At least once a week, sometimes twice, I get a call from an aspiring musician or singer asking whether the proposed contract he’s just received from a producer/manager is fair and reasonable. Usually, the caller has performed locally for many years, but knows very little about the business side of music and has never cut a first-class demonstration recording ("Demo").

Now, he’s ready to sign with someone who, he thinks, can get him a record label contract. He really, really wants to sign this contract, but also wants to know whether he’s getting noticed or getting taken.

Oh yes, I forgot to mention that there is often a hook. Sometimes, the producer/manager is about to speak with a "major label" about this artist. Sometimes, there is the promise of tour or club appearances. Sometimes, the producer/manager knows radio DJs and, for little or no money, he will prepare a Demo of the artist’s best music. And, almost always, the contract must be signed by the end of the week.

Important Questions To Ask
These circumstances are not promising, but in fairness to the many good managers and producers I know, a few more questions should be asked. For example:

• What is the producer/manager’s prior experience in the business?
• Does he/she work with any known artists or labels?
• What specific services will the producer/manager provide?
• How much is the producer/manager’s "up-front" compensation?
• What is the producer/manager’s royalty and who pays it?
• Is the producer/manager asking for ownership of the artist’s work?
• Who has final say with respect to the artist’s other agreements?
• Is the proposed agreement exclusive?
• Who owns and controls the artist’s master Demos?
• How long does this agreement last and who can terminate it?
• Is the artist required to use the producer/manager in all future recordings?
• Does the producer/manager require a percentage of artist’s income?
• Is the contract tailor-made or is it simply copied from a form book?

Producer Agreements
Making the artist sound his best and preparing master recordings which meet the demanding technical requirements of a music label are the music producer’s primary tasks. Not surprisingly, good producers are in demand and work with many artists and labels.

Typically, the music producer’s "up-front" compensation ranges from several thousand dollars to tens of thousands of dollars per song. Often, half is due on execution of the production agreement and half is due on "delivery" of the master to the artist or the record label. Normally, the producer is allowed a specific recording budget to pay for studio time, editing and recording engineer fees and, as "back-end" compensation, the producer will receive a royalty (often 3 percent, pro rata) on the sale of the album, based upon the artist’s agreement with his record label. Unless otherwise specified, the producer is normally responsible for obtaining copyright clearances for the use of songs (or pieces of songs–called "sampling") which might be contained in the artist’s recording.

Local producers sometimes work "on spec" meaning that most of the producer’s fee will be paid when, and if, the song is picked up by a record label.

Importantly, whether paid for or done on spec, the Demo should be produced as a "work made for hire" which means that under U.S. Copyright law the artist or record label, not the producer, will be the owner of the Demo.

Producer/Manager Agreements
The producer/artist relationship is a creative collaboration where the producer works for the artist or his record label. Problems arise, however, when the producer takes on additional roles such as agent or manager and begins to control to artist’s career. Suddenly, the roles are reversed and the artist works for the producer/manager who is now entitled to a percentage of his earnings and an ownership interest in his copyrights. Suddenly, it is the producer/manager who negotiates his contracts and decides when he appears. The artist may find that not only has he lost control of his Demo masters, but he has also lost control of his career. Often, the artist, who simply wants to sign with a major label, has no idea that he has given up control. The producer/manager gives him a single, short agreement (sometimes copied from a book of legal forms) which looks entirely professional and completely "standard." If challenged, the producer/manager may argue that he is entitled to benefit in his success because it is based on his work and, sometimes, his investment of money which was needed to prepare the artist’s Demo recordings. The artist trusts the producer/manager, so he signs his documents and hopes for the best, ignoring the fact that meaningful contracts with major labels are exceedingly rare.

This is not to say that all producer/managers arrangements are bad, but like kissing a porcupine, they must be approached with great care. Some artists have no money to pay for Demo recordings and they would never get near a studio without help from someone else. But if a producer/manager intends to wear a number of different hats, then he should have a number of different contracts which spell out, clearly and fairly, the rights and obligations of each party. It takes time and effort to think it all through.

Just don’t call me on Wednesday to ask whether you should sign a producer/manager contract by Friday. You know what I’ll say.

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