Tuesday - Module 13
Featured Topic: Think Before your Sign, Part 2
1) ASSIGNMENT: Module 13.3: Instrument Inventory Assignment
Great work being turned in! Be sure to spend some time on the Module 13 Inventory Assignment so you can get all the needed equipment you want for your band.
If you have any questions let me know and I will be happy to help!
Have a great day!
Think Before You Sign
The Contract Term/Dates
As you begin in any business relationship you are always testing the waters. The person you are working with may have excellent references, but until you have worked with them for some time you will never know. This is why it is very important to set a time limit for a contract so that both parties can reassess the relationship. If it worked great, if not it is time to part ways. Make this part definite, because if you have an open-ended contract you are asking for trouble in multiple ways. The language needs to be very specific as to how both parties can leave the deal if the stipulations are not met.
The Job Requirements/Expectations
Everything needs to be laid out here so that each party fully understands what their job is. You have to know who is responsible for creating/printing the t-shirts and other merchandise, who sets up the cd deals, etc. All jobs need to be clearly stated so that when things are not done, then actions can be taken. Either correct the misunderstandings or break the relationship if the terms are not met.
The Manager's Fee
Generally a manager has a fee around 15%-20% or what the band earns. So if your concert brings in $30,000 the manager will make $4,500 to $6,000. They also get a cut from album sales, label deals, Songwriting royalties, sometimes even merchandise. Again it depends upon how the contract is written. If you are just beginning, this si something to definitely keep in mind, as the goal is for the band to make a profit.
The Manager's Expenses
There will be office costs, promoting costs, traveling, lodging, and food costs. This needs to be stipulated very clearly or you will have your manager taking a trip to the Bahamas all the time. Receipts need to be provided, and maybe there is a monthly allowance and anything above that amount needs to be okayed by you.
Best Words of Advice
Seek advice from a legal professional. This is a unique growing relationship that constantly needs to be reassessed to make sure all things are getting done, and all parties are satisfies with the agreement. Always have it in writing, and done by a lawyer so everyone will be protected and happy!