I've been given a contract to help write an unsold (not yet financed) screenplay. Should the script be sold, the cut is simple. Should it be produced by the production company of the person I'm working with, they're willing to offer to offer me a percentage of the Net Profits. I don't exactly like the thought of this, as "net profits" is fudgeable. I'd like to ask for an advance if/when the movie is funded or produced. Or a cut of the gross. Any thoughts? What would standard procedure be in this situation?
mikeyditka said:
If it's financed, your fee should be worked into the finance. This could be a negotiated flat fee, or it could be a percentage of the budget. Bear in mind, the net could be a big fat zero. I like the bit (not) that if the script is sold, the cut is simple, but should it be produced by the person you're working with s/he is willing to offer you a percentage of the net. I'm assuming that s/he does not intend to be drawing 'expenses' from the company. That deal would only work if it was written in that neither of you were to be paid until the film was in profit.
Insist upon changes to the contract. You wouldn't be asking for anything unreasonable. The way this is presently structured could leave you on a hiding to nothing.
ETA: Only sign that contract when it is clear that the writer/s will be paid from the finance budget, and then think about negotiating a percentage of the net.
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Well, there are no "standards," really.mikeyditka said:
First question comes to mind, though, is the production company a sig producer, or not? And by "sig producer" I mean of course one that's signaory to the WGA's Minimum Basic Agreement (MBA). If they are a sig, then the manner in whcih they relate to you is specified in the MBA, which I think you can read on-line at www.wga.org.
But it sounds to me like they're not a sig producer, and if that's the case, the deal you make is the deal you make. Your reluctance to take a cut of the net profits is wise thinking ... almost every writer who has engaged in such a deal has had to go to court to get paid, and often what they get is a pittance, if indeed they get anything (many pictures are booked as losses for tax purposes).
You should push for at least half the payment in front, with that split between an amount paid when you finish the script and another amount paid the day principle photography on the production commences, with some degree of payment occurring the day you begin writing, a thousand bucks or so of "earnest money."
Then insist that the other half be paid from gross receipts.
And if you are writing this with another writer, keep the credits situation in mind and make sure you're gonna get the credit you deserve.
These kinds of deals can be tough to work out. But persevere and stick to your guns, and maybe think about getting a show business lawyer to lend you a hand.
Good luck!
It is 'typical' to get paid 2-3% of the total budget. Of course, what GoodWriterGuy said still applies, but if the budding production company wants to know what is 'typical' - that's a fairly common number.
If they are deferring costs (and doing it low-budget) then still keep them on the 'budget' cost - not how much their cash outlay is after they defer all their costs.
Remember that if they can't raise 2% of their total budget to pay the writer, then how can they possibly raise the other 98% of the budget?
If you want to 'defer' some payment (eg: get paid only on net) to give these friends of yours a favour, feel free to do it - but remember that it effectively means that you are giving them an unsecured loan at 0% interest - that is unlikely to be ever paid back.
So if it is a low-budget $500k movie that you are getting 2% on, you should be getting at least $10k as payment. If you are taking it entirely deferred, you are giving them a $10,000 loan. If you would be doing that anyway (because they are a friend) then fine.
Remember, though, that even if you do give them a give of your $10,000,, you are opening yourself up for lawsuits from every idiot who thinks that the script is similar to something they scribbled on a napkin once. You should be getting paid SOMETHING to compensate for this.
Good luck,
Mac
If they are deferring costs (and doing it low-budget) then still keep them on the 'budget' cost - not how much their cash outlay is after they defer all their costs.
Remember that if they can't raise 2% of their total budget to pay the writer, then how can they possibly raise the other 98% of the budget?
If you want to 'defer' some payment (eg: get paid only on net) to give these friends of yours a favour, feel free to do it - but remember that it effectively means that you are giving them an unsecured loan at 0% interest - that is unlikely to be ever paid back.
So if it is a low-budget $500k movie that you are getting 2% on, you should be getting at least $10k as payment. If you are taking it entirely deferred, you are giving them a $10,000 loan. If you would be doing that anyway (because they are a friend) then fine.
Remember, though, that even if you do give them a give of your $10,000,, you are opening yourself up for lawsuits from every idiot who thinks that the script is similar to something they scribbled on a napkin once. You should be getting paid SOMETHING to compensate for this.
Good luck,
Mac
Point them to the low-budget contract of the WGA, and tell them you'd like to get as close to that figure as possible, and to screw points, net or gross. I'd rather have a number in my pocket, not a percentage.