MAKING THE CASE FOR BAND AGREMENTS

WHERE IS YOUR HIGHSCHOOL BFF?
MAKING THE CASE FOR BAND AGREEMENTS

Your former BFF is the person you swore to be BFFs with forever. That’s a lot of forevers. But now, I’m guessing, at most they are just one of many entries in that ever growing social media news feed that you scroll through each day looking for the latest buzzfeed quiz. Things change. People grow apart. If your best friends from your school days are not your best friends now, my case for having a band agreement is made. But if some doubt remains…

A group approached me about copyrighting their latest works. They’re full time musicians, touring a solid 8 months a year and they have no band agreement. “Nah, we don’t need one. We’re tight. We’re all friends.” I cannot say this enough – A BAND IS A BUSINESS. And every business needs an operating agreement. If the band were a bakery and even if the owner hired a good friend, no one would expect the baker to buy the flour and sugar without expecting something in return. No one would expect the person at the register to work for no money…unless they agreed to. (cause that’s how much they love cupcakes?)

As an attorney in the entertainment field, it’s my job to imagine how things can go wrong and then try to help artists, actors, and athletes avoid the worst case scenarios of my imagination.  I’ve seen disgruntled keyboardists hold merchandise hostage; lead singers on the way out demand that all the cash they put into the band over the years, be paid back with interest; and a drummer who called every sales outlet to try and stop all sales of music on which he played. 

These scenarios suck for sure but they’re more common than a band who remains best buddies for decade. The, “it can’t happen to us” mentality does nothing to avoid the inevitable drama. Too often that drama unfolds in front of the fans online in the comment sections – a public record of your inability to manage your business. But there is hope. 

A. Be a Business: With 1-2 owners, an LLC should do the trick. Not every member needs to be an owner. If you have multiple owners, then an S-Corp or C-Corp might be the better way. **** Speak with a tax professional before making these decisions as each entity type has its own tax implications.

B.   Get an Operating Agreement: When registering the business/band with your state’s department of corporations you often fill out a very basic operating agreement. It addresses none of the issues that emerging artists often face.

Band agreements help friends remain friends. You might have the closest family in the world but the second Aunt Rochelle kicks the bucket see how tight and friendly they remain. There will be fights over used coffee mugs and that rusty el camino in the barn. That’s why Aunt Rochelle has a will. Death may be more likely than a band lineup change but not by much. Name your top 5 favorite bands you had in middle school that got popular at that time. Are they still around?

It’s not planning to fail. Its planning for success. So when those Rock Ross dollars start rolling, every member knows what’s going to happen and how much of that they will see and when. And should the “unthinkable” happen, it will hut less.

C.   DDIY: Don’t do it yourself when it comes to drafting contacts like a business operating agreement.  A good attorney is more than a typist. They will sit wth each member to make sure all their needs are met in the creation of this agreement. Some people are not business minded. A good entertainment attorney will be able to translate artist to business and business to artist. Plus we’ve seen it all. Is gas money for the van a loan to the band? Who has access to bank accounts? Does gig money get divided each night or does it go to another purpose? Sometimes you need an outside professional to help bring up and help answer these questions. You can’t DIY all the time.

D.   Lawyers Are the Bad Guys: Let a lawyer or manager bring these issues up. Let the outside help be the bad guy. We get pad for the privilege. Just don’t let the business go bust because you were afraid to tell your BFF bandmate that the money he shelled out for studio time was a donation or that you expect to use all the art you create for your solo project as well.

Band agreements are as unique as the project themselves. Each time I create a band agreement, it is specifically tailored to fit the needs of that group. It’s really a document that can’t easily be yanked from the internet and still cover what the band needs. 

Yes, a lawyer costs money, but it’s well spent to know that the passion you have for your project will be protected. And should that project not last or bandmates rotate out, like Aunty Rochelle, everyone will know who’s paying for the funeral.

SUMMER BEGINS NOW

The groundhog saw his shadow.  Winter is everywhere (but here in FL). Touring is limited to southern regions but even that is rough this year. So it’s time to think about putting out a summer single and video. Yes, I’ll say it. Even though most fans don’t remember when MTV played videos, a music video is still great marketing.

Do something every 3 months to keep your fans interested. A new song, new merch design, enter a pie eating contest as a band… something, anything to keep that momentum rolling. And to do it right, it takes planning. Start now. 

To illustrate a summer single and video done right, I point again to Billboard’s New Artist Top 100 musician, John Taglieri. Success doesn’t happen overnight. Videos don’t go viral and then someone shows up and gives you a bag of cash and a back rub. Plan.Practice. And have Patience. John Taglieri released his single, “Southern Paradise” summer of 2013. It is the title track from his 11^th  career release. He made the Billboard charts with that song, half a year later. With any luck he’ll be climbing the charts with that song into summer 2014.  It’s not advice from an industry insider, its advice that has worked for others and if you work at it, it will work for your project.

1.    INVOLVE EVERYONE YOU KNOW: A music video from an emerging act should not be a super-secret vanity project with a closed set and your roommate/manager wearing an ‘all access’ laminate. Be inclusive. John Taglieri said, “I was able to include 50 plus friends and fans on camera. That’s 50 people who are gonna share that video simply to show others they were in it.”  Why work harder when you can let those in the video do it for you? Hold auditions, make it a contest, and be sure to include your lawyer as an actor. Some give discounted rates for related contracts if you include them….so I’ve heard.

2.    MAKE IT FUN: We’re talking summer single here! No matter what genre you’re into, pick a single that’s playable in a variety of settings. Driving, at parties, on a beach or lake house, around a fire, in a bar… think of the setting in which fans will listen to your music. The “Southern Paradise” video has everything… a beach, babes in bikinis, shirtless bald men, miniature people, a guy in a bunny suit, an undertaker, and concert footage of venues packed with screaming fans. And a really catchy hook.  Make the process fun and everyone will want to be a part of it and will talk about it and share the heck out it without seeming like they are trying to sell anyone on a new artists.

3.    YOU DON’T HAVE TO BE THE GUY…OR GIRL:  Yes, they will share the video because they’re in it. The band and song is secondary. Get over it. The spotlight is on performers A LOT. There’s no need for the ego to be fed all the time. There are performers, songwriters, and musicians, and rarely are they all the same person. The sooner you recognize that fact, the better. Then take what you do best and do it. Then while you practice on the rest, ask for help from those who do what they do best. It’s ok to sing a song you didn’t write. It’s ok to write a song you won’t sing first. It’s about the music…not about the ego. And for all that is holy, GET A LAWYER!!! An attorney will draft work for hire and copyright splits to keep everything above board and minimize the troubles later. “Good things come where you learn to put your ego aside.”

4.    PLAN AHEAD: It’s called the music business because its business. And business costs money to make money. You can work smarter but it still has a price tag. Bartering is still a viable option – maybe that day job will finally pay off! Just offer more than a t-shirt and a free CD. If a few thousand dollars on a video is too much for you, stick to opening on a Wednesday night for other local acts who are actually going somewhere. Set monetary goals (this should be done quarterly but I’m realistic). Every member of the project should be responsible for putting their share into the band fund. Play solo gigs. Many artists have careers in cash based businesses like graphic and web design; allot a certain percentage of that work to put towards the band goal. Put a little sweat equity into the project. When others see how dedicated you are, they will be more likely to donate to that kickstarter campaign you’ll start. 

And by time summer rolls around and that video starts to take off, it’s time to plan for that Christmas album!