 "Negotiating Your Employment Agreement"
by Bobby Borg
There are many sacrifices that musician's must make in order to gain experience and/or exposure, such as working for little or no pay. But if you
want music to be your livelihood, it is your responsibility to make sure that you are compensated fairly for each and every job. From salaries or wages to
buyouts, per diems and retainers, the following discussion sheds light on what you may be entitled to when negotiating your agreement with an employer.Working For Employers With Limited Budgets
As either a contract employee or a self-employed musician, especially early in your career, you'll frequently be offered work that pays substandard wages that fall below minimum scale.
This may be due to your inexperience, or to an employer's greed, or to a group's financial restrictions (i.e., a limited budget). When you accept employment under a limited budget, there
really are no fairness guidelines, but you should at least establish that your pay will increase when the group starts to make more money; this is especially important if you're a contract
employee working with one employer on a regular basis. Otherwise, you may continue to be paid the same low fee in spite of the group's newfound success and subsequent profits. This is common sense!
Working For Employers With Larger Budgets
The day will eventually come when you're asked to work with successful and reputable
employers who are willing to pay fairly and offer special perks-even greater than the minimum scales and treatment suggested by the union. But after adapting a "what ever goes" philosophy
to business for so long in your formative years, you may end up undercutting yourself in these new and potentially advantageous situations. Therefore, you need to understand a few things
about what you may beentitled to. The following discussion sheds light on your wages, per diems, retainers, equipment, equipment techs, buy outs, and much more. Keep in mind that the
agreement you're able to negotiate here as either a contract employee or as an independent contractor is substantially influenced by your personal reputation and experience, and/or how
badly a potential employer may want to work with you.
Wages. The wages you can expect from employers that have larger budgets will naturally be
much greater than the compensation offered from employers with limited budgets. For instance, in 2001 the Backstreet Boys paid a relatively unknown horn player a weekly salary of $4,000
totour (which is a far cry from the $250 salary our blues artist friend was paid in the previous example). Session musicians sometimes get paid double or triple the union minimum scale
(known as "double scale" or "triple scale") to record an album or to overdub a solo. When negotiating your fee, take notice of the strength of the record company for whom you're
recording, the capacity of the venue in which you are playing, the time of year in which you're working (such as on a national holiday), and the length of the tour on which you may be
embarking. Consider other factors as well: How much work will you be giving up to take on a new job? What are your personal monthly bills? How much will you net after your basic
expenses? How long will you be able to survive financially after the completion of a tour?
Sometimes an employer may be willing to guarantee you a flat salary to cover your services for
an entire year. For instance, in 1999 one drummer earned an annual salary of $100,000 while working with one of the greatest rock groups in the world-sorry, their identity must be left
anonymous. Though these situations may be rare, it pays to be sure that all of your obligations (e.g., rehearsals, recording, and touring) are clearly outlined in your agreement with the band.
Rehearsals. You've probably been participating in rehearsals with little or no pay for years, but employers with larger budgets will typically compensate you for rehearsals in preparation for
"phonograph" recording sessions, single live performances, and extended tours. The amount will vary between employers, but minimum compensation of $90 for a two-and-a-half hour rehearsal
is not uncommon.
Per Diems. Per diems are standard in the industry, and negotiating a reasonable PD is usually
not too difficult. A per diem is a daily allowance for food. The amount varies greatly, but can range anywhere from $50 to $200 per day. Keep in mind that if you're performing a gig out of the
country, your per diem should be adjusted to meet that country's economy.
Buyouts. In addition to receiving a "per diem," employers with larger budgets may offer you
money in something called a "buy out." A buy out occurs when the concert promoter does not fulfill his or her contractual obligation to provide food and drink backstage. This obligation is
stipulated in a band "rider," a contractual addendum in live performance contracts which also includes lighting and sound requirements for the group, dressing room accommodations, and
security needs. For one reason or another, a promoter may not be able to provide the requested food, so he "buys" the band out. A buy out is based on the number of people traveling with the
band; a group may provide you with additional funds ranging from $15 to $50 per buy out (and more). There are cases where musicians receive hundreds of dollars in buy outs over the course
of a tour. This is really subject to the individual situation.
Equipment. Musical equipment is another important factor to consider when arranging your
deal with an employer. Instruments and protective travel cases may be provided via your employer's recording and/or tour budgets. For instance, a musician hired to play drums on a
band's record negotiated to have the group pay for the rental of high quality drums for the session. In another situation, a drummer needed heavy duty travel cases for an upcoming
European tour, so the group paid over $3,000 to have the cases custom built. When he parted ways with the band, they offered him the option to purchase the gear.
Equipment Endorsements.
Minor equipment expenses for maintenance or usage may be covered by your employer for items such as guitar picks, guitar strings, amplifier tubes, drum
sticks, and drum skins.If these expenses will not be covered, considering that the group is already successful, or gaining additional exposure from radio play and record sales, you may
try to obtain sponsorship from a variety of equipment manufacturers. Most companies will begin your relationship by offering you a reduced price on equipment at usually 60 to 70 percent off. If
you're currently working regularly for a very large and successful organization, some companies may offer you free equipment and will advertise your name and likeness with their product.
Develop as many relationships with manufacturers as possible, but focus on companies whose products you truly desire; a company will want to know that you're not just looking for free
equipment. Introduce yourself by telephone or at trade shows such as the annual NAMM conventions (National Association for Music Merchants). Send manufacturers your recent
record releases, updated tour "itineraries" (i.e., performance dates and locations), performance reviews, and magazine articles.
"Show manufacturers that you are attracting attention from the community, especially from the demographic of fans between the ages of 18 to 24," advises Bill Zildjian, Vice President of the
Sabian cymbal company. "This age group is more likely to buy manufacturer's products, and that makes manufacturers happy!"
Equipment Techs.
The care and maintenance of your musical equipment is critical, both in the recording studio and while out on the road. When working for employers with larger budgets,
studio techs may be hired to tune and maintain your equipment when recording. On a tour, road techs are usually hired to handle the set-up of your musical equipment and to ensure its proper
functioning before a concert performance. Techs help when a guitar string or drum head breaks, a vocal mic needs to be replaced, or a cord is accidentally pulled out of an amplifier. At the end
of the night, techs are responsible for breaking down musical equipment and making sure that it's loaded in the vans, trucks, or buses. A tech adds to the professionalism of a tour by
allowing musicians to concentrate on their principle job at hand-performing.
Should an employer fail to provide you with a tech, negotiate your fee accordingly, so that you
can afford to hire one yourself. Note: If your musical equipment is lost or damaged on the road (e.g., if an amplifier is dropped from a truck or a guitar is left at the last gig), the group's
organization or, in some cases, the venue in which you are performing should cover the repair or replacement costs.
Travel and Lodging.
Although travel costs and lodging are generally paid for or reimbursed by your employer, the quality of service is usually uncertain. Employers with larger budgets may
take more care in providing the best travel and hotel accommodations possible.You may be provided with First Class airline tickets and/or single hotel room accommodations. Though this
may seem unimportant, after being out on the road for several months it can mean the world to you. Whether you receive this type of special treatment is really up to your employer, but keep
in mind that it does exist. (Note: Hotel "incidentals" such as, phone calls, room service fees, and movie rentals are your responsibility. So be careful! Incidentals can add up
quickly-especially telephone and on-line costs.) The costs for traveling to gigs in or around your hometown (such as mileage on your car, parking expenses, etc.), as well as the costs of
cartage (the costs of transporting heavy or multiple pieces of musical equipment), are also paid for by employers with larger budgets.
Special Clothing.
If specific clothing that is not "standard" or "ordinary" is required for a promotional video shoot, stage show, or tour, the group will usually reimburse your expenses.
For instance, one musician was allotted $500 to buy clothing for a video shoot that only lasted a day. The artist and video director specifically wanted the band and dancers to dress in black
studded leather pants (in case you're wondering, the shoot was for a hard-core rap artist). Keep in mind that the amount of money offered is subject to each individual situation.
Retainers.
In times of temporary unemployment, such as during a break in a tour schedule, employers with larger budgets may provide you with additional benefits such as a "retainer." A
retainer enables you to maintain an income while your services are on hold. You are expected to be more-or-less on call and are thus limited or excluded from taking on other work. A retainer
is usually 50 percent of your weekly salary.
Retainers are most common when working regularly for one artist.
 Bobby Borg
is an international recording and touring musician with over 25 years' experience in the music business. He has worked with a variety of artists including the multi-platinim
group Warrant, Beggars & Thieves, and his own band Left For Dead. A consultant to both artists and independent labels, he is a regular contributor to music business publications and
online sites, a regular guest speaker at music industry events, and a music screener for the independent A&R company, Taxi. Bobby will be teaching a new Fall Quarter class at the
UCLA Music Business extension program and is also the author of the highly endorsed Billboard book release "The Musician's Handbook: A Practical Guide To Understanding The
Music Business" was released nationwide May 1.
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