Hire When It Hurts... A Lot
When to hire agents in the world of NIL and "amateur" athletics.
I’ve noticed that a lot of really good “amateur” athletes and their families are considering hiring agents.
An agent reaches out.
They have connections.
They have relationships.
They can help with NIL deals.
Sounds great.
Maybe.
The reality is most high school and college athletes do not need an agent.
At least not yet.
The sports industry (and especially agents) likes to pretend endorsements and sponsorships are incredibly complicated.
Most aren’t.
A local car dealership.
A restaurant.
A camp appearance.
These are often straightforward agreements in large part because local business owners built their businesses from the ground up. It was a simple but difficult process that dealt with a lot of local trust. They’re not big time CEO’s or reps.
You don’t need someone taking 15-20% of that.
If you have the resources, a fee-based attorney is often a better option.
Pay for the help upfront.
Keep the upside.
Hire when it hurts.
That’s the rule.
If opportunities are becoming difficult to manage, contracts are becoming complex, brands are reaching out constantly, and you’re spending significant time negotiating deals, then it may be time for an agent… maybe.
Not before.
Most NIL agents work on commission.
Professional contract agents often earn 3-5%.
NIL agents often earn 15-20%.
Partly because NIL is newer.
Partly because the deals are smaller.
Partly because nobody really knows what the hell is going on.
I believe these percentages are going to steer closer to professional contract numbers in the not-so-distant future.
So…
Shop around.
Talk to multiple agents.
Negotiate.
If you are one of the chosen ones, the first offer is rarely the only.
In fact, if only one or two agents are interested in representing you, that’s often a sign you probably don’t need one yet.
The market is giving you information.
But even that is often not a good enough barometer.
If you are one of the chosen ones, understand what agents actually do.
They help secure sponsorships.
Negotiate endorsement deals.
Manage brand relationships.
Handle compliance issues.
Help identify opportunities.
That’s it.
They are not your business partner (if you are under 18, the only business partner should be your legal guardian - more on that another time).
They are not your co-founder.
They are not entitled to equity in your future ventures.
Never give an agent ownership - that’s the equivalent to getting married.
Pay them for the work they perform.
Nothing more.
The contract matters.
Many athletes focus on commission or agent networks and ignore the most important part.
The exit clause.
Make sure the agreement holds the following:
A termination clause without cause with 14-30 days notice.
A sunset clause that limits post-termination commission on any deals the agent might have procured (harder to get - but push for it).
DO NOT be flexible with this.
Relationships change.
Circumstances change.
You need a clean exit plan.
One final point.
Compliance matters.
A lot.
NIL rules differ by state, school, conference, and governing body.
[these are the following states that currently have prohibitions, but the bylaws differ in each and things are rapidly changing: Alabama, Hawaii, Indiana, Michigan, Mississippi, Wyoming]
A good NIL agent should know the rules in your region better than you do.
If they don’t, keep looking.
The best agent is the one who solves a problem(s) you actually have.
If you ever feel puzzled about what an agent can offer you, don’t go with them.
But, I will repeat myself.
You likely don’t need an agent.
Use common sense.
You’re (and your family are) smarter than you think.
Enjoy the ride.
And if/when it starts to really hurt, consider hiring one.
INNO ATHLETE
Helping athletes think clearly about performance, strategy, and business.
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