Percent for Writer/Director VS Percent for Producer

[julianc]

Hi All,

Long time reader, first time poster.

I am a writer/director who wrote a script which won a few grants, which has thus far funded a development period. I started working with a producer who, of course, has promised to fund raise the rest (the final budget we're looking at is around 1mm or 1.5mm). She has not done that yet, and we have a separate agreement that we're working on in terms of ownership.

We're in the budget/scheduling stage, and she's been working with a line producer. She told me she wanted to cut a day of shooting for budget purposes (again, this is hypothetical, but we're looking at 6-7 page days), and I felt uncomfortable doing that. I asked her to send me the budget they've been working on, and I was surprised to find that it has 5% of the total budget for her and 3.5% for me as director. I'm not even really looking to be paid, as it's my first (low budget) feature, but 5% of the budget, along with $1500 "entertainment" expense seems like a lot to me. Is it?

Additionally, there is a 1.3% "script purchase" payment for me as writer in the budget. I don't even know what that is.

Any insight would be extremely helpful! Thanks.

 

[directorik]

Hi All,
I was surprised to find that it has 5% of the total budget for her and 3.5% for me as director. I'm not even really looking to be paid, as it's my first (low budget) feature, but 5% of the budget, along with $1500 "entertainment" expense seems like a lot to me. Is it?

Since she is raising the money 5% plus an expense account
of $1,500 seems reasonable to me. Since you aren't even
really looking to be paid then 3.5% seems like a great bonus
for you.

Additionally, there is a 1.3% "script purchase" payment for me as writer in the budget. I don't even know what that is.

This is what you are being paid as the writer. A little low if it's a
percentage of below-the-line but quite reasonable if it's a percentage
of the total budget.

If you are uncomfortable with the 4.7% you are being paid as the
writer/director then you should tell the producer what you feel is
the proper amount you should be paid.

It seems to me as if you are being paid a reasonable fee. $47,000
to $70,500 for your first feature when you are not even really looking
to be paid at all is pretty good money.

How much to you feel you should be getting?

 

[julianc]

Since she is raising the money 5% plus an expense account
of $1,500 seems reasonable to me. Since you aren't even
really looking to be paid then 3.5% seems like a great bonus
for you.


This is what you are being paid as the writer. A little low if it's a
percentage of below-the-line but quite reasonable if it's a percentage
of the total budget.

If you are uncomfortable with the 4.7% you are being paid as the
writer/director then you should tell the producer what you feel is
the proper amount you should be paid.

It seems to me as if you are being paid a reasonable fee. $47,000
to $70,500 for your first feature when you are not even really looking
to be paid at all is pretty good money.

How much to you feel you should be getting?

Thanks for the response. It was less about how much I wanted to make vs how much I thought she should make. We're negotiating terms of ownership based on her raising money in a separate agreement - and she's telling me that we have to cut days based on there not being enough money in the budget (a day = $30,000 to her). Ergo, her pay - and my pay - seem extravagant if we're now cutting down days based on the budget. Or am I being unreasonable?

I would almost tell her to cut 30k total out of our pays to have that extra day.

 

[directorik]

Okay, if you want her to make less for putting together the
budget and raising the funds then tell her why. This is where
the show and the business merge and conflict. You want more
shooting says and are willing to take a cut in pay to get that
day - she wants to keep a standard percentage and by necessity
lose a shooting day. Neither of you are being unreasonable. But
since you are not even really looking to be paid and she is, there
will be a conflict.

One possible solution is to offer to give up $20,000 of your $47,000
as a show of your passion. Since you are not even really looking
to be paid then $27,000 (or $50,500) is still great money for you.
I'm not saying that's a reasonable compromise except you stated
you are not even really looking to be paid. But do not expect the
producer to give up a piece of their fee to add that day of shooting
- not gonna happen. Budgets are complicated and you will not be
getting everything you want when the raising of the money and
the producing are out of your hands. Give up what you feel comfortable
giving up but do not even hope that you can convince a producer
to sacrifice the way the artist does.

Welcome to the harsh world of show and business. It's eye-opening
and frustrating - for both parties.

 

[Budget:0]

First off, I have to say it's great you're getting that kind of dough offered for your first "real" film.

And if you really want to sacrifice that kind of money for the film, you probably shouldn't suggest that the producer do it. If you really want to do it, you should probably cut 30K out of justyour money, know? It probably won't work asking the producer to shell out theirs...

 

[julianc]

Thanks everyone for the help.

I rechecked the numbers, and the script purchase price looks like it's only about 1.2% of the total budget. Does that seem low?

Also, I'm going to check with my lawyer in the morning, but are there any legal implications of "script purchase"?

 

[directorik]

I rechecked the numbers, and the script purchase price looks like it's only about 1.2% of the total budget. Does that seem low?

A little low if it's a percentage of below-the-line but quite
reasonable if it's a percentage of the total budget.

Also, I'm going to check with my lawyer in the morning, but are there any legal implications of "script purchase"?

That's what happens. The script is purchased and the
writer gets the money. If the script is not purchased
the writer does not get any money.

 

[jax_rox]

the final budget we're looking at is around 1mm or 1.5mm

I have to say it but:

WOah you're looking at a budget of 1-1.5 millimeters? haha

On a serious note, what rik is saying is correct, and to me it seems odd to go 'I didn't expect to get paid... However, isn't my rate a bit low....'

Here's the thing: It's the Producer's film Especially if they're the ones raising the money, it's their film. Your rate is hardly lower than hers anyway (4.7% vs 5%?), and you can't expect her to not get paid?

As a side note: Often in Hollywood films, Directors/Actors/etc. can end up with a percentage of the backend, though in lower budget movies, I tend to see all of those people get paid the set rates (either union or otherwise). In the event the film does make money, it should be set out in your contracts what happens - a lot of the money is going to go to your distributor, and then any leftover will probably be split at some percentage between Director and Producer. Unless, of course, you intend on not paying your crew - which on a 1-1.5mil budget, I can't see why you wouldn't pay them their set rates - but if they're working on some sort of deferred payment system, either nominal rate with deferred, or completely deferred, then you'd have to cut them into your percentages.

Also Producer's are invaluable and worth the money you pay them - also consider the fact that the Producer is generally staying with the film for 5+ years after it gets made, negotiating festivals, overseas deals, television deals, dvd/video, etc. etc. etc.
Even 15 years down the track when you've made it as a Hollywood director, and they want to do a special on you they're going to be calling her to get the rights to the footage from this first film...