Whether you’re a music manager or an aspiring musician, I believe you should always hope for the best when you sign your music management contract. After all, their partnership signals the start of some great things. With a lot of hard work and a little time, a manager and a musician can accomplish a lot together.

Of course, it doesn’t always work that way. The reality is that even successful musicians don’t always stick with the manager who brought them the first big break in their careers. Managers and clients are often parted when a record label requires a signed act to bring experienced supervision before paying a check in advance. Other times, managers who are tremendously effective for clients in their home region may stretch themselves too thin when their clients start traveling domestically. And, in the worst case scenario, managers and customers begin to misbehave with each other after a personal dispute.

Whatever the reason for a split between a music director and an artist, both parties must protect themselves from exploitation by adopting a “sunset clause” in their music management contract. A sunset clause acknowledges the contribution a manager has made to an artist’s career, while also leaving the door open for artists to effectively opt out of their contract and work with other professional advisers.

In most cases, “sunset” refers to the amount of commission paid to a manager during the two years following a split. Most music industry professionals agree that it can take two years for a band and its new management to put a new strategy in place. Thus, a sunset clause generally gives the previous manager a full commission for six months after the split, which is reduced by a third every six months until the previous manager can no longer claim a commission.

Without a sunset clause, a band could be separated from management and remain liable for commission payments of twenty percent or more for up to seven years. Some unscrupulous managers sign deals with clients, only to renege on their duties and demand management fees. On the other hand, an effective manager may use the sunset clause to recoup their investment of time and money when a client becomes successful enough to warrant signing on with a larger, more experienced management team. The sunset clause forces both parties to take their relationship seriously, while also allowing for the possibility of a band and its manager parting ways before the end of their traditional seven-year contract.