Introduction: Why This Matters

If you’re an artist looking for a music manager or thinking about whether you need one yet it’s important to understand how music management actually works and where you are in your career.

One of the biggest sources of confusion (and frustration) between artists and managers is money. Many artists hear that “managers take 15–20%” and assume that’s the standard across the board, at every stage. In reality, that model was never meant for artists who are just getting started.

Management structures are meant to match momentum. What makes sense for an artist generating real income does not make sense for someone still building their foundation.

Understanding your current stage helps you:

• Set realistic expectations
• Avoid unfair or unsustainable deals
• Build healthier, long-term partnerships
  

Before talking about how managers get paid, it’s important to understand why those payment models exist in the first place—and who they were designed for.

The Traditional Commission Model

Where the “15–20%” Comes From

Historically, music managers have been paid on commission, usually 15–20% of an artist’s gross entertainment income. This standard was built around artists who had already achieved a certain level of success and consistency.

This model is for artist who are ALREADY generating good results and income from music.

A manager’s commission is traditionally taken from gross entertainment income, meaning income directly tied to the artist’s career, such as:

• Music royalties (recordings and publishing shares)
• Live performance and touring income
• Merchandise revenue (artist’s share)
• Brand deals, sponsorships, and endorsements
• Sync licensing income
• YouTube and digital platform payouts
• Appearance fees
  

Commission works when there is existing income to manage, scale, and optimize.

This model is not intended for paying managers when an artist is at the very early-stage of their career and development.

Understanding What Stage of Your Career You Are In

The biggest mistake artists make is assuming one management model fits everyone. It doesn’t.

Most artists today are expected to:

• Build an audience
• Release consistently
• Manage content and social media
• Run ads and marketing
• Develop a brand and identity
  

All before meaningful income exists.

Understanding where you are in your career is the key to understanding what kind of management structure actually makes sense.

The Retainer Model

A retainer-based management model means an artist pays a fixed monthly fee for ongoing management services, regardless of short-term income fluctuations.

Under a retainer structure, the manager is hired much like a professional service provider. There is a formal management agreement, a defined scope of work, and a minimum contract term that allows real planning and consistency.

For example, a common structure might look like this:

• Monthly retainer: $1,000
• Contract term: 12-month minimum
  

Instead of taking a percentage of income that may not yet exist, the retainer ensures the manager is paid for their time, availability, and labor while the artist is still building momentum.

This model works best for artists who are:

• In the Foundation or Growth stages
• Not yet generating enough income for commission to be viable
• Actively investing in their career as a business
  

A retainer allows the manager to prioritize the artist, work consistently, and treat the artist’s career as a real, ongoing responsibility, not a side project.

Importantly, a retainer is not “pay-to-play.” It is a professional commitment on both sides—the artist commits financially, and the manager commits time, structure, and accountability.

As an artist grows and income increases, a retainer model can later transition into:

• A hybrid structure (retainer + reduced commission), or
• A commission-only model once income supports it
  

The goal of a retainer is simple: sustainability first, scalability second.

Commission Only Doesn’t Work For New Artists

Even If you’re earning $1,000–$2,000 per month from music at 15% commission equals $150–$300 a month.

That is not enough for someone to:

• Manage your career full-time
• Run marketing and ads
• Advise You/Spend time on you
• Handle content and social media
• Be deeply involved day-to-day

Major Artist / Mega Indie Artist
(When the Commission Model Fully Works)

At the highest levels of the music industry, commission-based management is standard.

Artists at this stage typically generate:

• 10M–100M+ streams per month
• $25k–$250k+ per show
• $50k–$1M+ brand partnerships
  

At this level, a 15–20% commission often translates into five-figure monthly income for a manager, fully justifying full-time oversight, deal negotiations, team coordination, and long-term career strategy.

This is the level people are referring to when they say:

“Managers get 15–20%.”

That statement was never meant for brand-new or developing artists.

Commission Is for Scale, Not Potential

Commission-only management works when there is real, consistent entertainment income to commission.

This model is built for:

• Major label artists
• Mega indie artists
• High-level independents with proven revenue
• Artists already supporting a full team
  

It does not work for artists who are:

• Just releasing their first few songs
• Still building an audience
• Not generating reliable monthly income
  

In those cases, commission alone does not provide enough sustainability for a manager to operate at a professional level.

Music Management Is a Full-Time Job

A common misunderstandings artists have is treating management as a side gig.

If you expect a manager to:

• Be available during business hours
• Respond quickly to opportunities
• Coordinate releases and campaigns
• Communicate with brands, venues, and partners
• Handle strategy, planning, and problem-solving
  

You are expecting full-time availability.

Music management is not compatible with a standard 9–5 job.

If a manager has to work another full-time job to survive, your career will always come second.

Availability requires sustainability.

How We Structure Management at Red Velvet Studios

At Red Velvet Studios, commission-only management is reserved for artists who are already high earners in the music and entertainment industry.

For commission to realistically cover full-time management, an artist must be generating enough income that 15–20% equals at least $1,000 per month—which typically means $5,000–$7,000+ in monthly music-related income from streaming, shows, or brand deals.

If you are a new or developing artist and not yet at that level, management is structured on a retainer basis, not commission.