Everybody on your team eats from the same pie, so you need to know the slices. The standard lineup: manager takes 15–20% of gross entertainment income, booking agent takes 10% of live performance fees, business manager takes around 5% of gross to handle your money, and the lawyer bills hourly or takes 5% on deals they negotiate. Add it up before you sign anything — a stacked team can take 35% off the top.
Gross versus net is where artists lose money without realizing it. Most team members commission off gross — money before expenses. That means on a tour that barely breaks even, your manager still gets their full cut while you eat the losses. Negotiate caps, exclusions, and net-based commissions on high-expense activities like touring. Understand the math before the money moves.
Producers, publicists, and stylists usually work differently — flat fees, retainers, or project rates instead of commissions. A publicist might charge a monthly retainer for a campaign; a producer takes an upfront fee plus points on the record. Points mean a percentage of royalties, typically 2–5. Get every fee, point, and recoupment term in writing before the work starts.
The golden rule: nobody gets paid from income they didn’t help create, and everybody’s deal gets reviewed as you grow. Early on, a manager earning 20% while building you from zero is fair. At arena level with a full machine running, that same 20% deserves a second look. Pay your team well, pay them fairly, and Put every team deal in writing and calendar a review every two years. Careers change, and the deals should change with them.
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.