting negotiations. A booking agent usually finds and arranges live performances and earns a commission from those bookings. The exact split of work differs by team and market, so describe what the manager will do instead of relying only on a job title.
4 / Compensation
Commission rate matters. The definition of income may matter more.
There is no universal or legally required commission percentage. The artist and manager negotiate it, and it can vary based on the manager's experience, the artist's career stage, the work being provided, the geographic area covered, other team members, and the type of income. A percentage has little meaning until the agreement says which income it applies to.
Commissionable income
“Commissionable income” means the income used to calculate the manager's percentage. List the categories instead of relying on one broad phrase. Consider recording income, live income, publishing, brand work, merchandise, acting, advances, fees, and income paid through a company or other business. Say what happens to income earned before the manager arrived, income from an existing deal, and income that belongs to a collaborator.
Gross versus negotiated deductions
“Gross” usually means the total before costs are deducted, but the word can still lead to disputes. The agreement may calculate commission before any deductions, after only the listed deductions, or from another clearly defined amount. If booking-agent commissions, direct taxes, outside costs, refunds, or production expenses come out first, list exactly what can be deducted.
6 / Records
Expenses, accounting, and audits turn trust into a process
Management work can involve real costs. The agreement should separate the manager's normal business costs from costs paid specifically for the artist that the artist must repay. A manager may want a predictable process, while an artist may want to see costs before they add up. Both needs can be addressed with a spending limit, an amount that requires advance approval, or a budget that lists each cost.
Expenses
Who pays, which costs need approval, whether the manager can recover costs from the artist's income, and which receipts or other records are required.
Statements
When reports are due, which income and expenses they show, and when amounts that neither side disputes must be paid.
Audit rights
How the artist can check the records, how much notice is required, which time period may be checked, who must keep the information private, and who pays for the review if it finds an important error.
7 / The exit
Termination, key person protection, and sunset commissions
Clear ways to leave reduce pressure to stay in a relationship that no longer works. They can also recognize that a manager may have helped arrange opportunities that pay later. The right balance depends on the situation and should be written down instead of assumed.
Termination and cure
Say whether either side can end the agreement without giving a reason, how much written notice they must give, and how long someone has to fix a claimed breach, meaning a failure to keep the agreement. If appropriate, list serious events that allow one side to leave immediately and explain that process.
Key-person protection
If the artist chooses a management company because of one particular person, name that person and say what happens if they stop providing the agreed services. This “key-person” protection keeps the artist from being tied to a company after the main reason for choosing it has gone.
Sunset commissions
A “sunset clause” explains which commissions the manager can still receive after the agreement ends. It should list the deals or income covered, how long payments continue, whether the percentage decreases over time, and the exact end point. Avoid unclear wording that could give the manager a claim on future opportunities forever.
8 / Practical review
A before-signing checklist
Read the whole agreement, including attachments and any policies that it says are part of the deal. Mark every term that depends on a definition somewhere else. If a business point matters, write it clearly enough that both sides can use it to make a real payment or decision.
- Use the correct name of the artist or group, including any company or other business that receives the income.
- Describe the work the manager will actually do, the main priorities, the geographic area covered, and whether the arrangement is exclusive.
- State the commission rate and define which income it applies to before calculating it.
- Put important exclusions and agreed deductions in the agreement, not only in a text message.
- Set the starting length, the renewal process, and any manager's right to extend the agreement using clear dates and conditions.
- Limit permission to sign and any power of attorney to the specific task that truly requires it.
- Set a written expense budget or an amount that requires advance approval, and require receipts or other records.
- Say when statements are due, which records may be checked, and how an underpayment will be corrected.
- Write out how the relationship can end: notice, time to fix a breach, what happens if a named manager leaves, and the schedule for any later commissions.
- Ask an independent entertainment lawyer to review an important agreement before you sign.
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Frequently asked questions
When should an artist sign an artist management agreement?
The artist and manager should put the relationship in writing when they decide to work together and before the manager begins major work, handles money, or negotiates opportunities. If the manager will find or arrange jobs or performances, check the licensing and talent-agency rules that apply where the work takes place.
Is a 15% or 20% management commission required?
No. Although music-industry materials often mention 15% and 20%, there is no universal required rate. The artist and manager negotiate both the percentage and the income used to calculate it. The right arrangement depends on the specific business situation.
Can a manager sign contracts for an artist?
Only if the artist gives the manager permission to do so. Many artists keep final approval and the right to sign important agreements themselves.
What is a fair sunset clause?
There is no single version that is fair for every relationship. A clear sunset clause says which deals continue to produce commission after the agreement ends, how long those payments continue, whether the percentage changes over time, and the exact end point.