Commission Explained: How Managers Charge, and What's Fair
15%? 20%? Gross or net? Commission is the heart of the manager–artist deal and the most misunderstood. A plain-English guide to structures, carve-outs, and sunset clauses.
The MANAGR Team
October 9, 2026
Commission is how managers get paid, and it's the term artists scrutinize most. There's no single "correct" number — but there are norms, and understanding them keeps the relationship healthy and the deal defensible.
The standard range
Most management commissions land between 15% and 20%. Fifteen is common for established acts with real income; twenty is common earlier on, when the manager is doing the heaviest lifting for the least certain return. The number should reflect the work and the risk, not just a default.
Gross and net can mean a 40% swing in commission on the same income.
Gross vs. net
This matters more than the percentage. Gross commission is taken off the top, before costs. Net is taken after certain expenses. Managers generally commission gross, but the fair move is to exclude pass-through costs the artist never really sees — recording costs, tour support, producer fees — so you're not commissioning money that's just flowing through.
Common carve-outs
Thoughtful deals carve certain income out of commission, or commission it at a reduced rate:
- Recording costs and tour support that are recouped by a label.
- Session and sideman income unrelated to the artist's own career.
- Pre-existing income that predates the management relationship.
The sunset clause
What happens to income from work done during the term after the manager is gone? A sunset clause steps the commission down over a few years post-term — for example full rate in year one, then declining to zero. It protects the manager's contribution to deals they built while being fair to the artist's future.
Put it in writing, track it precisely
Handshake commission deals end friendships. Document the rate, the gross/net definition, every carve-out, and the sunset. Then actually calculate it correctly on every income source — different rates on different buckets add up, and getting it wrong in either direction erodes trust fast.
MANAGR applies your commission rules automatically across shows, merch, royalties, and deals, with a per-type breakdown so every statement is right.
The MANAGR Team
Playbooks, templates and hard-won lessons from the team building MANAGR — the operating system for artist managers.