Question by lovely_lady: How does a booking agency make money to pay the agents and their commission?
I know an independent agent makes their 10-15% commission from a bands gig but when you start a booking agency, how does the agency get the money to pay their agents commission they earn plus salary? Does the agent give part or all of the commission to the agency? How does that work?
Best answer:
Answer by Ed Atun
No money is paid out until your clients start bringing money in. As soon as the band gets $ 1Million advance for their new record, the agency takes $ 150,000 and writes a check to the band for $ 850,000. Out of the $ 150,000 the owner of the agency pays the utility bill and the rent and the agent’s fee or commission. The agent herself might be getting a set fee instead of a percentage..
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