A songwriter told Ralph Torrefranca at a conference that she had been paying her manager a monthly retainer. Torrefranca, an A&R executive with nearly two decades at Angry Mob Music, stopped her. He asked whether she had hired an attorney or a manager.
That distinction matters more than most independent artists realize, especially when they are excited about finally having someone in their corner.
Managers are paid on commission, not monthly fees
A management agreement is built around commission. The manager earns a percentage of your gross income from the activities they oversee. Rates typically run 15 to 20 percent, though the number varies by deal, career stage, and which income streams are included.
The logic is direct. When a manager's income depends on yours, they have a clear reason to push your career forward. More shows booked, more licensing deals closed, more income for both of you. Commission keeps both parties pointed the same direction.
A retainer is a fixed monthly fee, paid regardless of results. That model makes sense for attorneys and consultants charging for time on a defined project. For a music manager, it removes the core incentive: their income is no longer tied to your success.
A written management agreement with clear commission terms removes most of this ambiguity before the relationship starts. That is why Musilock includes a management template with commission structure, income stream definitions, and term length as standard fields, not optional additions.
A retainer means you pay whether they perform or not
Commission-based management flexes with your career. A touring run picks up: both of you benefit. A slow stretch hits: the manager shares that reality too.
A retainer does not flex. The manager collects every month whether they book you a show, pitch your music to a placement opportunity, or return your calls. That is not a partnership. You are the only one with money on the line.
Torrefranca described this as predatory behavior still active in the industry. These are people who charge artists for the feeling of being represented without delivering the work. This structure targets artists who are hungry for representation and willing to spend their own savings just to feel like things are moving.
A legitimate management contract spells out five specific terms
When you look at a management agreement, go to the compensation section first, before the part about the manager's vision for your career. A legitimate contract should address these terms:
- Commission rate: the percentage of your gross earnings the manager takes. Confirm whether this rate is the same across all income streams or tiered by type.
- Commission base: which income streams are included. Touring fees and recording advances are a common starting point. Publishing royalties, sync licensing fees, and merchandise may or may not be covered, and this difference compounds over a career.
- Term: how long the agreement runs. One to three years is a common range. Some contracts include performance benchmarks that give you an exit option if the manager does not deliver results.
- Sunset clause: if the contract ends, the manager may still collect commission on deals they introduced for a defined period afterward. Know how long that window is and which deals it covers.
- Expense reimbursements: if you are covering the manager's costs, there should be a cap and a requirement for your approval before they spend above a set amount.
None of these clauses require a retainer. A legitimate management arrangement works on commission. If a manager insists on a monthly fee alongside commission, or instead of it, ask them to explain why in writing.
A manager on retainer has none of an attorney's accountability
An attorney on retainer is regulated, licensed, and accountable to a bar association. They have professional obligations that justify the model.
A manager claiming a retainer has none of those accountability structures. They are borrowing the payment model without the professional obligations that normally come with it. If your manager behaves more like a vendor billing you monthly than a partner invested in your income, the problem starts in the contract.
Get the contract and read the compensation clause first
Get the contract in writing before agreeing to any ongoing payment. Read the compensation clause before you read anything else. If it describes a monthly fee with no performance expectations tied to your income, ask for revision before you sign.
If the manager will not work on commission at all, that tells you what you need to know. Someone who believes in your career should be willing to earn from your success.
If you have already signed an agreement with a retainer structure, look at the term length and any exit provisions. Consult a music attorney before you stop paying, because walking away from a signed contract creates its own problems.
A management contract done right defines commission rate, the income streams it covers, the term, the sunset clause, and how expenses get approved. Musilock's management template covers each of those points so both parties are reading the same document and agreeing to the same terms before the relationship starts.
The retainer trap works because artists often feel so relieved to have someone interested in their career that they skip the terms. Read the compensation section before you feel the relief.