Step 1: Figure Out Where You Actually Are

Before you think about what management should cost, you need to be honest about your career stage. You may already have released music, performed shows, built some content, and gotten a little momentum going. That's real progress — but it's different from having an established, revenue-generating career.

The pricing structure that makes sense for you is not the same one used by a famous, high-earning artist. That's the mistake most new artists make: they hear what a big-name manager charges and assume it should apply to them too. It shouldn't, and here's why.

Step 2: Understand Why New Artists Pay a Retainer

When you're new, a manager isn't taking a cut of an already-successful business — because that business doesn't exist yet. They're helping you build it. That means real, hands-on work like:

• Career strategy and planning
• Artist development
• Branding and marketing strategy
• Release planning
• Networking and industry introductions
• Mentorship and business guidance
• Team building
• Representation and outreach

That's a lot of professional time and effort going in before there's much money coming out. A retainer — a flat monthly or yearly fee for a defined set of services — is how a manager gets compensated for that work while your income is still being built. It's not a discount version of "real" management. It's the structure that actually fits this stage.

Step 3: Understand Why Commission Belongs to a Later Stage

Commission-based management means the manager earns a percentage of what you make — commonly in the 15–20% range. This only works when there's enough revenue for that percentage to actually be worth something.

This is the structure used by major, established artists — people with large, consistent income from touring, streaming, merchandise, licensing, and brand deals. When an artist is generating real money, a manager's percentage can add up to serious compensation (sometimes $75,000–$200,000+ a year, or more). That's a completely different economic situation than taking 15–20% of an artist who's barely making anything yet.

That artist is not you right now — and that's completely normal. You're at the stage where you're building toward that, not managing it yet.

Step 4: See How the Structure Changes as You Grow

Your management arrangement should evolve as your career does. Broadly, there are three stages:

Stage 1 — New Artist / Development
You're still building your audience, releases, and income. A monthly or yearly retainer for management, development, marketing, or consulting services is the typical structure here. Commission alone isn't realistic yet, because the revenue to support it doesn't exist.

Stage 2 — Growth
Your audience, releases, and shows are picking up, and you're starting to earn from streaming, performances, merch, or licensing — but not enough yet for commission alone to sustain a manager's time. This is where a retainer, or a hybrid of a smaller retainer plus commission, tends to make sense. Pricing here often falls around $2,000–$7,500/month, or 15–20% commission, depending on how much income you're generating.

Stage 3 — Established / Major Artist
Revenue is substantial and consistent across touring, streaming, merch, licensing, and partnerships. At this point, commission-based management becomes financially practical, because there's enough revenue for a percentage to meaningfully compensate the manager.

Step 5: Know That a Hybrid Model Often Bridges the Gap

Many artists move through a hybrid phase: a reduced monthly retainer combined with a smaller commission on qualifying income. As your revenue grows, the retainer portion typically shrinks or disappears, and commission takes over. This is a normal, expected transition — not a sign anything went wrong with either structure.

Step 6: If You Ever Do Reach a Commission Structure, Know How It's Calculated

This becomes relevant later in your career, but it's worth knowing now:

• Gross commission: the manager's percentage is taken from your earnings before expenses are deducted. Example: $10,000 show, 15% gross commission = $1,500 to the manager, with you covering expenses out of what's left.
• Net commission: expenses are deducted first, and the percentage is calculated on what remains. Example: $10,000 show, $4,300 in expenses, 15% of the remaining $5,700 = $855 to the manager.

The difference matters a lot for artists with expensive touring or production costs — but again, this is a later-stage consideration.

Step 7: Know What to Check Before Signing Anything

Whatever stage you're at, don't evaluate an agreement on price alone. Make sure you understand:

• Which income streams are commissionable (if any)
• Whether commission is calculated on gross or net income
• Exactly what services management is responsible for
• The length of the agreement
• What happens when the relationship ends (some agreements include a "sunset clause," letting a former manager keep a declining commission on deals made during the relationship for a period afterward)

Because these agreements can create long-term financial obligations, it's worth having an entertainment attorney review one before you sign.

Step 8: Remember Management Is Only One Piece of Your Team

A personal/artist manager is not the same as a booking agent, business manager, entertainment attorney, publicist, or accountant — each of those typically has its own separate fee structure. As your career grows, factor in the cost of your whole team, not just your manager's percentage.

The Bottom Line

Don't ask only "what percentage does a manager take?" Ask:

• What stage of my career am I actually in?
• What work is being done for me?
• What am I getting in return?
• Does this structure make sense for both sides right now — not where I hope to be someday?

If you're ready to stop figuring this out alone and start building your career with a real manager and team behind you, choose one of our plans below — a Los Angeles-based, music industry management team ready to help you take the next step.