- Commission Rate
- The percentage of the talent's gross or net income that the manager receives as compensation, typically ranging from 10% to 25% depending on industry and scope.
- Exclusivity
- A clause preventing the talent from engaging another manager for the same category of services during the contract term.
- Sunset Clause
- A post-termination provision entitling the manager to reduced commission on deals closed or substantially negotiated during the contract term, for a defined period after it ends.
- Power of Attorney
- An optional provision granting the manager legal authority to sign certain documents or negotiate on the talent's behalf without requiring the talent's direct signature each time.
- Gross vs. Net Commission Base
- The distinction between calculating commission on all income before deductions (gross) versus after specific expenses are subtracted (net) β a difference that significantly affects the manager's earnings.
- Talent
- The individual β artist, athlete, performer, or creator β whose career the manager represents and advances under the agreement.
- Key Person Clause
- A provision allowing the talent to terminate the agreement if a specific named individual at the management company leaves or is no longer involved in their career.
- Term
- The defined duration of the agreement β typically one to three years β with or without automatic renewal provisions.
- Fiduciary Duty
- The manager's legal obligation to act in the talent's best interest, avoid conflicts of interest, and prioritize the talent's career over personal gain.
- Procurement of Employment
- The act of actively soliciting or negotiating employment opportunities β a function typically reserved for licensed talent agents, not managers, in regulated US states.
- Accounting Period
- The regular interval β monthly or quarterly β at which the manager must provide financial statements showing income received and commissions deducted.