It seems to me that for a developing artist there are two development stages and types of relationships that make sense for bringing on management:

1. Once the artist has grown the business to the point that each member can make at least a meager living off of it. At that point they make enough to consider bringing in an outside partner to help grow it even further and that cost will be offset by the continuing growth and extra business the manager brings in.

As a very rough estimate, an artist can figure that they will net 50% of the gross income for a year.  That net will go into their pockets as personal income.  So if you have a five member band and you grossed $100,000 in a year that means the net to the members will be approximately $50,000 or $10,000 per member.  Again, this is a very rough estimate but can be helpful in thinking about things.

To explain further, I think management makes sense at this point because the artist has proven they can make a living and the extra cost of management won’t hurt as much.  It’s also a natural business milestone – moving from part-time artist to full-time – that justifies expansion considerations.  Lastly, it’s a point where the manager can make enough money to work with the artist and devote plenty of attention and resources to the project while feeling fairly compensated (an investment rather than a gamble).  In short, it’s usually a healthy point in the business development.

2. Regardless of size, even if the members are not yet making a living off the business, if you have a friend or family member who would do it for minimal compensation (a percentage of nothing is nothing) then it could make sense as well.  Most likely  this manager wouldn’t be experienced but what they lack in experience they would make up for in enthusiasm for the business (ideally).  If they didn’t have the enthusiasm and interest in the business than it wouldn’t work long term.

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Of course, there are plenty of other unique relationships that make sense for the parties involved.  However, these two seem to be the healthiest starts to many of the long term relationships I have witnessed.

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NEWS: Lastly, I need to mention that I am introducing a new level of artist-management relations.  It’s called The Farm Team advisor program which you can read more about here: www.thefarmteam.com.  The idea is to provide advising and coaching for artists that aren’t ready for, interested in, or are in transition between management.  It’s about helping the artist identify the business/artistic vision and then setting goals and projects to achieve that vision.  We’ve already got 6 clients signed up to start in August.  If you’re interested email ben(at)theartistfarm.com to learn more.

One of the clients I work with in The Farm Team advisor program is heading out on Warped Tour for some west coast dates.  Without a booking agent, they had to route themselves out there with club dates in order to keep the tour profitable and the schedule full.  But with a few weeks left before heading out, there were still a few holes in the calendar.  They asked me if I had any ideas of how they could fill the dates.  I responded by asking them if they had reached out to their fan base in those areas?  They hadn’t.  I didn’t know if it would work, but the amount of time and energy required to post something on facebook was minimal so why not give it a shot.

The next day they posted a geo-targeted facebook status update for fans in the mid-western states asking if anyone would like to host a house party with them on the available dates.  The response was fantastic.  Within a week they were able to book 3 more shows.  This not only brought them more money for the tour, but it gives them a chance to connect intimately with fans, and to make new fans in an intimate environment (think of how much easier it is for you to say yes to a free party versus saying yes to pay for a show of a band you haven’t heard of before).

Grass roots development is incredibly important for the early stages of your career.   At this stage, if you can see that there really are no gatekeepers telling you what is possible then the world is your oyster.  In this specific case, why try to cajole a promoter to give you a gig when you can go directly to your fans? Helping fans become promoters is a win-win scenario.

If you’d like to be part of The Farm Team advisor program contact me at ben(at)theartistfarm.com or fill out the application at: http://thefarmteam.com/

If you were starting a small retail business or an internet business, you would focus all of your attention on growing that business to the point you could sell it or to the point that it became a lifestyle business for you – affording you the income that you need to live the life you desire.

Launching a music business is no different in theory. What is different is that most artists assume there are gatekeepers who deem you worthy to progress to a higher elevation in your career. As with all businesses, yes it is true that there are strategic partnerships that can help grow your business, but there are no gatekeepers other than those within your own mind.

At The Artist Farm we have a running theory that the most successful artists are the ones who fully recognize their role as business owners. They run the show, literally – from artistic to business partnership decisions. As these strong personalities grow, so do their businesses. And as a business grows it begins to attract attention. Suddenly those “gatekeepers” that you imagined are all clamoring to be involved with this successful business.

The control and growth of your business rests in your hands. It’s ok to be in a position of growth or to feel the struggle – that is all part of growing a business. If you are committed to establishing a successful business then don’t look for the knight on a white horse to save you (i.e build the business for you). The knight is inside you ready to charge if once you find the right path. Read business books that have nothing to do with music to get some ideas. Here’s a start: http://www.100bestbiz.com/more-on-the-100-best/.

Thanks for reading.

Ben Coe, The Artist Farm

Join our new Advisor group for hands-on mentorship in growing your business: http://theartistfarm.com/services/