I was an A&R guy for a major record label between 2001-2004. We broke several new artists and produced a handful of platinum-selling records during my tenure, but we also experienced the beginning of the industry’s downfall. Many jobs lost, many artists dropped — what was once an extremely fun and creative profession became far less glamorous, virtually overnight.
It's either an outright scam, or someone attempting to play the role of an agent and trying to charge up-front for it (which is not how agents work). Either way, avoid avoid avoid.
It depends on just how similar. Assuming it's very similar, I'd advise a name change for both business and legal reasons. On the business side, as you said you're leaving yourselves open to brand confusion. And on the legal side, the last thing you need is a lawyer coming after you – musicians have it hard enough!
To paraphrase a report I read recently, there used to be ~500 A&R professionals in the U.S., and now it's down to 50. I can't vouch for either of those numbers, but the message is clear: A&R is, sadly, a dying breed. Instead of developing artists from the ground up, 21st century music economics has labels looking for artist who have already cultivated a sound and fanbase. So while it's great to have a good ear, it's not worth what it once was.
That said, if you're really looking to go into music and develop artists, I'd recommend joining a music management firm, even at a relatively junior level. There you'll learn both the creative and business sides of artist development.
Historically it was a combination of salary + percentage points (though mostly salary). As for the percentage, that varied given the A&R's history and level or seniority. A "couple of points" was typical. But keep in mind that A&R (and the sale of recorded music) has been *significantly* devalued over the past 15 years so both the salaries and percentages have shrunk accordingly.
School Bus Driver
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