Business & Pleasure Never Mix
There’s a reason for the old saying about mixing business with pleasure. We all want to trust our friends and family, but one afternoon of watching court shows on TV will prove that mothers sue sons, friends sue friends, brothers sue sisters, etc…all indicative that trust in those close to us should not be assumed. As with a common stranger off the street, trust should always be earned. Bands are no different.
Most bands are a collection of like-minded people in a shared region and thus, many bands start out as or become close friendships. And once the friendship exists, business and pleasure always have the potential to collide and cause grief down the road. If you’re in a band for the fun of it and just play a gig once a month for free beer at the tavern up the road, issues should rarely come up. However, for bands that want to turn a buck, get better equipment, hit the road with their music, make/sell CDs and merchandise, etc…that’s a business and needs to be treated as such.
This can be a bumpy road to travel as taking measures to ensure that the business aspects of the band are in writing and equally protecting each band member with an agreement will often put some bandmates on the defensive. Other bandmates may think it’s an unnecessary step because hey…you’re all friends, right? The responses you get from your bandmates will give you a better idea of whether or not you’re all on the same page. Also, if there’s arguments or problems that arise from mentioning a band partnership agreement, that shows that arguments can and will happen and things will not always be blue skies and roses…no matter how close you are as bandmates and friends.
A partnership agreement for your band does not have to be filled with all kinds of legal jargon. It does not need to be twenty pages long. It simply needs to state the goals of the band and the agreed upon distribution of funds based on various means of income (live shows, merchandise, CD sales, etc.). You will want it noted how the power is dispersed: clearly state which decisions can be made and how (unanimous, majority, tiebreaker, etc.). You need to discuss what happens if a member leaves the band, voluntarily or by bandmate decision. Is that person still eligible for royalities? Is there shared equipment that you will need to buy out his/her share? This sounds like a lot of things to consider, but there a lot of little things that can be overlooked and can come back to haunt you.
In an ideal world, your bandmates will happily sign the agreement, understanding that its purpose is to protect everyone equally. In an ideal world, you will all sign the agreement and never have to look at it or talk about it again. Of course, in an ideal world, money would grow on trees. Make sure you present it properly to the band. Don’t put it down during practice and say “everybody needs to sign this because I don’t want to get screwed later.” Instead, tell them exactly what it is, why its important, what it means, and that it won’t ever make a difference as long as conditions stay “ideal” for the life of the band.
We have a sample band agreement on our website for members. Feel free to download it, print it, edit it….whatever makes it work for your band and your arrangement. Do things right from the start. Otherwise, maybe I’ll see you on Judge Mathis next month 
