The unfortunate reality is that many artists hire managers who extract more value than they create. This is not to say that you shouldn’t hire a manager or that all managers are bad. It’s a warning to say that you should consider your manager and their management terms very carefully.
What many artists don’t realise is that 99% of managers take their 15-20% commission on gross revenue, regardless of results. They're commissioning a fixed percentage of your music business with zero skin in the game.
That means if you bust your ass and book your own gig? They take 20%. Land a sync deal through your own network? They take 20%. Create a viral TikTok that drives streams? They take 20%.
In no other business would this make sense. Imagine hiring a sales rep who demands 20% of all company revenue, even the sales they had nothing to do with! You'd laugh them out of the building.
The worst part? Many managers justify their cut by doing the bare minimum:
- Sending a few emails you could send yourself
- Making introductions that rarely convert
- Creating "strategies" that are really just glorified to-do lists
- Becoming a professional excuse-maker when results don't materialize
- Sending you on tours that lose money while they still make their cut
There is almost no incentive for frugality or financial efficiency as they’ll still get paid off the top either way. Meanwhile, they're building their network on your talent while taking a fifth of your income.
In reality if your manager isn't 2x-ing your revenue at a minimum, they're just an expensive assistant and you’d be much better off with your Musician OS and freelance assistant from UpWork.
The solution isn't avoiding management entirely, it's approaching it like the business transaction it is:
- Performance-based compensation: Base pay + commission on NEW opportunities THEY create
- Clear KPIs: Specific, measurable targets they must hit quarterly
- Time-limited contracts: 6-month trial periods with clear exit clauses
- Value-first sequence: Prove results before percentage deals
Remember, in business you don't pay for effort. You pay for results. Your talent is the primary asset. Your creativity is the product. Don’t give away 20% of your life's work to someone who wouldn't take 20% of the risk.
