Is $600,000 a lot to give or pay to a screenwriter on an indie film project?
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Is this too much to pay a screenwriter?
- Thread starter kid_filmmaker
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Erm.... This is an "indie film project" with a $20 million budget, right?
No I mean, I told my screenwriter that if the film makes a profit, I'd give him 60% and 60% of let's say a million dollars is $600,000 but I really feel 60% is a bit too much, considering how he's actually a co-writer. I thought up the idea, the character names and helped with the development of the story and he writes the story from there. I said for me 50% for me and 50% for him plus once the project is financed, he would get $3000 up front. I don't know if that sounds reasonable or not but he asked for 60% plus the $3000 up front which I thought was kind of much.
60% is too much - and I say that as a screenwriter
I thought so too, ok so how much would be appropriate? Maybe like 50% for him, 50% for me - 50/50 or.....?
No I'm saying if the film makes a profit after production and distribution of one million dollars, that means I'd have to give the co-screenwriter $600,000 (60% of one million is 600,000), that does seem like a lot to give to a co-writer.
In that case you still only have 40% left for who ever wants a piece of the profit as well.
Ok so 60% is alright....ok, it seems a little much but...ok
Yep, this is a writer in a position where he knows that you know that he on his own has the potential to make the whole difference. He is so progressed that he can potentially compensate for your weaknesses. To only have to pay 3000 up front is a good deal, if he has this track record.
Yeah he doesn't have a track record, he is unknown like myself, and like I said I was offering $3000 when the film gets financed and then 50% of profits if the film makes a profit which means he'd get 500,000 and I'd get 500,000 but this isn't his idea, it's mine's and I'm helping to develop it with him, I thought of the character names and title, and he's creating the rest of it. I'm fine with splitting it 50/50 plus the $3000 plus his name on all marketing materials and on IMDB.com and he is getting a lead character named after him and I've made him the head writer, I'm below him....I mean, I think for a writer who is pretty much unknown like me is a good deal......I thought it was anyway.
You guys both need a reality check.
First off you are not a co-writer. Having an idea or naming a character does not make you a writer. If you came to me with an idea for an iphone application and I wrote the software for you - would you say that you co-wrote the software code? Of course not!! All you did was talk. talk is cheap. Writing is work and requires skill.
As for this writer you got.. don't be surprised if 90% of the profits go to the FINANCIER! You know, the dude actually risking his own money on the project. But lets say you crowd source it, you have no investor.
What are you going to promise your audio post guy, boom op, first ad, lead actor? Why is it only your script writer that is in on the action.
First off you are not a co-writer. Having an idea or naming a character does not make you a writer. If you came to me with an idea for an iphone application and I wrote the software for you - would you say that you co-wrote the software code? Of course not!! All you did was talk. talk is cheap. Writing is work and requires skill.
As for this writer you got.. don't be surprised if 90% of the profits go to the FINANCIER! You know, the dude actually risking his own money on the project. But lets say you crowd source it, you have no investor.
What are you going to promise your audio post guy, boom op, first ad, lead actor? Why is it only your script writer that is in on the action.
Oi! Filmmaking is a business. It's important to learn about the business side especially because money is involved. If you have an established production company with financial assets, you need to be very mindful of where the money goes and where it comes from.
While there are always exceptions, when I scan Indiegogo campaigns, most film projects seem to safely pull in about $6000. Now out of that, there will be permits, rental, food, equipment costs, advertising, festival fees, transportation, costumes, props, and other sundries. So depending on the script--locations, actors, length, props, costumes, etc.--that will probably be eaten up and require some personal capital as well. A decent Indie feature can cost $15-30 K to make. So normally the $6K is used to create trailers to help raise the additional funds.
If you're hoping to sell your script and need a co-writer, then a 50/50 arrangement may be appropriate. If they do all the writing, maybe a 40/60 split might be fair. That's up to you to negotiate ahead of time. Don't discuss this AFTER the writing has started. Set up the contract. BUT KEEP READING.
If you're producing this, it's not. It ignores the contributions of the actors, crew and others who have put in equally valuable time and often more work. Many indies work on a deferred payment basis. They may offer a token payment or offer a percentage of the production profit. So their pay would come out of YOUR 40%. Someone has to pay them from the profits. That leaves you with considerably less.
Normally a producer would first option an ORIGINAL SCRIPT. This is basically paying money up front to the writer so that you have exclusive right to develop it into a film. The writer cannot further market it for a specified time (usually 2 years). During those two years, you can try to get name actors, director and financing. An option can often be extended for an additional term for another payment. Once the film is made, the writer is paid say 10% of the production budget minus the first option. Most options are from $1000-$5000 dollars. The option is a guaranteed payment. Often the contract contains language about royalties and bonuses (if it exceeds certain revenue expectations, nominated for/wins an award, etc.).
So let's say you option a script for $2000 for two years. During that time you find name actors and a up-n-coming director. The director wants to re-write the script but the option is ending soon. You re-option the script. You get financing of $100K to make the film. At this point you have paid the writer $4000 ($2000 for 1st and $2000 for the 2nd). Upon completion of the film, s/he is paid 10% of $100 K or $10,000 minus $2000 (1st option) or $8000. If the film is not made or the 10% of the budget is less than the option price, the writer keeps the option money as a consideration. It can be set up so a writer receives a percentage of the net profit (receipts from money made minus production costs) like the cast and crew on a deferred contract.
Every freelance writer is different. As an example of how to keep it simple and fair, a writer may quote $1500 for THEIR ORIGINAL WRITING, 2.5% of the production budget and 2.5% of net profit (deferred). That includes writing credit and two re-writes (rewrite and a polish). Of the $1500 for which the writer receives screenwriting credit, $1000 would be paid when you receive the first two acts (This includes $500 for the first act or 20 pp. which the writer usually provides in good faith). The remaining $500 is paid when you receive the finished first draft. This insures you get something for which you are paying and is an incentive to finish the script. After that two free revisions are provided (a rewrite and polish). Situations change (actors, locations, budgets) that necessitate changes from the original script. The polish is usually the script used to shoot. Beyond the first two revisions, the writer may charge $200 per re-write. It discourages endless re-writes of a script.
HOWEVER, if you are HIRING a writer to develop YOUR IDEA, the above does not apply. They hold no copyright. You are paying them for a service. If you agree to pay them $3000 for the script and two re-writes, then that's it. They can negotiate to receive screen credit. They are not owed or due any percentage of the profits.
Let's say as a new indie filmmaker you launch a campaign and get your $6000 dollars to produce an ORIGINAL SCRIPT that you've optioned for $1000. So now from that $6000 budget, you have $4850 to work with ($1000 + $150) taken out for the writing. If the film now makes $60,000 and costs $10,000 to make, your net profit is $50,000. Of that, $1250 (2.5% of $50K) minus the option, leaves a payment of $250 to the writer. The writer has made $1150 ($1000 + 2.5% of $6000) + $250 or $1400. If your cast get points, say 1%, they each get $500. Crew are usually paid up front so they are part of the production expense. Any loans are paid off first and are also production expense. What is left over, goes to the producer.
These are all rough numbers only to keep things simple to illustrate the idea. Actual contracts will vary. Understanding how productions are budgeted is important. My thought is that since this is your idea, you should make it clear that you are HIRING him to write it. You will pay X dollars but as a WORK-FOR-HIRE. Make it clear that YOU OWN the copyright and are willing to give him screenwriting credit. That the $3000 dollars is one time. Or if you're the producer, he can work for $1500 dollars and you'll give him 5% of your net profit. It's your script and idea, you hold the negotiating control.
As an indie filmmaker, you need to look out for your own interests. You need to collaborate with writers who understand the nature of indie films. Worst case, he passes. I don't question he's a good writer. There are lots of good writers out there though. He needs to understand his market and sell his own original work to production studios. A good collaboration means two people bring their talents and skills to the table. When working with someone else's idea, you need to be respectful. The producer controls the contract. Being on both sides, I know it sounds a bit harsh to dictate terms, but this is a question of who owns rights and can profit from the final product--the film. Writers are one of the few people who get paid before the movie is even made, if it's even made.
Thank you, this is advice that actually helps and I appreciate it
So if I just gave him the $3000 to develop into a script an idea I have in mind plus the sole screenwriting credit in the film and on all marketing materials, that would be fair? I don't need to offer him a percentage of anything, correct?
If you're on a payroll, even if you develop it on your own time, the patent and copyright belong to the company. That's made clear on every software company's hiring contract. The company owns your innovation. If you make that breakthrough as a grad student or faculty member, the university has claim to the patent and/or copyright. Just be aware if you develop software on any company equipment or use company resources, since you're an employee, it belongs to your employer even if done off work time. You can ask at your HR office about intellectual property rights.
If you're seeking a co-writer, consider an non-disclosure agreement (NDA). It can be overkill but if you are a producer, it can save your butt. However, co-writing and collaboration needn't be adversarial. If the first thought is "How much money can I get?" then the relationship is not off to a good start. I know how much is reasonable but I'm willing to work with producers. It's more important to see a project made (win/win) than being an impediment to its realization (win/lose or lose/lose).
That's correct. You are hiring him to essential write up your idea as you would hire a plumber to fix your sink. He has skills that you are paying him to apply. The plumber doesn't own your house or pipes. You own the copyright. In fact, you can include your own name in the credits as "Story by ...". If he has a good reputation, that can help with getting money. As a work-for-hire, his job is done when the shooting script is delivered. This happens all the time when people are hired to ghostwrite and don't get credit.Thank you, this is advice that actually helps and I appreciate it
So if I just gave him the $3000 to develop into a script an idea I have in mind plus the sole screenwriting credit in the film and on all marketing materials, that would be fair? I don't need to offer him a percentage of anything, correct?
WOW, awesome advice! Thank you so much! If this wasn't the internet and I were in front of ya, I'd hug ya! lol....No seriously, you helped me a lot because now I know how to do this, thank you
okay then, sorry i wasted my time. I'll try to remember for the future.