This article will seek to clarify the different roles agents and managers can play in your careers' financial and artistic success, as well as provide tips on how to avoid entering into an agreement, which binds you to a manager or agent that may not work for you. Recently there have been two significant reports regarding managers and agents and their trustworthiness. In LA, Marcie Wright, principal of lit agency the Wright Concept, was charged last week with fraud and grand theft by embezzlement of more than $160,000 from screenwriter-client Robert Kuhn who scribed MICKEY BLUE EYES. Meanwhile over at CAA, Michael Gruber, who represented George Clooney, was accused of trying to take an improper agenting fee, and has since resigned from the agency after being fired by actor Clooney. In entering into contracts with agents and managers, you must be smart to get the protection you will require.

AGENTS It's important to understand that there are three kinds of agents, which you might potentially engage. Mostly musicians use the Booking agent and specialty performers such as stand up comedians. It is not unusual to have several booking agents that specialize in different types of bookings, and it is rare that such an arrangement would be "exclusive". Instead, most booking agents take a flat 10% commission off the top of any compensation you receive for a specific performance booked by that agent. Second, there are literary agents who represent writers only. Specialized literary agents represent a specific type of writer, from novelists to screenwriters, and it is important, if you find one you want to work with, that your relationship to the agent be based on a commonality of goals and style. Most writers who work with a literary agent work closely with them, revising drafts of screenplays, and searching for a producer to option or buy the finished script. Literary agents are separate and apart from other agents, since they are attempting to develop and sell actual materials of their clients - primarily screenplays, pitches or treatments - and are not subject to specific laws preventing them from producing, as are service agents. Literary agents, like booking agents, usually work for a commission, which can range from 10% to 20% off the top of a sale of a script. Because a literary agent is not selling your "services" (as discussed further below), their fees are based only on the actual sale of the product (i.e., script).

The kind of agent most of you, however, have been looking for is a talent agent. These agents represent all kinds of clients including writers (as opposed to spec script sales, they attempt to get you paying jobs as writers on t.v. or for a feature etc.), actors, directors and comedians. Securing a talent agent is the most difficult task talent faces in moving their career forward. Here is a standard clause defining the talent agent's objective on behalf of a client from a contract:

[Agents] duties hereunder shall be to use all reasonable efforts to procure the engagement of [Artists] services, as a writer, composer, editor, author, lyricist, musician, artist, performer, designer, consultant, cameraman, technician, director, producer, associate producer, supervisor, executive, and in any other capacity in the entertainment, literary and related fields throughout the world, including but not limited to motion pictures, television, legitimate theater, concerts, music, recording industries, merchandising, testimonials, advertising, infomercials, commercial tie-ups, CD-ROMS, CD-Is, interactive media or any other technology now in existence or hereafter utilized.

This description is very broad in order that the Agent benefit from seeking you any kind of work for which you might be suited, but you may want to negotiate certain limitations. Many of my clients have multiple agents that specialize in a specific area. If, however, you sign with one of the big agencies, such as CAA, ICM or William Morris, the agents will likely want the flexibility to cover you for all areas, which is not always the best choice if you are just starting out. Agents are regulated in several states, including California, New York and Texas. These states require rigorous licensing of agents, in order to ensure that agents don't take advantage of less-business savvy talent. While no laws exist currently in Massachusetts that oversee agents, generally an agent here is not likely to be able to help your career much in terms of the much necessary contacts for which you hope your agent has. Even a young "hot" agent in LA will be hungrier and better connected that their counterpart here in New England. So be very careful before allowing a non-regulated agent outside of LA or NYC to handle you and your career. A standard commission for an agent is 20%, but is lowered if you have clout to as low as 10%. Be wary of those agents asking for more than 20%. In regulated states, 20% is the maximum.

MANAGERS there are two kinds of managers, personal managers and business managers. The latter is generally someone who helps you collect your fees, pay your bills, and develops an investment strategy. Occasionally a business manager is a family member or close friend, but generally speaking a business manager is a certified public accountant (CPA) and even a broker who has investment savvy. Business managers can be paid a monthly salary or a percentage of your earnings, usually in the 5% to 10% (higher if you're new and not earning much yet). Personal managers are what most artists seek early in their careers. A personal manager primarily provides clients with advice and guidance about their careers. They are not allowed to book work for you, and in many states, including Massachusetts, they can actually be criminally prosecuted for this practice. What they can do is pursue contacts and help you with key strategies. Generally personal managers earn approximately 15%-20%, and should never go higher than 25% unless one of the top managers in the business is employed. A description of what the personal manager's services provide is as follows:
Manager's duties shall include all of the following: (a) To advise and counsel Artist with respect to decisions concerning employment, publicity, selection of literary, artistic and musical material, wardrobe, public relations and advertising, selection of talent and/or artist's agents and all other matters pertaining to Artist's professional activities and career; (b) To advise and counsel Artist with relation to the adoption of the proper format for presentation of Artist's talents; (c) To advise and counsel Artist with regard to general practices in the entertainment industry relating to Artist's professional activities and career; (d) To use Manager's reasonable efforts to promote and enhance Artist's professional reputation and standing; and (e) To be available to Artist for consultation and rendition of services to Artist at all reasonable times.
Again, it is important to ensure that your manager is someone you can trust and like. Your contract should ensure regularly scheduled meetings with the manager. Most managers insist that your relationship should be exclusive, even though most managers handle several clients. You may want to make sure they are not handling too many other clients, and none with your specific talent or skills. Many managers also serve as booking agents, so make sure you are never paying overlapping fees (i.e., no double dipping).
CONTRACT & LEGAL TIPS In California an agent's contract must be approved as to form by the state Labor Relations Board. However, the terms can be negotiated, as can those of your managers. These are complex documents, and attention to term limits and how much the agent or manager is entitled to AFTER the contract has expired are critical to your success in the future. You don't want to fire one agent, only to have your old agent and new agent both receiving 10% or 20% of your salary. Sophisticated negotiations that decrease the former agents take over a few years until they are no longer entitled to anything are critical. Most initial contracts are for only one year, but sometimes are as long as two, but all contracts have several automatic option extension periods that are discretionary with the agent or manager. You must set specific goals that should be attained by the end of each year that must be met by your manager or agent, or the agreement should be terminated at (your) will (i.e., the option should not be extended). In agency contracts, if no new work has been obtained in a four-month period, you should also be able to terminate the contract at will. Be sure to negotiate what the definition of gross compensation is, since all agents and managers want to be paid form the gross not the net. Carve out exceptions from the definition of gross, and make sure your reasonable expenses, including legal fees, are paid off the top (prior to the agent or manager's cut). Usually an agent or manager wants to collect your money and deduct her fee, sending you the balance. To avoid this potentially fraudulent setup, spend the money on a third party accountant, who receives all payments and is instructed how to pay anyone who is taking a cut. Lastly, use a good entertainment lawyer to review contracts proposed by your agent or manager, since a potential conflict of interest is established by allowing these individuals to negotiate for you where there own interests are at stake.
Disclaimer: None of the material in this article is intended as legal advice, please contact an attorney.