13/11/2024
Balancing Art and Business
This is something most artists struggle with. Financial illiteracy is the norm, often it’s almost proudly celebrated: “I’m here for the art, I let others handle my money.” This attitude can have devastating effects down the road. It opens the door to wastefulness and fraud. Careers don’t last forever. Make those years count.
Preserve your wealth. Nobody else is incentivized to do it for you. Not your agent. Not your manager. They all make their commission before you subtract your costs. What matters to you is not how much you make (revenue) but how much you keep after costs (net profit). That private jet and entourage feels fun now but having to keep touring past your experation date will not.
Here a few rules I live by:
1. You, the artist, are the CEO of your brand. You pay your team, you get to decide where and how to spend your resources.
2. Don’t make financial decisions you don’t understand. Educate yourself first.
3. Incoming money flows through you first. Party promoters pay you directly. Then you pay your team. The single biggest source of fraud is to have someone collect fees on your behalf and then you send them one invoice every month. It’s convenient but you have no way of verifying what promoters pay for you. Skimming off the top is very common.
4. Don’t unnecessarily sign contracts that bind you to anyone. You, the artist, bring the magic. They need you more than you need them. There are exceptions, but not many. Contracts are one-sided. Agencies can ‘keep you on file’ forever without moving a finger while you sign your one shot at a livelihood away. The ability to walk keeps everyone motivated.
These opinions are my own and might not apply to your situation. I want artists to be more empowered in a world that does not always have the artist’s best financial interest in mind. Please share your thoughts in the comment section. Love, Pat