For starters, managers are simply advisors to the band, and the artist's representative, i.e. they speak for and on behalf of the artist. If you're looking for the biggest red flag it's money. A manager should never, never, never be responsible for an artist's money; that is what a financial manager is for. Also, legally, managers should not book gigs. In states like NY, and CA, booking agents actually require a license; this is for good reason. However, managers often book showcases, etc. Think of them as a member of the band; whose instrument is speaking on behalf of the artist.
You need a good lawyer. More than anything, a good lawyer. Get a good lawyer. Get a lawyer that is talented, experienced, insightful and highly connected. Seriously, get a lawyer; a good one. Get one now!
A manager is in the business to make money. The main things to think about is:
1. What percentage is your manager taking and what all is that percentage coming out of? Your sources of income are Live Touring, Record Sales, Publishing, Merch. Does your manager want a percentage of all of this?
2. Is the money they spend on promo materials considered a recoupable expense? Does the manager want this amount paid back separate from their commission?
3. What all does the manager want to be in control of? Touring, Creative, Band Lineup, Fianances?
4. How do you get out of your contract if things don't work out?
All this is from experience as the artist I play for is in a current legal battle with his former manager.
Re: 1. On paper, managers should receive 15% of the gross of everything. This is because 99.99% of their work generates no money, so when it comes in, they want a piece. However, some tours, etc have high expenses, and a manager should be flexible when looking at the figures as a whole.
Re: 2. There is a HUGE difference between recoupable expenses, and reimbursable expenses. All legitimate expenditures, outside of maintaining their own business are reimbursable to management.
Re: 3. Managers are "in charge" of nothing. Good managers approach their job as the person who realizes the vision of the band. They advise, simple as that. The band should always maintain veto power over management decisions. Manager advises, artist does what they want, and the manager has to make the best of it.
Re: 4. At this stage, I'll just say START with a great lawyer. If your friend is having a dispute over a management agreement, chances are both lawyers are making bank, and NO ONE has your friend's best interest in mind.
the first thing i would ask is whether or not your band is at a place where you need one.....if you are overwhelmed by the demands of constant gigs,recording,travel,and negotiating it might pay to have professional management
An extremely good point! If there is more work than you can handle, then you need a manager. If you get one before that, you are already at risk of being taken advantage of.
To summarize:
1) Don't get one unless you need it.
2) Have a great lawyer.
3) Maintain complete control over your money.
4) Do not expect them to be your booking agent.
5) Maintain control of final decision on all matters.
