If you're a new or independent artist looking for management, you're probably still in the development or growth stage of your career. You may have music released, content, performances, and some early momentum, but you're still building your audience, income, team, brand, and overall music business.
A retainer pay is an upfront fee paid to a professional to secure their services and guarantee their availability
At this stage, it is common for management services to be structured around a monthly or yearly retainer with clearly defined offerings and services.
Why New Artists May Pay a Retainer
Starting from scratch with an artist takes time, work, energy, expertise, and resources. New artists often need more hands-on development because the foundation of the career is still being built.
Management may include:
- Career strategy and planning
- Artist development
- Branding, marketing, and release strategy
- Networking and introductions
- Mentorship and business guidance
- Team building and representation
Believing in an artist's potential is important, but belief alone does not compensate a manager for the professional work required to build a career.
This is one reason many new independent artists struggle to find managers willing to work for commission only.
With a retainer agreement, the artist is paying for a defined management service package. This allows the management agency to dedicate professional time and resources to developing the artist while clearly outlining what the artist receives in return.
The Artist's Career Stage Matters
Before comparing your management deal to another artist's, identify what stage of your career you are actually in.
Stage 1: New Artist / Development Stage
If you're an independent artist just getting started and searching for your first manager, this is probably where you are. You may have music released and some early momentum, but you don't yet have substantial, consistent music income.
At this stage, management is helping build the career, not simply manage an already profitable business. This is where you may be expected to pay a monthly or yearly retainer for a defined package of management and development services.
Stage 2: Growth Stage
Your audience and income are growing through streams, performances, merchandise, brand opportunities, or other sources, but the income may not yet be large or consistent enough to support management through commission alone.
At this stage, a retainer or hybrid retainer-and-commission structure may still make sense.
Stage 3: Well-Established / Major Artist
Eventually, very well-established independent artists, major-label artists, and major touring artists can reach a point where their careers are already generating substantial revenue from touring, streaming, merchandise, licensing, brand partnerships, and other opportunities.
This is when management can shift toward a commission-based structure. At this level, the artist's career may already generate enough money that the manager's commission can amount to $75,000, $100,000, $200,000 or more per year.
Commission works differently at this stage because there is already a successful, revenue-generating career for the manager to manage. The percentage alone can provide substantial compensation for the manager’s work.
This structure is more common once an artist is established within the music industry.
As a new or independent artist, you are still working to break into the industry, build your career, and reach that level. You are not yet at the same career stage as established artists whose existing revenue makes a commission-based structure sustainable.
Know Which Stage You Are In
If you're a newer independent artist looking for management, don't automatically compare your management structure to that of a major-label or highly established artist. You're at a different stage of the business.
Early in your career, you may be paying a retainer for the professional work required to help build your career. Once your career becomes highly successful and generates substantial revenue, a commission-based structure can become financially practical for management.
The real question isn't only "What percentage does a manager take?" It's also
"What stage of my career am I in, what services am I receiving, and does this structure make sense for both sides?"