The Difference Between a Manager, Agent & Record Label

For new and emerging artists, the music industry can feel like an endless maze of job titles, teams and roles that all sound strangely similar. Managers, agents, labels, publicists and distributors. It’s no wonder so many artists feel unsure about who actually does what. Understanding the difference between a manager, agent, and record label is one of the most important steps you can take when building a long-term, sustainable music career.

And here’s the truth: you don’t necessarily need all three (at least not straight away).

In this guide, we’ll break down exactly what each role does, when you need them, and how they fit into the modern music landscape in 2025.

What Does a Manager Do?

A music manager is essentially the CEO of your career. They help guide your long-term strategy, grow your business, and build the right opportunities around you.

A great manager acts as your closest adviser, sounding board and problem-solver. They oversee almost every part of your career, including release planning, branding, touring decisions, hires, partnerships, scheduling, budgeting and negotiating on your behalf. If you imagine your career as a company, your manager is the person responsible for keeping everything connected and running smoothly.

In the modern era, managers also play a crucial role in digital growth, helping you understand algorithms, market your music and build leverage before approaching labels or booking agents. Some managers even take on roles that labels once handled, such as managing distribution relationships, organising promo campaigns or hiring freelancers.

Most managers take 10–20% of your gross earnings, meaning they only succeed when you do.

What Does an Agent Do?

If a manager is the CEO, then an agent is the head of the live business. Their job is solely focused on securing paid performance opportunities, such as tours, festivals, support slots, college gigs and branded events.

Agents have strong relationships with venues, promoters and festival bookers, and they specialise in turning your live presence into a profitable part of your career. They negotiate appearance fees, ensure contracts are fair, and coordinate with managers to create a touring strategy that aligns with your long-term goals.

Unlike managers, agents usually work on commission only, typically 10% of live earnings. They don’t get involved in releasing your music or planning your artist identity; their strength is purely live revenue.

In 2025, many artists don’t secure agents until they can consistently sell tickets or demonstrate strong streaming data in specific regions. Booking agents are selective, so an active, engaged fanbase often matters more than viral numbers.

What Does a Record Label Do?

Record labels provide funding, expertise and infrastructure to help artists create and promote music. Traditionally, labels handled everything from recording budgets and marketing campaigns to radio pluggers, international teams, sync pitching and physical distribution.

Today, labels are still powerful, especially major labels, but the landscape has changed. Independent distribution, digital marketing and social media have given artists far more control, leading many to build careers without a label until they have leverage.

That said, labels still offer benefits that can be hard to replicate alone:

• Large-scale marketing budgets

• Global distribution and radio support

• Strong connections to press, brands and playlist editors

• Touring support and long-term career development

• Staffed teams dedicated to marketing, A&R, creative and analytics

Most labels recoup their investment, meaning they recoup costs before the artist earns royalties. This is why education around deal types, such as distribution deals, licensing deals and 360 deals, is essential before signing anything.

Do You Need All Three?

In short, not at the beginning. Most artists don’t have all three until there is real momentum behind their career. Here’s a common route for independent musicians in 2025:

Early Stage (0–50k monthly listeners):

You handle everything yourself, or you work with a part-time manager who believes in your project. No agent or label is necessary at this point.

Growth Stage (50k–500k monthly listeners):

A manager becomes essential if you want to scale effectively. You may work with a distributor, hire freelance PR help or run small shows independently.

Momentum Stage (500k–2M monthly listeners):

This is typically when agents become interested. Your manager and agent collaborate to build touring opportunities, brand deals and sync placements.

Leverage Stage (2M+ monthly listeners):

A label becomes a strategic option. Artists with leverage negotiate better deals with higher advances, ownership rights and better marketing commitments.

In short, you build your team as your career demands it, not before.

Real-World Examples of How Artist Teams Evolve

To understand how differently teams can look depending on the artist, here are a few useful examples:

Ed Sheeran built his early career independently, performing hundreds of live shows and releasing his own EPs before signing with Atlantic. He worked with a small managerial team long before a label entered the picture, proving the importance of strategy over scale.

Stormzy famously released his debut album independently on his own label, using a tight management team and cutting-edge marketing. His success shows that labels aren’t always the starting point; sometimes they follow you.

Billie Eilish gained global recognition with management and distribution in place long before any traditional label machine kicked in. Her team built online momentum that led to a major deal later on.

These examples highlight that there’s no single “right path” in the industry. What matters is understanding which relationships support your goals at each stage.

Choosing the Right Support: Building the Team That Works for You

A strong artist career doesn’t come from collecting every industry role at once; it comes from choosing the right people at the right time. Managers help you see the big picture, agents help you earn from live shows, and labels amplify what you’ve already built.

But none of these roles are essential from day one. Whether you're an independent artist finding your sound or a rising act with real momentum, understanding these roles empowers you to build a team that grows with you, not instead of you.