Music Biz 101
RECORD  LABEL ARTIST MANAGER TOUR MANAGER/ ROAD MANAGER PROMOTIONS  DIRECTOR BOOKING  AGENT BUSINESS MANAGER TALENT BUYER/...
Definition:  A musician or group of musicians creating music together. ARTIST 1.  The artist must understand the industry....
Definition:  Helps the artist create a vision and executes the vision. * The single most important person of the artist’s ...
The golden relationship which must be a true partnership.  They work together  and  for each other.
BOOKING AGENT Definition:   The person who secures live performance deals for the artist. Compensation:  10% of gross net ...
How Do Booking  Agencies Work? Agencies have their agents work in one of two ways: <ul><li>By territory – books all artist...
TOUR MANAGER/ ROAD MANAGER Definition:   The artist’s representative on the road in charge. Compensation:   Salary + per d...
PROMOTIONS DIRECTOR Definition:   Person responsible for promoting artist tour, album, and likeness worldwide. Compensatio...
BUSINESS MANAGER Definition:   The person on your team who handles all your money. <ul><li>Collects the money </li></ul><u...
TALENT BUYER/ PROMOTER Definition:   Person or company who either owns a venue or rents a venue, hires an artist, and is r...
Summary of Team <ul><li>Manager  -  who runs the show and represents the artist – 15% </li></ul><ul><li>Booking agent   - ...
RECORD LABELS Three types of labels: <ul><li>Major Record Companies –  The BIG FOUR - Major Distribution </li></ul><ul><ul...
Where to Get More Information <ul><li>General information – musiciansbooks.com </li></ul><ul><ul><li>All You Need To Know ...
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Introduction To The Music Business The Hidden Network

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This is the first installment of a suite of training presentations for people interested in the music industry.

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Introduction To The Music Business The Hidden Network

  1. 1. Music Biz 101
  2. 2. RECORD LABEL ARTIST MANAGER TOUR MANAGER/ ROAD MANAGER PROMOTIONS DIRECTOR BOOKING AGENT BUSINESS MANAGER TALENT BUYER/ PROMOTER
  3. 3. Definition: A musician or group of musicians creating music together. ARTIST 1. The artist must understand the industry. 2. The artist must understand where their must fits into the industry 3. The artist must understand the business. 4. The artist must have a vision for success. 5. The artist must understand and agree on what it takes to put the vision into motion and keep it moving.
  4. 4. Definition: Helps the artist create a vision and executes the vision. * The single most important person of the artist’s team.* MANAGER Responsibilities can include: <ul><li>Booking shows </li></ul><ul><li>Tour Managing </li></ul><ul><li>Producing Albums </li></ul><ul><li>Releasing Albums </li></ul><ul><li>Promotion </li></ul><ul><li>Legal Advice </li></ul><ul><li>Managing Monies </li></ul><ul><li>and much more! </li></ul>Compensation: 15% - 20% of what the artist receives A new manager must have strong interpersonal skills.
  5. 5. The golden relationship which must be a true partnership. They work together and for each other.
  6. 6. BOOKING AGENT Definition: The person who secures live performance deals for the artist. Compensation: 10% of gross net Gross net – amount artist receives after production costs (sound and lights if artist provides). <ul><li>Works very close with the manager. </li></ul><ul><li>Has strong relationships with talent buyers in his territory. </li></ul><ul><li>First line of negotiating contract and rider points . </li></ul>A new agent must have strong phone sales skills!
  7. 7. How Do Booking Agencies Work? Agencies have their agents work in one of two ways: <ul><li>By territory – books all artists on roster or department in his/her exclusive area (usually done this way with larger agencies). </li></ul><ul><li>By artist – books artist in all territories (usually done this way with smaller agencies). </li></ul>
  8. 8. TOUR MANAGER/ ROAD MANAGER Definition: The artist’s representative on the road in charge. Compensation: Salary + per diems (depends on act). Sometimes receives retainer while off tour. Who makes a good tour manager? <ul><li>Extremely organized. </li></ul><ul><li>Easy going and “cool” but assertive and gets results. </li></ul><ul><li>Willing to “suck it up” to make the artist’s life on the road better. </li></ul><ul><li>A problem solver and decision maker. </li></ul>A new tour manager must have fearless problem solving skills and strong interpersonal skills.
  9. 9. PROMOTIONS DIRECTOR Definition: Person responsible for promoting artist tour, album, and likeness worldwide. Compensation : Salary (depends on act) What does a promotion director do? Simple answer: He/she promotes the artist and the artist’s art worldwide . <ul><li>Organized </li></ul><ul><ul><li>Must be able to write well. </li></ul></ul><ul><li>Must be personable on the phone. </li></ul>
  10. 10. BUSINESS MANAGER Definition: The person on your team who handles all your money. <ul><li>Collects the money </li></ul><ul><li>Keeps track of the money </li></ul><ul><li>Pays the bills </li></ul><ul><li>Invests it </li></ul><ul><li>Makes sure you pay your taxes </li></ul><ul><li>Handles business matters like state filings, trademarks, copyrights etc. </li></ul>Compensation : Either hourly or percentage (industry standard is 5% of gross) Cover your butt and keep you legit .
  11. 11. TALENT BUYER/ PROMOTER Definition: Person or company who either owns a venue or rents a venue, hires an artist, and is responsible for the live performance. Compensation: Varies but typically is paid promoter profit + % over split point. Talent Buyer vs Promoter <ul><li>Talent buyer typically works for a venue and is paid by the venue for the sole purpose of buying talent. </li></ul><ul><li>Promoters are typically considered independent from a venue. </li></ul>
  12. 12. Summary of Team <ul><li>Manager - who runs the show and represents the artist – 15% </li></ul><ul><li>Booking agent - who books shows – 10% </li></ul><ul><li>Business manager - who handles finances – 5% </li></ul><ul><li>Attorney – who shops albums and protects the artist legally – 5% </li></ul><ul><li>Then with the remaining 65%: </li></ul><ul><li>Promotion Director – who promotes you – salary </li></ul><ul><li>Tour Manager – who runs the show and represents the artist on the road - salary </li></ul>
  13. 13. RECORD LABELS Three types of labels: <ul><li>Major Record Companies – The BIG FOUR - Major Distribution </li></ul><ul><ul><li>Sony BMG Music Entertainment - revenues ** $9 billion (2000) - 28% of US Market </li></ul></ul><ul><ul><li>Universal Music Group (France/USA) - revenues $6.8 billion (2004) - 34% of US Market </li></ul></ul><ul><ul><li>EMI Group (UK) - revenues $3.8 billion (2004) - 7% of US Market </li></ul></ul><ul><ul><li>Warner Music Group (USA) - revenues $2.6 billion (2005) - 16% of US Market </li></ul></ul><ul><li>Mini – majors – Distributed through the majors </li></ul>Arista, Motown, Elektra, <ul><li>Independents or Indie labels – Independent distribution not affiliated with a major. </li></ul>Rounder, Columbia Flying Fish
  14. 14. Where to Get More Information <ul><li>General information – musiciansbooks.com </li></ul><ul><ul><li>All You Need To Know About The Music Business – Donald S. Passman </li></ul></ul><ul><ul><li>Musician’s Business & Legal Guide – Mark Halloran </li></ul></ul><ul><li>The History of Rock and how the major players developed </li></ul><ul><ul><li>The Mansion on the Hill – Fred Goodman </li></ul></ul><ul><li>Touring and Promotion </li></ul><ul><ul><li>Musician’s Guide to Touring and Promotion - Billboard </li></ul></ul><ul><li>Booking agents, Managers, Venues, Talent Buyers, Record Companies, Artists </li></ul><ul><ul><li>Pollstar and pollstar.com </li></ul></ul>

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