Entertainment Lawyers traditionally work with artists, record labels, producers, managers, publishers and other music businesses in three (3) ways: hourly fees, flat fees, and on a percentage of the deal basis.In all cases, a retainer is required which is essentially an up-front payment that must be maintained until the project is complete.

Hourly Fees

Hourly fees for entertainment lawyers are charged for what I like to call straight legal work.  Reviewing or drafting contracts and agreements, preparing licenses for placements of music in TV shows or films, clearing songs for use in commercial records, and other time demanding work that cannot be repeated (see flat fees).  If an hourly fee is suggested by an entertainment lawyer, it is usually difficult or impossible for a lawyer to predict how long a project might take or how complex it might be. Typical hourly rates range from $250 p/hour to $550 p/hour depending on the complexity of the project and sometimes the ability of the client to pay.

Flat Fees

Flat fees for entertainment lawyers are fixed rates for work that is repeated by the lawyer over and over and rarely varies in either complexity or time to complete.  Good examples of work that fits well with a flat fee is the formation of a corporation or LLC, drafting a partnership or band agreement, preparing or reviewing management agreements, or registering copyrights and trademarks

Percentage Fees

Percentage fees for entertainment lawyers are usually appropriate for deals that are negotiated by the entertainment lawyer on behalf of the artist, manager, producer or other client. Record deals, synch licenses, and other deals that bring in revenue for an artist and usually are rather complex thereby making it impractical to pay an hourly fee. The fee is also usually a contingent fee which means it is not paid if the deal is not made.  The percentage of the deal charged varies depending on whether the entertainment lawyer sourced the deal or if the client brought the deal to the entertainment lawyer simply for review. Typical fees range from 5% to 20% and sometimes more.

What Is A Retainer?

All cases require a retainer fee to get started. A retainer fee is simply an up-front payment so, as Abe Lincoln once said “… the Client knows he has a lawyer and so the lawyer knows he has a client….”  Retainers are paid and then flat or hourly fees are billed against the retainer always maintaining a balance until the project is complete. Retainers are an important part of doing business with an Entertainment Lawyer.