Whats Next?…
What next?
It is entirely understandable and laudable that as a hit writer your primary focus will be writing and recording music that you can be proud of. Sadly, it’s not realistic and it never has been possible that talent alone is all you need to be successful in the music industry. Even if you are lucky enough to find very experienced and trustworthy advisers at this early point in your career, it is crucial for you as a writer to have a basic understanding of the business world that you’re launching yourself into.
The music business is not all about making music; the reality is that it is a multi-billion dollar business run by business professionals who exploit the products of your creativity (your songs) for huge financial gains. The music industry is first and fore most a business like any other, selling music like soap powder. And whilst it’s fair to say that you need talent, that’s not all you need. In fact musical talent often can feel like the least important skill you possess! In order to succeed it is important for you to understand the nature of the rights that you are creating and how those rights can be exploited in order to make money.
Many talented writers never seem to make a living out of their music because they do not spend enough time on the ‘business’ and ‘legal’ sides of their career. You have a couple of choices ahead of you; are you going to manage your business affairs yourself, or are you going to hire a manager to do this for you? Are you ready to jump into this stinking hellhole/bed of roses called the entertainment industry, or do you need to study it more first?
I’ll discuss the outcomes of both choices in this handout. I’ll also give you some pointers on how to get started on your career and to avoid many of the pitfalls that are out there.
Please bear in mind that some of these tips may seem to counter many of the things you have been advised to do by other people. Well, what can I tell you? All of these tips come from hard experience in the field; they’re all tried and tested. Good luck out there!
Finding an artist to write for
Every song needs an artist, every artist needs songs. But how do we get the two camps together? Here are some ideas:
Liam Gallagher found fame and notoriety when his brother Noel started writing songs for him and his band ‘Rain’, soon to become Oasis
Networking in your local area
An essential starting point for any writer is to be known in your local area. How does one get known, and for what? Well, if you’re passionate about music (which you are) then you should out seeing gigs every week, at the very least every month. You’ll be talking to the artists after the show, talking to the promoter, the DJ, the doorman, the bar staff. The purpose of this is that you’re getting to know the people that operate in your area, finding points of common interest and making new friends in order to further your career. This is called networking,
This is the most effective way to spend your time when you are starting out. You never know what connections you may make this way, and that’s part of the fun. Stick with it and eventually you will certainly find bands or singers who need songs, and maybe other writers who are looking for collaborators. You’ll gain essential experience in dealing with other musicians, discover some of the realities of life out there in local land and have some fun.
A word of warning though…
We’re not intending to be networking or working exclusively in the local area very long. Keep your sights firmly on your ultimate goal, which inevitably will involve you networking and working in central London sooner or later. Please be careful whose advice you follow at this early stage, there’s a lot of local band folklore about the big bad music industry that is just plain wrong and can lead you up the garden path and back again if you’re not careful.
Never sign agreements (or even verbally agree) anything relating to your songs without sound specialist legal advice or without knowing your new business partner very well.
Advertising for an artist
You can always try putting an advert up on the Internet or in your local press looking for an artist who needs songs. This rarely gets you very far in my experience, but here are the web addresses of some publications that can help:
http://www.nme.com NME magazine’s web site
http://www.loot.com The London classified magazine
http://www.sospubs.com Sound on Sound magazine
http://www.friday-ad.co.uk Weekly classified magazine that covers regions other than London
http://www.thestage.co.uk Find all the actors you could ever need here
These are just a few to get you started. Here are some other places you might consider advertising:
- In rehearsal rooms
- In musical equipment shops
- In record shops
- In music venues
- In student unions
- In ‘trendy’ cafes.
- In drama/dance/music colleges such as Point Blank!
Arc Sound rehearsal rooms in New Cross, London
Another word of warning though…
You never know whom you’re going to unearth if you follow this approach. Obviously, your own personal safety is paramount in this situation so follow these simple rules:
- Meet your new collaborator somewhere public the first time
- Never advertise your home address, or give it out to strangers.
- Always let someone know where you’re going and what you’re doing before you leave
You’re probably not going to be murdered when looking for an artist, but these rules enable you to get away from someone and never see them again if you want to. Quite handy, many artists are mad.
Who to avoid
This is a difficult one as you can guarantee that 90% of the artists you’ll meet at this level will never have any success at all. With that in mind, maybe you should adjust your goals accordingly. Maybe it’s to your advantage to have a great recording of your song done by someone else? After all, you can always give that song to someone else later on, and now you’ll have a demo that you wouldn’t have had otherwise. Maybe you just enjoy working with a particular artist, who can argue with that?
Be careful not to commit yourself to too many projects at this level. Your ultimate goal is to have a glorious career and be paid, so don’t get bogged down writing an album for the folk singer in your local pub who’s never sober long enough to remember your songs in the first place!
Being the artist yourself
Can you sing? Do you enjoy singing? Do you believe that you have what it takes to beat everyone else around you to get your moment in the spot light and make a lasting career out of being a performer and recording artist? Can you cope with the emotional pressure? Can your family?
If you can answer yes to these questions then go ahead! You’ll be able to move your career along very quickly if you have no one else to worry about other than yourself. You’ll be able to write and record the songs you want in the way you want them; it’s a very hard life being a singer songwriter but many people do it and enjoy it. Some even do very well; just ask Daniel Powter, Bob Dylan, Billy Bragg, Aimee Mann, Tracey Chapman, Damien Rice, Sheryl Crow, James Blunt, David Bowie and many others.
Damien Rice steps on a plug.
Finding a manager
A time will come, usually quite quickly, when you realize that writing songs is a full time occupation in itself. Even when you’re not specifically writing you’re still searching for inspiration, keeping yourself artistically alert. That’s the theory anyway. In reality, you’re probably finding that you’re spending just as much time networking, doing tax returns and generally trying to further your career as you writing hit records. Realistically, it’s unlikely that you can do both well. You need a manager…
And this person will take most of your business and career issues from your shoulders and onto his. He’ll be networking on your behalf, making deals for you and bringing work in. He’ll also be taking commission on everything you earn, gross. The standard rate in the UK is 20%, but some managers want less, some want more.
The simple fact is that a great manager will help make a great writer greatly successful. But a bad manager is worse than no manager at all, so don’t get involved with any manager you’re not sure of. It’s easy to be impressed by someone who can shout the odds at big scary venue managers/record company people, but is he being effective or just picking a fight? You must be able to trust your manager; this is probably more important than actually liking him!
Networking in your local area
You’ve got to be in it to win it. Meaning, it’s very important that you’re out and about doing things on the local scene. Why does this matter when you’re looking for a manager? Well, in the music industry you hire the best people based on personal recommendation. Who’s going to recommend you a good manager if you’re not active on the music scene? How are you going to be able to know who to trust if you haven’t left your bedroom for the past three years?
Ask around. You can use many of the same tactics as recommended in searching for an artist to work with.
Approaching an established manager or management company
You’ll find that managers are generally quite good at returning calls and actually listening to what you have to say, at least at first. Bear in mind that they will be just as hungry to get on and make a success as you are and can’t afford to let the next Paul McCartney/Cathy Dennis/Dr Dre slip through their fingers without listening to what they have to say. So, these people are one of the few who it can be worthwhile ‘cold calling’ for a chat. Rather than agreeing to send them a CD, try to get them to meet you in a setting where you can play them your music e.g. in their office or at one of your shows. This really sharpens their focus on you; after all they probably receive a dozen unsolicited CDs in the post a week. Don’t fool yourself into thinking that just because yours is the best CD he’ll ever hear that he’ll even be in the mood to hear it if its arrived in the same post as his income tax bill/divorce settlement/court summons.
Advertising for a manager
You can do this if you want, but to be honest I wouldn’t recommend it. It’s very unlikely that you’ll find a great manager this way. These people work on the same basis as everyone else in this field; personal recommendation. If they’re searching around for artists by looking in classified sections of the music press then they can’t be terribly well connected can they? Consider this…
Advertising for a manager is like advertising for a girlfriend or boyfriend, quality control is pretty much out of the window but you’ll definitely turn up something sooner or later. And if you’re not careful then you could get yourself into a whole load of things you really will wish you’d avoided. Try this route only if you’re desperate or wildly optimistic.
Who to avoid
Where do we start on this one?! There are so many bad managers out there you could even make the argument that, like politicians, anyone who wants to be a manager should be instantly disqualified from taking the role. Here’s a check list of things to watch out for, if any of these come up in your encounter with a new manager then proceed with maximum caution, or just run away:
- They want you to sign a contract immediately. Nope, you want a trial period of at least three months, preferably six. Agree to pay them commission on anything they sort out for you from day one, that’s only fair after all, but don’t sign anything without legal advice at the very least. Also, bare in mind that the best managers often operate without a contract at all; they’re confident that they will do a good job for you and that you won’t rip them off. Trust is all.
- They want you to pay them for studio time/ photographs/ anything other than commission. Nope, that’s not how this business works. They shall commission money/work they generate and have their reasonable expenses paid that’s all. Remember, the manager has to believe in you and if they do then they will dedicate their time for free in the knowledge that they will reap a financial reward in the future from the work and income that they generate for you.
- They work for your record company/publisher. Nope, that’s a major conflict of interests. One of the main things your manager has to do is to represent your best interests to publishers and/or record companies, how can he do that if he also has to represent the companies interests to you? Spread you investments and your risks i.e. make sure that you have several independent bodies all working in your interest.
- They expect to use a slice of your song writing income to pay for miscellaneous items. Like, they expect you to pay for studio time by agreeing that the studio has 20% of any song you record there. Or he arranges for his friend to come round and play keyboards on your track supposedly for free but on the understanding that they will get 15% of the song writing income. This is major bad practice and highly suspicious. No reputable manager would allow you to trade your copyrights in this manner. Similarly, you must never do this yourself; you can get no end of cheap studio time, great keyboard players are ten a penny. But how much are your songs worth? Maybe millions, maybe nothing, but they’re definitely worth holding on to and should never be traded like currency.
- They insist that you work exclusively with certain artists/songwriters, or attempt to stop you working with collaborators of your choice. Nope, you’re the boss. The manager is your employee, or if you’re feeling generous he’s your business partner. Therefore you can do whatever you want, and seek advice from your manager as and when you require it. But a manager who specifically tries to limit what you do must have a very good reason for it, and be able and willing to explain their reason to you on demand! If they haven’t got a good reason or they won’t explain, then consider their position because it looks like they may be harming yours
- They wangle a position where they are getting paid twice for the work they do for you. How can they do that? Plenty of ways! Here’s one way; your manager also happens to be a songwriter. You write a song together and decide that you will split the song income 50/50. Sounds fine, doesn’t it? But what about the 20% commission your manager is also going to take on your 50%? That means he gets half the song, and a fifth of your half too. Take it from me; this kind of arrangement is frowned upon in the music industry. He should waiver his commission.
A management contract check list
- Seek independent legal advice
- Check how long you are committed for
- Make sure you specify exactly what the manager gets a share of and the extent to which they will be representing you
- Seek to limit this if you have a variety of incomes already (e.g. acting, teaching, producing etc)
- Check to see whether the manager is entitled to continued commission after they cease to manage you
- Consider a limit on the amount of money they can spend on your behalf (the expenses)
In summary:
Your choice of manager is a major decision; possibly one of the biggest in your career, so here’s a FAQ just so you’re clear:
What qualities should you look for in a manager or management company?
Someone who is reasonably established has sufficient experience to take on the day-to-day duties and has a good reputation. He/She/they should be interested enough to put in time and effort until things develop and have the resources to provide adequate personal representation on your behalf
Would I sign a management contract for the UK or worldwide?
Established management companies would want worldwide representation. If the manager is inexperienced in international music business dealings or if you are at an early stage in developing your career you may wish to contract for the UK only.
What are the manager’s roles and responsibilities?
To administer your day-to-day business affairs, get work for you and negotiate contracts in an effort to develop and promote your career.
How long should a management contract last?
In general, contracts vary from a handshake and a short period of representation (for a one-off project) to 1-5 years. Normally an established manager may start with 3 years and have the option to extend to 5. A trial period is recommended. You may wish to include some performance targets (e.g. A publishing agreement to be found within 18 months of start-up).
What’s a reasonable management commission?
Depending on what the manager does and gets for you, the common rate is 20%. This may be reduced to 15%, even 10% if the job is simply administration for a well-established writer.
What happens when the agreement expires or is prematurely terminated?
If the agreement comes to a natural ending, the manager may still be entitled to a continued commission, in respects of contracts signed or recordings made within the duration of the agreement. Sometimes the continued commission is at a reduced rate and it should have a cut off period – for example 5 years.
Do I have to do what my manager decides?
You are effectively employing the manager to administer your affairs and offer professional advice and guidance, and you should have the final say in all matters. In terms of financial management, you are totally free to appoint an accountant to receive your share of income generated as a preference to your manager receiving all of your money.
Managers should keep separate bank accounts for band income and a proper set of books relating to money received and spent. It is your right to inspect the accounts at most times. If you have any doubt over who pays for the many goods and services such as travel, hotels, backstage drinks, taxis, accountant bills, promotional cds and first class airfares, assume they are on your tab!
Being the manager yourself
Really, are you sure? Ok, well inevitably you will be in the early stages of your career but as things start to take off for you and the royalty cheques start poring in its essential that you have great advisers around, helping you with everything from finding the next jobs to organizing your finances. Realistically there are not enough hours in the day and to brutally honest; a good manager is worth far more than the 20% you’ll have to pay them. So let’s at least agree that you’ll consider getting one, yeah?
Finding a publisher
Well, they’re not exactly in short supply. There are literally hundreds of publishing companies out there in the UK alone. As you will find as your career progresses, almost everyone is very happy to take your publishing rights from you if you’re offering them; it’s a little different if you expect to be paid advances however!
Think about it this way; it costs you and your potential publisher nothing for you to write a song. Contrast that with the fabulous cost of making and selling a record. Remember that we established in the first week of this course that the person in the band who writes the songs makes the most money? This is why. Consequently there can be little outlay on behalf of the potential publisher in signing you, what’s to stop a publisher just harvesting in as many songs as they can in the hope that one or two will earn big bucks?
Basically, although publishers will huff and puff about how much work they do on behalf of their writers, most operate like benevolent moneylenders. They give you an advance, and then collect the money from the use of your songs and take a cut (usually around 25%) for themselves. Don’t expect them to find you a record deal; obviously it’s in their interest to do that but they have 50-1000 other writers on their books all screaming for attention. Rely on your manager to do that important job well.
Publishing deals
Congratulations, someone’s offered you a publishing deal! But how do you know if it’s a good one? How do you know if it’s right for you?
The publishing agreement is a contract between you as a writer and a music publishing company. The music publisher is responsible for the collection of all income from the exploitation of the copyright in the music and lyric of the song. Whilst the MCPS and the PRS collect this income and it is possible for an artist to simply become a writer member of these organizations and receive their income directly from the collection societies, there are several reasons why a writer usually engages a publishing company and passes the responsibility for royalty collection over to them.
So, you have the contract in front of you, here a quick checklist to help you decide what to do next:
- Get independent professional legal advice from a music business lawyer
- Check the duration of the deal. Publishing contracts are often made up of an initial period, usually a specific period of time (18 months) or more likely the time taken to release a specified amount of songs (typically an album, of which you control say 70% of the songs), followed up with a number of further time periods/albums. Options give the company ‘first refusal’ on further songs from you. Advances should increase as each successive option is taken up.
- Check what your minimum commitment to the publisher is. How many songs do you need to have released before the next option (and therefore advances). Do they need to be in specific territories, and released by specified record companies?
- Check what your advances and other recoupable costs are.
- Check for cross collateralization. Be aware that if the contract is a recording agreement and a publishing agreement then the company may attempt to use the income from the use of your songs (which can include radio play, TV appearances et al) to offset the cost of releasing your recordings. Do not agree to this. Make sure your publishing is 100% separate from your record company if at all possible.
- Check which territories you may be signing for.
Who to avoid
Any publisher who wants to sign you up without giving you an advance (but see below). Beyond that, the situation is pretty simple and is just like getting a manager; use your best judgment in deciding who you believe will do the best work for you and whom you can trust. Most importantly:
Get specialist legal advice before signing anything
Never sign anything in this business in the belief that if you don’t sign there and then that the deal will disappear. No reputable manager/ publisher/ record company/ agent/ artist will operate like this. If they are serious then they will understand that you will have to run the contract past your legal adviser and they will co-operate. They will respect your cautious approach, consider you professional and not take it as a personal affront.
Administration deals
What about if you don’t need advances? What about if you’ve already songs on a big selling record? You’re in a very strong position, why not use it? You could try a…
This is a particular kind of publishing deal in which the publisher pays very small (or no) advances but collects the royalties for you across the world. In this case, the split between you and the publisher will be highly stacked in your favour, say 90/10 to you. This is a great deal to do if you feel that you afford to risk not having advances but having a greater slice of the money in the long term. Your manager and lawyer will advise you!
Good Luck Out There!
