Ways Artists Destroy Their Careers: Hire Your Mother As Your Manager

This is a bit facetious and might make some people angry.  I'm not picking on mothers!  However my opinion is based on my experience and observation.  Unless they are proven music industry professionals -- hopefully managers -- do not hire your mother, father, uncle, cousin, brother, next door neighbor, boyfriend, etc. to manage your career.  Rather than destroying a career this is often a way to stop a career dead in its tracks on the way to the launch pad.  Even if the relative or friend is a proven personal manager, still give it some serious thought.  More than one artist has ended up suing their father or other relative over the way their relative handled their career.  Tragically then the breakup is not only a business one but a personal one.

Assume you work for a record label and it is your job to decide whether or not a budding artist is going to be signed.  Assume further that you have three extraordinarily talented young artists to choose from.  Depending on the size of your label you will be committing anywhere from $500,00 to $1,000,000 or more to “break” the artist.  Choose wrong too many times and your job might be in jeopardy - indeed everybody’s job at the label given the state of the music industry today.

Given those facts, do you care who the artist’s professional team is?  Of course you do.  These people can help or hinder the road to success for the artist, you and the label.  Artist number 1 has no manager at all.  Artist number 2 is managed by a successful industry manager.  And artist number 3 is managed by her mother who is the successful owner of a local bakery.  All things equal, which artist will you sign?  Number 2 of course. Second choice (first in the case of some record people) will be artist number 1 since the label will have the opportunity to make manager suggestions to the artist.

Relatives - particularly close relatives like mothers and fathers - are not always able to exercise cool objectivity and professionalism when needed.  They love their children and want to protect them for sure.  A noble cause but not necessarily best when it comes to making business decisions.  Music industry gatekeepers know this.  They have learned it the hard way.  There was a time when I presented unsigned artists to labels in hopes of procuring a recording agreement for my client.  Even though I had strong relationships at the labels I learned that some would not even let me in the door if I had mentioned that mom or dad would be involved in career management.  One powerful producer told me that he did not want to even listen or see a picture of an artist managed by a relative for fear he might like the artist and sign them.  I believe that reinforces the point I am trying make.

There have been artists managed by one parent or another who have become quite successful.  To the best of my knowledge there aren’t that many.  Some have overcome the “parent” hex and turned out to be competent music industry managers (Joseph Jackson).  But even then some of those have had very public parent-child arguments and eventual break-ups - both professionally and personally (Leann and Wilbur Rimes). So as a rule if you have aspirations of becoming a successful recording artist, and have reached the age of majority and have a choice, think twice before committing the guidance of your career to a inexperienced parent or other relative, no matter how good your and their intentions might be.

Music Business - Advice Not Taken

Over the years I have represented a number of bands and individuals trying to break into the music business.  Most all of my clients now are established companies and artists but I am pretty sure that the beginners are still making the mistakes that they always did. 

One such mistake is ignoring the advice of the professionals they are paying for advice.  A songwriter client of mine turned down an opportunity to work with an established music publisher because his friends told him he was being “screwed” in the deal.  The songwriter had an experienced music industry manager and an experienced music attorney (me) who were able to secure this opportunity for the writer.  Very little money was going to change hands in the deal but for an unknown these days to even get a major independent publisher to pay for the demos and have their professional creative directors pitch the songs is rare.  And the deal was for a reasonably short period of time.  A great opportunity to launch a career.  And in this case the only opportunity for this writer.  In a slow music business economy I have seen established songwriters with prior hits take deals like this.  But it just wasn’t good enough for my client . . . and his “friends”.

Did I mention that none of the friends were successful music industry songwriters?  None had achieved any significant level of success in the music business.  Why then would my client have taken the advice of their friends over that of a professional artist manager and a veteran entertainment attorney?  I really don’t know the answer.  But he was dropped by the manager shortly after that and to the best of my knowledge isn’t any farther along in his career than when I last talked to him.  Hopefully he and his friends are doing well.

Sometimes it is family advice that kills the career of an aspiring artist or songwriter.  Advice from family members who know nothing about the music business of course.  I have seen it happen. And I am sure it is hard for the writer or artist to ignore the advice of those he or she loves.  The damage is not the advice - it is taking the advice over those who know better.  The poison might exist be cause the advice given is just plain wrong or ill advised.  Or it might be because the relative wants to launch their own career as a music business mogul.  Those of us in the business have seen the latter as have the general public when law suits are filed among the family.  I don’t doubt that most parents who give advice to their children are doing it out of love.  But that still doesn’t make it good advice.

Another situation that I found particularly heart breaking is the case of the artist who believed that he should hire an expensive producer to produce his first indie album solely because the producer used to be successful.  I don’t believe that should be enough.  I told them that I could get a producer for them in the same music genre for a third of the cost.  A producer who was known as an up and coming producer/songwriter in the industry.  A producer who had produced a top 5 project just the year before.  And did I mention - for a third of the cost?

The artist did not even want to listen to the work of the newer producer.  That would be fine if this had been all about the artist spending his own money for an album that he only wanted to have available to sell on his own website and at engagements.  However, the artist had no money.  The parents of the artist had no money.  But they borrowed the money to pay the more expensive producer.

That artist and his parents certainly had the right to hire the producer of their choice.  But in my opinion they certainly should not have made a decision of this magnitude without even investigating the options.  Especially considering the financial impact on the parents.  Fast forward just a few years.  Last year the producer I recommended had 4 number one singles on the charts and is in demand as a producer.  And his fees and royalties are now greater than the producer that my client hired.

As an end note, please know that I recognize and have worked with artists and writers whose friends and family know how to be supportive without endeavoring to be advisors about business specific matters of which they know nothing. Investigate your options if you have them.  Many writers and artists do not choices.  If your manager or other professional gives you advice you don’t have to take it - but in my opinion you really should give it some weight as you make your career decisions. Ultimately career decisions are yours (and should be).  Try to be smart about it!

Songwriters (and Artists) - Don’t Shoot Yourself in the Foot

I recently came across an article entitled “10 Things Not To Do In Nashville”.   The article contains a lot of advice I have given to Songwriters in my posts over the years.  It also contains advice I have not given.

For the still aspiring songwriters in the world, I thought I would share the article.  Let me know if you agree or disagree with what you read.  Click here and read on.

Most Lawyers Don't Work For Free

I am still getting regular emails and phone calls from songwriters wanting everything from me to pitch their songs to asking my fee to review a Single Song Agreement they have been offered.  Same with other artists.  Most of the writers tell me how much “everybody” thinks their songs are hits and how although they have no money to pay me now I will be greatly enriched at some future date if I work for free now.  Technically, legitimate record companies work for free at first. Personal Managers and Business Managers work for free now.  Agents work for free now.   Most entertainment lawyers I know in Nashville do not work for free now or later as a general rule.  I suppose it is supply and demand in a free market economy.  If we work for you on spec we cut into the time required to service the paying client – and as a general rule there are more than enough of those in a music industry city.

None of the foregoing artist “team members” are actually working for free.  They are working under an agreement which pays them anywhere from 5% to 20% of an artist’s gross entertainment income for a number of years into the future.  Very few of the established team members are interested in talking to artists who do not have something going on for them, although they might take on one or two development artists.

I have taken clients on a percentage basis, a practice common on the West Coast.  I have one right now but that is about my limit during any given period of time.   I wish I could help you all but there are people who depend on me for their day-to-day livelihood (including my mother - and between you and her she will win every time - :).  And honestly, if you have nothing going for you then you probably don’t need my services now anyway.  At least not until you have been offered some sort of Agreement for your talents.  On the occassion that I do work on a percent the client is normally brought to me by a manager or other industry professional.

I am only writing for myself and as a method of education for the readers who are not currently in the mainstream music business.  Nashville is not a town where many experienced entertainment lawyers work on a percentage basis.  You certainly can ask them but don’t get your feelings hurt if you get a “no”.  Just go to the next person until you find the one that shares your vision.  And if nobody hears it but you and your family and friends then you might need to change your game plan and build a career as an independent.

Two Do's and 2 Don'ts - Tips for the New Business

Recently my stepdaughter decided to leave her job at one of the major labels and become an independent designer.  Her primary expertise is album artwork.  Katie is a “creative” and has no business experience.  I shared with her a few tips about being an independent business person.  After doing this it occurred to me that many of my readers also might find this information useful.  While my “tips” are based on years of experience as a solo entertainment lawyer, they are common to most service businesses with which I am familiar.  Here we go:

1.         Do Get a Deposit.  Many artists and other creatives are very trusting – I know I am.  I have learned the hard way with new clients to either get the entire amount in advance or, at a minimum, a deposit before I begin working.  Believe it or not, there are people who will hire you, accept the fruits of your labor, and then never pay you.  If you get a 50% deposit up front at least you will have been paid something if you never get paid the balance.  Make it clear that this is non-refundable if you complete the work.  Doing this also helps the cash-flow.  However, be forewarned that if you end up with an unhappy client you might find yourself refunding the deposit.

2.         Don’t Say “No” to New Work Just Because You are Busy.  I frequently turn down new clients for various legitimate reasons such as I am not the right attorney for the job or perhaps simply because I determine that they are not the kind of client that I want to represent.  However, I do not turn down work because I am busy.  I do however let the client know a realistic time frame on when the work will be completed.  Then I let the client decide if they want to hire me.

3.         Do Have a Written Engagement Agreement.  Always have a written agreement with your client.  This isn’t surprising coming from a lawyer.  A written agreement serves a lot of purposes.  It puts in writing precisely what is expected of the person being hired and what is expected of the person doing the hiring.  If you are relying solely on an oral agreement you might unfortunately find out that as time passes people’s recollections of what was agreed to tend to get blurred.  If it is in writing and signed it is difficult for your client to claim that you said you would perform certain services when you don't recall having said that – or at least that is not what you meant.  People can have genuine misunderstandings about what is being said on the front end.  A written agreement helps clarify the important details.

4.         Don’t Forget About the IRS.  You no longer have an employer taking withholding tax and social security payments out of your paycheck.  It is all up to you now to set aside enough to pay your taxes come April 15th.  I am not a tax attorney or an accountant so I will not suggest how much you should pay and how often.  I will leave that for a discussion I recommend you have with an accountant.

Of course the above list is not all inclusive.  But it is a good start.  If you are a self-employed artist, songwriter, publisher other business person, then see how the above might apply to your business.  If you have other tips you would like to share then please do so in the comment section.

Music Business Education - Lefsetz Misses the Point

I just finished reading Bob Lefsetz article entitled "Negotiation".  He begins the article by quoting Irving Azoff at the Pollstar Awards:  “There’s no one in this room I haven’t screwed.”  The implication being this is what you need to do to succeed in the music business - and that it is a good thing.  Lefsetz then engages in a rant about the uselessness of music business education.  His argument seems to based on the belief that all music industry students have a career goal of being top power brokers and entrepreneurs in the business.  Many do I imagine but probably not the majority.

Having been an entertainment attorney for 30 years and a music business educator early on, I believe it is an accurate statement to say that my students and the students I know today do not all aspire to be at the top business pinnacles of the music industry.  In fact a large portion aspire to continue their path on the creative side of the music business and major in music business in college to learn more about the business workings of their chosen creative career path—not to become a powerful entertainment attorney, manager or record executive.  Where else could a college student meet and hear speakers from the highest levels of all areas of the music industry?  Where else would a college student have so many opportunities to intern at major labels and management companies?

And as far as having a business career, I can attest to the fact that many of the top leaders in the music business here in Nashville are graduates of the music industry degree programs at Belmont University, Middle Tennessee State University and other universities around the country.

Many of the people Lefsetz lauds as the people all students should praise are not people most of the world would want to emulate.  And for those who do, then yes, I will agree that a music business education may not be the path.  One might be better off getting the degree in entrepreneurship – or no degree at all if you have found your passion (as Steve Jobs and others suggest).  But to think that everyone wants to be like Azoff, David Geffen and others is ridiculous in this day and age.  There are many who choose a simpler life – some based on spirituality or values other than amassing power and wealth. We need the Geffens and others who built our industry.  But without the artists, the writers and the others there would be no industry.  So don’t assume that the goals and aspirations of those who Leftsetz admires are the goals and aspirations of the rest of us – including all music business students.

A Few Song Submission Dos and Don'ts

This weekend I was inspired to go back and look some of the emails I have received from hopeful songwriters.  Most were embarassingly unprofessional.  If you happen to be one of the hopefuls then let me share with you a few do’s and don’ts that came out of my review.  And I will also freely admit that there may have been a time that I violated some or all of the "don'ts" myself --fortunately I don't remember.

 DO be professional and business-like.  Most of the people you will be writing to are full-time industry professionals.  Treat them that way.

DON’T write to an industry professional in ALL CAPs, multiple colors or all italics.  I got one email written down the page with only 3 or 4 words per line, each line a different color font.  I guess that was intended to catch my intention.  It did.  I questioned the mental stability of the sender.  The email I got in all blue italics was very long, very distracting and very hard to read. 

DO send your best songs.  I got an email from someone who first told me that they wrote all their songs while in prison.  And?  I’m not sure why I should care where you wrote the songs.  When I pitched my own songs back in the day I don’t recall telling the person I pitched to that I wrote the song in the shower or in my bedroom.  Or maybe I did! Nevertheless, the bigger point is what the writer said next.  The hopeful (who sent 3 unsolicited MP3s) told me they were not his best 3 songs.  What!!?  Why would you send me your worst songs?  I don’t think I need to elaborate on this one. 

DON’T send unsolicited MP3s, photos or other large files.  That makes me angry before I even read what you want.  It is an intrusion into my space that is not appreciated.  Ask first.  I almost always agree to accept submissions or at least forward them to a song plugger, although I might suggest that you use a service like yousendit.com so I can download the files myself.

DO hire a singer.  This hopeful went to a lot of trouble explaining about the quality of his demos.  Home recordings.  I can live with that.  If the hopeful has invested in the right equipment and software the his home recordings may be very good.  However, he then explained that he sang the songs and that he cannot sing!  Seriously folks.  If you cannot sing then do not sing.  Spend a few dollars and hire a demo singer.  That doesn’t cost that much.  Why risk having your listener not be able to focus on the good qualities of your songs because they are laughing so hard at the vocals? 

DON’T tell me that you or everybody you know tells you the songs will be hits.  That only really matters if everybody you know is a successful songwriter or a&r person.  And if they are then you probably don’t need to be writing me about your songs.  Write me about reviewing the contract you were just offered.

If you are a songwriter I hope this was helpful.  If you are an industry professional I haven't told you anything you don't already know.

Artists and All Others: How to Handle Unanswered Emails and Voicemails

I just re-read a very informative blog post by Peter Bregman in the Harvard Business Review entitled “When Your Voicemails and Emails Go Unanswered, What Should You Do?"  This is an excellent read for any professional, business person or creative artist. 

Even though I rarely pitch artists and songwriters to labels and publishers, it is not unusual for me to get emails from people requesting that I do so.  They hope I will listen to their music or songs – or both.  And then present their material to labels or publishers.  Incredibly, sometimes I get emails or calls back the same day asking if I have listened yet!  I can be a bit forgiving because I assume this person really does not have any concept how busy lawyers and others in the music business are – and as I understand it in most any other business.  But even if I accept their lack of business etiquette (and sometimes downright rudeness) as understandable, I nevertheless do not accept them as clients.  I cannot represent everybody and attitude is just as important as talent, ability to pay, etc.  So when I get emails or calls from people who show impatience to this degree, it helps me eliminate this prospective client quickly on the front end.  And I certainly would not want to send someone like this to a label or other industry gatekeeper with whom I have a trusted relationship.

Now – perhaps more importantly for my artist and songwriter readers:  A&R executives, producers and others in the business are just as attuned to who is going to be trouble for them and or their company to work with and all other things being equal, it helps eliminate one CD from the stack of submitted demos piled high in their offices.

Like the author of the Harvard Business Review Blog, I have experienced the same frustration with unanswered emails and voicemails.  And I have also violated the patience advice I am giving to you.  So I need to remind myself of the advice given in the HBR Blog.

Who Owns The Performances On Your Recordings? Part 2

Continuing with last weeks subject matter, why is it when you hire musicians, producers, vocalists and others that the resulting Master tracks are not “Works Made For Hire”.  If the recording were works for hire then you as the person who paid for their creation might be considered the employer and thus the “author” and owner of the sound recording copyrights.

The idea of work for hire is an exception to the general rule that the creator of a work is the “author” and thus is automatically the owner of the copyright.  There are two kinds of works for hire.  First, a work can be considered a work for hire if it is created by an employee within the scope of his or her regular employment.  If you were to hire a vocalist to sing jingles for you full time and told the person when and where to work, then the jingle recordings might indeed be works for hire.  But that is not the situation in most recording sessions that I know about.  The artist or record label hires the musicians to come to the studio and record for that one album or for a certain number of songs on the album.  Recording that specific album is not their full time job.  They get paid for the project and not as a regular full time employee.  They are independent contractors. 

The second type of work for hire is the situation where one hires independent contractors which is the example given for most recording sessions.  In that situation every one making a creative contribution to the recording will likely be a creator of it and thus an owner of copyright along with the other musicians, vocalists, etc.  However, their work can be considered a work for hire only if two conditions are met:  (1)  the work must be intended to fit into one of nine categories listed in the copyright act AND (2) there must be a signed contract that states that the work when finished will be considered a work for hire.  That is why I stated in last week's post that without the written agreement most songwriters and artists will not own the copyright in the sound recordings they just finished recording and paying for.  Does an EP or an Album fit into one of the required nine categories?  Arguably “yes” – in category number 1 below:

1. A contribution to a collective work

2. A part of a motion picture or other audiovisual work or sound recording

3. A translation

4. A supplementary work

5. A compilation

6. An instructional text

7. A test

8. The answer material for a test

9. An atlas

The lesson:  when you get ready to go to the studio be sure you have anyone making a creative contribution to the sessions sign a work-for-hire agreement that addresses all the requirements of the Copyright Act. 

Who Owns The Performances On Your Recordings?

There seems to be a common presumption that if you pay for the recording session you automatically own the copyrights in the Sound Recordings – that is the Demo or Master tracks.  The Sound Recording copyright needs to be distinguished from the copyright in the underlying song that is being recorded. The sound recording copyright protects the performance of the song.  It protects the performance from piracy.  It prevents others from actually illegally duplicating the sound recordings – or illegally downloading the recordings owned by record labels.

The U.S. Copyright Act grants copyright ownership to the “author” of a work.  In most instances this would be the creator – anybody who made a creative contribution to the work.  That isn’t necessarily the person or company that pays the studio, the producer, the engineer and the players, although it could be.  In the case of your song demos or master recordings in many cases more than one person made a creative contribution:  The Producer, the musicians, the backup vocalists, etc.  This is especially true at the professional level.  Although it has not been a standard practice in the industry, you should have each one of those people sign a simple agreement stating that their contribution to the song is a “work made for hire”.  This should be signed before the recording begins.  The agreement should go even further and state that if the work is not legally a work for hire then the person making the contribution (musician, etc.) is assigning his copyright interests in it to you.  If you have ever signed a recording agreement or a producer agreement you will have seen the work-for-hire and assignment language in the agreement.  Now you know why it was there.

It is becoming much more common that in the case where the “demos” or masters end up having an opportunity to be commercially exploited, having those agreements will be required by the record label, the motion picture company, etc.  And having to go back and get a written assignment from everybody involved in the session can be a real problem later on.  I know because I have tried to help artists about to be signed to a label try to get signatures after the work is done.

I have had many clients and prospective clients believe that their masters or demos are works for hire because they paid for them.  In most instances in the music business that is not going to be true unless the written agreement I referred to is signed by the creators.  And not always true even if there is a written agreement.  I will explain this more thoroughly in my next post.

What Is It That A&R Does?

I hope my friends in A&R do not take offense.  I'm sure they wonder what it is that I do.  Nevertheless, I have heard many artist managers ask (rhetorically and cynically) “What do the A&R people do these days?”  In my observation they still have jobs to do – but maybe it just isn’t what it used to be.  It used to be that when I was younger and playing in bands that A&R were thought to be the people who might stop in at one of our gigs and offer us a big record deal.  As time went on and I became less naive, I learned that A&R might indeed stop by the gig – but only after hearing about the band in advance and most likely listening to a demo (or if a solo artist with connections, acoustically in their offices).  It used to be that the A&R person looked for the raw talent, signed the artist and found the songs for them to record.  In my experience today, while finding songs is still a function of A&R, an artist who doesn’t come to the table with a few hit songs written by them or someone closely allied with the artist, their chance of getting signed is even less than slim (slim being the norm).  And of course A&R used to help "develop" the artist – perhaps together with an ancient label department known as “Artist Development”.  You might want to read Ritch Esra’s guest post on this subject, if only to lend some credibility to my observations.

While I have pretty much gotten out of the record deal shopping business, I still sometimes give advice on the process.  And today I tell the artist that to improve their chances they should get out there and do it!  By that I mean perform, record your own EP or Albums, sell them, get a fan club mailing list.  In short, get in the music business – and thengo to the label not only with a demo and a pretty picture, but also with facts and SoundScan data in hand.  Too many artists come to me and hope that I will do it all for them.  It doesn’t work that way – at least not most of the time these days.  Artists:  Go to work and be in the music business – be a working artist!  Don’t wait to be discovered by someone on the A&R Staff.  Chances are it won’t happen—at least until you develop the entire package you have to offer.

Who Wrote The Band's Song?

More than once in my career I have seen arguments occur among band members over who wrote the group’s songs.  Is it the member or members who walked in the door one day with the melody and lyrics or is it everybody in the band who “played” the song the first time they learned it from the music and lyric writers?  In the situation I just described I believe the answer is the creators of the melody and lyrics.  And in fact that is the way it is normally handled – think “The Beatles”.

I realize there are different situations that might determine who the writer or writers are of an original song performed by a band.  The genre of music might be a big factor.  Or the actual collaboration process.  I don’t argue that everybody might be a writer in the situation where an entire band collaborates.  My problem is the situation where there is clearly one or two writers who do their writing away from the entire band.  In effect, they “write” the song and then bring it in for the band to work it up – and probably to do some on the spot arranging. 

So why is it then that the rest of the group feels “entitled” to ownership of those songs?  In my experience band members do not make that kind of claim until there is money at stake.  The band gets a record deal and there is also a publishing or co-publishing deal being offered – with an advance.  The advance is to the “writers” – not to the artists – the players.  Maybe the players who were not a part of the original collaboration or solo writing project do make musical contributions that change the “fundamental character of the work” (Copyright Act terminology).  But I don’t think so in most situations.  Perhaps they truly believe that the day they first heard the song and performed it means they are songwriters.  But as one band member recently said to the true writer member and lead vocalist in the band:  “I stuck by you all this time.”  That musician was saying to the writer band member that since he had not quit the band during the hard times then he should now also be considered a writer and share in songwriter’s royalties and advances.  The recording advance and all the other band sources of income were not enough.  Maybe so – but the loyalty doesn’t make him a “writer”.  Any sharing in the writer’s money will be a result of the generosity of the writer – not a matter of law.

In most situations it seems pretty clean cut.  Some examples are:  (1)  Songwriter sits down with guitar or at keyboards and writes a song.  Done.  The next band practice he plays it for the other group members and they work up the song.  (2)  Two or more band members sit down with instruments and write the song.  Same as number (1)—the band works it up.  (3)  Band Member writes the music and gives melody to another band member who writes the lyrics.  The band learns to play the song.

In my opinion just because the band learns to play one of these songs it doesn’t make all of them writers of the songs.  Sometimes jealousy and hurt feelings are assuaged by letting the entire band share in the publishing or co-publishing income. 

I know some of you are going to disagree with my take on this so please post your comments.  Tell me why I am wrong – or right.

Persistent or Pest--Pitching your Songs and Artist Demo

 Many years ago I was attending a meeting of a songwriters’ association.  The speaker, a friend of mine, had procured many major artist cuts of her songs.  She was not affiliated with a publisher and did all of her own song plugging.  She made regular trips to Nashville to network and to pitch her songs.  I have never forgotten something she said during that presentation:  “There is a fine line between being persistent and being a pest.”

Take heed young writers and artists.  If you believe in yourself and your creative product, persistence is a requirement of success in the music business.  But take care not to be a pest.  Whenever you call on an a&r person, producer, artist, publisher, lawyer, or other person with your demo, be very respectful to that person and of that person’s time.  Your goal if you do not get any interest in the product you have presented is to be invited back when you have new material and if you are lucky to learn any specifics about what this person is looking for.  I have passed on deal shopping representation of artists and writers before and they have actually argued with me about my decision.  Guess who didn’t get invited back!

Because of my blog and my website, I get a lot of requests from songwriters and artists to help them place their material or help them get a record deal.  These days I decline to represent them 90% of the time because I no longer want shop deals in this difficult music business economy.  Nevertheless, some of those hopeful writers and artists keep emailing me and messaging me on social networking sites to the point of becoming pests.  When what they really need to do is email me when they have new material and ask if I would mind taking a listen.

Recently after several email exchanges I decided not to represent a new writer because networking on her behalf was part of what was needed – and as I said, I do not want to do that any longer – for anybody.  The writer wrote me a very kind letter, thanking me for my time.  I immediately gave her a couple of names of other people who might be able to help.  She was polite and persistent over our two weeks of exploring whether we would work together.  Never was she a pest.

Getting A Record Deal - Attitude

Last year I posted about one of the requirements for landing a record deal in Nashville – or for that matter succeeding as a recording artist in any genre or label city.  In that blog I posted about talent as a requirement for success as a recording artist.  If it is your desire to get signed, be it at an independent or a major, then your attitude can also be a critical factor.

As a reminder, there are always other artists being looked at (or soon will be) for the same slot at the same label that you hope to fill.  They are just as talented as you are—but the label doesn’t have the resources to take you both.  All other things being equal, do you suppose they will sign the arrogant jerk or the person they find pleasant and that will be the easiest to work with?  This is not rocket science!

Part of a good attitude around here is not saying anything negative about anybody.  Just be a good guy or gal!  You want people to like you!  I was once helping an artist procure a recording agreement in Nashville (Back when deals were more plentiful.  Translated, before illegal file sharing.)  At breakfast with me one morning the Artist made a critical comment about another artist – one already signed and successful.  By lunch I had gotten a call from someone considering signing my artist-client.  The comment had gotten back to the person calling me!  I told the artist.  He never did that again.  In this town you never know who you are talking to or who is listening to you talk.  Even if you don’t feel it, act like you are a nice person who is happy for everybody’s success!

Attitude is not only important when in getting signed – it is equally important aftergetting signed.  More than you might realize because you’ve never heard of the artists who sabotaged their careers with their own attitudes.  Apparently after getting a deal some artists feel they can then show their true colors.  A good friend and very successful manager once told me about a certain male artist he was co-managing.  The artist was on a major label and his first album was in the stores (remember stores?) and at least one single had been released.  The artist decided he knew more than the label about selling records and announced to management that he was going to have it out with the label president.  When the managers warned him that approach might not be so wise, he retorted “They won’t drop me because they have too much money invested in me!”  So, contrary to the advice of his managers, the Artist made an appointment with the label head and let him have it with both barrels.  I probably don’t need to tell you what happened next.  He was dropped from the label on the spot and kicked out of the building.  Who was he?  No idea – I never heard of him until his former manager told me the story (surprise, surprise).  And I know of other similar occurrences – at least one of which I was involved with as the only attorney this artist used that did not get stiffed (because management paid me). 

Burning bridges, being a jerk or an arrogant ass is not going to help you advance your career.  If you think you might be one of those then get some therapy before coming to town.  It might pay for itself.

Who Decides--the Lawyer or the Artist?

A baker doesn’t ask his attorney’s opinion of which dough to purchase.  However, as any entertainment attorney knows, he or she may often be asked for opinions and advice on artist career matters which technically have nothing to do with the legalities of the decision being made.  It is a part of what we do.  I have sat in on many a strategy meeting with managers and their artists.  I am there as a consultant because I have seen a lot during my career in the entertainment industry.  And I am also there to keep an eye out for any possible legal issues pertaining to the matter being discussed.  But I am not there to make the ultimate decisions regarding of the course of action being considered.

Most artists hopefully understand that ultimately major career decisions are theirs to make.  Often a distaste for things business related and a very busy schedule will lead to the artist delegating a lot of the decision making to the team members.  This might make sense when it comes to routing tour dates, the correct quantity of merch to order, and other matters of that nature.  But large career altering decisions should ultimately be made by the artist after listening to his or her advisers. 

I do not find that delegation to me of making legal decisions for my clients to be a sound policy – and frankly that does not work for me for a number of reasons.  A very successful client of mine once told another artist “Steve does what needs to be done for you – and then he tells you he’s done it!”  Ok – I was taking care of business for a very active touring artist.  But only matters within the purview of legal “maintenance” of a successful career.  Major decisions are a totally different matter.  I recently had another successful client enter into a long-term recording agreement – not the artist’s first.  After prolonged and difficult negotiations were complete and it was time to explain the contract to the artist, I was told that the artist told the manager “If Steve says it is ok I’m sure it is.  Just let me sign it.”

No – please come into my office and let me explain where we are with the contract.  Or I will prepare a bullet point sheet of the important deal points.  But I will not make the decision for you.  I will tell you what I think.  But it is your career and your life.  The decision is yours not mine.  Personally I don’t want the liability.  And if the deal sours someday, which many do, I don’t want you coming back and asking me why I “let you” sign the contract.  But mostly I want you to have a long and successful career.  You are the CEO so you must understand the basics of your business’ significant choices and make them for yourself.

Got it?

Music Lawyer - Living the Dream

Today I feel particularly grateful.   I have been able to make a living in the music business as an entertainment attorney for 30 years.  When I was in my late teens and early 20s I used to jokingly tell my band-mates that when I grew up I wanted to be a rock-and-roll hippie musician lawyer.  One of those band mates recently said “You became what you always said what you wanted to be.”  Well, sort of.  I never really was a hippie but I was certainly in agreement with the liberal and idealistic values of my generation.  Age and experience have tempered a lot of my “rock and roll” attitudes (as well as my politics).  Nevertheless, career-wise I am doing what I always said I wanted to do.  Not as powerful and famous as I thought I might be (except occasionally in the mind of a younger me) but certainly happy and grateful that I have the skills and a client base that keeps me busy and allows me the freedom of a lifestyle I enjoy.

As I review my career path it is almost as if I envisioned who I wanted to be and then went on cruise control.  Quite by happenstance I found myself more than once to be in the right place at the right time for my career as an entertainment attorney to get launched and advance.  Today upon reflection and with the benefit of 20-20 hindsight, I believe that my journey has been in the hands of a higher power all along (rather than happenstance) although I would not recognize that for many years. 

I like what I do.  I enjoy transactional work.  I want you to hand me the contract you were given and let me apply my experience and skills to negotiate the best deal possible for you given your relative marketplace strength.  Or, if my client is the drafting party then I love preparing the first draft to the specifications given me by him or her.  The work is hard, time consuming and often emotionally difficult, but at the end of the day worth the effort.  

Today I feel particularly grateful. 

Peer Pressure in the Music Business

During my years as an entertainment lawyer I have seen music biz colleagues leave their Music Row offices and continue their business careers in in other businesses.  Without fail I later hear comments like "so and so says he is now happier than he has ever been." Makes one wonder.

While the great majority of my clients are really good people and a joy to work with, there are still the "crazies" out there. . . . the Off-Music Row (figuratively) con-men, the thugs, the disloyal, the smiling liars, truly insane - to name a few.  I have often wondered if it is really any different in other industries and have come to the conclusion that it is probably the same.  The solution for me has been to at least attempt to carefully screen clients and matters before accepting them.  Not everybody has that luxury and I am grateful that I can do that -- if I will.  I chose the life of a solo and small firm entertainment lawyer for life style considerations -- not for the money.  So it is very important for me to find peace and serenity one day at a time.  But still I wonder at times -- would it have been different had I made a career in a different industry?

I was discussing this with a friend last week.  He is the former manager of 4 major label artists, one of whom reached super star status.  Before getting in the music business my friend was an accountant at a fortune 500 company in an industry having nothing to do with entertainment.  When I queried "I wonder if it is different in other businesses" he said "The difference is that in the non-entertainment world your work is about the job . . . about achieving success in the job you find yourself in.  Whereas in the music business it may be about that but it is also strongly about the peer pressure to succeed.  It is about looking good to other people in the business -- not just about doing a great job."  Wow!  I can't imagine what it would be like to be in a world where it didn't matter if one looked successful to his or her peers. To get caught up in that lifestyle is of course unhealthy mentally and spiritually.  

The only way I know to escape this "you better be successful in everybody else's eyes" syndrome is to find the self confidence and satisfaction with where I am and the job I am doing on my own.  To put on the music biz blinders and become comfortable that I am making a contribution to my clients, my family and hopefully society.  Expensive toys are an option -- but only if I need or want them.  Not because others need to see that I have them.

Stress Free Work

For me, practicing entertainment and business law has been high stress, particularly as I have gotten busier (for which I am grateful).  Getting stress free in the midst of client needs and demands and sometimes unreasonable adversaries has not come easily for me.  To some degree my "problem" as a lawyer has been that I care about the results of my work and what happens to my clients.  That might sound a bit lame, but detachment can be a blessing if one wants to leave their work "at the office".  I remember one of the greatest compliments paid to me by a client -- a member of a chart topping rock act.  He told another musician in front of me "Steve cares".  That is all fine -- however I think my job would be easier and less stress producing if I were colder and more objective.  Nevertheless, there is a solution -- maybe more than one.  

For me stress free work has required learning skills and techniques -- and practicing them until they become ingrained.  Of great benefit over the past year has been my application of the principles found in David Allen's best seller "Getting Things Done".  That plus learning that I cannot survive without a balanced approach to life, never forgetting to nurture the spiritual and physical areas of my life.  Then -- I can find the bliss and even joy that comes with stress free work.

Part IV: Four Basic Forms of Business for Artists and Others--LLC's

 Limited Liability Company.  A Limited Liability Company (an “LLC”) is the newest of the business ownership structures.  It offers the owners the advantages of both corporations and limited liability companies.  Like the corporation, the owners have limited liability.  Unlike the corporation the owners of a limited liability company can choose to be taxed like a partnership without having to meet the guidelines needed to form a Subchapter S corporation.  So, if the owners elect, the profits of the LLC may be passed through to the owners and taxed on their individual tax returns.  The latter point would be an advantage of course if corporate tax rates are greater than an individual’s personal tax rate.

One of the reasons many attorneys and clients tend to favor the LLC over the corporation is its flexibility and simplicity.  Owners may have one voting interest and a different profit sharing interest, for example.  In most states there is no requirement of annual meetings as in a corporation.  An LLC may have corporate or LLC owners and still elect the “pass-through” tax advantages of a partnership.  These are examples of the liberal provisions available to LLC ownership.

CAVEAT:  Each State has its own laws governing the different forms of business structures and ownership.  While most States aim towards uniformity with the majority of other States, you will always need to check the particular laws of the State in which you plan to form your business.

Part III: Four Basic Forms of Business for Artists and Others--Corporations

Corporation.  A Corporation is an artificial creation of the law existing as a voluntary chartered association of individuals that has most of the rights and duties of natural persons but with perpetual existence and limited liability.  While a sole proprietorship does not exist as an entity separate from its owner and a partnership by and large is very much identified legally with the individual partners, a corporation is a separate "person" at law.  It has its own identity separate and apart from it’s owners (the shareholders).  Its existence is not tied to the natural life of one or more owners.  And, unlike the sole proprietorship and partnership, the owners are not personally liable for the debts and obligations of the corporation unless they contractually choose to be so.  From this latter characteristic comes the term "limited liability".  The liability of the individual shareholder for corporate debts and torts is limited to the shareholder’s investment in the corporation (i.e., the value of their stock).  The shareholder’s personal assets (home, etc.) are not at risk.  Like everything else in the law there are exceptions and situations where a claimant can get at the personal assets of a shareholder but a discussion of that is beyond the scope of this blog post.  In addition to having limited liability, another reason some enterprises incorporate is for tax consequences.  Your accountant will give you additional information on this matter.

Generally speaking, a corporation will file and pay taxes just as individuals do.  And the profits realized by the owners of a corporation will again be taxed on their individual tax returns.  An exception is when the owners elect "Subchapter S" tax treatment.  In that situation the profits of the corporation will be passed through to the owner’s for taxation purposes—just as in a partnership.  However, there are certain guidelines which must be met in order for a corporation to receive Subchapter S tax treatment.  One, for example, is that only natural persons may own stock in a Subchapter S corporation (i.e., no corporate or LLC shareholders).

The primary reason my clients incorporate is for limited liability and for certain tax advantages if the corporation is to be their "touring corporation".  Artists will usually incorporate their touring activities.  If their corporation is administered properly, the artist will be shielded from personal liability for claims that might arise—such as a vehicle accident while traveling to or from a performance, injury to a crew member, etc.  The same with business clients—they choose not to be personally liable for business debts and torts.  For example, a music publisher would incorporate as a liability hedge against a copyright infringement suit.

The formal requirements of forming and maintaining a corporation are many—though not complicated.  Limited liability companies offer much more flexibility.  A few words about that in Part IV.