Hopefully this should help with the rampant misinformation that's around.
I run Quattro Media. I've been in the management business in the entertainment industry for over 20 years and i've represented creators, writers, directors, publishers and various other types of creative personnel.
First, it always pays to be properly represented. No matter what you are doing in life. In terms of screenwriting deals or book deals, unless you're a very experienced professional you dont know the day to day appetites of one firm vs another and you dont know the gives on any particular deal vs another. For screenwriters, having no representation or inexperienced representation leads writers to be potentially very taken advantage of. There are many deal points that even established writers wont understand.
The difference between managers and agents? Think macro vs micro. Agents should be specialists in a given field. Think a SVP of sales with experience in a narrow field like feature film literary or in books maybe thrillers. A manager is more macro. I liken it to a defacto COO, where they corral all of someone's activity into a cohesive strategy. If someone is also repped at a large agency, it means coordinating between departments, keeping everyone on task among others. Tasks that would befall a manager are development, optioning material (like an article that someone found), packaging, yes helping to procure an agent or attorney, laying a foundation by promoting and marketing someone, pr, overseeing legal on a deal, advising on personal matters (we've bought cars for clients and helped arrange mortgages, introduce people to the right realtors), ie manage their life and career.
It does all cost money. Artists at the beginning of their career shouldnt pinch pennies. They should want the best money (or they) can buy. Focus should be on the bottom line not top line. Every person employed should be able to point to a value that they helped create or add to that exceeds their cost. (Just like everything you buy, you want to feel like you got a good deal.) Managers are generally 10% in the lit business. Agents for tv and screenwriters are 10%, book agents higher. Business managers are 5%. Publicists are paid monthly often 3k+ per month.
Business that have a gross margin of 75% are doing pretty damn good. And it is a business and you should run it as a business.
There are experienced people and inexperienced "comers" in all fields. You should do homework and look people up. You can succeed in the entertainment industry through the investment of time or money. Homework takes a bit of both. But the homework pays off. Buy a book called The Hollywood Representation Directory (
www.hcdonline.com). It's published by the gang who publish The Hollywood Reporter. Then do even more homework.
Good luck.
-Jim Strader
QUATTRO MEDIA