How to Start an Entertainment Management Company

Entertainment managers guide the careers of their talent.

Entertainment management companies are responsible for managing the careers for actors, models, musicians, authors and athletes. Unlike a talent agency, who works to secure gigs for their talent, management companies outline the career path and work to establish contacts for their clients, which may result in gig bookings. Creating an entertainment management company requires an understanding of current trends in the entertainment industry as well as a desire to help your clients succeed.

Things You'll Need

• Bachelor's degree
• Attorney
• Contracts

Instructions

1. Obtain a degree in entertainment management from a four-year institution. Colleges such as Missouri State University, Drexel University and Bay State College offer bachelor degrees in entertainment management. To start a successful entertainment management company, you must have a solid understanding of the entertainment industry as well as laws governing the processes of entertainment management firms.

2. Hire an attorney to create a general managerial contract that consists of your legal ability to negotiate and secure contracts for your clients as well as have authority to act on behalf of your client in business dealings.

3. Find a location for your company. Office buildings, retail storefronts or home offices can be used to operate an entertainment management company. If you plan on running your business out of your home, take note that some states require a zoning permit to operate a home business. Check local and state regulations regarding licensing for entertainment management companies.

4. Create official talent contracts with the help of your attorney. These contracts should state whether the talent will be signed to an exclusive agreement where the talent cannot be signed with another management company or a non-exclusive agreement allowing talent to be signed to more than one management firm.

5. Outline your compensation structure within the talent contracts. Entertainment managers, like talent agents, are compensated through commission. Managers receive commission from any project your talent works on under your supervision. Entertainment managers commonly charge 20 to 25 percent of net proceeds.

6. Sign talent with your company and begin to develop connections and secure meetings for the talent. To effectively perform this duty, you must have solid contacts within the entertainment industry. If you represent actors or models, contacts such as casting directors, production companies, magazines and film studios are recommended. For musicians, contacts within record labels and recording studios is vital. No matter the specific industry your talent is involved in, you must be able to effectively promote them to the proper organizations/establishments.

Tips & Warnings

• Intern at an established entertainment management company while you undergo schooling to create industry connections as well as to get on-the-job training that will be vital when running your own entertainment management company.

• Do not represent talent that is signed with another entertainment firm under an exclusive agreement. Doing so can result in legal penalties and damage your reputation.

References

• Missouri State University: Entertainment Management
• Drexel University: Entertainment & Arts Management
• Bay State College: Entertainment Management