Monday, November 6th, 2006
The Most Successful Performer Is Always "Takin' Care of Business"
They don't call it "The Music Business" for nothing. Successful musicians and entertainers understand that a lot of time must be spent constantly improving and promoting their talents. There is no substitute for talent and ability, but this alone is not enough to guarantee success in the entertainment business. Anyone planning on a career as a performer must learn that "Takin' Care of Business" is a very important ingredient in the process. This article deals with the basic elements of business as they apply to all performers.
Most performers carry on business in one of 3 different ways... as a sole proprietor, a partnership, or a corporation. Here is the simple description of these entities...
Sole Proprietor - is a freelance artist that receives income from several different sources. Basically, a sole proprietor shows up, does the gig at a prearranged fee, gets paid, and then moves on to the next gig. It is simple and straight forward but requires the same attention to detail as any successful business.
Partnership - is where two or more performers carry on business together with common goals. While most musical groups start out with the best of intentions, things can, and often do, go wrong. The first order of business should be to define in writing how the partnership is going to operate. A partnership agreement needs to address many issues. Does each member have equal rights and obligations? Who owns the group name? What happens if a member leaves or the group dissolves?
The "Sunset Clause" is always most important clause in any partnership agreement... it explains what happens when the partners no longer like each other? It is absolutely urgent that you have a definitive exit process in place for this eventuality. Don't wait for situations to arise before addressing them. Put it all down on paper and seek advice from a lawyer or professional reference when doing so. Nothing lasts forever, and pre-defined separation steps can prevent a lot of anger and resentment down the road.
The Corporation - The establishment of a corporation may be necessary (for a variety of reasons) at some point in your career. Generally speaking, an artist or a group of artists/musicians will often form a corporation in order to limit their personal liability within the corporation. Tax-wise, there are likely more advantages to remain a sole proprietor or a simple partnership. Knowing when, and at what point, to consider incorporating your business is best left to an entertainment lawyer or other qualified professionals.
Agents and Managers - will usually bring some excellent skills and short-cuts to the table that can be beneficial to your career. Even though you may acquire some or most of your gigs through other means, you should build a healthy working relationship with a variety of reputable agents whenever possible. As a general rule, it'll be a worthwhile decision.
Managers assist in the development of a performer's career by providing artistic and business advice. However, these services come with additional costs to the artist. A combination Agent/Manager/Publicist is often a good solution for artists that require extra direction and/or promotional assistance. Experienced managers will receive commissions between 20-25% (of gross earnings) depending on their experience and bargaining power in the industry. Booking agents receive 10-20% of the artists' gross earnings depending on the type of engagement and the amount of work involved. So, you can understand why a combination agent/manager/publicist could work to your advantage. New artists probably don't really need a manager, and if they lack the necessary time and skills to develop a basic plan for "getting noticed" on their own, a publicist is likely the most needed requirement.
Engagement Contracts - are the bread and butter of your business. You may need a variety of engagement contracts to cover every possible type of gig. Get to know what other performers are using, and from there, develop a standard contract of your own that includes the terms and conditions important to you. It must cover all the bases and be a legally binding agreement between you and the person hiring your services.
It is good business to clearly define the terms and conditions of the gig in writing. Should a default occur, it is almost impossible to collect on an agreement unless a proper contract stipulating all the details has been signed by a reputable purchaser. Most established artists will ask for a 50% deposit to be paid 30-60 days prior to the engagement, with the balance payable immediately before the performance. This is a standard procedure that allows the artist to refuse to perform (without violating the contract) in the event the balance of the performance fee is in jeopardy, or not paid as required.
Marketing - is probably the most important aspect of any performer's success. Simply explained, a marketing plan is the process of answering the question "who is the target (purchaser) for my talent and how do I reach that person?" The keys to successful marketing are creativity, persistence, determination and good people skills. Most entertainers have all these abilities in good supply.
If you don't already have a website, get one! Be sure to register a domain name that is easy to remember. Spend the extra money required to make your site as professional as possible. Avoid services that offer free web hosting. Nothing turns a prospective client off more than the annoying advertising found on "free" web sites.
If you haven't attended one of the many conventions, seminars or showcase events that cater to your artistry, it's about time you got out there to show your face. Nobody is going to hire you unless they know about you. Networking with your industry peers is one of the best ways to produce better marketing results!
Please contact me at lesvogt@shaw.ca if I can be of assistance. Remember, "Takin' Care of Business" will always be an essential element for success in the entertainment industry.
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Posted By Les Vogt @ 12:00 AM
Author's site: http://www.members.shaw.ca/lesvogt
Les Vogt is an independent producer, promoter and entertainment consultant. Contact: lesvogt@shaw.ca | [Comment on this blog post] |
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