Any of us who have ever watched VH1, Behind The Music know the story of the band or artist who lost his shirt because he didn�t have his head in the game when the financial and legal arrangements were made early in their career. Or sometimes the problem is the artist just wants to play and live the life of a performer and just doesn�t pay attention to the money trail, where it comes from and where it goes.
From Ted Nugent to TLC to John Fogerty and Prince, problems with contracts and record companies, accountants and lawyers seem to plague musicians in every era of the evolution of popular music. Do you ever wonder why it happens like that?
Well there are several plausible explanations.
* The eagerness to get going. A young performer or band finally gets that break and has a chance to make a record or get on that break-through tour. In their eagerness to land that all important contract, they agree to some deals that cripple them for decades to come.
* The Wrong Self concept. When an artist is starting out, he or she will tend to see themselves as an amateur with a hobby. Few young performers see themselves as professionals and as successful performers down the road. So when the chance to get a recording contract comes, they have little to loose. That �what the heck� attitude can lead to foolish spur-of-the-moment decisions that you can regret months or years later.
* Bad advice. Like it or not, there are crooked people in the world. If your management or accountant is not looking after your best interest, they could easily guide you in a way that is not good for you career. The result could be lost money to you or even the inability to play and perform when your career is in full bloom.
DOING YOUR HOMEWORK
The time to research how the money flows in the music business is not after your first big hit and in the middle of your first big tour. No, even though you may not yet be a huge star, now is the time to get an understanding of the nuts and bolts of the business side of the music business. Here are some topic areas that are worth some research on your part:
* How does an artist get paid for his work in the music industry? Research recoupments, royalties and what you can expect as you begin to get creative material on the market.
* What is the role of the music publishers, Performance Rights Organizations and your management? How much is their �cut� and how can you know if they are treating you fairly?
* How can you set up your financial systems so that the money due to you will be safely paid to you even if you are not around to manage it and so that it will be safely cared for and invested.
* Who can you trust and how to verify that you are dealing with solid business people who are looking out for your best interest?
* What about investments? If you begin to see a significant amount of money coming in, should you leave it sitting in a checking account or buy The Dallas Cowboys? Seriously, what kinds of investments are best to protect and grow your financial holdings?
* How do you work with an accountant? Are certain accountants better at dealing with musicians than others are and how to find a good one that you can depend on?
* How do you track and keep tabs on your money even if you are on a busy touring or recording schedule? What kind of reports should you have delivered to you and how should you get them? Is this a place where the internet can help?
Some of these questions you can research by reading articles or online But don�t overlook the knowledge of those who have already set this up or been trough certain ordeals. Discuss these topics with successful bands and musicians and get some references and tips on how to handle the flow of money that will come once your art is discovered.
LEGAL JUNK
Try as we might, there are a lot of legal documents and lawyer stuff involved with a successful musical career. Part of building a business relationship with your agent, your record company, touring agencies and many other business that will be part of your team as your career expands, you will have to deal with that dreaded word
by Ty Cohen
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