The Pros and Cons of the Retainer Fee

Here at Love, Entertain, Live, the creative is number one.  It is only right to discuss a major issue with the artist once the art has brought in considerable capital.  All artistic professionals, graphic designers, painters, sculptors, musicians, vocalists, and even celebrity and sports figures have one thing in common: they have a team of professionals working day and night to keep them relevant and successful.



What’s this “retainer fee” you speak of?

Creatives need professionals like publicists, managers, accountants, and lawyers working behind the scenes.  Some professionals ask for a retainer fee for their services.  A retainer fee is a monthly or annual fee, paid out by the client.  It is a flat rate fee that usually ranges anywhere from $500 to $3000 monthly, depending on the extent of work and the quality or reputation of the professional providing the work.

The Pros to hiring someone on retainer:

1.     There is no limit to the tasks that need to be done. Once both parties agree on the extent of work and the retainer fee, the publicist or lawyer contributes accordingly.  Based on the Huffington Post, the publicists job is to present the artist to the world. 

2.     The retainer fee is usually a discounted amount, compared to the hourly rate.  Myclientspot.com says that  as long as a client is using the discounted amount calculated hours, the retainer is worth it.  For example, if a lawyer requests a retainerfee of $3000 per month, at 10 hours per month, but the client only uses 5 hours a month, it may be cheaper if the hourly rate is only $350 per hour.

The cons to hiring someone on retainer:

1.     The employee does not have a vested interest.  If a publicist is hired to work on commission, that publicist is required to show results in order to receive payment.  In other words, if the artist does not make money, no one makes money. 

2.     It is expensive to have an employee working on retainer. It should only be done if income is steady. 

So what’s an artist to do? Start out simple.  Offer an affordable flat rate, with opportunities for commission throughout.  This allows both parties to test the waters and prove their dedication to the art itself.

Image Source:
http://www.ereleases.com/prfuel/wp-content/uploads/2009/12/cash_payment.jpg 

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Live Nation Canada Stage Collapse

Live Nation is a huge worldwide concert, touring and merchandising giant.  They have changed the way the concert and merchandising industry thrives within the music industry.  With the change in music lovers’ buying behavior, Live Nation has attempted to change the business model and redirect where profit comes in.  As of now, the public is still waiting to experience the viability and profitability of this model. 

Live Nation has been in and out of entertainment news for a few years now. Just this weekend, news reports claim that Live Nation Canada has been sued for an accident at a Radiohead concert last year.  According to Rolling Stone, The Ontario Ministry of Labor brought up a suit against Live Nation Canada for a stage collapse that occurred last summer in Ontario.  Several charges were brought up against the concert promoter, while the remaining charges were brought up against the staging company responsible for building the stage for the event.  Radiohead’s drum technician died in the collapse, while several others were injured. 

According to the Hollywood Reporter, Live Nation fervently denies responsibility, for they claim they did their best to ensure safety at the event.  A company as big as Live Nation invests heavily in special event and liability insurance for situations just like this.  Resource Nation states that most businesses are sued by third parties, and every business should have liability insurance.  Liability insurance should be supplemented with special event insurance, because special event insurance covers more situations, like a fire, mob, or stage collapse.  Even if someone commits a DUI after a special event, the sponsoring business can be held liable for that individual’s actions.  It may seem extreme to blame Live Nation for most of the stage collapse, but the reality is, a company like Live Nation is well prepared to pay the fines associated with such a catastrophic occurrence.  

Image Sources: Live Nation Logo

                              Stage Collapse

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Xbox One May Impact Our Television Viewing Experience

     The Xbox One has been revealed recently and has been in news articles and blogs alike.  Operating under the Windows OS (operating system).  This powerful system will allow for game play, video chatting, television and film   As a gaming console, the Xbox One will display “cinematic” and realistic graphics (http://www.xbox.com/en-US/xboxone/how-it-games). Games will automatically update in the background while gamers do other things.  In addition, the games will continue to “play”, even when the gamer is not.  This technology is considered the gamer’s “shadow”, and it will act how the gamer would normally play during gameplay.  So what does this mean for media?

streaming, applications, and web surfing.

    In our inundated age of media online, in print, in music, and in film, the Xbox One could be an interesting outlet for media publishing and distribution. It is incredibly easy to publish and share content with technology and access.  With technology like smart televisions and the Xbox One, viewing and enjoying entertainment content has become extremely personalized for the viewer.  No longer does a family have to purchase an expensive cable bundle to enjoy their favorite content.   Consumers can download applications and content that interest them. These alternatives deliver only the content the consumer desires. 

       With mass adoption, the Xbox One could open up the television to a new experience.  Our internet has allowed the knowns and unknowns, alike and unalike, to compete on a more level terrain.  If television can assimilate into this process, business models of major studios nationwide may crumble.  Although this sounds like a frightening time for entertainment publishing and distribution, it is also an exciting and defining time to live in.  Watching every moment unfold is a privilege for those living to see it.

Application developers for the Xbox One could easily release applications that showcase and recognize independent content creators, from filmmakers to musicians.

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The American Film Market - A Closer Look

     Deal making is the livelihood of most filmmakers, producers, and screenwriters.  The most lucrative events to attend to be involved in such deal making are the Cannes Film Festival, the American Film Market, and MIP Tv.  These events allow filmmakers to share their project with the world and gain financing or distribution for that project. Recognition at Cannes can skyrocket the career of a novice and destroy the career of an expert, both at the same time. 

     The American Film Market is an eight-day event, full of deal making.  This year, it takes place November 6^th to November 13^th in Santa Monica, California.  Films in every stage of development are closed on, with hope of massive profit and popularity.   From   Conferences include finance, pitching, production, marketing and distribution. After classes, the market opens up. Deals can include packaging, developing, financing, licensing and distributing projects.  The possibilities literally seem endless by attending such a recognized event.  Major brands like Audi and Wells Fargo attend to reach filmmakers and screenwriters as well. 

morning to lunch time, classes take place in a conference like manner. Classes cover everything from film treatment to screen.

       Buyers are constantly searching for investment opportunities, so in addition to attending and exhibiting a project, filmmakers may also advertise their company and project on banners at the event, the screening catalogue, staircase and column signage, trailer streams, atrium banners, event bag art, event bag inserts, and much more.  Investing in an event like the American Film Market can make a gigantic difference in someone’s film career.  It’s well worth the investment.If a production company is truly serious about what projects they have to offer, they can also be an exhibitor, which costs anywhere from $3,500 and up. Exhibitors may have tables at the event and also may screen their films at the event.

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Indie Artists: Cut Costs with NFC Technology

In the new music industry, artists look to more creative means to promote their craft.  Rolling Stone explains that in the past, artists would sign with major labels.  After signing with a major label, those artists would then receive large cash advances to complete a project.  We fast forward now to an American economy and social culture where technology and knowledge rule.  Barriers to entry in the music business could not be lower and more accessible.  The downside, however, is that independent artists alike must now find a way to manage budgets and cut costs where they can.  Indie Ambassador points out that artists waste money sending out press kits daily and distributing their own merchandise and music inefficiently.  With technology comes the ability to cut costs for independent artists today.

One such new technology is the near field communication (NFC) technology. The near field communication takes a small microchip and delivers specialized, customizable, and up-to-date electronic information. Moo.com, a business card company, will be launching their NFC business card next month.  With a NFC business card, one could share music, a location on a map, a contact card, an online portfolio, a coupon, and much more with the individuals that receive the business card.  With this product, consumers can reset their business cards or update them at anytime with the "NFC by Moo" application on their smartphone.  This product can cut costs for artists across the globe.  Electronic press kits would be one tap away from a potential employer's reach.  Special fan offers and links to social media accounts are located with ease.  Artist albums or demos could be downloaded without ever having to search online. This product will eliminate the need of many tangible materials needed for artists to be independently successful.  Paper, compact discs, plastic covers, and numerous other wasteful materials could virtually become even more obsolete with NFC technology.  The most exciting aspect of this product is that this stage is only the beginning. Watch a brief video of how the NFC technology works above. 

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Clive Davis' Memoir Stirs Backlash from Kelly Clarkson

Clive Davis is well known for his uncanny ability to find and nurture talented artists within the field of music.  He has been responsible for skyrocketing the careers of artists like Whitney Houston, Jennifer Hudson, and Kelly Clarkson. Last month, Clive Davis released a memoir titled “The Soundtrack of My Life”, which shed light on his 52 years as an artist manager in the music business. A Hollywood Reporter book review says the memoir focuses on his artists’ journey to do things the way they want, rather than listening to everyone else. The memoir received negative attention this past week across entertainment news platforms alike.  Kelly Clarkson claimed that Davis misrepresented her in his book, and she has demanded clarification. 

According to the Wall Street Journal, Clarkson took to social media to express her discontent with the alleged falsified information written by Davis.  As a response to Clarkson’s actions, a representative of Davis released a comment stating that Davis verified his chapter on Kelly Clarkson with five independent individuals.  In this article, Clarkson expressed that Davis discouraged her songwriting and personal projects numerous times in private and in public.  Additionally, she says Davis even told her she was a terrible songwriter.  It seemed like a classic case of two different accounts of the same story until Howard Stern, the infamous radio personality, stepped in.

In this article, Howard Stern took to the radio and expressed his disgust for Davis diminishing such a talented artist like Kelly Clarkson.  In addition, he added that music business professionals often diminish talent to depict themselves as artistic geniuses behind the artist.  Fortunately, Kelly Clarkson did not remain quiet about the situation and utilized social media to rally support on the common dispute between artists and their professional staff. Social media has allowed artists to voice their personal concerns inexpensively and effectively.  In just days, Clarkson was able to diminish the accounts of Davis’ “The Soundtrack of My Life”, a work that probably took him several months to complete.

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A Negotiation Podcast Analysis

I listened to and summarized three podcasts that discussed negotiation techniques.  The first discussed mutual benefits from creating a dynamic negotiation.  The second explains that some “objective criteria” can be used as dirty tricks.  The last podcast discussed preparing research and placing value on one’s offering in negotiation.  Enjoy!

"Negotiating Dynamically - How You Can Change the Game" by Mary Olekains

Mary Olekains discussed the negotiation process and how negotiators should have game plans, and be clear about their objectives.  She explains that negotiators must supplement this game plan with being dynamic.  Negotiators should imagine the opponent playing a different game plan. This will help the first negotiator to switch their game plan or improvise to redirect the negotiation process. Engaging in a competitive, positional game will create a “spiral process”, according to Olekains.  The moves and countermoves take up time and escalate the level of defenses on each side.  Negotiators choose from power-based game plans, rights-based game plans, and interest-based game plans.  Preventative behaviors, like “not getting personal” (or separating the person from the problem), will allow negotiators to focus on interest-based negotiation.  In order to protect oneself from power moves, one should follow with an interest-based proposal.  In “Getting to Yes” (1991), the authors discuss the benefits of adopting an interest-based proposal. In principled negotiation, one separates the people from the problem, focuses on interests, provides objective criteria, and generates numerous options (Fisher, 1991). The authors explain that “Your interests are what caused you to decide” (Fisher, p.41). This means one could have many different interests behind their position. Mary Olekains further explains what interest-based negotiation requires to move the negotiation forward. Taking a restorative turn reminds the other negotiator that an agreement will help both. Taking a participative turn will allow both negotiators to brainstorm solutions with one another. Personal attacks, requests for sympathy, and threats are moves that negotiators should counter with either a corrective, naming, diverting, interrupting, or questioning turn. Olekains ends the lecture with a scenario of making the negotiation dynamic.  Her lecture confirmed the benefits of using interest-based negotiation.  Viewing the negotiation as a path that could either spiral out of control, or that could shift and change as turns are made in the process will help negotiators see the impact of their negotiation process. In the entertainment industry, creating a dynamic game plan will allow professionals to focus on merits, while keeping the relationship professional.  Taking preventative or participative turns in negotiation can also help negotiators grow their working relationship.  As a result, both entertainment professionals benefit from the agreement.

“Best of conflict free zone” – by Paula Langguth Ryan

Paula Langguth Ryan talks about the importance of facts and figures, and gaining concessions. Many times, negotiators throw out numbers.  Paula stresses the importance of breaking down the impacts of numbers on the actions of other negotiators.  She used the Persian Gulf instability and the habit of gas providers to use declining numbers to justify raising their gas prices as an example.  She explained that it is important to pay attention when people spout out numbers, because sometimes those numbers are exceptions or outliers.  Getting caught up in the numbers game will make a negotiator miss an opportunity to improve their position.  When numbers consume the negotiation, negotiators forget about the other benefits of the negotiation.  By being open to changes, and stating it in negotiation, it allows for the other negotiator to work with you to solve the problem together. In this podcast, objective criteria were discussed in a different light by explaining how negotiators use numbers as dirty tricks.  Taking the other side’s objective criteria as the rule could create an unbalanced agreement in the end.  Dissecting objective criteria will give the negotiators the correct picture of the problem, and allow both of them to move towards a possibly more balanced agreement.  One of the first rules of objective criteria in “Getting to Yes” is to agree on the standards to apply (Fisher, p.88).  This step allows both negotiators to be on the same page with the numbers game. Phony facts, as discussed in “Getting to Yes” should be combated with verifying information (Fisher, p.133). In the entertainment industry, knowing that some numbers just do not apply as the rule will help negotiators to not agree to an unfair agreement.  For example, an agent providing salaries of seasoned actors as evidence of the rule of salaries for his client should not be acceptable.  What should be acceptable, however, is providing salaries of other actors with the same experience and exposure as the client.

“Successful negotiation strategies” by Brian Dietmeyer

Brian Dietmeyer discusses how people should keep negotiation simple. Negotiation is about the problem, and how much the negotiators will do to solve the problem.  The more data analysis a negotiator completes, the smoother a negotiation will go. Whichever negotiator has the most analysis will have the upper hand at the negotiation table.  Being able to list your side’s strengths and weaknesses will allow you to prepare and clarify your argument to the other side.  Most negotiators compare an alternative or ask for a concession.  This strategy puts the other side in a strong hold to change their initial request in order to make a deal.  In order to balance the negotiation, the negotiator should prepare and analyze as much as possible to understand the needs of the other side.  If you do not know your analysis better than the other side, the negotiation will be unbalanced.  This podcast was about analysis, and preparing for the negotiation properly.  Dietmeyer believes that as long as a negotiator predicts that the opponent will provide a better BATNA, or will ask for a concession, the negotiator will prepare what they want, the value of their offering, and what the other side might say before the negotiation even starts. Most people provide BATNAs that claim they could acquire the same proposal for a cheaper price.  By researching the value of the proposal before the negotiation, the negotiator makes the game much more balanced, especially if the value of their proposal is higher than other proposals with the same price.  This idea is discussed briefly in “Getting to Yes” (1991).  The authors state that if the other side is optimistic about their supposed BATNA, lowering their expectations and giving them a reality check will balance the negotiation (Fisher, p.105). In the entertainment industry, researching what sets the offering apart from others will make the other side believe that you, as a professional, understand your craft.  A production company or music group that offers numerous services, for example, could state that their services are valued at a lower price compared to competitors because they can cut costs from bundling their services for large projects. This can help the other side possibly save money.  As a result, the negotiation becomes more balanced, and is not dependent on just the price.  Knowing the value of one’s skill could be one of the most helpful strategies while at the negotiation table.

Sources:

Fisher R., & Ury W. (1991). Getting to yes: Negotiating agreement without giving in.  New York: Houghton Mifflin.

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