🔁 RECAP: How to solve a problem like bad agents?

Alex is the Managing Director of major UK talent agency InterTalent. He represents his clients alongside overseeing the agency's creative strategy, day-to-day operations & acquisitions.

Welcome to Dealmakers with Alex Segal ✍️, a Substack on the realities of being a talent agent, packed with weekly insights to keep you ahead of the game 🚀.

Having negotiated £40m+ in talent deals 💼 and grown company turnover 5x in 5 years 📈, I am sharing my experiences and knowledge of 17 years representing some of the biggest stars in the UK.

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🔁 RECAP: How to solve a problem like bad agents?

Ok, this is a big one.

🤔 Perhaps the most important Dealmakers I’ve ever written.

There isn’t a week that goes by that I don’t open LinkedIn to see agents discussing brands and ad agencies that aren’t paying their clients on time. It’s not a new thing, but it does seem to be getting worse. Or maybe we’re just talking about it more. It does create major conversation on LinkedIn because we all suffer with it. Brands demand precision from talent, but when it’s time to pay? It can be radio silence. It’s disrespectful to our client, simple as that.

Chasing overdue invoices is the worst part of the job. It’s now taking up considerable time and energy, but getting our clients paid promptly is a fundamental part of the job.

Sadly, the ability to stop this from happening is nearly impossible. Outside of no longer working with them, which is not ideal, the ramifications of a company not paying on time is, well, usually not a lot. Threats of legal action or adding interest to an invoice rarely spark anything. We’ve started to half ‘out them’ on social media, but they usually eventually pay and on we go until the next time.

Late payments are a real headache, but there’s an even bigger problem much closer to home. One that is concerning me more and more.

For me, it’s an even bigger issue…

➡️ Bad agents.

Let me fill you in on how the industry currently works…

No industry-specific union or body govern talent agencies. I’ve always found that strange. In football, yes. Very regulated nowadays. In the acting world, there is the brilliant PMA (Personal Managers Association), of which the vast majority of acting agencies are members. They provide everyone with a code of practice known as the Sunset Provisions. Most companies apply them perfectly. The problem is that they’re just guidelines and not a legal ruling.

What happens when an acting agency is deemed to have acted inappropriately? They get thrown off the PMA. Does that mean they can no longer operate? No. Does that mean they can no longer work for their clients? No. It’s business as usual, just without PMA membership and some awful PR to overcome.

No longer being part of the PMA just means they have no one to tell them off next time. I love the PMA’s work in the acting world, what they stand for, and what they do, but sadly, it’s not able to be more robust.

Here is the key problem: There is no union or body for any other part of the entertainment industry. Nothing at all in the world of unscripted TV, social media, gaming, content creators, broadcasting etc. A few try to apply the PMA’s guidelines here but it’s not applicable. The vast majority of agencies in these worlds aren’t aware of the PMA.

In a worryingly growing trend, I am reading and seeing more stories of talent management companies being accused of serious malpractice. Everything from withholding money from their clients, lying, faking opportunities, all sorts. Everything an agency shouldn’t do. According to the reports, they’ve lied, stolen money from their clients, you name it. Everything an agency shouldn’t do. I see so many young actors, content creators etc take to social media to tell their stories of horrific experiences with their now ex-talent agency. They are broken down by the trauma, their spark faded and trust in agents (the very people who are meant to protect them from others taking advantage of them) is no more.

But are most of them still operating as normal to this day? Yes. It’s awful to see.

Sure, this usually applies to a certain kind of company, and a certain kind of person running them, but it doesn’t matter. More issues are appearing all the time.

We have a real problem.

I am so proud to be a talent agent. I am proud of this community of people who choose talent management as a career. It’s not an easy job. It’s relentless. We go to battle every day; we are competitors at all times; we all want to win, but we also have huge respect for each other. Sadly, there are people out there who are tarnishing the reputation and values of this community.

I have strong views about what we should do if we want to combat this.

Some of you may not agree with me. I appreciate that my idea isn’t bulletproof.

But… I think it’s time to lay it out.

🚨 How to solve a problem like bad agents? 🚨

🇺🇸 As always, Hollywood does it best. The laws in California make it very clear what agents and managers can and can’t do, and there are big consequences for those who don’t abide. It’s serious and can have very severe consequences for those companies. It can range from huge fines (millions!) to being closed down. American laws are tough on the entertainment industry. As are the unions. SAG-AFTRA (Performers), WGA (Writers), DGA (Directors) and others will ask their members to go on strike if they believe they are being treated unfairly.

🇬🇧 The UK doesn’t have that.

🤔 What are the requirements needed to start a talent agency in the UK?

Nothing.

You don’t need a degree or pass any exams to start a representation company. Anyone can start one tomorrow. It’s one of those professions where your best mate can become a viral sensation on TikTok overnight, they ask you to manage their career even if you have zero experience, and away you go. You’re now a manager. New career activated and to the outside world you’re just as credible as anyone else. You don’t need any experience or knowledge to formally represent someone’s career.

Given how the job is to represent someone’s career and their income, it’s eye-opening how simple it is to be allowed to hold that position.

Any agencies that have real credibility will always stand head and shoulders above those who don’t, but facts are facts: there is no barrier to entry. It’s not like being a doctor or surgeon. You can’t just wake up one day and operate on someone!

To me, a bad agency (or agent) is one who…

• 👉 doesn’t pay their clients on time (or ever)

• 👉 closes down a limited company and starts up a new one just to avoid paying their clients

• 👉 who purposely lie to their clients to avoid the truth of their own mismanagement coming to light

• 👉 charge their clients annual fees to be represented by them

• 👉 makes decisions without consulting their clients or forcing them into decisions that benefit the agency but not the client

• 👉 any form of client exploitation and a lack of transparency, truth or fairness

At InterTalent, we now meet so many potential clients who have had these experiences elsewhere and either a) no longer want to have representation for fear that we are all as bad as each other or b) they have been so scarred by their experiences that they will sign but have zero trust in letting someone into their inner circle. It’s upsetting, and I see it way too often nowadays.

We represent people and their careers, and I take that seriously. It was the first thing I was ever taught. This is serious. We can’t promise anything other than hard work and being a good teammate.

🤔 So what should we do?

This is my opinion as someone who has worked in 3 of the biggest talent agencies in the UK over the last 17 years, and has run one of the most well-known agencies for the past 5 years:

• 👉 The talent agency industry needs to be regulated. We need a union or governing body who not only create an agreed code of conduct but to be with them you need your agency to pass some form of ‘fit and proper persons’ test. To be a football agent, you need to be licensed by passing exams. Without a license, you can’t operate. I think the owners of every talent agency should have to pass something similar and be licensed to operate. It shouldn’t stop people with limited or no experience from starting a management company, but everyone should need to prove they are the right people to do so.

• 👉 I don’t think staff need to be licensed individually. It’s important to get great people, especially youngsters, into an agency without the red tape to do so but the agency must be licensed on their behalf. This means that if any staff member operates poorly, it’s a reflection of the company. The buck stops with the bosses. This will also ensure that proper training happens within each company.

• 👉 Speaking of training, the union should offer courses in talent management to educate everyone in the fundamentals of how to properly represent talent.

• 👉 Without a license, a talent agency cannot operate (even if you’re a one-man band).

• 👉 There will be clear guidelines on various topics, including financial safeguarding rules, mandatory insurance, a transparent complaints process, toxic culture within the workplace and more.

• 👉 The union needs to put in a 3-strike policy. What that policy looks like for your specific agency depends on various factors: the length of time the business has been operating, prior history, staff count, client count and many other factors. The policy can’t be one-size-fits-all, but if you continue to score well, then your ability to operate improves.

• 👉 If you are struck off, then you can no longer operate. Simple as that.

• 👉 There should be a central website which we should all have to link to on our own agency websites that proves your accreditation and how the agencies rank, so you can better understand the company you are joining. This also includes information on how long the business has been operating and other important factors that prove credibility.

• 👉 The governing body or union should be made up of different leaders across the talent agency industry, as well as independent experts such as lawyers and accountants.

• 👉 As the industry shifts so rapidly every 5 years, business leaders would need to update their license every 5 years with proof of updated industry knowledge and standards.

I know no one likes red tape. I believe there are many things that agencies should have the freedom to do as they please. It’s what makes us stand out from each other and offer different services in different styles. We need that freedom of creativity and strategy. That shouldn’t change.

It’s not what anyone truly wants in an industry that is all about freedom of expression and creativity. Still, something has to be done to stop people signing with agencies that ultimately will not do the best by them.

If we want to encourage talent to have management and not self-represent (I spoke about that here), a governing body is a necessity to ensure trust and responsibility.

🤔 How do we make it happen?

It will take a lot more than me. Perhaps this Dealmakers post will start the conversation.

This industry loves to talk about protecting talent. Here’s our chance to prove it.

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You currently receive The Dealmakers Playbook 🚀 & Weekly Industry News 🗞️.

A paid subscription gets you:

✓ LOTS more talent agent insight with Ask The Agent 🧠
✓ My Q&A with VIPs 💡 series with industry stars
✓ 50% off all of the Dealmakers Deal Sheets ✨
✓ PLUS the actual Secret Toolkits 🔥 I use daily to stay one step ahead

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📥 Get in touch with me alex@intertalentgroup.com