3 Steps to Achieve Financial Security (Artists/Performers)

     There are many talented performers within the entertainment industry who are making their talent their career profession.  Some invest in financial advisors and some wing it out on their own. No matter which, one chooses to select they both share their pros and cons. But, with the use of the following three steps anyone can achieve financial security in their career. Whether he/she invest in a financial advisor or handle all of the business aspects on their own. There are three steps to achieving financial security; they are organization, protection, and keeping track of spending.

• Organization:
It is very significant to "know what you have, where it is, and how it works together.” In order to view or seek a complete picture of one's success in achieving financial security all thoughts, plans, visions, and finance expenses need to be all put together on paper, especially when it comes down to the finances. For instance, “if you have $10,000 in savings at an interest rate of .7 percent and $4,000 of credit card debt at 20 percent interest, you're actually getting a net of negative”. This is why it is important to look at all of the financial factors that would contribute to an artist/performers financial success in the entertainment industry.  This could help a performer create a realistic starting point.

• Protection:
When dealing with finances, it is very valuable to have all finances protected.  Bailie Slevin, a financial adviser at Forest Hills Financial Group says,  "A lot of people -- and artists specifically -- leave this to thelast step, which creates huge problems".  One way one can protect themselves when dealing with their finances, is to save up at least the minimum of three months of living expenses, this is one of the most basic form of protection.  The key here is to think ahead and stay protected because entertainment gigs come and go. So it is best to cover all bases for the times when one is unable to book a gig.

• Track Spending:
  This is one step if not all one MUST follow. A great way to keep track of spending is to ask, “what are your priorities"? This could help narrow down what expenses are needed, and will restore savings to afford protection.  In cases when a performer does not have a financial advisor to keep track of their finances. There are many different online sites that help keep track of spending/finances. I.e. mint.com, budgettracker.com, buxfer.com, etc.

     These are very simple steps anyone could follow to achieve financial security. As an entertainer, it is necessary to secure finances and plan ahead because it will only help better ones success in the industry. If the three steps seem too stressful or challenging (which I highly doubt), then invest in a financial advisor. Vice versa, if one want to start off managing their finance on their own that is fine to (eventually invest in an accountant or financial advisor when things start to pick up). There is no right or wrong way, but staying true to the three steps organization, protection, and keeping track of spending will only help an individual achieve financial security in their career.

"The National Association of Record Industry Professionals - NARIP Music Supervisor Sessions"

     The National Association of Record Industry Professionals (NARIP) is the largest music business association in the world. It is an association that reaches over 100,000 plus  record industry professionals around the world. NARIP was created to bring diverse record executives/professionals together to educate each other, network, and offer many different career opportunities through educational programs and seminars. NARIP has been around since 1998 and has catered to the success of many different record industry professionals like Jessica Cole, Owen Husney, and Gail Vareilles; just to name a few. NARIP gives record industry professionals an opportunity to meet and interact with fellow peers in the industry, connects them with mentors, and even lists their resumés in a database for industry employers. The NARIP prides itself in helping others get and stay connected.

     The NARIP hosts events called NARIP Music Supervisor Sessions, which is currently influencing the management industry because their various artist managers, music catalog owners, producers, etc. who are attending the NARIP music supervisor events in hopes of landing music placements in television, film, game, and even advertisement. The NARIP Music Supervisor Sessions allows rights holders, and others that represent different music catalogs an opportunity to share musical content for guest music supervisors. Now, the guest music supervisors at these events are able to listen to the members work and give feedback regarding their musical needs. For instance, take NARIP member and artist manager Owen Husney (who managed and discovered Prince, by the way.) attended an NARIP’s music supervisor session where Gary Calamar was the special guest music supervisor. Husney share with Calamar remixed versions of Beatles songs recorded by an unsigned artist.  Calamar enjoyed Husney's presentation and then placed the Beatles song “I Wanna Be Your Man” performed by Mobley in an episode of True Blood. Talk about success!

     NARIP is a well-respected record industry association, and I plan on becoming a member of the organization in the near future of my career. Becoming a member of this association doesn't come easy. In order to become a member one must work at a major or independent label, record distributor, record marketing or personal management firm. Members are able to gain access to large networks of top professionals through contact lists, receive discounts, access to their professionals employers database, and receive low cost consultations from industry experts. NARIP is continually shedding light on, and offering life changing career opportunities for many record industry professionals in today's record market.

"JK Rowling: Benefits of Failure"

     Harry Potter founder and creator JK Rowling have deeply inspired me in her commencement speech to Harvard University graduates. In her speech,  she shares with the graduating class two things that are important to her. First, is the “Benefits of Failure” and second, is the “Importance of Imagination.” Many in the audience seemed entertained and inspired because many of them were nodding their heads in agreement. JK Rowling took a particularly subtle humorous approach when delivering her speech. She let us all know that things were not always perfect for her.

     Like many successful men and woman, Rowling had to overcome adversity. Raised in a household where both parent stricken by poverty, Rowling always wanted the best for herself, and so did her parents. Rowling shared with the audience her benefits of failure. She says her fears of failure helped her better prepare for tests in college and it also, taught her more about herself. After suffering from a failed marriage, losing her job, and becoming a single parent. Rowling then realized that she failed herself.  Rowling then goes on to say, “Failure is inevitable. It is impossible to live a life without failure.” By her coming to the realization, she has failed it only brought the importance of her imagination.

     Author JK Rowling informs us all that there are benefits from failure. Failure gives us lessons to learn from. It helps mold our character and humanizes us all. JK Rowling encourages everyone to know the importance of imagination. Imagination allows us to tap in to the feelings of others and ourselves. “The willfully unimaginative seem more monsters. They are often more afraid”, said by Rowling. I wholeheartedly agree with this statement.

     JK Rowling’s commencement speech to the Harvard graduates was very inspiring to me because it was powerful and moving. I admire her strength and courage for all she has been through in her life. I’ve learned that life is difficult, and we have to learn from mistakes (failure) in order to grow. I also learned that the importance of imagination is key; it allows us to relate with others and depict our most treasured aspirations.

“Get an Entertainment Attorney”

   

     Entertainment attorneys are very important to ones success in the entertainment world.  Entertainment attorneys not only review and negotiate contracts, but they also can provide a public relation (PR) service to their clients to help them promote their brand. Most entertainment attorneys already have established business relationships with other executives that could be of benefit to their clients. Keep in mind entertainment attorneys “interest is their client’s success within the industry.” It is financial gain for them if they are able to help their clients.

How to get an entertainment attorney?
     Start by researching good entertainment attorneys. Pickup local newspapers or YellowPages phonebooks and check out the ads for different entertainment law firms. There are even sites out there like Lawyers.com and BestLawFirms.com that could be of a big help when locating an entertainment attorney locally or nationally. Please, collect as much information as possible about many potential entertainment attorneys, and then weigh the options in selecting one that meets all needs.

Helpful Tips: After Selecting an Entertainment Attorney.
    • Pay for some consultation sessions and start building a working relationship with a
      reputable entertainment attorney.
    • Get counseled as much as possible. (Advice for future endeavors)
    • Get them to draw up some customary contracts, if possible.
    • Become a routine client.
    • Ask for help regarding connections on getting a project passed along or created.
      (The project may end up in the right hands)

     Entertainment attorneys are good to have if one is looking to expand in the industry, they can put their clients in proper connections with others and also keep them protected. Entertainment attorneys are well-connected, valuable, and well-respected within the entertainment industry. They are always current on the things that are happening within the industry. So, after finding the right entertainment attorney; try to meet with them at every chance. It could prove to be highly beneficial in the success of a person's entertainment career. (Whether it is the artist or manager.)

"Never Be Afraid To Lead The Pack"

Many of us have our own definition on what a leader is. With that being said, many of can agree to the fact that a leader cannot be a leader without having followers. Try finding a leader that does not have followers, it is impossible. A leader leads by example and doesn't follow a pack. Take a look at this YouTube video I came across about leadership:

"3 Things You Should Consider When Negotiating A Management Agreement"

          Okay, so a guy is preparing to manage this new talented artist. Both the guy and the artist have agreed that the guy (the manager) will now be in charge of managing the artist’s entertainment career. Now, what should I do next? (the guy may ask) Remember agreements can be easily said amongst each other, but it is best to get the agreement documented. So, I came up with 3 things everyone should consider when negotiating a management agreement. It does not matter if you are the artist, or the manager this information could be helpful.

#1 - Negotiate the management term.

      When negotiating the term, keep it simple. The term is simply the length of time that both parties will remain in agreement. In an article, Robert A. Celestin from RAC Entertainment Law Firm says, “Typically,the term of an artist management agreement is 3 – 5 years.” The great thing about agreements is that everything can be negotiated. So if one is not sure about the duration of the agreement (term) lasting 3-5 years. It is okay to shorten the term or even enter a probationary period (also known as a trial period). I am personally a fan of trial periods; it allows both parties a chance to test the dynamics of the personal and business relationship. One can also include in the term agreement a benchmark that allows the agreement to be extended if the artist gets a record deal or movie role etc. Always remember to negotiate the term (duration of the agreement) in every management agreement.

#2 - Negotiate the scope of service.

      On YouTube, entertainment attorney Richard Jefferson talks about negotiating the scope of service in a management agreement. Jefferson talks about how it is best to determine the scope of service in the early stages of the management agreement process. When negotiating the scope of service, one is simply asking the question “What exactly are you going to do for me?” The artist is typically the person asking the following question. In the management agreement, it is best to cover what the manager’s managerial duties are. Some managerial duties or the manager’s scope of service in an agreement may state that the manager is responsible for all booking and contractual agreements regarding musical performances. The scope of service could even limit a manager from fulfilling other task that may be beneficial to the artist. For example, if the scope of service in the agreement only allows the manager to manage the artist musical career. The manager has to do just that. By chance if a movie/television role were to be offered to the talent, the manager is unable to negotiate any deals because that was not a scope of service negotiated upon both parties.  The artist may have a talent agent that handles all of the movie/television appearances. So make sure to clarify all of the managerial duties in the agreement. Choosing to negotiate the scope of service helps both parties understand their responsibilities, and it limits any confusion in their agreement.

Last but not least…

#3 - Negotiate the management commission.

      Now on to the following topic everyone loves, and that is money. Whenever there is money involved in anything, it is especially important to have agreements negotiated and documented by both parties. No one wants to be the one getting over or under. That is why negotiating the management commission is a very vital step in the agreement process. “Artist managers get paid a percentage (i.e., a “Management Commission”) of an artist’s gross income earned during the term.” Typically most management percentages range from 10% – 20%. As a helpful tip, determine in the agreement the commissionable activities. When negotiating the commissionable activities both parties are specifying what can be deemed as commission for the manager. This can be helpful to an artist that has already invested time in to their career. For example, if the artist is still gaining income from a previous established business relation. The artist can then negotiate somewhere in the agreement that the manager makes no commission from the established business relation; already set up prior to the management agreement with the manager. Also, both parties should try to agree on hiring a neutral accountant. Hiring a neutral accountant will alleviate money problems regarding expenses and commission cuts. Some may feel talking about money complicates things, but it should not. Negotiating management commission not only protects the artist, but the manager, as well.

     Keep in mind that these are just a few things everyone should consider when negotiating a management agreement. That is to negotiate the term, the scope of service, and the management commission. All considerations could be vital in anyone's next management agreement.

Thanks for reading!

 Jacques C. Louismé

"How good are your management skills?"

     No matter what entity you may fall in, there are many ways to properly manage effectively. In the entertainment business, some management skills may consist of communicating, collaborating, appointing responsibilities, constant decision making, encouraging others, and many more.  Depending on the outcome of your management skills you can either manage effectively or ineffectively. Thus, bringing forth the question “How good are your management skills?”

    

     This week I visited MindTool.com and I read an article posted on the site discussing management skills. There were many helpful tips relating to proper management skills and even a “How good are your management skills?” quiz. The management quiz posted on MindTool.com helps readers recognize and understand areas in which they are strong and weak in their management skills. The quiz consists of 20 questions. Asking questions like, when I have a problem, I try to solve it myself before asking my boss what to do? And when I delegate work, I give it to whoever has the most time available. Once you complete the quiz the site provides you with sources to better strengthen your management skills today and throughout the future of your career.

     I decided to take the quiz to get a better understanding of my management skills. The highest possible score to receive is 100. I received a whopping score of 81. How much I like to think that I have flawless management skills, to the contrary, I need improvement in certain areas. Some areas in which I need a little improvement in is Managing Discipline and Dealing with Conflict and Avoiding Common Managerial Mistakes.  What I like most about taking the quiz is that right below your score; you’re able to receive a detailed analysis about your management skills. It is like the quiz tailors to your needs and allows you to identify the areas that need or doesn’t need improvement within your management skills.

     I would recommend that you go take the “How great are your management skills?” quiz today. See what things you need improvement in and what are some things you're already doing well within your management skills.