#1
Hey guys, just wondering how you manage your bands finances. I came up with a bit of a system and thought I'd run it by you, see if you use anything similar or if it is crap and wouldn't work.

It's probably fairly simple with a straight band, you split the profits evenly and everybody handles their own expenses. But in my case I'm going to be "hiring" backing musicians to play my solo project tracks live, so they aren't members of a band per se. And seeing as I would then be handling things like hiring of rehearsal space etc etc I'd have extra expenses, and plus, they are my songs written wholly by me, so an even split wouldn't really work.

So my system is this: Have all profits go into a central band fund (managed by me) which reimburses any band member for expenses made on the behalf of the band, transport to gigs, rehearsal space hire, gear hire, whatever. That way we can avoid people having to dip into their own pocket for the band. If there is in fact any left over profit after that, it can be in part saved in the fund and the rest given out in an equal split.

Tl; dr: Expenses paid for out of central fund instead of 5-way split of profits. Opinion?
#2
The way we do it is let's say it costs us $1000 for cd's, and only two members chip in for the cd's, they get paid first. So if we sell our cd's for $10 each, they get all of the profits from the first 100 cd's sold. Then after their losses are recouperated, the profits are split evenly amongst the band. As band leader and the only one in the band competent enough to do basic math, I handle dealing the money.

We do the same for T-Shirts, Buttons, Stickers, ect... Profits from shows is split evenly amongst the members.
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#3
Quote by xEpidemicx
As band leader and the only one in the band competent enough to do basic math, I handle dealing the money.

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Funny how these things can work out...

Essentially, there are two ways of looking at it.

1. Your band is an equal partnership with everyone being equal 'owners.' That suggests equal decision-making and equal share in profits and losses. That's what we do. We take basically all of the band's earnings from gigs and product sales and put that into a band account, and that money is used to pay for band expenses. We no longer reach into our own pockets for anything except coffees and stuff for rehearsals. (yeah, we're pretty hard-core... ) In the beginning, we all kicked in for rehearsal space rental and some up-front merch costs, a banner, and our CD duplication costs. Once the band recouped that money, we paid ourselves back.

2. Your band is a sole proprietorship with a small staff. This sounds like what you are getting at. I considered this route at one time too, and I know people who have done it successfully. The advantage is that you, being the owner, get to call all the shots. Also, since you are on the hook for all losses, you are also the benefactor for all profits after expenses.

A few things to think about, though....

a) One person I know did a cross-Canada tour based on a system like this. His band got paid, but due to other circumstances, he wound up coming home having operated at a loss.
b) People who are employees don't invest personally in the project. It's just a job for them. If you work at McDonald's flipping burgers, how much do you really care about McDonald's corporate success? Clearly, you don't, really. You're just there to do a job.
c) Like any other business, you are competing for staff. If a better gig is out there, you may lose staff. You have to be the best gig out there. That means pay and working conditions and regular work if you want to be the priority.

CT
Could I get some more talent in the monitors, please?

I know it sounds crazy, but try to learn to inhale your voice. www.thebelcantotechnique.com

Chris is the king of relating music things to other objects in real life.
#4
Sounds like it's your band and everyone else should be hired for a fixed amount.
#5
the way i figured it out was first the band as a whole got paid x amount for any income. then after that everyone gets the same amount of money. of course only if they take part in however the money comes in. if its a show then if you don't play, you don't get paid
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