What do artists and bands want just about as much as a record deal? That’s
right, a manager. This is because good managers are worth their weight in
gold and can have tremendous impact on your career. Unfortunately, good
management is rare as an emu. The manager is perhaps the most important
member of your team. Therefore, it is essential that you define exactly what
your expectations of a manager are, and then choose wisely among any
candidates that meet these expectations.
Managers and other members of your team each have a specific role. You
don’t want to build an infrastructure if you have no use for it, and therefore,
no means to support it. In simpler terms, you don’t want “dude” hanging
around the rehearsal space being “managerial” by drinking your beer and
telling you to work on the second verse of the song, while he hits on your
girlfriend. Instead, the manager must be actively engaged in furthering your
career.
In order for the manager to do this, he needs tools to work with. The first
tool is the demo. The second tool is some kind of fan base, which is typically
built by playing live. Certainly, there is no absolute order to the progression,
and many bands have management that helps guide the band long before
they have demos or play gigs. But for the most part, you’re going to have
a hard time attracting a manager and keeping him busy if you don’t have
some groundwork already laid.
There are as many types of managers and styles of management as there
are types of bands and styles of music. This chapter presents some of the
more common ways in which bands connect with management, and what
role management plays in the artist’s career. It is not a set of absolute rules.

The Three “Must Have’s” of Management
However you and your manager come together, and whatever role the
manager finally ends up playing in your career, there are three characteristics that a manager must have in order to help your career effectively—both before and after you get a record deal. Those characteristics are passion, connections, and funding. If your manager has passion, he may be able to succeed without the others. However, if your manager is without passion for your music, your chances of long-term success will be reduced. The best-case scenario is, of course, having all three.

Beginning-Level Managers
At a certain point—after you’ve made a demo, played some gigs, and
started to develop a following—you may be approached by someone who is
interested in managing you. Most likely, the people approaching you at this
early stage of your career will be friends, family, fans, or people who work
at the venues where you perform. Some of the most successful managers
in the business originally came from this pool. Bertis Downs, for example,
began working with REM when he and members of the band were college
students together in Athens, GA. Brian Epstein worked in his family’s
furniture store that had a little music division in it when he was asked to go
see a band. That band was the Beatles, and he became their manager. Rusty
Harmon was a college student and an intern at a management firm, who
showed a young band around when they came through town. You may have heard of this band, since they’ve sold about a gazillion records and won two Grammys under Rusty’s management: Hootie and the Blowfish.

Why Passion is Important
Friends, fans, and families who become managers typically have one
massively important thing in common: they all are extremely passionate
about the artist they work for. Typically, they feel that the artist is great,
and while they often don’t have a surplus of connections or capital, they
believe they can make up for this through sheer force of will fueled by
their passion, which they have in abundance. As mentioned above, this
can and does happen. Passion, combined with energy (often youthful) is
a very potent mix that often knocks down many barriers and allows an
artist to experience real career growth. Managers in this type of situation
often believe that lacking the experience, knowledge, connections, or
money actually allowed/forced them to try things that other more
“experienced” managers would have dismissed. In so doing, they createinnovative strategies that further the idea of career development. Necessity is the mother of invention, and I would add, it is also the stepmother of innovation. The beautiful thing about the record business is that there are very few rules. When a manager is passionate enough to make the artist succeed—no matter what rules they have to ignore, break, or rewrite—that is often the best type of manager to have.
Such relationships force the band and management to work much
more closely than they would in a more traditional management/artist
role. This can create an open and honest relationship from day one. In
other words, because a beginning-level manager is not going to be able
to say, “I’m going to get you touring with this other artist I also manage,
and I’m going to set up a showcase for you to perform in front of my
A&R friend from Sony,” he or she must involve you—the artist—in the
decision/planning. Instead, they must say, “Listen, let’s figure out what
our resources are and begin building something in an organic fashion.”
This method, while perhaps being a slower route, is a good one, as it
directly and closely involves you, the artist, in the process of your career
development. A close relationship often has the positive side effect of
being an honest relationship. Closeness and honesty are imperative, and
will give you a far better chance of avoiding the all-too-common litigating
over accused improprieties, resulting from the artist not knowing what
the manager is doing, but believing that, whatever they’re doing, they ain’t
doing it honestly.

Professional-Level Management
Passion is the key ingredient to making an artist management relationship
work. If you find someone who has real and genuine passion and isn’t a
complete derelict, you will be better off than many. Ideally, however, your
manager will also have the connections and the funding.

The Importance of Connections
While it is fine (and often refreshing) for a manager to have a low-key
persona, they must be able to sell themselves and, more importantly, the
artist. In so doing, they will build connections. The record business is one
where you live and die by how connected you are. You can make the greatest music in the world, but unless you can get it heard, it doesn’t much matter.
Simply put, at all stages in your career—from getting an A&R person to
listen to your demo, to getting your video played on MTV, to getting a gig to
perform at the Super Bowl Halftime Extravaganza—it is often connections
that make the difference.

The reality is that the strength of the connection is frequently as powerful
as the strength of the music. There are many examples of someone who
makes mediocre music but is well connected getting a record deal before an
artist who makes great music but has few connections.
To get a record deal, you often must develop your connections from the
ground up. The process can be accelerated if someone on your team, in this
case the manager, has connections.
A fundamental role of the manager is to expose his artist to more people.
Therefore, managers spend much of their time casting a wide web around
all the corners of the industry. In so doing, they develop relationships with
booking agents, record labels, radio stations, press, and so on. When you
partner up with a manager, you are not only getting this person’s individual
expertise, energy, and hopefully, passion. You are also gaining access to their connections and relationships. It is this quality that will catapult your demo from the bottom of an A&R person’s pile to the top. These connections help in many similar ways, from having your music heard by music supervisors at advertising agencies to introducing you to a music publisher to securing you an opening slot on a coveted tour.
Connections are built over time and must be maintained. You need to
carefully examine any potential manager in order to determine just how
broad, good, and most importantly, applicable their connections are to
the music you are making. Much in the way that you research appropriate
labels for your music, you must do the appropriate diligence when you
are considering your manager. Understand also that connections can and
do come in organic fashions. It is perfectly acceptable for you and your
manager to have a symbiotic relationship in which your manager benefits
from his association with you, and vice versa. The trick is being able to make
connections that have real meaning to your career. If you have a manager
who is very well connected but not in any way that is appropriate to helping
advance your career, they might as well not have any connections.
If this is the case, make sure they at least have … money.

The Importance of Money: How Management Gets Paid
This brings me to my last essential management criteria: capital. First, you
need to understand a bit about how managers make their money. Typically
a manager will receive a commission—usually 15 to 20 percent—of all
of the income that you generate (the gross). This includes money from
gigs, money paid to you from a record label as a personal advance against royalties (typically, not from money advanced by a label for you to record
your record), money from merchandise, income from your music being
used in movies or commercials, and any other source of income you
generate as an artist. It is therefore in the best interest of the manager to
leverage all of those connections I mentioned above to help you generate
as much money as you can, which of course, generates more money for
them. This is capitalism at its finest, and when it works, it works great for
everybody.
The problem is that young or unestablished artists typically take quite
a while to generate any revenue. Also, these artists typically don’t have any
money of their own, so the management is left to spend their own money
in order to develop the band before any money comes in. Because of this,
you will occasionally see management securing other pieces of the artists’
potential income as a kind of collateral against the money and time they
are putting up. Sometimes, for example, management will acquire some
part of the artist’s publishing—in other words, a piece of the equity in the
copyrights of the songs.

Managers and Publishing
This means that when these songs begin generating royalties, the manager
will be paid a percentage of the money. Managers do this because they
often defer their commission while spending their own money. They have
no guarantee that they will ever recover their investment. This practice has
largely been frowned upon (by both artists and managers), and was seen
only occasionally in the past. However, I’m seeing it happen more and more,
and I believe it will become even more of a common practice in the future.
As an artist, you must seriously debate whether parting with your
publishing, in order to provide a sort of insurance to a manager, is the right
thing to do. My opinion is that it is usually the wrong thing to do. As we
will see in the publishing chapter, I do not believe that you should hold on
to your publishing at all costs. Rather, I feel that giving up some part of
your publishing is frequently essential to building a successful career. With
one caveat: Whoever you assign any part of your publishing to must be
able to do something with it. By this, I mean they must be able to “work”
your publishing to generate awareness about you and money for you. If
they cannot do this, do not assign any part of your publishing to them.
Therefore, if a manager is requiring you to assign some portion of your
publishing to them, you should only do this if you feel the manager is going
to actively engage in working your songs.

Of course, it may not be this simple for you, especially if you don’t have
a lot of options. You may feel that the prospective manager can help your
career in many ways, and that it would be foolish to miss the opportunity
to have him or her represent you by clinging too tightly to your publishing.
You may be right.
Your publishing is valuable. Part with it with caution, and only if you’re
getting something of real tangible value in return.

It’s Money that Matters
Money is a significant factor in creating effective artist/manager relationships.
The manager is spending money, hoping for a return on investment.
Publishing is one way to hedge that bet. Of course, managers who have no
money will not be able to offer you much for your publishing.
Managers who have no money have a hard time being effective. There
are always expenses involved in getting a band signed: recording costs, gas
for the van, fan mailings, travel, guitar strings, and so on. It all adds up. Of
course, management doesn’t have to pay for any or all of these things. But
remember, they can’t make any money unless the band is making money,
so they usually opt to pay for these things and others so that the band has a
better chance of getting signed.
Even after you get signed, management is often the fountain of money.
For instance, an artist and manager may determine that they need an
independent publicist because they feel the label’s publicist (if it has one)
can’t do an effective job due to workload, the label’s priority scheme, or
whatever. The label is not obligated to pay for this (though often they do),
and so the band and management are left to decide whether or not the
potential added exposure they would get from a publicist is worth the outof-
pocket expense. Many times, in a situation such as this one, the band
itself is not generating enough income to pay for something like this, so the
management foots the bill. Theoretically, management will be reimbursed
for these costs once the band does start generating some money. If neither
the band nor the management can afford to pay, it really is the band
that suffers.
Good managers understand that new and developing artists are much
like startup businesses. The first couple of years (or records) typically are
money losers. The hope is that after the painful initial period has ended,
there will be a financial reward that will recoup all the early losses and then
some. This is why managers will fund an artist’s career at the early stages—
and, in fact, sometimes well into an artist’s career.

by Berklee Music