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Sunday, June 27, 2010

Negotiation and Deal Making


Introduction
     FamilyMoons, LLC, is a professional that produces and promotes, for-profit and not-for-profit, musical events. The group is comprised of musical artists, performance artists, promoters that work along side management staff. The organization has been active for over twelve years and has seen a significant amount of growth with in the last two years.
Problem
     FamilyMoons, LLC is formulating multiple contractual agreements for its staff and artists. I am an artist and a part of the management team for family moons. It was my job to provide input on clear, concise and fair agreements that will represent both the interest of FamilyMoons and each affiliated artists. It is important to note that each person involved in management of FamilyMoons is, in fact, an Artist within the organization. This fact perpetuates the need for an agreement that will provide rights and protections for each party because of the nature of the organization.
Roles and Concerns
     Prior to discussions, FamilyMoons artists and management were contacted and questioned on there primary concerns. All concerns fit within the five core concerns expressed in Roger Fisher and Daniel Shapiro’s book, Beyond Reason. However, each party expressed emphasis on significantly different concerns.
     Artists expressed a significantly different position than management. Artists main concerns focused on their affiliation with the FamilyMoons’ brand. Greg Rottenbush (personal communication, November 15, 2009) expressed, “musical support group.” The need for professional assistance and guidance surpassed all needs. The artists also recognized their role with in the organization as not just being artist. They attributed themselves as the root of marketing, specifically legitimizing their roles by calling themselves the “faces” of FamilyMoons. Their status as FamilyMoons artists are solidified by being figures in the public eye, ultimately playing the role as a Public Relations representative (personal communication, November 15, 2009).
     Management had very interesting concerns that drastically differentiated from the artists. The concerns directly related to the success and integrity of the business as a whole. Specifically, “Maintaining brand integrity, ensuring financial growth and controlling the creative direction,” were the primary concerns of Aaron Jackson, the Regional Director of Family Moons (personal communication, November 15, 2009).
     As said before, all 5 concerns were expressed within both groups. Both parties are committed to creating a positive and nurturing relationship that will help everybody grow. This point is the most important point in establishing the types of agreements that FamilyMoons will incorporate.
Agreements
     The goal of discussions was to discuss each and every document that should and would be presented to management and the artists for final negotiations. The documents to be discussed and presented to the FamilyMoons’ artists are: Affiliation Agreement, Management Agreement, Non-Disclosure Agreement, and Independent Contractor Agreement. The actual bodies of the agreements have not been finalized. This is because of the importance of the data that Adam Morrow researched. However, the four agreements listed were agreed upon as being necessary to the business.
     The affiliation agreement has two purposes: a) to protect the FamilyMoons brand from unauthorized use, and b) to allow the artist full rights to use the FamilyMoons brand on all authorized promotional material. This agreement allows the artist to publish and use FamilyMoons typesetting and logo material to help promote the artist’s public status. The agreements also gives the rights of the company approve the promotional materials in order to protect the company’s image. This agreement will have to be signed by all members of the organization.
     The Management agreement will establish management and booking services to all FamilyMoons’ artists. This agreement will establish necessary protocol for artist, management, and promoter negotiations. The agreement also includes exclusivity clauses for non-competition purposes. The agreement establishes a veil of protection for the artist by addressing the concerns for legal protection and guidance. Financial compensation and commissions are based on a tiered system. This agreement will only apply to musical artists and will possible be assigned to performance artists in the future.
     The Non-Disclosure agreement will state that all FamilyMoons’ related business is to be kept confidential. This agreement will also articulate consequences for acts of disclosure and will be signed by all members of the organization.
     The fourth and final agreement is the Independent Contractor agreement. This agreement will establish, for tax purposes, musical and performance artists as exclusive independent contractors to FamilyMoons, LLC. Artists and performers will be expected to moderate and record their own tax liabilities.
Lessons
     Several lessons have been learned from the creation of this document, the research, and the resulting proposals. The first lesson was the importance of listening and communicating to the concerns and problems of all involved parties. The act of communication and listening established a relationship between the artist and manager that will in turn create a stronger and fairer agreement because the feeling of appreciation and affiliation were met. This was by far the most important step because it allows for information to be processed prior to the actual negotiation. The second lesson was: even though all concerns may be heard, it will be difficult to address each concern fully for each party.
     The importance of these lessons are immeasurable. The research leaves a significant gap between what should and shouldn’t be included within the agreements. However, the act of contacting each party created an invaluable relationship between all groups that will open the door for positive and efficient negotiations.
Reference
Fisher, R. and Shapiro, D. (2006). Beyond reason: using emotions as you negotiate.
            New York. Penguin Group, Inc.

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