Entertainment booking agent wants me to run money through his account...?

[quicksand]

What is the name of your state (only U.S. law)? Illinois

I am an independent artist that offers an ensemble to private events. The clients pay me directly in my name for services rendered. I have an agent that wants to refer me to clients, that's all, just a phone call or email referral. The agent then wants me to have the client make the payment to his company name, not mine, so that he can run it through his bank account and issue me a check for the exact amount of the original payment. I would then do all my own payroll, taxes, etc..

Besides the issue of trusting this agent, it appears that the agent just wants to inflate his company's gross income and then write it off as an expense thereby not having to pay any taxes. In this arrangement the agent will not be taking any of the money (trusting his word).

Besides the issue of trusting the agent to pass the money through to me, is this some kind of legal pitfall? It feels like money laundering or something.

Then entertainment business is a strange one.

Thanks for any help!

 

[quincy]

What is the name of your state (only U.S. law)? Illinois

I am an independent artist that offers an ensemble to private events. The clients pay me directly in my name for services rendered. I have an agent that wants to refer me to clients, that's all, just a phone call or email referral. The agent then wants me to have the client make the payment to his company name, not mine, so that he can run it through his bank account and issue me a check for the exact amount of the original payment. I would then do all my own payroll, taxes, etc..

Besides the issue of trusting this agent, it appears that the agent just wants to inflate his company's gross income and then write it off as an expense thereby not having to pay any taxes. In this arrangement the agent will not be taking any of the money (trusting his word).

Besides the issue of trusting the agent to pass the money through to me, is this some kind of legal pitfall? It feels like money laundering or something.

Then entertainment business is a strange one.

Thanks for any help!

How long have you had this agent and why do you feel you need one? Are you paying this agent directly for these referrals?

 

[quicksand]

How long have you had this agent and why do you feel you need one? Are you paying this agent directly for these referrals?

Performance referrals can come from anywhere and I pay a referral fee to anyone that recommends me. So yes, I have paid the agent directly and will continue to do so, at the time that I recieve a deposit from the client, long before the contracted event. I have been working with this agent for a year, but not exclusively. I feel this is an attempt to get me to be exclusive without actually providing an agreement. The reason I work with him is that he does have a lot of event connections.

Thanks

 

[quincy]

Performance referrals can come from anywhere and I pay a referral fee to anyone that recommends me. So yes, I have paid the agent directly and will continue to do so, at the time that I recieve a deposit from the client, long before the contracted event. I have been working with this agent for a year, but not exclusively. I feel this is an attempt to get me to be exclusive without actually providing an agreement. The reason I work with him is that he does have a lot of event connections.

Thanks

If the current arrangement you have is working for you, I see no reason to complicate matters by having client payments go through the agent. In fact, it seems odd to do it this way.

Certainly do not make any oral agreement with this agent. All terms of any agreement should be reduced to writing and carefully reviewed by an attorney prior to signing.

From what you have posted, however, I see no benefit to you in agreeing in writing to the arrangement he has proposed.

 

[quicksand]

Thank you

If the current arrangement you have is working for you, I see no reason to complicate matters by having client payments go through the agent. In fact, it seems odd to do it this way.

Certainly do not make any oral agreement with this agent. All terms of any agreement should be reduced to writing and carefully reviewed by an attorney prior to signing.

From what you have posted, however, I see no benefit to you in agreeing in writing to the arrangement he has proposed.

Thank you Quincy, that's good advice.

 

[quincy]

You're welcome, quicksand.

As an additional note: The agent may be trying to protect his own income by having all clients and all talent go through him. The agent does not want to have the connections he works to make between client and talent decide in the future that he is dispensable. In other words, he does not want his clients to bypass him and contact the talent directly.

If the agent has something of value to offer you other than the contacts he already provides (e.g., liability insurance), then that could make a written agreement worthwhile. But before signing any agreement that could unfairly or unreasonably compromise your interests, a personal review by a professional in your area is advised.

Good luck.

 

[Dave1952]

You are handling bookings for your ensemble, yes? You are starting to get together a contract and begin booking other acts, yes? Why do you need an agent, aren't you an agent? I don't understand your last 2 threads.

 

[quincy]

You are handling bookings for your ensemble, yes? You are starting to get together a contract and begin booking other acts, yes? Why do you need an agent, aren't you an agent? I don't understand your last 2 threads.

My understanding, Dave, is that quicksand is the talent and quicksand is not only an independent artist but is also part of an ensemble. It is the ensemble that quicksand contracts out for events. Some of the events are lined up through an agent, who is contacted directly by the client and paid for finding the talent needed. The agent would also generally be paid by the talent for the referrals he provides. Then the client pays the ensemble directly (probably before the performance).

But, then, I could be wrong.

 

[quicksand]

You are correct

My understanding, Dave, is that quicksand is the talent and quicksand is not only an independent artist but is also part of an ensemble. It is the ensemble that quicksand contracts out for events. Some of the events are lined up through an agent, who is contacted directly by the client and paid for finding the talent needed. The agent would also generally be paid by the talent for the referrals he provides. Then the client pays the ensemble directly (probably before the performance).

But, then, I could be wrong.

Sorry, I've been offline for a week, but to answer the question...Quincy is correct. We call them referral fees, even though it's basically just a recommendation from the booking agent. But the problem is that we don't have a line by line agreement.

 

[quincy]

Sorry, I've been offline for a week, but to answer the question...Quincy is correct. We call them referral fees, even though it's basically just a recommendation from the booking agent. But the problem is that we don't have a line by line agreement.

It's always nice for me to hear I was correct about something.

 

[quicksand]

Follow up question as this situation develops

As I am just trying to alleviate the problem with the booking agent, I have issued a contract for the engagement directly with the client, with only my name as a contract party, and further more the client has issued a written document stating that this new contract is the only recognised contract and replaces all others (the booking agent's) thereby releasing the agent from liability, just as he required. I have sent copies directly to the agent, which the agent has acknowledged receiving. Only the agent STILL isn't releasing the deposit check (in my name, not his). All matters releasing the agent from liability have been sufficiently addressed.

Please advise!

Thanks

 

[quincy]

As I am just trying to alleviate the problem with the booking agent, I have issued a contract for the engagement directly with the client, with only my name as a contract party, and further more the client has issued a written document stating that this new contract is the only recognised contract and replaces all others (the booking agent's) thereby releasing the agent from liability, just as he required. I have sent copies directly to the agent, which the agent has acknowledged receiving. Only the agent STILL isn't releasing the deposit check (in my name, not his). All matters releasing the agent from liability have been sufficiently addressed.

Please advise!

Thanks

You can send him a reminder of the amount owing. You can also have an attorney send him a reminder of the amount owing.

Do you, as a note, have liability insurance of your own? If you are planning on contracting with the client directly and not through this agent, you may wish to think about acquiring some.

Good luck.

 

[quicksand]

yes

You can send him a reminder of the amount owing. You can also have an attorney send him a reminder of the amount owing.

Do you, as a note, have liability insurance of your own? If you are planning on contracting with the client directly and not through this agent, you may wish to think about acquiring some.

Good luck.

yes, I will be getting my own insurance.

Thanks,
qs

 

[quincy]

yes, I will be getting my own insurance.

Thanks,
qs

You're welcome, quicksand.

And, if the letter to the agent does not work, perhaps the client can stop payment on the deposit check being held by the agent and issue you a new one.

Good luck.