If you’re in the entertainment business, you’ve probably come across various talent representatives, particularly agents and managers. While some may mistakenly view agents and managers as the same, there are several important distinctions between their roles.

1. BOOKING GIGS

Agents represent talent in seeking and securing employment and help ensure the client gets paid. They also assist in making connections and negotiating contracts.

Managers are focused on helping to shape and maintain the artist’s career as well as making them as marketable and appealing to talent buyers as possible. They advise the artist on their professional and personal lives and can help them select projects and work that will benefit their image and reputation. Their services typically include managing day-to-day business activities; assisting with marketing, social media, and promotional materials; referring artists to agents, business managers, and publicists; and aiding in talent development (finding classes, coaches, etc.).

2. LICENSING AND REGULATION

States have various rules regarding agents. New York and California state law require anyone who solicits and arranges employment for others to be licensed. Therefore, an agent must be registered by the state. Artists can check New York and California databases to ensure an agent is registered. Conversely, registration is not required for talent managers in most states.

While the roles of agent and manager are distinct, there is potential for overlap because the manager’s role in developing the artist’s career may involve reaching out to industry contacts and discussing new opportunities or deal terms. Accordingly, New York has an exception to its licensing rules allowing managers to procure work for their clients if it is incidental to their principal role as the artist’s manager. California does not have such an exception unless it involves the procurement of recording contracts.

A talent agent is also often subject to the codes of conduct of guilds and unions. Unions may dictate fees, require form contracts to be used, and insist that the agent obtain a franchise license. Without the franchise license, a talent agent cannot procure employment for any members of the union. A manager is not regulated by guilds, but they do still have a fiduciary duty to their clients.

3. COMMISSION

Each state treats commissions in different ways, but generally, an agent’s commission is set at 10%. Note that an agent may only receive a commission when and if the artist receives compensation and agents may not charge up-front fees. Certain other amounts paid to the artist typically are not included in the commission calculation, such as travel and meal allowances, living expenses and other payments.

As with agents, managers are typically paid for their services on a commission basis. However, there are no legal, union or franchise restrictions imposed upon a manager’s commission structure. A manager can charge anywhere between 10% and 30% of the artist’s gross receipts as commission. Most actors’ managers charge between 10% and 15%, while a music group or model manager’s commission might go as high as 20% to 25%. Commissions generally vary based on the industry as well as the status of the artist and the reputation and experience of the manager.

Note that both agent and manager contracts should stipulate the commission payable, what work it applies to, and all relevant terms of payment, including any rights to continue to collect commissions after the term of the agreement has ended.

4. LEGAL AND CONTRACTUAL DUTIES

Both agents and managers have certain obligations and limitations in acting on behalf of an artist. Some of these are at law, but others should be addressed in an agreement.

Agents owe certain duties to act honestly and in the best interests of their clients. As a result, the agent is required to keep the client fully informed and to diligently review potential employment opportunities on behalf of clients. For example, New York requires agents to investigate potential employers to determine whether they have a history of overdue or missed payments to previous employees before securing work for a client with that employer. For this reason, agents are also prohibited from producing programs in which their clients appear as a potential conflict of interest. Agents cannot attempt to limit any of their fiduciary duty to their clients in a contract.

5. WORKING TOGETHER

Managers typically have a smaller number of clients than agents. This is because they provide a broad array of services requiring more time with each client to ensure they work together in shaping the client’s reputation.

In comparison, agents may have hundreds of clients because they are only concerned with booking gigs. An agent most likely will not be able to spend the same amount of time devoted to each client but will often work collaboratively with their clients’ other representatives.

Before you decide whether you need an agent, manager, or both, think about your goals in the industry and how the right person might be able to help you meet them.