Money and tax
Agency commission
Also called Booking commission, agent’s commission, agency fee
The share of a show fee a booking agency keeps for its work, usually 10 to 20% in European club music. It comes out of what the artist receives; the promoter pays nothing on top.
Commission pays for the agency’s work on a show: the request, the price, the offer, the contract, and often the advancing and collecting the money. In European club music the usual range is 10 to 20%, and 15% is common for DJs. It is taken from the artist’s side of the deal. The promoter pays the agreed fee and nothing on top.
Example
[Artist A] plays a club for €2,300 landed, and the flights cost €260. At 15%:
| Commission after travel | Commission on the whole fee | |
|---|---|---|
| Fee | €2,300 | €2,300 |
| Flights | −€260 | −€260 |
| Commission base | €2,040 | €2,300 |
| Commission (15%) | −€306 | −€345 |
| Left for the artist | €1,734 | €1,695 |
What to watch for
- Agree the base. On a landed deal, commission after travel means nobody earns a percentage on a flight. On door and bonus deals the base is the artist’s final share from the settlement.
- When a promoter abroad withholds tax, such as the Austrian Abzugsteuer, commission can be taken before or after it. Either works, as long as the agreement says which.
- A hotel buyout pays for a room, not for the show. The agreement should say whether money that replaces a cost carries commission.
- The artist should get a statement per show with fee, costs, commission and what was paid out, line by line. Where the agency charges VAT, it comes on top of the commission.
More in Money and tax
- Artist tax (Austria)
- Artist tax (Germany)
- Invoice
- Künstlersozialabgabe
- Reverse charge
- Treaty relief
- VAT ID
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