Although both agents and managers are personal representatives, they each serve distinct functions. Sometimes an artist may want a combination manager/agent to pay a joint, and sometimes smaller, commission to one person for performing both duties. However, in some states, it is illegal for a person to be both a booking agent and a personal manager. Further, agents and managers may or may not be required to be licensed depending on the state. For example, in New Jersey, both agents and managers must be licensed.

Agents and managers play important roles in artist development. As such, they can be vital to the success or failure of an artist. Therefore, you should look for a number of things when signing anything with an agent or manager. The information contained below is neither exhaustive nor does it address all the intricacies of agent and management contracts. Rather, this information is to give artists a starting point or idea of what is entailed when retaining the services of an entertainment agent or manager. Artists should always consult an experienced attorney before entering into any contract or agreement. See also Managers.

An agent will also likely want an exclusive agreement with the artist. This exclusive agreement will usually cover a specified territory, which in some circumstances is worldwide. Further, an exclusive agreement means that only the contracted agent may pursue and/or field employment for the artist during the contracted term. If an agent has an exclusive contract with the artist, the agent is entitled to commissions even on artist's earnings that do not result from the agent's direct efforts. Although this may sound unjustified at first blush, employment opportunities may arise indirectly due to the direct efforts of the agent promoting and booking the artist in high-visibility engagements. Therefore, exclusivity is one of the only assurances an agent may have that he or she will be properly compensated for starting or building an artist's career.

Sometimes the exclusive agent may make a deal where if another independent agent secures an employment opportunity for the exclusive agent's artist, the exclusive agent and independent agent will split the commission. Although the deal will ultimately go through the exclusive agent, the independent agent will, in effect, receive a finder's fee for procuring the employment. This often is a good scenario for the artist because the artist is paying the same commission for the services of multiple agents or agencies.

Since some agents may have limited connections, interests and/or abilities in procuring employment in certain fields or territories, an artist may want to limit the scope of the agreement for exclusive agent representation only in certain areas or formats. For example, an agent that specializes in tour booking and personal appearances may not be the right person to represent the artist for other formats such as film and television. Further, certain specialized territories such as Atlantic City or LasVegas may also be best served if excluded from the agreement.

If the artist/agent agreement terminates prior to the completion of all of the artist's employment obligations, the agent will want to be paid commissions for all employment procured by the agency for the artist. In other words, the agent will want to get paid on all employment engagements he or she secured, even though the artist hasn't performed his or her obligations prior to the agent/artist contract termination. This is understandable, and a common practice. However, the subject of much controversy exists when an artist performs or appears at a venue, originally booked by an agent, after the termination or expiration of the artist/agent agreement. Often, agents ask that artists pay commissions received on return engagements or appearances to venues originally booked by the agent for a specific term of years after the expiration or termination of the agent/artist contract. Artists faced with agents who want these commissions payable for a specific post-contractual term should suggest that the commission scale be phased out over the term ("sunset provision"). For example, after the agent/artist contract ends, the artist could pay the agent 10% on all return engagements for the first year, 5% for the second year, and 2.5% for a third, and final, year. Phasing out commissions on return engagements is fair because it protects both the agents and the artists.

Unlike a personal manager, an agent or agency will most likely have a large "stable" of artists. Where the artist fits in the hierarchy of the agent's roster is an important point to consider when choosing whom to join. There is no sense for artists to lock themselves in with an agency, no matter how big or famous the agency is, if that agency is too busy to give the artist the requisite attention. Another important thing to consider is the resources available to the agency. If you are in a rock band, you don't want to sign with an agency that has most of their connections in the adult contemporary or jazz market.

Further, an artist should ask for a key-person provision in the agency contract so that the artist can terminate the contract if the agent with whom an artist works closely with leaves the agency. This provision is an example of a typical "escape clause" for an artist that should be put in the contract. The idea is that artists should have at least some control over who is in charge of their direction.

Ideally, an artist should also try to include a performance plateau for an agency in the contract. A performance plateau provision in the contract is a powerful escape clause for the artist. It requires the agency to generate a certain amount of employment or income for the artist within a specified period of time. If the agent does not reach the plateau, the artist could terminate the contract.