A LESSON IN LEGALITIES

Wednesday, April 03, 2013 |

As a new artist manager, it is extremely important to build professional networks in the music industry. Those contacts can be fostered in various ways, including online resources such as LinkedIn and Facebook. Another way to build networks is to talk about your business with people whom you know. You may be surprised at the linkages that already exist in your circle of friends, family and coworkers. These conversations can lead to important contacts in your chosen industry.

Figure 1: Six Degrees of Separation

Six Degrees of Separation is a theory on social interaction that represents the notion that you are only six contacts from a person or persons you wish to meet or do business with. I noted in an earlier posting that I met a musician while having my car serviced at a dealership, simply because of the musical decal on my MacBook cover. Recently I reconnected with a local jazz singer because we now share the same hair stylist, and she was able to provide some great contacts in the local music business. One of the best contacts I have made was at my local gym. I noticed some media cards on display at the front desk promoting a local singer. When I asked the gym manager about the cards, he pointed me to the attorney who represents the artist, who was also a patron at the gym. That attorney is Stephen Starks.

Stephen A. Starks is an Associate at Kroger, Gardis and Regas, LLP, located in Indianapolis, Indiana. He has a wealth of experience in both the sports and entertainment industries. He is also certified as an agent by the National Football League Players Association and the National Basketball Players Association. In terms of entertainment, he works with various artists and artist managers and contributed as an executive producer on a Gospel/R&B album. Most recently, he assisted Ryan McDaniel in launching his music career. In 2012, Stephen met with my son and I to provide valuable insight to the music industry. We have used his suggestions to help launch the band, Three Story Hill. Stephen was kind enough to provide an interview on his work as an attorney, along with advice on what it takes to be a good artist manager and the legal liabilities that should be avoided.

D Leigh: Tell me about your work with athletes and musicians.

S. Starks: I really enjoy representing both athletes and musicians. I recently began representing athletes seeking to play professionally. Even though my experience and networks in the industry provided credibility, gaining the first client was essential to being able to attract a larger clientele.

Takeaways: 1) Determine how you can best add value to your clients, including additional education or certifications, and 2) once you have your first client, it will be easier to attract others.

D Leigh: What are some of the pitfalls of being an artist manager with no experience in the music industry?

S. Starks: In terms of being an artist manager, jump in and start doing it. This is the best way to learn. Basically, there aren’t many mistakes you can’t recover from, as long as you’re willing to put the time and work in beforehand to make sure you’re covering all your bases and have considered all the possibilities.

Takeaways: Those seeking to be entrepreneurs are sometimes paralyzed by the fear of failure. But research will show that a number of today’s multi-millionaires can recount past failures, including bankruptcy. Their tenacity spurred them to try again and believe in their abilities.

D Leigh: There have been some frustrations working with a new, young band. I have yet to sign a contract with them, but have assisted with various items. I feel somewhat uncomfortable with the notion of formalizing my relationship with the band, and have not been paid for any of my efforts, mostly because they don’t have much discretionary income. Another factor is that my son is a member of the band. Any thoughts about taking the next step to signing an agreement?

S. Starks: I’ve assisted other artist managers in taking the necessary steps to ink management contracts. I developed a management contract that can be adjusted to fit the needs of the artist and the talent manager. Every relationship is unique, and therefore, the contracts should reflect this. The agreement should take a number of factors into consideration, including, artist experience, overall potential, level of fan recognition (local/national), etc. Don’t be afraid to sign an agreement with the band. You’ll find that the relationship will change in a positive manner. Suddenly, the band is introducing you as their manager, and they’ll begin to see themselves as a “legitimate” band. You should make sure you are paid for the work you’ve already done.

Takeaways: It is best to formalize my relationship with the band I am representing. Therefore, I need to move forward with creating my business entity, and registering my company name, logo and website with the USTPO and the USCO. The next step is to create marketing materials including business cards and informational packets. Finally, marketing the company in a more direct manner will entice other clients to consider my services.

D Leigh: What items should be addressed in the contract?

S. Starks: The standard commission in today’s market is 20%. Analyze and understand the income potential of the artist. At minimum, you want to sign a 2-year deal. It’s distracting to renegotiate deals every year. You also want to make sure you are commissioned on other work that the artist does where it makes sense, including commercials, collaborations, producing, songwriting, etc.

Takeaways: Work with an attorney to develop a solid contract that protects my interests and those of my clients.

D Leigh: What happens if the band dismantles?

S. Starks: You should represent each individual band member as well as the band where possible. There is no reason that if someone decides to pursue a solo career, you should have to stop managing he or she individually.

Takeaways: This was an item I had not considered, but very worthwhile advice. There are many examples of solo artists that started with a group or band, but ultimately their individual career is what defined their success.

D Leigh: Your recommendation on resources I should use/follow in order to stay up to date on various legal matters within the entertainment industry? (books, websites, blogs, podcasts, etc.).

S. Starks: I’m a fan of The Hollywood Reporter.

In summary, the takeaways noted above will become an integral part of my business plan. I was extremely appreciative of Stephen’s advice and guidance, and he has offered to work with me in developing my first management contract. He has also offered to broker an introduction with another local artist manager to build my network and potentially gain some shared learning. I came away from this interview with a greater sense of commitment and excitement about being an artist manager!

Thank you for reviewing my blog article. Be sure to leave a comment if you found this to be helpful.

Take Care,

D Leigh