My daughter is finally showing an interest in getting into the business and I am wanting to learn as much as I can before going any further. We have a lady who wants $2000 up front to sign her for 3 years as well as 40% of her earnings over the same time period. Now as green I am, I do not think that this is a good deal... Please tell me what the going rate is for a newcomer and what to look for in a manager/agent.

It is certainly not $2000 upfront! For any legit agent or manager, you should not have to pay anything until you start booking jobs. Then they will take their cut. And 40% of her earnings is WAY too high. It should be 10 or 15% for managers!

never,never,never,never,never,never pay any money to someone to rep you or your kid. also standard for management is 15% standard for agent is 10% (NY area) Run away from this person and don't look back!!!

The going rate for a newcomer is $0. You should not pay anything. If you are trying to put a demo reel together, that will cost you some $$$, but that is something you should seek out and negotiate on your own. It SHOULD NOT be part of a signed package deal! Please read Nancy Carson's book, "Raising a Star." (Wish I got a dollar for every time I've recommended this book LOL!) She addresses getting in to the music industry and breaking in from a small market. You should find it very useful. Also, please read the getting started threads on this board. I don't know how old your daughter is, so here are the links for both the children and teen getting started threads. Please do not pay a penny upfront. Good luck.
children:
http://bbs.backstage.com/eve/forums/a/tpc/f/9611031/m/9461061/p/1

teens:
http://bbs.backstage.com/eve/forums/a/tpc/f/9611031/m/6061061

Thanks all of you.... I knew this in my heart but wanted to confirm it with people who are already in the business... The lady who is doing this is breaking into the field of agent/manager herself and probably needs the money as start up capital. She is truly a good person and really wants to help young people. I think that she may have gotten some bad advice in starting in this business. I am going to share your responses with her so that she can go back and look at what she is asking... I am also going to get that book and have my daughter read the information from the link that you gave me. Thanks again!

I'm confident she knows EXACTLY what she's doing. You don't just break into the business as an agent or manager. You become familiar by WORKING YOUR WAY UP or by proving yourself in some aspect of this business and then transitioning into a related position through the connections you've made. This so called agent/manager/whatever she's calling herself is not worth any more of your time or energy.