YOUR FMP AND THE MUSIC BIZ

MUSIC BUSINESS PART 3 LIVE MUSICSALARY

FREELANCE

COMMISSION

ENTREPRENEURSALARY - PER WEEK/MONTH/YEAR NO FIXED PERIOD (UNTIL RESIGNS/SACKED)

FREELANCE

COMMISSION

ENTREPRENEURSALARY - PER WEEK/MONTH/YEARNO FIXED PERIOD (UNTIL RESIGNS/SACKED)

FREELANCE- PER HOUR/DAY/WEEK/YEAR FIXED PERIOD (DAY/WEEK/MONTH ETC)

COMMISSION

ENTREPRENEURSALARY - PER WEEK/MONTH/YEAR NO FIXED PERIOD (UNTIL RESIGNS/SACKED)

FREELANCE- PER HOUR/DAY/WEEK/YEAR FIXED PERIOD (DAY/WEEK/MONTH ETC)

COMMISSION - % PER 1 MADE BY COMPANY/CLIENT NO GUARANTEED EARNINGS

ENTREPRENEURSALARY - PER WEEK/MONTH/YEARNO FIXED PERIOD (UNTIL RESIGNS/SACKED)

FREELANCE- PER HOUR/DAY/WEEK/YEAR FIXED PERIOD (DAY/WEEK/MONTH ETC)

COMMISSION - % PER 1 MADE BY COMPANY/CLIENT NO GUARANTEED EARNINGS

ENTREPRENEUR- SEEKS PROFIT ON INVESTMENT OF TIME/HIGH RISK (HIGH POTENTIAL PROFIT/LOSS) MORRISONS STORE MANAGERMUSICIANS ACCOUNTANTMUSICIAN (SESSION PLAYER)MUSICIAN (ARTIST, SONGWRITER)RECORD LABEL EMPLOYEELIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANTMUSICIAN (SESSION PLAYER)MUSICIAN (ARTIST, SONGWRITER)RECORD LABEL EMPLOYEELIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)MUSICIAN (ARTIST, SONGWRITER)RECORD LABEL EMPLOYEELIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)RECORD LABEL EMPLOYEELIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEELIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIANSTUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER) FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEERGIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER GIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEEINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNERMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNER-ENTREPRENEURMUSICIANS LAWYERARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNER-ENTREPRENEURMUSICIANS LAWYER- FREELANCE (PER HOUR)ARTIST MANAGERTOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNER-ENTREPRENEURMUSICIANS LAWYER- FREELANCE (PER HOUR)ARTIST MANAGER- COMMISSION (20%)TOUR MANAGERBOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNER-ENTREPRENEURMUSICIANS LAWYER- FREELANCE (PER HOUR)ARTIST MANAGER- COMMISSION (20%)TOUR MANAGER-FREELANCE (PER DAY)BOOKING AGENTMORRISONS STORE MANAGER-SALARYMUSICIANS ACCOUNTANT-FREELANCE (PER HOUR)MUSICIAN (SESSION PLAYER)-FREELANCE (PER DAY)MUSICIAN (ARTIST, SONGWRITER)-ENTREPRENEURRECORD LABEL EMPLOYEE-SALARYLIVE SOUND TECHNICIAN- FREELANCE (PER DAY)STUDIO ENGINEER-FREELANCE (PER DAY)GIG PROMOTER -ENTREPRENEURGIG PROMOTERS EMPLOYEE-SALARYINDEPENDENT LABEL OWNER-ENTREPRENEURMUSICIANS LAWYER- FREELANCE (PER HOUR)ARTIST MANAGER- COMMISSION (20%)TOUR MANAGER-FREELANCE (PER DAY)BOOKING AGENT- COMMISSION (10%)CASE STUDYLONDON ASTORIA 2009WE ARE SCIENTISTS

FIGURES COURTESY OF;TOUR MANAGER; PETER KENT (OASIS, ARCTIC MONKEYS, PRODIGY)ACCOUNTANT; CC YOUNG AND CO.WHO MAKES THE DOLLAR BILL?ENTREPRENEURS -SIMON MORAN (SJM/PROMOTER)-WE ARE SCIENTISTS (4 PIECE BAND)COMMISSION-BIG LIFE MANAGEMENT (ARTIST MANAGERS W.A.S.) 20%-PRIMARY TALENT (BOOKING AGENT W.A.S.) 10%FREELANCERS-ARTIST CREW-PETER KENT (TOUR MANAGER)SALARIED-VENUE STAFF-PROMOTERS EMPLOYEES-BOOKING AGENTS EMPLOYEES-ARTIST MANAGERS EMPLOYEES

WHAT DOES THE PROMOTER DO?SPOTS A BUSINESS OPPORTUNITY

NOTICES THE LONDON ASTORIA UNBOOKED FOR A GIVEN DATE

CREATES A BUSINESS PLAN TO FILL IT AND MAXIMISE PROFITSSIMON MORANS (SJM) MATHS.

ASTORIA 2000 CAPACITY

REASONABLE TICKET PRICE = 25

MAXIMUM REVENUE 2000 X 25 = 50000

HE NEEDS AN ACT TO FILL IT SO HE CALLSSCOTT THOMAS (ITB) BOOKING AGENT

REPRESENTS RADIOHEAD, KASABIAN, ANTHONY AND THE JOHNSONS, MANY OTHERS, AND.. WE ARE SCIENTISTS. SJMS MAXIMUM REVENUE IS 50K

STANDARD DEAL BETWEEN PROMOTER AND AGENT IS 50:50, SO SJM SAY TO ITB WELL PAY YOU A GUARANTEED 25K TO BOOK WE ARE SCIENTISTS

ITB SAY OK, BUT CONTRACTUALLY WE INSIST YOU SPEND 4500 ON PROMOTION

SJMS REVENUE AND COSTS50 K REVENUE (MAX)

COSTS;25K TO ITB TO BOOK THE BAND4500 PROMO (XFM RADIO SPOTS, GUARDIAN, Q MAGAZINE PRINT ADS)9000 VENUE HIRE4700 CONTRIBUTION TO VENUE STAFF AND SECURITY=18200 TOTAL COSTS

ESTIMATED PROFIT =6800 ITB THE BOOKING AGENT HAVE A GUARANTEED 25K OFFER FROM SJM

FIRST THING HE DOES? ITB THE BOOKING AGENT HAVE A GUARANTEED 25K OFFER FROM SJM

FIRST THING HE DOES?

DEDUCTS HIS COMMISSION OF 10% ITB THE BOOKING AGENT HAVE A GUARANTEED 25K OFFER FROM SJM

FIRST THING HE DOES?

DEDUCTS HIS COMMISSION OF 10% = 2500

PHONES BIG LIFE MANAGEMENT SAYS IVE GOT YOU A GUARANTEED 22500 TO PLAY AT THE ASTORIA. HOW ABOUT IT?

FIRST THING THE MANAGEMENT DOES? DEDUCTS THEIR COMMISSION. 20% OF 22500 = 4500

PHONES UP PETER KENT, THE TOUR MANAGER AND SAYS WEVE BEEN OFFERED A DATE AT THE ASTORIA, FOR A FEE OF 18000. DRAW UP A BUDGETRECAPSJM (PROMOTER) 2000 PEOPLE X 25 = 50000 (AFTER COSTS PROFIT OF 6800)

50:50 DEAL WITH ITB (BOOKING AGENT) WHO COMMISSIONS 25K AT 10% GIVING HIM AN INCOME OF 2500 LEAVING A REMAINING FEE OF..

22500 COMMISSIONED AT 20% BY BIG LIFE MANAGEMENT GIVING THEM AN INCOME ON THE SHOW OF 4500 LEAVING A REMAINDER OF

18000 WHICH IS PASSED ON TO THE TOUR MANAGER (PETER KENT) TO DRAW UP A BUDGET.

FIRST THING HE DOES.

TOUR MANAGER 3 DAYS @ 250 PER DAY = 750TOUR MANAGER 3 DAYS @ 250 PER DAY = 750SOUND ENGINEER 1 DAY @ 200 PER DAY = 200TOUR MANAGER 3 DAYS @ 250 PER DAY = 750SOUND ENGINEER 1 DAY @ 200 PER DAY = 200MONITOR ENGINEER 1 DAY @ 200 PER DAY = 200TOUR MANAGER 3 DAYS @ 250 PER DAY = 750SOUND ENGINEER 1 DAY @ 200 PER DAY = 200MONITOR ENGINEER 1 DAY @ 200 PER DAY = 200LIGHTING ENGINEER 1 DAY @ 175 PER DAY = 175STAGE MANAGER 1 DAY @ 225 PER DAY = 225INSTRUMENT TECHS X 3, 1 DAY@ 200 EACH PER DAY = 600WARDROBE/STYLING 1 DAY @ 175 PER DAY = 175DRIVER 1 DAY @ 125 PER DAY = 125 TOUR MANAGER 3 DAYS @ 250 PER DAY = 750SOUND ENGINEER 1 DAY @ 200 PER DAY = 200MONITOR ENGINEER 1 DAY @ 200 PER DAY = 200LIGHTING ENGINEER 1 DAY @ 175 PER DAY = 175STAGE MANAGER 1 DAY @ 225 PER DAY = 225INSTRUMENT TECHS X 3, 1 DAY@ 200 EACH PER DAY = 600WARDROBE/STYLING 1 DAY @ 175 PER DAY = 175DRIVER 1 DAY @ 125 PER DAY = 125ACCOMODATION COSTS = 1750CATERING = 950TRANSPORT = 650EQUIPMENT HIRE = 675PDS 7 PEOPLE 75 PER DAY X 2 DAYS = 1050FLIGHTS = 2250INSURANCE = 1750 TOUR MANAGER 3 DAYS @ 250 PER DAY = 750SOUND ENGINEER 1 DAY @ 200 PER DAY = 200MONITOR ENGINEER 1 DAY @ 200 PER DAY = 200LIGHTING ENGINEER 1 DAY @ 175 PER DAY = 175STAGE MANAGER 1 DAY @ 225 PER DAY = 225INSTRUMENT TECHS X 3, 1 DAY@ 200 EACH PER DAY = 600WARDROBE/STYLING 1 DAY @ 175 PER DAY = 175DRIVER 1 DAY @ 125 PER DAY = 125ACCOMODATION COSTS = 1750CATERING = 950TRANSPORT = 650EQUIPMENT HIRE = 675PDS 7 PEOPLE 75 PER DAY X 2 DAYS = 1050FLIGHTS = 2250INSURANCE = 1750 TOTAL COSTS = 11525 BUDGET = 18000

PROJECTED COSTS = 11525

PROJECTED PROFIT = 6475 SO IF THE SHOW SELLS OUT.SJM WILL MAKE 6800SJM WILL MAKE 6800ITB (BOOKING AGENT) 2500SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS

SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

(FOUR PEOPLE IN THE BAND 6475 DIVIDED BY FOUR)SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

(FOUR PEOPLE IN THE BAND 6475 DIVIDED BY FOUR)OH, AND THEY HAVE TO PAY TAX ON THATSJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

(FOUR PEOPLE IN THE BAND 6475 DIVIDED BY FOUR)OH, AND THEY HAVE TO PAY TAX ON THATBUT WAIT A MINUTE?SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

(FOUR PEOPLE IN THE BAND 6475 DIVIDED BY FOUR)OH, AND THEY HAVE TO PAY TAX ON THATBUT WAIT A MINUTE?I THOUGHT THE MANAGER AND BOOKING AGENT WERE ON 20% AND 10% OF WHAT THE BAND MADE?SJM WILL MAKE 6800 PROFITITB (BOOKING AGENT) 2500BIG LIFE (MANAGERS W.A.S) 4500THE SINGER FROM WE ARE SCIENTISTS1618.75

(FOUR PEOPLE IN THE BAND 6475 DIVIDED BY FOUR)OH, AND THEY HAVE TO PAY TAX ON THATBUT WAIT A MINUTE?I THOUGHT THE MANAGER AND BOOKING AGENT WERE ON 20% AND 10% OF WHAT THE BAND MADE?MANAGERS AND AGENTS COMMISSION ON GROSS INCOME, NOT PROFIT. YOUR LIVE EVENTSUGGEST VENUE?

CAPACITY

TICKET PRICE, REVENUE?

COSTS?

BREAK EVEN?

MY EVENT- TTKK PROMOTIONSVENUE; NEW CROSS INNCAPACITY; 155TICKET PRICE; 4MAX REVENUE; 600COSTS; ARTISTS 300 MAXHEADLINE 150 MAX (75 GUARANTEE + 1/TICKET) 75 PEOPLE FOR MAX FEE1ST SUPPORT 90 MAX (40 GUARANTEE + 1/TICKET) 50 PEOPLE FOR MAX FEE2ND SUPPORT 60 MAX (30 GUARANTEE + 1/TICKET) 30 PEOPLE FOR MAX FEEREMAINING PROFIT = 300 MINIMUM ON SELL OUT.VENUE HIRE = 0, SOUND ENGINEER = 75, FLYERS 80 (500) = 155MAX PROFIT = 145BREAK EVEN AT 75 PEOPLE (4 X 75 = 300) (MIN COSTS 145 ARTISTS/80 FLYERS/75 ENGINEER = 300)