Learn the Music Industry
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Narrative

Commission is typically the largest cost on an artist's , and the most often mis-calculated, because it is not a single number.

Three members of an artist's team may all charge commission: the manager, the , and (for higher earners) the . Each has a different rate, a different base, and sometimes a different definition of what counts as 'income' for their purposes. Getting any of these wrong (wrong rate, wrong base, or double-counting income) produces a commission figure that is either an overpayment or an underpayment. Neither is in the artist's interest.

Tracking commission correctly means knowing the answer to three questions for each team member: what percentage are they entitled to, what income does that percentage apply to, and is this a gross-to-gross or net-to-net calculation? The answer to each question should come from the agreement, not from the invoice that arrives at the end of the month. An invoice is a request for money. The agreement is the source of truth.

This episode works through each team member's commission structure in turn, the professional norms, the common deviations, and the discipline that prevents overpayment and dispute.