Prospective artists, songwriters and producers who have stakes in a recording agreement often wonder what entertainment lawyers charge. Unfortunately, like many complex questions, there isn’t a one-sum answer that fits universally.
Why is this the case? Simply put, there’s no single, one-size-fits-all amount that entertainment lawyers charge. Asking this question is a lot like asking how much a producer should charge for a song or the precise amount a newly signed artist should receive as an advance. Many factors are at play.
Some good news: knowing what entertainment lawyers charge is possible, and not especially complicated. Entertainment lawyers generally follow one of about four or five different fee structures. Here’s what you need to know about them
What Entertainment Lawyers Charge: Pricing and Price Structure
Entertainment lawyers are a diverse bunch, hailing from different professional and personal backgrounds. Their life and career experiences differ. And the scope of the work that they do for artists and/or producers varies quite a bit. Accordingly, so do their pricing structures.
Helen Yu, a well-regarded Los Angeles entertainment attorney, puts it in these terms: “Different lawyers charge in a variety of ways, in many cases depending on the kind of matter involved.” For starters, many will charge percentage-based fees as a “base rate” or “an hourly rate,” she explains, with a deposit retainer up front, or sometimes a combined reduced hourly rate and percentage fee.
When a lawyer is willing to take the risk of non-payment on a straight percentage, their rates are generally assessed as a percentage of client earnings. In these cases, their rates tend to be on par with agents, managers, and other entertainment-support professionals.
Base percentage rates for entertainment attorneys range from 5 % to 15%. The precise percentage depends on factors such as:
- The client’s stature
- The artist’s or producer’s annual earnings
- The scope of work performed by the entertainment attorney
- The entertainment attorney’s experience, with higher base percentage rates commanded by highly specialized or seasoned entertainment attorneys
The client’s annual income is a very important factor. For example, when the client earns $2 million dollars or more per year, the percentage rate usually falls to the lowest available pricing tier, and vice versa. When a producer earns $15K or less per advance, for example, their pricing tier typically ranges from 10% to 15%, but generally does not exceed 15%.
Clients just getting into the entertainment business should expect to pay above 10%, which is the average base percentage range. Once the artist or producer earns more than $2 million annually, the percentage rates decrease. For example, most entertainment lawyers would think it fair and reasonable to charge 5% on artists like Beyonce, Imagine Dragons, or Ariana Grande, all of whom are at the peak of their profession.
More to What Entertainment Lawyers Charge
The base percentage rate is just one part of what entertainment lawyers charge, however. Entertainment attorneys also typically charge a blended hourly rate, calculated as a retainer reduced hourly rate plus a percentage of earnings, depending on the complexity and scope of work.
“It’s possible [for entertainment lawyers] to arrange a reduced hourly fee as an advance against a percentage,” says Gordon Firemark in an article on compensation for entertainment attorneys.
Do Entertainment Lawyers Charge Flat Fees?
The short answer to this question is “yes.” When working on one-off transactions for clients with whom they have not previously worked, entertainment lawyers may agree to forgo percentage fees or hourly rates and instead charge flat fees, particularly when the client does not earn enough to cover the attorney’s usual percentage fee.
For example, when a producer is paid a $7,500 advance, a 10% percentage-based rate would amount to $750. Since the attorney may spend up to 10 hours on the agreement, and the average hourly compensation for experienced Los Angeles and New York attorneys is $550 per hour, the percentage fee would amount to a fraction of the attorney’s actual costs. In such cases, the entertainment attorney may calculate a flat fee as a multiple of his or her normal hourly rate on the basis of the estimated time needed for the task.
When aspiring artists and producers have no interest in continuing the relationship with their entertainment lawyer following the successful completion of a one-off arrangement, the flat-fee structure may be suitable. That said, should follow-up legal work be required, the client should not expect the same attorney to work on the matter again, as there was no mutual expectation that the relationship would endure.
Does Experience Influence Entertainment Attorney Pricing?
Although the precise extent is up for debate, attorney experience does affect what entertainment lawyers charge. Attorneys licensed in entertainment hubs such as Los Angeles and New York are usually the most experienced and skilled lawyers, since those markets are so important to the industry. The number of entertainment lawyers licensed to practice in places like Nashville (Tennessee) or Atlanta (Georgia) is smaller than the number licensed in California, home to Hollywood.
Finding the Best Fit at the Right Price
Immediately asking “what do entertainment lawyers charge,” you should ask, “how do I find the entertainment lawyer who best fits my needs at the right price?”
Helen Yu of Yu Leseberg says, “The future success of a new artist or performer depends on their finding the right entertainment lawyer. Our firm wants to work with those willing to invest in themselves.”
In other words, she continues, “[T]he smart artist understands that having the right attorney as a member of their team, helping them maximize their earnings, is absolutely crucial. Artists who look for what they think is ‘the best deal’ may end up hurting themselves. When you find the right lawyer, stick with them, as you will probably never run across that opportunity again.”
For example, Helen Yu has played an integral role in the success of fellow Los Angeles natives such as YG, DJ Mustard and Ty Dolla $ign, and Black Eyed Peas, to name a few. She encourages artists to seek out high-quality legal representation on the basis of:
- Duration of experience in the artist’s creative niche
- Unimpeachable knowledge of industry norms and customs
- Enduring relationships with law professionals and executives at creative firms, such as record labels
- Positive referrals from past clients
“There is nothing more important in building a successful career than putting yourself first,” says Helen Yu of Yu Leseberg. “Don’t cheap out on you. You owe it to yourself to work with an attorney you have total confidence in, regardless of his or her pricing structure. Lawyers charge what they’re worth. Your creative career is too important to entrust to any but the very best.”