How to Start a Celebrity Management Company
Taking your business into the limelight is arguably one of the most exciting and glamorous ventures anyone can have. Imagine sitting with the most popular artists and VIPs over a drink, taking pictures with them, and (of course) making lots of money out of blockbuster films and successful album releases.
For most artist agents, every day is about different schedules and challenges — you get to witness a celebrity life behind the camera, travel a lot, and spend time in taping sets, recording studios, and performance venues. But on top of these is you get to make someone’s dreams come true and there’s nothing more fulfilling than that.
But, before we get into the real process of starting your own artist agency, we will have to warn you there’s always a reality check ahead.
Starting a business is not a piece of cake, we all know that. But, starting a celebrity management company might be a lot harder. This kind of business requires pure knowledge about the inner workings of showbiz industry including promotion, publishing, tour management, and merchandising.
To begin with, draft a realistic business plan.
Your passion for an entertainment industry is not enough to ensure the success of your business. You will need to have the same management skills with financial and operational knowledge and solutions that other business owners possess. Bring out the management skills in you by incorporating your passion with a concrete, realistic business plan. Your business plan will be the bedrock of your company; hence, it must involve the following scopes:
- Business Background
- Cost and Funding
- Profit and Loss Statement
- Location Plan
- Marketing Strategy
Getting a license for this type of business depends on the state you are in. Do an initial research concerning the laws in your state to determine whether your licensing is necessary for your business. Some states, including California, are implying strict rules relating to talent agencies and artists. They require the industry to obtain a license from the labor commissioner and present sample contracts for artist relations managers. Either way, getting a business licensed is a form of attracting new talents.
Start building your artist roster.
By the time you start hunting new talents, you definitely have promoted your agency by designing tons of business cards and creating an official website and social media pages to market your company. There are so many prospects out there but it takes a while to find the right one. The best way to find potential artists is to place an ad online where you provide your email address so that auditionees can send you demos of their work. You can also do manual strategies by holding auditions or going to local pubs, festivals, and other gathering places.
Proceed to contract signing.
Once you have found a roster of artists, start drafting an agreement between you and your talent. You can hire an entertainment lawyer to help you draw up a contract that will specify your commission rate, the services you provide, and the duration of the agreement. Make sure that both parties have fully reviewed the contract before signing.
Even the best manager in town can never handle an artist agency on their own. You must hire people to work for you. Given there’s a whole different set of tax write-offs, you will need to choose an accountant that works specifically in the entertainment business. Other key employees you will need for your empire:
- Entertainment Lawyer
- Social Media Community Specialist
- Content Curator
- Tour Managers
- And more as you grow