“Measure twice – Cut once” is a great way of thinking when it comes to getting things done right and it especially works well when it comes to making sure you get paid when you’re done. That’s why a good contract is an essential part of any successful business. It doesn’t matter the size of the company or job, it doesn’t matter if you’re the customer or the employer, and it doesn’t even matter if it’s a stranger or a friend you need to set some ground rules.
Robert from Robert Anthony Entertainment Group says “Contracts (written agreements) in the industry should be as important as any other item in your road case. These help clarify the terms/expectations of each party and will make either your performance or business relationship a better experience. Without these in place it’s like playing Russian Roulette!”
The benefits of a good contract go way beyond just a legally binding document ensuring that you get correctly compensated. A good contract makes you look more professional and reassures the other party that you are committed to the best outcome. A detailed contract will help you better handle the unexpected and shorten the recovery time when changes in the schedule need to be made on the fly. From personal experience I cannot express this next part enough … There are no such things as “friends” when it comes to making sure you getting paid. No matter how well you know the person, promoter, venue, or artist a written agreement should make BOTH parties more comfortable. I would think twice if the other party keeps pushing that a contract is not necessary. That may be a sign to walk away before you get too involved or the reputation of your business is tarnished.
Performance agreements have two parts: the basic contract and the rider. For some types of Artists / DJs this may not pertain to you, but as they say “knowledge is power” so let’s break each one down and figuring out which covers what. Attorney Noah Sutcliffe defines contracts and riders as such.
“The basic contract generally identifies the parties and covers the date, time, fee, and any payment splits or guarantees if the fee is scalable based on attendance, bar sales, etc. A radius clause (limiting performances in the same geographic area before and after the show) might also appear in the basic contract.
The rider covers everything else – from cancellation policy to transportation, equipment, comps to catering preferences. The reason for this division into basic contract and rider is that different DJs (and different musical acts of all varieties) have vastly different needs, expectations, and levels of bargaining power. At the same time, it’s likely that a given DJ will have the same needs and expectations for any gig he plays at a given stage in his career. The rider provides an easy way for that DJ to ensure his needs are met without having to rewrite a standard form contract every time he plays a show.”
I myself use a hybrid contract/rider. It covers both the financial and time expectations but also things such as transportation and lodging requirements. Let’s break the hybrid contract/rider down.
- Event Info – In this area you would cover the basic info of the event such as event Name, Date, Start / End Time, load in, sound check etc.
- Provisions – This is the area where you list some of the things that would be on the rider such as what is needed and who takes care of things like (sound, lighting, backline, multi-media, lodging, travel and meals) Will the event be indoors or outdoors and who provides cover if it is an outside event. Is there union workers that will move / setup equipment or is the artist / DJ required to take care of that? You have to be very specific here. What is the minimum wattage sound system required? How much lighting and what is its maximum wattage? Who provides the back line and what is the minimum number of channels needed? Will food, lodging and travel be covered by artist or venue? On all of these you need to be VERY specific. I was part of a tour once and the rider said that the venue must provide food for the artist, the venue gave us cookies. I love a good cookie as much as the next guy but it’s not a meal so we changed the rider after that event to reflect what “food” is. One of the things that was always on my rider is that there cannot be any “Junk Food” in the green room, I tend to snack too much.
- Client Info – This is basic contact info on steroids. Client name and secondary contact name. Make sure you have more than one phone number for the client and more than one number for the venue in case of an emergency and they don’t pick up at the first number. Get an address of the venue that can be searched by GPS to ensure you arrive at the correct place at the correct time.
- Misc. info – I use this area to clarify the remainder of topics so that both parties are in agreement. You know what they say “The devil is in the details”. Type of event, type of music, public or private, number of guests/tickets. Does the event need to end at an exact time or is it flexible? Where is the load in area? Where do I park?
- Payment – After all that we can now talk about money. This is actually the simplest part of the contract once you figured out what is involved and what you want to charge. List an agreed price and a short summary of what is included (4 hrs of DJing, Top 40 music, DJ equipment, sound, lights, microphone etc.). List any payment details such as payment methods like, cash, credit, check and who the payment is made out to. If a deposit is required list the amount, the date it and any balances must be paid by and what happens if the payment is not made on or before the agreed date.
- Cancellations – No one wants to see this happen but sometimes things are out of our hands. A few sentences in the contract can quickly clarify what is required from each party so that the legally binding agreements are fulfilled. Here are a few lines from my hybrid contract.
- Michael Joseph reserves the right to cancel event due to causes beyond control, such as hospitalization, death or accident. Natural causes such as civil turmoil, strike, epidemic, condition of war or any other emergency.
- Cancellations by Purchaser within xx days of event will result in loss of xx% deposit.
- Cancellations by Purchaser within xx days of event shall require xx% payment of remaining balance.
- Cancellations by Purchaser within xx days of event shall require xxx% payment of agreed price.
- I have read / signature – This final part is just as important. I recently found out that in most states the signature of both the seller and purchaser must be on the contract for it to be legally binding, so make sure you and the other person both have a copy of the contract that shows that both of you have signed and agreed.
Some contracts can be very long and extremely detailed covering but not limited to things like : does the artist have the right to choose to play or not play certain songs? Is there a Non-compete, exclusivity or radius clause? Dress code? Age requirement or limit? In my opinion you cannot be too detailed on what is covered. Chances are that both parties won’t disagree on the final decision. Having it decided ahead of time can not only free everyone to enjoy what they do and get paid but also build relationships that will keep both parties working together for years to come.
Contracts are a good thing if you measure twice and sign once.