How Much Do Music Managers Charge?
For Artists
Mar 15, 2026
Music managers typically charge 15-20% commission on the income they help generate. The standard is 15% for established managers working with developing artists and 20% for managers bringing significant resources or industry access. Artists with substantial existing income sometimes negotiate down to 10-12%. Commission is usually calculated on gross income, though net deals exist and are worth negotiating.
A manager taking 20% of a new artist's $50,000 annual income earns $10,000. That is not much for a year of work. The same manager taking 15% of an established artist's $2 million earns $300,000.
Commission rates reflect this math. Early-career artists often pay higher percentages because the dollar amounts are small. As income grows, percentages tend to decrease because the absolute numbers become substantial. Understanding how managers charge helps you evaluate deals and build the right team when you are ready.
Standard Commission Ranges
Manager Type | Typical Commission | Context |
|---|---|---|
New or developing manager | 15-20% | Building their roster alongside you |
Established indie manager | 15-18% | Has connections, proven track record |
Major management company | 15-20% | Full infrastructure, multiple services |
Artist with high income | 10-15% | Negotiated down due to volume |
Day-to-day manager (not lead) | 5-10% | Handles operations, not strategy |
Gross vs. Net: Where the Money Changes
Whether commission is calculated on gross or net income can mean thousands of dollars in difference per year. This is the most important distinction in any management contract.
Gross Commission
Calculated on total income before expenses. If you earn $100,000 and your manager takes 15% gross, they get $15,000. You pay expenses from the remaining $85,000.
A touring example makes this concrete:
Show payment: $10,000
Manager commission (15% gross): $1,500
Your remaining: $8,500
Expenses (travel, crew, lodging): $4,300
What you actually keep: $4,200
Net Commission
Calculated on income after specified expenses. Same show, 15% net:
Show payment: $10,000
Expenses deducted first: $4,300
Net income: $5,700
Manager commission (15% net): $855
What you keep: $4,845
What Is Standard
Most management contracts calculate commission on gross. That is the industry default. Net deals exist but require negotiation and a clear definition of which expenses qualify as deductions.
If your manager proposes gross commission, that is normal. If you have significant touring expenses, push for net calculation on live income or negotiate specific expense exclusions.
What Income Gets Commissioned
Not all income streams are treated the same. Standard management contracts commission most artist income, but carve-outs and variations are common.
Income Type | Typically Commissioned? | Notes |
|---|---|---|
Recording income (advances, royalties) | Yes | Core management territory |
Live performance | Yes | Often gross, sometimes net of production costs |
Merchandise | Usually | Sometimes excluded or at a reduced rate |
Publishing and songwriting | Sometimes | Negotiable, often excluded if separate publisher exists |
Sync licensing | Usually | Manager often helps secure placements |
Sponsorships and endorsements | Yes | Core management territory |
Acting or non-music work | Sometimes | Negotiate based on manager involvement |
The Publishing Question
This is the most negotiated income stream. If you have a separate publishing administrator or you are primarily a songwriter, you may want publishing income excluded from management commission. If your manager actively pitches your songs for sync and negotiates publishing deals, they will argue for including it. The answer depends on who is doing the work.
The Sunset Clause
When you and your manager part ways, the sunset clause determines how long they keep earning commission on deals they helped create.
Common Sunset Structures
Immediate cutoff: Manager stops earning when the relationship ends. Rare and usually unfair to managers who invested years of work.
Full sunset: Manager continues earning full commission on deals they initiated for 1-3 years after departure.
Declining sunset: Commission decreases over time. Example: 15% in year one post-departure, 10% in year two, 5% in year three, then zero.
What Is Reasonable
A sunset clause protects managers who spent years building your career from being let go right before a major deal closes. But it should not lock you into paying someone indefinitely.
Fair sunset terms typically include a 2-3 year maximum duration, application only to deals initiated during the management period, a clear declining percentage structure, and exclusion of new deals made after separation.
Costs Beyond Commission
Some management contracts include expenses that add up beyond the headline commission rate.
Pass-through expenses. Some managers bill travel, phone, and office costs back to the artist. Others absorb these. Clarify what expenses you are responsible for beyond commission.
Team costs. If your manager hires a publicist, radio promoter, or other services on your behalf, you typically pay. Make sure the contract specifies an approval threshold for spending on your behalf.
In-house services. Larger management companies sometimes have touring, merch, or marketing divisions they will want you to use. Understand whether these are covered by commission or billed separately.
Negotiating Commission
When You Have Negotiating Power
You can negotiate better terms when you are already generating significant income, when multiple managers are interested, when you bring an established audience, or when the manager is newer and building their roster.
What to Negotiate
Lower percentage. Especially if you have existing income or the manager has less of a track record than the standard rate assumes.
Net calculation for touring. Tour expenses are substantial. Net commission on live income can save thousands per year.
Income exclusions. Publishing, merch, or non-music work you handle without manager involvement.
Sunset terms. Shorter duration, declining percentages, clear definitions of what qualifies as a "deal initiated during management."
Expense caps. Limits on what the manager can spend on your behalf without your approval.
When Not to Push Too Hard
If a manager is investing serious time in a developing artist, pushing for 10% on your $30,000 annual income means they earn $3,000. That is not enough to keep someone invested. The relationship needs to work for both sides. An underpaid manager is a disengaged manager. See When to Hire a Music Manager (And When Not To) for how to evaluate whether you are ready and what to look for.
Red Flags in Commission Structures
Commission over 20% is rare and usually unjustified, even for managers with major industry connections. Commission on all future income with no end date is unreasonable. No expense accountability, where they can spend your money without approval, is a problem. A perpetual sunset with no declining structure means you could be paying 15% five years after parting ways. Commission on income from ventures the manager has no involvement in should be excluded.
Any of these warrant pushback. If your manager will not negotiate reasonable terms, that tells you something about how they will handle your interests in other business situations. Always have an entertainment attorney review management contracts before signing. For contract basics and business setup, start there.
FAQ
Is 20% too much for a new manager?
Not necessarily. Twenty percent of small income is a small dollar amount. What matters more is whether the contract terms, sunset clause, and income scope are fair overall.
Can I renegotiate commission after signing?
You can try when the contract is up for renewal. Mid-contract renegotiation is harder. If your income has grown significantly, a reasonable manager will discuss adjusting terms.
Should I pay commission on income I was already earning?
Managers typically commission income from the start of the agreement forward, not past earnings. Deals already in progress when you signed may be included. Clarify this before you sign.
What if my manager is not doing anything?
Commission does not guarantee work. If your manager is not performing, that is a relationship problem. Review your contract's exit terms and have a direct conversation about expectations.
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