The EssentialShowbiz Dictionary™

of Entertainment Industry Terms

Agency Commission

2 minute read | Last updated: 2 years ago

What does Agency Commission mean?

Agency Commission is the fee charged by a talent agent as compensation for securing employment for a performer — typically ten percent of the performer’s gross earnings from bookings the agent has obtained. Agency commissions are regulated by state law and SAG-AFTRA franchise agreements, which cap the standard commission at ten percent. Unlike manager commissions (15-20 percent, largely unregulated), agency commissions are subject to specific legal limits and are only charged on work the agent actually procured.

Example:After the child actor’s commercial booking, the payroll company processed her day rate check minus the ten percent agency commission automatically calculated and directed to the talent agency — a standard deduction the parents had anticipated based on the agency agreement.
Example: The entertainment attorney explained that the agency commission could only be charged on work the agent had procured — if the family obtained a booking through their own contacts without the agent’s involvement, the agent was not entitled to commission under California talent agency law.

Did you know?
California has some of the strictest regulations on talent agency commissions — requiring agents to be licensed by the State Labor Commissioner and capping commissions at ten percent. Violations of agency commission regulations can result in voiding of contracts. This regulatory framework was designed specifically to protect performers from exploitation.

You can also find “Agency Commission” and related terms in this category: Administrative and Financial.
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