What income does a manager take commission on?

Generally the artist's gross earnings across the board – touring, recording royalties and advances, merch, sync, brand deals, appearances – not just deals the manager personally sourced. Publishing is the most negotiated; it's sometimes excluded or commissioned at a reduced rate.

Should a manager commission a record advance?

Managers often do, but the artist should carve out the part of the advance earmarked for recording costs. Commissioning the whole advance means paying commission, in cash now, on money that's really a recoupable loan and partly goes straight to making the record.

Is touring commissioned on gross or net?

Often net, or gross minus the pass-through costs – sound, lights, opening acts, crew, agency fees. Touring is high-cost and can lose money, so commissioning the full gross can leave the artist paying commission on income they didn't keep.

What income a manager commissions

A manager's commission usually applies broadly – to the artist's gross income across touring, royalties, merch, sync and brand deals. But the base is negotiated hard: certain costs and pass-through money get carved out, and high-cost streams like touring and merch are often commissioned on net. The definition matters as much as the rate.

The default: gross, across everything

Most management deals commission the artist’s gross income, across nearly all of it – touring and live, recording royalties and advances, merch, sync, endorsements, appearances. And it usually applies to all the artist’s income during the term, not just deals the manager personally landed, because the manager is running the whole career. True net deals exist but are rare.

What gets carved out

The artist negotiates specific things out of the commissionable base – money that passes through them but they don’t really keep:

Recording costs / recording funds – label money earmarked for making the record shouldn’t be commissioned; it goes straight to studio, producer and engineers
Tour support and production costs – sound, lights, opening acts, some crew, promoter and agency fees
Money paid to third parties – producers, co-writers, session players the artist never keeps
Pre-existing deals – income from contracts signed before the manager came on
Passive, non-entertainment income – ventures the manager has nothing to do with

Why the definition matters as much as the rate

15% of gross and 15% of net are different checks – and on a high-cost stream the gap gets ugly. On a tour that barely breaks even, commission on the full gross can be more than the artist’s actual take-home. That’s why touring is often commissioned on net (or gross minus those pass-through costs), and merch too – you deduct manufacturing and shipping before the cut. A common shorthand: net on merch and touring, gross on most else. See gross vs net for the mechanics.

Record advances and publishing: the two to watch

Advances are commonly commissioned, but the artist should exclude the recording-fund portion – otherwise they pay commission, now, on money that’s really a recoupable loan, part of which goes straight to recording. Publishing is the most negotiated stream of all: some managers don’t commission songwriting income, some take a reduced rate, some commission it fully – it often depends on whether the manager actively works the songs for sync and deals. Pin both down in the agreement rather than leaving them to argue about later. (General education, not legal advice.)

Common questions

What income does a manager take commission on?: Generally the artist's gross earnings across the board – touring, recording royalties and advances, merch, sync, brand deals, appearances – not just deals the manager personally sourced. Publishing is the most negotiated; it's sometimes excluded or commissioned at a reduced rate.
Should a manager commission a record advance?: Managers often do, but the artist should carve out the part of the advance earmarked for recording costs. Commissioning the whole advance means paying commission, in cash now, on money that's really a recoupable loan and partly goes straight to making the record.
Is touring commissioned on gross or net?: Often net, or gross minus the pass-through costs – sound, lights, opening acts, crew, agency fees. Touring is high-cost and can lose money, so commissioning the full gross can leave the artist paying commission on income they didn't keep.