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	<title>Comments on: Paying Retainers to Managers</title>
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		<title>By: Edna Landau</title>
		<link>http://www.musicalamerica.com/mablogs/?p=4970&#038;cpage=1#comment-196397</link>
		<dc:creator>Edna Landau</dc:creator>
		<pubDate>Tue, 12 Jun 2012 22:22:26 +0000</pubDate>
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		<description>Thanks so much to my esteemed colleagues for sharing their thoughts with our readers. It is gratifying to have your validation of the essence of the column and also Mr. Besen&#039;s very helpful practical advice about further particulars of what to expect in a manager-artist relationship, especially in the case of a smaller agency.</description>
		<content:encoded><![CDATA[<p>Thanks so much to my esteemed colleagues for sharing their thoughts with our readers. It is gratifying to have your validation of the essence of the column and also Mr. Besen&#8217;s very helpful practical advice about further particulars of what to expect in a manager-artist relationship, especially in the case of a smaller agency.</p>
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		<title>By: Robert Besen</title>
		<link>http://www.musicalamerica.com/mablogs/?p=4970&#038;cpage=1#comment-195021</link>
		<dc:creator>Robert Besen</dc:creator>
		<pubDate>Fri, 01 Jun 2012 19:19:49 +0000</pubDate>
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		<description>I agree with all of Edna’s points. The one thing I would magnify is that you should understand whether the administrative fee covers real out-of-pocket costs rather than providing income for the agency (or some combination). If it is covering out-of-pocket costs of the sort Edna enumerates then it is essentially the same as the standard model used by Hamlen/Landau, but doing it on a flat estimate rather than penny-by-penny. A strong argument in favor of this method, as Enda points out, is that it helps the agency spend less time on accounting and more on forwarding artist careers.

Also, I would not expect that an administrative fee of this sort would cover expenses that are specific to your group, for example printing costs for a flyer for your ensemble or postage for mailing it to a large list, or an ad devoted entirely to your ensemble in Chamber Music Magazine. If you get billed for all the expenses Edna enumerates and this administrative fee on top of that, then the agency may be charging what is traditionally called a retainer.

If the administrative fee covers the expenses expected, but also includes some additional income for the agency, I see Edna’s point that it is not necessarily unreasonable to accept that sort of arrangement as long as you feel the income it provides to the agency is not serving as a disincentive to making bookings happen for you. I will point out that the “standard” commission of 20% is not a directive Moses carried down from Mount Sinai on carved stone – rather we managers charge that rate because, frankly, we can. While it is not my sense that retainers are a pervading practice, things may indeed be changing.

Ultimately, the critical question to ask a potential management is what is the estimated bottom line for your (non-commission) expenses for the first year and subsequent years. (You should ask about both because in a first year it would be normal for you to need to lay out for materials created which are likely to have a shelf life of at least a couple of seasons. You may also be told that you must have a photo shoot, record a demo, etc., which you will likely pay for directly.)

Any manager should be ready and willing to be open about what you are being billed for and what you should expect. You in turn should not be reticent about asking, either before you sign the contract or any point along the way. If you can’t have good communication about this, it is not a good indicator for a healthy overall relationship.</description>
		<content:encoded><![CDATA[<p>I agree with all of Edna’s points. The one thing I would magnify is that you should understand whether the administrative fee covers real out-of-pocket costs rather than providing income for the agency (or some combination). If it is covering out-of-pocket costs of the sort Edna enumerates then it is essentially the same as the standard model used by Hamlen/Landau, but doing it on a flat estimate rather than penny-by-penny. A strong argument in favor of this method, as Enda points out, is that it helps the agency spend less time on accounting and more on forwarding artist careers.</p>
<p>Also, I would not expect that an administrative fee of this sort would cover expenses that are specific to your group, for example printing costs for a flyer for your ensemble or postage for mailing it to a large list, or an ad devoted entirely to your ensemble in Chamber Music Magazine. If you get billed for all the expenses Edna enumerates and this administrative fee on top of that, then the agency may be charging what is traditionally called a retainer.</p>
<p>If the administrative fee covers the expenses expected, but also includes some additional income for the agency, I see Edna’s point that it is not necessarily unreasonable to accept that sort of arrangement as long as you feel the income it provides to the agency is not serving as a disincentive to making bookings happen for you. I will point out that the “standard” commission of 20% is not a directive Moses carried down from Mount Sinai on carved stone – rather we managers charge that rate because, frankly, we can. While it is not my sense that retainers are a pervading practice, things may indeed be changing.</p>
<p>Ultimately, the critical question to ask a potential management is what is the estimated bottom line for your (non-commission) expenses for the first year and subsequent years. (You should ask about both because in a first year it would be normal for you to need to lay out for materials created which are likely to have a shelf life of at least a couple of seasons. You may also be told that you must have a photo shoot, record a demo, etc., which you will likely pay for directly.)</p>
<p>Any manager should be ready and willing to be open about what you are being billed for and what you should expect. You in turn should not be reticent about asking, either before you sign the contract or any point along the way. If you can’t have good communication about this, it is not a good indicator for a healthy overall relationship.</p>
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		<title>By: Mark Z. Alpert</title>
		<link>http://www.musicalamerica.com/mablogs/?p=4970&#038;cpage=1#comment-195004</link>
		<dc:creator>Mark Z. Alpert</dc:creator>
		<pubDate>Fri, 01 Jun 2012 18:21:03 +0000</pubDate>
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		<description>Edna has made  very astute obsevations about a situation I am often confronted with. Artists I know, but cannot add to my own roster here at CAMI, often call me to ask about this very issue with smaller managements which haven taken an interest in representing them.</description>
		<content:encoded><![CDATA[<p>Edna has made  very astute obsevations about a situation I am often confronted with. Artists I know, but cannot add to my own roster here at CAMI, often call me to ask about this very issue with smaller managements which haven taken an interest in representing them.</p>
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