A: The biggest cost is training, like high-level vocal or acting coaches. It is also very expensive to travel, whether it is to Midtown Manhattan for auditions, or to the West Coast for TV pilot season.
Every March you have countless parents and young artists moving to residences in Studio City, California: They fly out there, rent an apartment, rent a car and pay for meals. Those are costs you really need to consider, because they are substantial.
Q: What are some creative ways to finance all that?
A: The trend these days is to access development dollars through crowdfunding platforms like Kickstarter or Indiegogo. Those didn't even exist a few years ago.
If you have a good audition tape, and people start to get excited about it, then fans will start to fund you. In return you might give them a DVD, or a CD, or a backstage tour of one of the child's productions.
Q: How important is writing down a budget?
A: It is essential. It may seem like this is just a passion, but this is a real business. So you have to write down a business plan, estimate expenses and set up a timetable.
If a parent has to stop working, that is another financial element to be considered. Sit down with an accountant and figure it all out. At the end of a certain period, you have to make a business judgment about whether or not it makes sense.
Q: A lot of stage parents see dollar signs when it comes to their children. What exactly are they entitled to?
A: There are plenty of examples where parents just helped themselves to their child's revenues. Some of that may be justified, in terms of the up-front investment dollars that they get reimbursed for.