The organizational structure and leadership of an artist’s LLC become critical to long-term success, especially when looking at the organization from the business side of music as a professional musician. Whether you’re running a music LLC, a restaurant LLC, or a real estate LLC, the core principles of managing a business remain the same: reinvestment, delegation, and strong leadership.

This blog will dive deep into the following:

1. The misalignment in industry terminology around music managers.
2. The role of power and authority in effective leadership.
3. Why education is essential for managers operating in C-Suite capacities.
4. Why “35% to management” is a bargain compared to other industries.

Misalignment in Music Industry Terminology

In the music industry, the term “manager” often fails to reflect the level of responsibility and expertise required to guide an artist’s career. While some managers can operate at a Chief Operating Officer (COO) level due to higher education, many do not—and this discrepancy creates confusion.

1. The Industry Definition of “Manager”

• A music manager is often tasked with handling everything from booking gigs and negotiating contracts to overseeing branding and marketing.
• These responsibilities align more closely with traditional COO roles, yet the title “manager” satisfies industry norms and superficial expectations.

2. COO vs. Manager: The Key Differences

• COO (Chief Operating Officer): In traditional businesses, the COO handles day-to-day operations, strategic execution, and resource management. They report directly to the CEO and ensure the company’s vision becomes reality.
• Music Manager: While some managers do function as COOs due to higher education, others focus on more limited tasks, lacking the authority or expertise required to oversee an artist’s career at a COO level.

3. The Importance of Leadership Dynamics

The true power of a music manager depends on the leadership dynamics within the LLC, which are shaped by two types of power:

• Legitimate Power: Authority granted by position, such as a COO’s formal role within a company.
• Expert Power: Influence derived from knowledge, skills, and experience, regardless of formal authority.

A manager who embodies both legitimate and expert power is more likely to operate effectively at a COO level, but not all managers achieve this balance.

Leadership Dynamics: Power vs. Authority

Understanding the distinction between power and authority is critical for structuring a music LLC.

1. Authority (Positional Power)

• Authority is the formal right to make decisions, granted by a specific role or title.
• For example, a CEO inherently holds authority by virtue of their position at the top of the hierarchy.

2. Power (Personal and Positional)

• Power refers to the ability to influence decisions and drive outcomes. It can stem from expertise, relationships, or resources.
• A manager may have power (expert or personal) without holding formal authority.

3. Kanter and Korda’s Symbols of Power

Rosabeth Moss Kanter and David Korda have defined power from two perspectives:

• Kanter’s View: Power is derived from the ability to mobilize resources, build influential networks, and create opportunities.
• Korda’s View: Power manifests through visible symbols, such as access to decision-makers, control over information, and discretionary authority.

Managers operating at a COO level often embody both Kanter’s and Korda’s perspectives, making them instrumental in driving the success of a music LLC.

Why Education Matters for Managers Operating in C-Suite Capacities

For a manager to function as a COO within a music LLC, education is a critical component of their expert power. While passion and connections are valuable, formal knowledge provides the foundation needed to handle the complexities of running a business.

1. The Role of Education in Building Expert Power

Education equips managers with:

• Financial Skills: Budgeting, forecasting, and managing profitability.
• Operational Knowledge: Overseeing logistics, resource allocation, and project timelines.
• Strategic Planning: Setting long-term goals and creating actionable plans to achieve them.

2. Industry-Specific Expertise

Degrees in music business or entertainment management provide:

• Entertainment Law Knowledge: Understanding contracts, royalties, and intellectual property.
• Music Marketing Skills: Navigating social media, branding, and audience engagement.
• Production Management Expertise: Coordinating studio sessions, tours, and merchandise.

3. The Balance of Education and Experience

The most effective managers blend education with practical experience.

• Education provides a structured foundation for decision-making.
• Experience enhances intuition, relationship-building, and adaptability.

A Music LLC Is No Different from Any Other Business

At its core, a music LLC operates like any other business, whether it’s a restaurant, real estate firm, or physician’s practice. The fundamentals of organizational structure, reinvestment, leadership, and operational efficiency apply across industries.

1. Revenue Allocation in Any LLC

Every LLC requires a portion of gross income to be reinvested into the business, covering operational costs, marketing, and long-term growth.
For example:

• A restaurant LLC reinvests in ingredients, staff salaries, and marketing.
• A real estate LLC reinvests in property listings, training, and office operations.
• A music LLC reinvests in production, promotion, and management.

2. Misconceptions About Music LLCs

Many musicians view their LLC as a simple structure for managing income and expenses. In reality, it’s a business entity that requires strategic oversight and reinvestment to thrive.

Why “35% to Management” Is a Bargain

One common concern among musicians is the idea of paying 35% of their income to management. While this may seem high at first, it’s actually a bargain compared to other industries.

1. Reinvestment Is Essential

Every business requires reinvestment to grow. In most industries, operational costs consume 50% or more of gross income.

2. Breaking Down the Value

Paying 35% to management typically covers:

• C-Suite Services: Fractional COO, CFO, and CMO support.
• Operational Oversight: Day-to-day management of schedules, finances, and logistics.
• Growth Initiatives: Identifying new revenue streams and opportunities.

3. Comparisons to Other Industries

• A restaurant owner may spend over 50% of revenue on salaries, rent, and food costs.
• A real estate LLC allocates significant income to marketing and agent commissions.
• A physician’s practice invests heavily in equipment, staff, and compliance.

By comparison, paying 35% to a manager or fractional 360-management service is a cost-effective way to ensure professional oversight and scalability.

Structuring Your LLC for Success

A strong leadership structure is key to a successful music LLC. The ideal setup includes:

1. CEO (Music Professional): Focuses on vision, strategy, and high-level decisions.
2. COO (or Manager): Oversees day-to-day operations and ensures alignment with the CEO’s goals.
3. CFO/Financial Advisor: Manages budgets, taxes, and long-term financial planning.
4. CMO (or Marketing Lead): Handles branding, audience engagement, and promotional strategies.
5. CLO (Legal Counsel): Views and creates agreements and dispute resolution, finds and secures investors and sponsors, and creates sync deals.
6. Team Members/Associates: Execute tasks like design, content creation, stage managers, sound technicians, and event coordination.

Final Thoughts

Building a music LLC is no different from running any other business. It requires strong leadership, strategic reinvestment, and a clear organizational structure.

While the misalignment in industry terminology can create confusion, understanding the dynamics of power, authority, and education ensures that roles are assigned effectively. When it comes to management fees, paying 35% is not only reasonable—it’s an investment in the future success of your company that every business owner makes.

A solid business plan is indispensable for professional musicians navigating the complexities of the modern music industry. A well-structured LLC can go beyond merely managing income and expenses to operate as a full-scale production company, enabling musicians to organize their creative endeavors like professional ventures. This approach provides scalability, professionalism, and a pathway to long-term success.

Here, we’ll explore the critical components of a business plan for professional musicians, why an integrative design process is essential, and how structuring projects under an LLC or DBA can provide clarity and growth potential.

The Spectrum of a Business Plan for an Artist

A business plan for a music professional as a strategic framework, detailing every aspect of their career. It’s not just about creativity; it’s about aligning artistic goals with operational efficiency, financial sustainability, and audience engagement.

1. Creative Direction

A foundational step defines the professional musician’s identity and ensures that all projects stay true to their vision while appealing to their target audience.

• Artistic Vision: Establish the professional musician’s style, goals, and what sets them apart in a competitive industry.
• Target Audience: Identify who will engage with their work and tailor strategies to connect with that demographic.

2. Financial Planning

Without sound financial planning, even the most creative projects can falter. This section includes:

• Budgeting: Outline projected income sources (e.g., ticket sales, streaming royalties) and expenses (e.g., recording, marketing).
• Funding Sources: Explore opportunities like investors, grants, sponsorships, or crowdfunding to support projects.
• Forecasting Gantt Chart

3. Operational Strategy

A strong operational plan ensures efficiency in producing and delivering creative projects.

• Production Workflow: Break down each project into manageable steps with clear timelines.
• Organizational Structure: Define roles for collaborators such as Chief Officers, managers, and marketers.

4. Marketing and Branding

Successful professional musicians are often masterful marketers. This section should include:

• Brand Identity: Develop a cohesive brand that reflects the artist’s personality and resonates with their audience.
• Promotional Channels: Specify strategies for reaching fans, such as social media, PR campaigns, and partnerships.
• PESO 2.0

5. Growth and Sustainability

The plan should prepare the artist for future opportunities while mitigating risks.

• Scalability: Strategize ways to expand reach, whether through new genres, larger audiences, or diversified projects.
• Risk Management: Anticipate challenges (e.g., funding gaps, industry changes) and develop contingency plans.

Why Use the Integrative Design Process?

The integrative design process ensures that all elements of the business plan work cohesively. This approach is particularly valuable for professional musicians whose careers often involve balancing creativity with logistics.

Holistic Alignment: The process avoids conflicts and ensures seamless execution by considering all aspects—creative, financial, operational, and promotional.

Collaborative Synergy: It fosters input from all stakeholders, from the professional musician to their production team, ensuring everyone is aligned.

Strategic Focus: Every decision contributes to the professional musician’s long-term goals, eliminating inefficiencies and redundancies.

Example, an album release isn’t just about recording music; it also involves aligning the production schedule with marketing campaigns, budgeting, and audience outreach. The album release cycle process can take up to two years. An integrative approach ensures these components work together to maximize impact.

Structuring Projects Under an LLC or DBA

A professional musician’s LLC (Limited Liability Company) or DBA (doing business as) provides a professional framework for managing their career. Within this structure, each project, whether an album, tour, or merchandise line, can function as a distinct venture.

1. Under an LLC

An LLC offers legal protection and organizational flexibility, making it an excellent choice for professional musicians with multiple projects.

Asset Protection: Personal assets are separated from business liabilities, safeguarding the professional musician’s financial security.

Project-Specific Management: Each project can be treated as a sub-venture within the LLC, with its own budget, contracts, and operational guidelines.

Tax Flexibility: LLCs provide options for how income is taxed, which can benefit professional musicians with fluctuating revenue.

2. Under a DBA

A DBA allows the professional musician to operate under a business name while remaining part of their personal financial structure.

• Simplified Administration: All projects are managed under a single tax and legal entity, reducing administrative complexity.
• Brand Consistency: The DBA name becomes the artist’s brand, creating a cohesive identity across projects.
• Affordability: This option is often more cost-effective than forming an LLC, making it ideal for emerging professional musicians.

The Case for Production Companies in Music

Positioning an LLC as a production company offers advantages that extend beyond managing finances. This model allows musicians to approach their work with the professionalism and scalability seen in other entertainment industries.

1. Why Well-Trained Musicians Thrive

Though it is not necessary for musicians to have a degree-type education, it is necessary to have background in music with continuous education. Well-educated musicians and vocalists excel in this model because training emphasizes precision and discipline. Like actors following a script, they can execute structured works with their unique artistry intact. This combination of skill and adaptability makes them well-suited to producing high-quality, scalable projects.

• Polished Outputs: Their attention to detail ensures professional-quality productions.
• Commercial Viability: They understand how to balance creative integrity with market demands.
• Scalable Productions: Their discipline and ability to work within structured frameworks allow for seamless growth.
• Investor Trust

2. Shifting from “Artist” to “Music Professional”

The term “artist” often implies a focus solely on creativity, which can overlook the commercial and logistical aspects of a music career. However, Casey Rae, author of “Music Copyright: An Essential Guide for the Digital Age,” expresses the fact that copyright was created in 1790 for professional musicians to monetize their art. A better descriptor might be a music professional or musical entrepreneur who highlights the blend of artistry and business acumen.

This isn’t about compromising creativity. As with actors interpreting scripts, musicians can follow structured plans while staying true to their identity. The goal is to balance personal expression with industry expectations, creating work that resonates both artistically and commercially.

The Importance of a Business Plan

At the heart of this model is a comprehensive business plan. This document serves as a blueprint for success, detailing how the professional musician will achieve their goals while maintaining creative integrity. Whether operating under an LLC or DBA, a solid business plan ensures that every project aligns with broader career objectives.

A professional musician’s LLC, when viewed as a production company, provides the structure needed to navigate the complexities of the industry. By leveraging an integrative design process and treating each project as a professional venture, musicians can turn their passion into a sustainable, scalable career.

The Gigging Trap: For many musicians, gigging is the bread and butter of their career. It’s where they cut their teeth, build an audience, and earn their living. However, as essential as gigging is for developing an artist’s craft, there comes a point where it becomes a limiting factor rather than a stepping stone. The journey from consistent gigging to booking shows and larger events can feel like a daunting leap, but it’s necessary for any artist who wants to turn their passion into a sustainable, long-term career.

Gigging vs. Shows and Events

At the heart of this transition is understanding the difference between gigging and playing shows or events. Gigging generally refers to frequent, smaller performances—at bars, local venues, or restaurants—where the pay might be decent, but the ceiling for growth is low. These performances are often casual, and while they provide steady income, they rarely lead to big breaks or significant career advancement. Artists who rely solely on gigging can find themselves stuck in a cycle, playing the same venues to the same audiences without ever expanding their reach.

 

Shows and events, on the other hand, are larger and more strategic. They require planning, promotion, and often involve collaborations with other artists, promoters, or brands. These performances are designed to elevate an artist’s profile, bringing in new audiences, media attention, and often higher paychecks. Artists may hesitate at the idea of playing bigger shows because they seem out of reach, but the reality is that these opportunities are far more attainable than many realize. It’s simply a matter of shifting perspective and embracing the growth that comes with stepping outside the gigging comfort zone.

The Illusion of “Making a Living”

One common objection I hear from artists is, “I was already making a living gigging before I worked with management, so why should I change my approach?” This sentiment comes from a place of security—gigging is familiar, it pays the bills, and it feels like steady work. For artists, especially those who’ve been grinding for years, the idea of stepping into larger shows or events can feel unnecessary or even risky. But there’s a big difference between *making a living* and *making a career.*

 

Gigging provides immediate returns, but it also caps an artist’s potential. Yes, you can make a decent income gigging regularly, but the reach of those gigs is limited. You’re performing for smaller crowds, often at venues that don’t cater to long-term growth or media coverage. Management isn’t about taking away that stability—it’s about taking what’s working and building something more significant. Artists who embrace management services can move from survival mode—where they’re just getting by gigging—to thriving, where they’re playing shows that offer both exposure and financial stability.

The Role of Management: From Gigging to Greatness

The challenge many artists face when working with management is impatience. After years of booking gigs on their own or through a booker, they’ve developed expectations around quick results. When management doesn’t instantly deliver those familiar bookings, it can feel like the process isn’t working. But management’s role isn’t to continue the same cycle—it’s to elevate the artist beyond that.

 

Management focuses on long-term strategy rather than immediate results. Instead of booking more gigs, management aims to book *better* gigs that grow an artist’s audience, generate buzz, and build a sustainable career. The shift from booking smaller gigs to planning shows, events, and tours takes time, but it’s the kind of time investment that pays off in bigger ways. For artists stuck in the gigging mindset, it’s essential to understand that management is about scaling up, not just maintaining the status quo.

Overcoming the Gigging Mentality

The main reason artists resist this shift is fear. Gigging is comfortable. It’s what they know. But that comfort can quickly turn into stagnation. The truth is that moving from gigging to larger shows isn’t an impossible dream—it’s a natural progression. And many artists, even those who aren’t household names, are out there making a great living playing bigger events without sacrificing artistic integrity or stability.

 

Breaking out of the gigging mentality requires a few key changes:

1. Mindset Shift: Understand that gigs, while necessary, are just the foundation. Artists must envision themselves beyond the next local bar show and start seeing the potential for bigger opportunities.
2. Long-Term Vision: Management works toward growth, which takes time. There won’t always be instant results, but the payoff comes with shows that matter, larger audiences, and more income in the long run.
3. Strategic Booking: Instead of trying to play as many gigs as possible, focus on booking quality shows and events that expose you to new fans, media coverage, and potential sponsors or partnerships.
4. Support: Management helps guide artists through this transition, providing structure and strategic thinking that artists may not have developed on their own. That support, combined with the artist’s hard work, leads to greater success.

From Making a Living to Making a Legacy

Every successful artist starts somewhere, and for most, gigging is the natural entry point. But the ones who reach true career heights—whether it’s headlining tours, selling out shows, or collaborating with other big names—are those who embrace the uncomfortable transition from regular gigs to something more. Gigging provides the foundation, but management is the key to growth.

 

So while making a living from gigs is admirable, there’s a bigger picture to consider. It’s not just about playing more shows; it’s about playing the right shows—the ones that push your career forward, bring in new opportunities, and help you build a lasting legacy. Management isn’t about delivering quick results; it’s about laying the groundwork for long-term success. If you want to move from surviving off gigs to thriving in a sustainable, dynamic career, management is the tool that makes that possible.

 

Success is more than just making ends meet—it’s about aiming higher, reaching larger audiences, and building a future that goes beyond the next gig.

The music industry often resembles a bustling casino, with high risks and potentially high rewards. As artists, producers, and labels navigate this complex arena, understanding the dynamics of bets, chances, and loans becomes crucial. This blog post delves into these financial and strategic gambles that shape careers and create legends.

The Bet on Talent and Trends

At its core, the music industry’s primary wager is on talent. Record labels and investors constantly scout for artists who they believe will succeed in the ever-evolving market. This bet isn’t just on skill but also on potential marketability and the artist’s ability to adapt to or set new trends. The stakes are high, and the payoff for discovering a chart-topping artist can be enormous, but the risks of backing the wrong horse are equally significant.

Rolling the Dice with Marketing and Production

Once talent is onboarded, the next gamble involves marketing and production. Significant funds are invested in recording, producing, and promoting music. This stage is fraught with uncertainty: a well-produced album might not resonate with listeners, and a marketing campaign could fail to reach or engage the target audience. Here, the industry relies on both data-driven strategies and intuitive guesses about what might captivate audiences.

The Loan Structure in Music Deals

Loans, often in the form of advances given to artists, are another financial mechanism akin to betting. These advances are bets placed by labels on their artists’ future earnings. For the artist, accepting an advance is a risk-reward scenario. It provides immediate funds and resources but at the cost of future earnings and, sometimes, creative control. The terms of these loans can be stringent, and the pressure to succeed and recoup the investment is high.

Navigating the Odds

For those trying to make a name for themselves in the music industry, understanding and navigating this landscape of financial risks is essential. The ability to manage finances, coupled with a keen sense of one’s artistic direction and market trends, can determine longevity and success in this competitive field.

Conclusion

The music industry’s reliance on bets, chances, and loans makes it a thrilling yet precarious field. For every superstar success story, there are many who do not make it. However, for those who can play the game wisely, the rewards can be as gratifying as a standing ovation at a sold-out concert.

This exploration of the financial intricacies behind the music scene highlights the blend of artistry and economic strategy that defines the industry. It’s a reminder of the delicate balance between creative passion and business acumen required to navigate these waters successfully.

In the dynamic world of the music industry, a sustainable career goes beyond talent—it requires a comprehensive strategy that covers every aspect of an artist’s journey. This is where the Integrative Business Model (IBM) or Integrative Design Process (IDP) stands out, often recognized as a 360-management model. This approach, known for its holistic and all-encompassing structure, ensures that each facet of an artist’s career operates in synergy with the others.

Why the 360-Management Model?

A 360-management model provides “full-circle” support, meaning every aspect of the artist’s professional and personal development is accounted for. This model covers all essential areas—from brand identity and marketing to performance bookings, financial planning, and audience engagement—ensuring each part is connected to create a cohesive career trajectory. It’s called “360” because it doesn’t leave any part of an artist’s journey unsupported; it delivers a well-rounded, structured pathway to success.

Phases of the Integrative Business Model (IBM)

IBM operates in clear phases, each contributing to the long-term stability of an artist’s career. Each phase addresses specific areas of growth, risk reduction, and adaptability, ensuring that the artist’s brand is built on a solid foundation. Additionally, each phase includes progress reports, which help secure funding and support by showing lenders, grant committees, and record labels clear documentation of the artist’s development.

 

Planning and Brand Development

The journey begins with a comprehensive business plan, which establishes the artist’s identity, values, and target audience. Developing an artist’s brand identity can take up to two years, a critical period for defining the core elements of their public image and artistic voice. This stage provides the foundation for every future decision, allowing the artist and manager to set clear, long-term goals that will drive their success. Having a clear business plan from this stage can later be vital when applying for loans, grants, or record label partnerships, as it showcases the strategic groundwork of the artist’s career.

 

Strategy and Resource Integration

Once the brand is established, the next phase focuses on strategic alignment of resources and team members. The personal manager brings together key professionals—such as booking agents, marketing specialists, and business managers—who share a vision for the artist’s success. By connecting these areas early, the model reduces risks of misalignment and ensures that each role complements and amplifies the others. Reporting progress during this phase can also be instrumental for funding purposes, demonstrating the integration of expertise and resources to support the artist’s development.

 

Marketing and Public Engagement

The third phase centers on building audience relationships through strategic marketing and public engagement. Here, the manager implements the artist’s branding in ways that engage audiences, from social media campaigns to collaborations. This phase is about maintaining adaptability, adjusting marketing strategies as trends and platforms evolve, and ensuring that the artist’s public image remains vibrant and relevant. Documenting the artist’s growing fan base and engagement can attract interest from potential investors or industry partnerships.

 

Revenue and Financial Stability

A sustainable career requires financial planning and income diversity. During this phase, IBM emphasizes revenue strategies such as merchandise, royalties, licensing, and live performances. Managers help the artist identify new income streams, adapting as the industry shifts to safeguard their financial stability. This phase not only protects against financial risks but also builds resilience, allowing the artist to navigate economic changes confidently. Detailed financial reports from this phase can make a strong case when applying for funding or attracting partnerships by showcasing income potential and financial responsibility.

 

Performance Review and Adjustment

In the final phase, regular performance reviews ensure that each part of the artist’s business is aligned and progressing as planned. Through open communication and feedback, any misalignments or conflicts are addressed proactively. This phase reinforces the 360-approach by continuously assessing and adjusting, keeping the artist’s career on course and resilient against potential setbacks. Final reports from this phase, documenting achieved milestones and completed objectives, provide powerful evidence of progress for future funding and partnerships.

Conclusion

The Integrative Business Model offers more than just support—it empowers artists to build sustainable, adaptable careers by ensuring each phase aligns with the others. The 360-management approach integrates creativity, brand, revenue, and resilience into a single, strategic model. This interconnected framework enables artists to thrive not only today but also as they grow and evolve, establishing a meaningful career path that withstands industry changes. Final reports documenting each phase’s achievements and benchmarks can help attract loans, grants, and industry partnerships, demonstrating the artist’s ongoing growth and potential.