The industry standard manager commission is 15 to 20 percent of gross earnings, and that number is only the beginning of the conversation. What matters more than the percentage is what it applies to, how long it lasts after you split, and what happens if the manager stops delivering. A bad management deal taxes your whole career.
Terms That Define the Deal
Insist on a sunset clause that phases out post-term commissions over two to three years. Add a key man clause so you can exit if your specific manager leaves the firm. Define gross income clearly and exclude things like songwriting advances the manager had nothing to do with. Keep the initial term short, one to two years, with options you control. This is industry guidance, not legal advice — get a lawyer before signing.
A great manager earns every point by opening doors you cannot open alone. A bad one collects checks while you do the work. Vet the person, cap the term, and never give away tomorrow’s money for today’s promises.
Do the math on gross versus net before you agree to anything. A 20 percent commission on gross means the manager takes twenty cents of every dollar that comes in, before expenses, taxes, or anyone else’s cut. On a $100,000 year, that is $20,000 off the top regardless of what you actually keep. Also watch for conflicts: if your manager shops your record deal, they may take a producer-style fee or override from the label on top of their commission from you. That double-dip should be disclosed and capped in writing. Fair managers welcome the math conversation because their value survives it.
About the Author – Ruben Burgos: Ruben Burgos brings over 25 years of music expertise and more than 15 years of model guidance to the table. He is the indie major pinnacle to retaining credits for musicians and helping them navigate this wicked industry without the fuckery.