A booking agent is a business finder and neighbor. A booking agent finds or receives offers of employment for their clients and negotiates a contract. An agent is compensated by a commission, which is normally 10 to 15 percent of the gross contract. The rate depends on the particular talent union involved and the duration of the engagement negotiated. The commission usually applies for the life of the contract and any renewals.
Booking agents are independent contractors and the entertainers are their clients.
Large booking agencies may have thousands of clients. It is the usual practice of recognized, successful artists to employ a business manager. This person will often be an accountant or a tax attorney who will hold the purse strings, manage investments, and keep a close watch over the tax consequences of the artist's affairs. Fees for these services range from 2 to 6 percent of the gross receipts handled, unless a monthly or annual flat fee is arranged. A road manager is usually engaged by the personal manager or business manager to travel with an artist.