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What is Talent Representation Agreement?

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What is Talent Representation Agreement?

Agreements should be officiated and documented to be rendered legal and effective. And, for that to happen, a talent representation agreement should be the binding factor.

So what is a talent representation agreement?

A talent representation agreement is used when a company or an individual is hired to work for or represent a talent.

It is a binding contract with clear terms on how a performer and an agency will work together. The agency signs the agreement that they agree to find jobs and negotiate contracts on behalf of talent and earn a commission in return.

Critical Components of a Talent Representation Agreement

There are essential details in a talent representation that both parties should be aware of:

  1. Coverage

Coverage generally means what the union of the two parties should yield. This addresses the kind of gigs that the agency should work out to find for the talents. For instance, a music artist will probably be looking for concerts, collaborations, and tours. All these things should be addressed in the coverage section.

However, there’s something called carve-outs. Curve-out means all the things that should not be addressed in the coverage section. For instance, an established football player may be looking to get brand partnerships only since they are comfortable in the team they are playing for. In this case, the carve-out section in the agreement will read “teams,” meaning they don’t want jobs from other teams.

  1. Personal Managers & Talent Attorneys

Other than a talent representation, some artists have personal managers and attorneys. These are people that have helped them in their journey in both individual decisions and legal matters. For talents with such inclusions, mentioning them in a talent representation agreement is essential.

In most cases, these individuals get their cut from the talent’s earning. If those are the terms, you should indicate the percentage of the personal attorney’s cut (often 5%) and what the personal manager should earn. These are subject to negotiations and not dictated by state approvals or union protection.

  1. Term

The term of talent representation is usually one to five years. Nonetheless, Equity and AFTRA restrict the term of actors’ initial representation to a year. You could extend the time to a longer period if you chose to renew the contract with them.

Another interesting fact is that a talent representation union contract can be terminated if artists haven’t received the minimum amount of income or number of engagements in a three/four-month duration. It is crucial to request such a provision to terminate the agreement if your relationship with your agency isn’t going well.

  1. Commission

The rates of commission are typically negotiable. However, very few agencies can go below their standard percentage. Union-mandated provisions state that licensed agencies shouldn’t take more than 10% of the talent’s earnings. Other than the commissions, the agency can charge package fees, which is a percentage of a project’s license fee or budget.

Some of the commission rules to know include;

  • Do not pay upfront for talent representation
  • Expenses and travel shouldn’t be commissioned.