An offer of any kind, is nice to get. Once the offer is made, the door is open for negotiations.
A new writer has less leverage than an established one, and certainly less than a Guild Writer.
I've worked with small production companies, that don't have a lot of capital upfront. Here's my approach for negotiations.
"We can only offer you XXX for the script." - Let's say ten grand.
"Wow, I'd like to get scale. Can you come up to that?" (They will say no, but at least we've established that the bottom scale for a picture with a micro budget is MORE than they are offering - check the WGA guidelines to determine the current scale)
"Alright, I understand your budget is tight, and I'd really like to see this script made. What can you offer me in addition to the sale?" - Who knows, they might have something you want - a barter possibility to produce some project you want - the chance to direct another project - the chance and pay for acting - whatever. The point is, you're offering to work with them to get the project moving)
"We have nothing more to offer - take it or leave it..." - Don't bite on this. They are counting on your desperation to be produced to give them what they want.
"Look, I really do understand that you're on a tight budget. Normally, I'd ask for ten percent of the purchase price - in this case, a grand - for you to option it with full price paid on commencement of principal photography. So I'll help you out. I'll WAIVE the normal six month option, if you'll come up to .... (name it) fifteen grand on commencement." - see you're being reasonable you don't even need the option money up front - very generous of you, but you'd like more later.
"THAT'S CRAZY WE CAN'T AFFORD FIFTEEN GRAND!"
"Oh, okay. I thought you believed in the project, and that you were going to make money from my script." - Now you've hit them in their ego. Either they believe in the project succeeding, or they don't.
"Oh, we've got deals in place, it will make money..."
"GREAT! Glad to hear it. We just have to figure out a strategy to meet both our needs. I'd really like to see scale, but I'd also like to see the project produced. How about we defer a part of scale?" - Here's where you need to know the details, the budget, what scale represents, and how to draw up an honest deferment contract. You NEED a lawyer.
"What do you mean?"
"Well, I know you've got ten grand available, how bout you pay half now, half on principal photography - another ten grand on completion... and a precentage of the back end" Whatever your plan is. They won't like it, but they might go along. The selling point is that YOU are risking the value of the script, against their ability to deliver a winning version of their story line. If THEY succeed, you should share in that success.
"Alright then, how about LIMITED rights?" - again youre being flexible. Perhaps you want to retain rights for novelization, development for games, action figures... whatever. The point is, if they can only afford a limited payment, then they might be okay with limited rights.
If they keep coming back to "Take it or leave it." - then think about leaving it.
Just a few ways to work with honest production companies in a small budget world.
) which, incidentally, is my script's main theme.
