STRUCTURE
Leaner Operations, Stronger Legacies: Why Artists Who Lead Their Businesses Last Longer

Who Is Really the Manager on a Professional Musician’s Team?

When discussing the structure of a professional musician’s business, a critical question arises: who is truly the manager? In traditional industry language, the term “manager” refers to the individual responsible for booking performances, overseeing projects, negotiating opportunities, and offering career guidance. Yet, when considering the definition of “manage” — to be responsible for the control or administration of an organization or undertaking (Oxford English Dictionary, 2024) — it becomes clear that the artist themselves holds the highest managerial responsibility. As the owner of their business, the professional musician is ultimately the one who directs, controls, and manages the enterprise.

This understanding repositions the traditional “manager” into a new role within the business framework. Rather than being the true manager, they function more accurately as the Chief Operating Officer (COO) of the artist’s company. The COO is tasked with managing daily operations, ensuring alignment across projects, coordinating between departments (such as booking agents, publicists, attorneys, and record labels), and maintaining the operational stability of the artist’s endeavors. They execute the artist-owner’s vision while supporting overall growth and protecting the enterprise’s functional health.

The Artist as the CEO and Owner

A professional musician is not simply a creative worker within an entertainment industry system. They are the owner of a business that produces and distributes art, intellectual property, brand assets, and live experiences. Understanding this relationship between creativity and ownership is critical to long-term career sustainability. As the CEO of their enterprise, the artist sets the direction, approves strategic initiatives, maintains brand authority, and ultimately answers for the company’s successes and failures.

Treating the artist as the true CEO reframes business dynamics. It formalizes the expectation that team members, no matter how trusted, work on behalf of the owner’s objectives rather than independent agendas. It also emphasizes the need for the artist to maintain financial literacy, legal oversight, and organizational leadership skills to protect their ownership position throughout their career.

The COO: Closest Representative, Confidant, and Friend

Although the COO does not occupy the ownership seat, they are typically the most trusted figure in the artist’s daily business life. They act as a direct representative, authorized to negotiate, advocate, and communicate with external parties on the artist’s behalf. They often know the artist’s business priorities, personal aspirations, and professional boundaries better than anyone else on the team.

In many cases, this relationship extends into personal trust as well. Like the traditional personal manager, the COO frequently becomes a confidant with whom the artist shares concerns, celebrates milestones, and navigates challenges. As friends, they build a bond based not only on business but also on mutual respect, shared experiences, and emotional loyalty.

Maintaining this balance between operational professionalism and personal closeness requires intentional structure. Boundaries must be clear, especially regarding financial authority, decision-making power, and long-term planning. Artists and their COOs must periodically revisit expectations, renegotiate compensation structures as the enterprise grows, and reinforce the understanding that the COO’s authority is derivative, not independent.

The Outdated Gross Percentage Model

Historically, managers have been compensated through a gross percentage of the artist’s earnings, typically ranging from 15% to 20% (Passman, 2023). While this model reflected the industry realities of the past, it is increasingly outdated for today’s professional musicians, particularly those operating as full-scale businesses. The gross percentage structure does not always reflect the actual labor performed, nor does it incentivize operational efficiency.

Modern structures recognize the role as more akin to an executive position within a company. This framework better matches the COO’s function: driving organizational results rather than passively earning based on artist output.

Modern COO Compensation Structures for Artists

In contrast to the traditional gross percentage model, modern business structures for artist COOs often involve more flexible and transparent compensation formats. Common alternatives include:

• Flat monthly fee:

A set dollar amount paid month-to-month, based on the operational needs and scope of work. Flat monthly fee arrangements are typically cancellable by either party with appropriate notice (for example, 30 days). They offer maximum flexibility, allowing the artist to adapt services as needed without long-term commitment. However, they provide less stability for the COO.

• Long-term retainer agreements:

A set monthly fee locked into a fixed term — often six, twelve, or twenty-four months. Retainer agreements provide long-term stability for both the artist and the COO, securing ongoing services like operational management, strategic planning, and growth execution. Early termination may trigger penalties or renegotiation. This structure fosters continuity and deeper strategic work.

• Hybrid models:

A base monthly fee supplemented by capped performance bonuses tied to achieving specific revenue or project milestones. This ensures the COO is compensated fairly for foundational management work, with additional incentives tied to extraordinary business success.

Although hybrid models may include a small percentage element, the underlying philosophy of modern structures is different: they prioritize operational value, predictable budgeting, aligned incentives, and professionalization of leadership roles within the artist’s company.

Simple distinction between flat fee and retainer:

• A flat monthly fee functions much like renting month-to-month — highly flexible but easier to end.
• A retainer is like signing a one-year lease — securing commitment on both sides and rewarding longer-term partnership.

How Technology Streamlines the COO’s Role

Advanced technology now supports COOs by streamlining administrative and operational tasks that once consumed large portions of their time. Project management platforms, integrated accounting systems, CRM databases, and contract automation tools reduce bottlenecks and allow one individual to oversee a wide range of functions efficiently.

This enables the COO to remain the single point of contact across key business functions without requiring large teams.

For the CEO — the artist — this streamlined structure is profoundly beneficial. Reducing the number of people involved in operations lowers the artist’s daily mental load, simplifies decision-making, and protects creative energy. Instead of managing an internal bureaucracy, the artist can focus on leadership, vision, and artistic development with clarity and ease.

The Power of Lean Operations in Legacy Building

One of the greatest advantages of adopting a modern COO model is the ability to maintain a lean, efficient operation. Smaller teams, powered by integrated technology, allow artists to achieve greater results with fewer overhead expenses. This not only increases short-term profitability but also directly supports long-term legacy building.

Leaner operations protect brand quality by minimizing operational risk and keeping processes consistent. They make it easier to safeguard master recordings, intellectual property, and contractual rights — the true building blocks of an enduring legacy.

Legacy businesses, whether built around music, business ventures, or philanthropic initiatives, favor structures that are easy to transition, replicate, and manage across generations. A simple, scalable operation ensures that the artist’s influence and contributions can live on without unnecessary complexity or operational failure.

Easier Systems Reduce Stress and Expand Artful Productivity

Moving beyond outdated gross percentage models toward modern compensation structures provides both the artist and their team with greater clarity, accountability, and sustainability. Leveraging lean operations and smart technology further strengthens the artist’s ability to focus on creativity, decision-making, and building a meaningful legacy.

Artists who structure their businesses with intention are not simply participating in the industry — they are shaping their own future, preserving their ownership, and creating lasting contributions that endure for generations.

References

Oxford English Dictionary. (2024). Manage. Retrieved from https://www.oed.com/

Passman, D. S. (2023). All you need to know about the music business (11th ed.). Simon & Schuster.