SMB TEST QUESTIONS & ANSWERS
VERIFIED 100% CORRECT
Role of the personal manager
To further the artist's career. Coordinates the work of all the other team members and charge
travel expenses that they incur on the artist's behalf.
Commission of a personal manager
Generally applied as a percentage of the artist's gross earnings, 15%-20% (depends on leverage).
Eg. (Artist gets $100k, PM gets 15k-20k).
Exclusions of a personal manager
Places where managers don't help the artist attain success like songwriting or film and tv
Money losing tours for personal manager
Artist should negotiate no commission, or no commission under a certain net amount.
Deductions for personal manager
Recording costs, Monies paid to a producer, Co-writers, Tour support, Costs of collection, Sound
and lights, Opening acts, and related entities
Term of a personal manager
3-5 years. Can terminate the term under certain conditions called compromise.
Exclusivity of a personal manager
Artist can only sign with 1 personal manager
, Sunset Clause for a personal manager
A date where commissions are no longer paid
Key Man Clause
An artist can terminate a contract if a "key man" is no longer involved
Power of Attorney
A legal document authorizing the Personal Manager to act on your behalf
Role of a Business Manager
The person responsible for the financial arrangements of a production. Sometimes will be
audited by the artists. Hired only by the artist (position of trust)
Commission of a Business Manager
5% and/or an hourly/flat fee. Can be "capped" if it's percentage-based. Percentages only apply to
monies received.
Role of Attorney
Negotiate contracts; legal side for the Artist
Commission for a Attorney
Can be percentage-based (5%-10%), hourly fees, or a retainer fee (a set monthly fee)
Conflict of interest
When an attorney belongs to two clients make a deal, sue each other, or an artist in their label on
the same contract. If the two clients ignore, they waive the conflict.
VERIFIED 100% CORRECT
Role of the personal manager
To further the artist's career. Coordinates the work of all the other team members and charge
travel expenses that they incur on the artist's behalf.
Commission of a personal manager
Generally applied as a percentage of the artist's gross earnings, 15%-20% (depends on leverage).
Eg. (Artist gets $100k, PM gets 15k-20k).
Exclusions of a personal manager
Places where managers don't help the artist attain success like songwriting or film and tv
Money losing tours for personal manager
Artist should negotiate no commission, or no commission under a certain net amount.
Deductions for personal manager
Recording costs, Monies paid to a producer, Co-writers, Tour support, Costs of collection, Sound
and lights, Opening acts, and related entities
Term of a personal manager
3-5 years. Can terminate the term under certain conditions called compromise.
Exclusivity of a personal manager
Artist can only sign with 1 personal manager
, Sunset Clause for a personal manager
A date where commissions are no longer paid
Key Man Clause
An artist can terminate a contract if a "key man" is no longer involved
Power of Attorney
A legal document authorizing the Personal Manager to act on your behalf
Role of a Business Manager
The person responsible for the financial arrangements of a production. Sometimes will be
audited by the artists. Hired only by the artist (position of trust)
Commission of a Business Manager
5% and/or an hourly/flat fee. Can be "capped" if it's percentage-based. Percentages only apply to
monies received.
Role of Attorney
Negotiate contracts; legal side for the Artist
Commission for a Attorney
Can be percentage-based (5%-10%), hourly fees, or a retainer fee (a set monthly fee)
Conflict of interest
When an attorney belongs to two clients make a deal, sue each other, or an artist in their label on
the same contract. If the two clients ignore, they waive the conflict.
