Whether you are a music manager or an aspiring musician, I believe that you should always hope for the best when you sign your music management contract. After all, your partnership marks the beginning of great things. With a lot of hard work and a little time, a manager and a musician can accomplish a lot together.

Of course, it doesn’t always work that way. The reality is that even successful musicians don’t always stick with the manager who led them to the first big break in their careers. Managers and clients are often separated when a record label requires that a signed act have experienced supervision before writing an advance check. Other times, managers who are tremendously effective for clients in their home region may go too far when their clients start touring nationally. And in the worst case, managers and clients start misbehaving each other after a personal dispute.

Whatever the reason for a split between a music manager and an artist, both parties must protect themselves from exploitation by adopting a “sunset clause” in their music management contract. A sunset clause recognizes the contribution a manager has made to an artist’s career, while leaving the door open for artists to effectively cancel their agreement and work with other professional advisors.

In most cases, “sunset” refers to the amount of commission paid to a manager during the two years after the split. Most professionals in the music industry agree that it can take two years for a band and its new management to implement a new strategy. Therefore, a sunset clause generally gives the previous manager the full commission for six months after the split, which is reduced by one-third every six months until the previous manager can no longer claim a commission.

Without a sunset clause, a band could be separated from its management and still be forced to pay commissions of twenty percent or more over a period of up to seven years. Some unscrupulous managers enter into agreements with clients, just to skip duties and sue for management fees. On the other hand, an effective manager can use the forbearance clause to recoup his investment of time and money when a client is successful enough to justify hiring a larger and more experienced management team. The sunset clause forces both parties to take their relationship seriously, while allowing the possibility of a band and its manager parting ways before the end of their traditional seven-year contract.