How Do Music Managers Make Money

How do music management companies earn money?

How do music management companies earn money? From what I understand, managers works under a company but they seem to work very individually and gets their money directly from the "band". Would someone like to clear things up on how it works? Thanks, Have a great day!

level 1

A single band manager that incorporates is a management company. Larger companies (like, say Q Prime) are businesses with multiple managers representing multiple artists. Along with the managers there is also support staff to help the managers do their job. Their primary job is doing things like negotiating recording and publishing contracts for their artists and other revenue generating/PR activities. At that level management companies usually don't book gigs, that is usually done by a Booking Agency.

level 2

Alright, thank you! That was the answer I wanted. I'm currently setting up a small management "company" as a university project, I don't expect it to go with profit but more of a fun thing for me and my friends who manage bands! Have a good day sir!

level 1

If a manager is responsible for arranging things like booking, merchandise, etc. they would traditionally receive 15% of gross income from those endeavors.

level 2

Op · 4y · edited 4y

Yeah I know all about that, but I was wondering about management companies and how they make money. And also if the manager was responsible for bookings (if you don't mean like arranging to get in touch with someone who books them) I'd say at least 20% gross

level 1

I have a lot of my clients wanting to have a Manager. I think that managers and management companies are pointless if you make under 10 shows a months with your music.
This being said, they generally have lower costs than a simple manager, they hold somewhere between 10 to 15% of your incomes where a Manager would hold around 15 to sometimes 25% (that's bad!). Stay away from them.