Definition of Artist Business Management
Artist business management is the activity and function that oversees the finances and business interests of artists.
The definition above is Supervizion’s definition of artist business management that is formulated based on our experience in the field since the 1980s. Supervizion provides artist business management services. In addition to artists, we also have other types of clients.
Especially from those not in the industry, we sometimes get questions about what we do and not, compared with someone who is an artist manager, in a strict sense. Below follows an explanation and differentiation between what Supervizion does and what others do. As you will see, there are other types of companies that an artist or talent also might want to work with, as their services are complementary to ours.
What is Business Management?
Business management is the handling of business affairs and is often done through management of companies. Supervizion provides business management services.
What is the Difference Between Artist Management and Artist Business Management?
One way of evaluating and recognizing the difference between artist management and business management is to “follow the money”.
An artist manager creates, through the sales efforts of the artist’s services, deals that will lead to an inflow of money in the future. The artist manager also organizes the artists activities around the deal (contract).
Once the money concretely gets to the artist, they are overseen by the artist’s business manager who takes care of the finances. It means taking care of companies owned by the artist, investments, and bookkeeping/accounting etc. The artist’s business manager often participates when the contract terms are formulated to optimize the financial aspects of the agreement. This while the artist manager was the driving force to get the contract in the first place (or the artist if there is no artist management). When the money arrives in the bank accounts of the artist, the responsibilities of the artist manager end. How they are managed is up to the artist. The artist then gets help from an artist business manager to take care of the money.
It can be summarized in a simplified way as:
- The artist manager is the hub for the activities the artist does.
- The business manager is the hub for the money the artist gets.
Education and Path to Profession
An artist business manager is often a business economist. A well-qualified business manager has a university education from a business school at least at MBA level (MSc level or master’s level) with a focus on accounting, commercial law, and tax law. Once joining a business management company, the new associate is typically guided into the profession by a senior who supervises for a few years. This makes the barrier to entry into the profession higher, compared to working as an artist manager.
Working as an artist manager does not require a university education, although it is beneficial. A common path to the artist manager profession is as an apprentice at an artist management company. By comparison, the barrier to entry is lower.
Work Tasks and Measures of Success
An artist business manager has financial analysis and planning as a central work task, which centers around the artist’s money. The goal is to maximize the overall financial success over a longer period of time. Success is measured with key performance indicators that are financial, such as efficient tax ratio, net income, and return on equity. The business manager contributes to the management of the artist’s companies. An accountant has a significantly narrower scope of work, compared with a business manager.
The central work task for the artist manager is personal selling of the artist’s services and circles around the artist’s activities. The goal is to maximize the artist’s revenue during a certain period of time. This time period’s length is determined by the artist management contract or a business plan for the artist. Success can be measured by performance indicators such as the number of concert tickets sold, the number of streams at music platforms, the number of TV-viewers, and the number of followers on social media.
Remuneration, Rules, and Similar Professions
The artist pays the business manager a fee per hour or fixed annual fee. The business services of the business manager are regulated by extensive laws and rules. A business manager contributes to the artist’s compliance with laws and rules regarding companies and businesses. The profession closest to the business manager is the entertainment lawyer, which although is a different and distinctly separate.
The artist pays the artist manager through commission that is a percentage of the artist’s revenue during a set period of time. The laws and rules for artist managers are less encompassing, comparatively. The profession closest to the artist manager’s is the artist agent.
Summary of differences between Artist Management and Artist Business Management
The following table summarizes the differences between artist management and artist business management.
| Artist Management | Artist Business Management | |
| Service provider’s job title | Artist Manager | Business Manager |
| Service provider’s university education | (Not required) | Accounting, Commercial Law, Tax Law |
| Provider’s typical career path to job role | Apprenticeship | Formal education |
| Barrier to entry to profession for service provider | Low | High |
| Artist client’s identity | Actively made publicly known | Confidential |
| Service focus | Artist’s activities | Artist’s money |
| Service goal | Maximize revenue from consumption of artist’s creative output | Maximize overall financial success |
| Key performance indicators (KPI:s) | Concert tickets sold, number of streams, social media followers | Effective tax rate, net income, return on equity |
| Significant task for service provider | Personal selling | Financial analysis and planning |
| Typical model of compensation from artist client | Commission based on artist’s revenue | Hourly fee or annual fee |
| Public regulations of service | Limited | Extensive |
| Closest adjacent, but different, profession | Artist Agent | Entertainment lawyer |
Business Management for Artists, Bands and Musicians
Supervizion offers business management services for our clients who are artists, musicians, music producers, songwriters etc. Because of this, we often collaborate with the client’s other business partners that specialize in being artist management companies, booking agents, and PR agents etc. What Supervizion then does is principally related to financial and money matters, such as bookkeeping, accounting and tax planning. These services are offered under the registered trademark Supervizion Management.
We also take care of the business interests of our clients in other ways such as advice on general management and business strategy. Supervizion has provided advice and consulting services since the 1980s.
Artist Management
You can read more about the different field artist management and how to get artist management and how to become an artist manager in this explanatory article of what artist management is.
