Sales Agents and Upfront Fees

[BA1385]

Hi there,

In trying to procure a sales agent for a film I'm producing, I emailed all the relevant companies I could find with little success (the half a dozen who did respond said that it is too niche for them).

However, one company is interested (they actually contacted me first) but they charge upfront fees as standard practice. They are clearly a legitimate agency and apparently have a high success rate, but everything I have read during research points to upfront fees being a red flag.

At this point I will either have to go with this company or start contacting distributors myself.

Should upfront fees always be viewed with suspicion or can be a legitimate way of going about things (and better than approaching distributors unsolicited)?

Any thoughts are greatly appreciated.

Many thanks...

 

[Sweetie]

I am now confused about going ahead with upfront fees for a sales in order to hope to get distribution

I'll reiterate once again. The big red flag is up front fees. While that isn't always the case that it won't work out in your favor, you need to weigh some serious consideration to the fact that they approached you. On top of that, no other sales agents were interested in your film. To an outsider, it looks like they're preying on your desperation so they can get paid... very much like scam artists prey upon the victims greed for them to fall for advanced fee scams.

It may very well be legit. It does smell fishy.

I am wondering if getting on itunes is even worth it

What's the films value?

if anyone even buys DVDs any more?

It's really difficult to get home video and even harder to get streaming sales numbers, but every number that I see still indicates that DVD/Bluray is larger than streaming. Streaming is growing and DVD/BR is shrinking.

I was hoping that distribution would result in substantially greater online and DVD sales

It's hard to get sales without some form of distribution... at a minimum, you'd need to self distribute.

not sure if that will really be the case and if it is worth the expense

It does seem like a waste. To me it's akin to shooting a movie and not going through post production.... then again, what would be the point in going through post production if there was no way to make the movie watchable to the audience? Cutting your losses may be your best move.

 

[Blade_Jones]

In this instance the upfront fee is actually much more than that ($5,000) and the finishing/ongoing costs of the film have already left me in a pretty bad place financially.

$5,000???? Holy s**t!!!!! I was going to get into the business of selling beach front property in Montana, but now I think I'm gonna become a producer's rep!

I think you exemplify how it's so easy for someone to get money out of someone in the entertainment business. You're strapped for cash yet you still are contemplating giving this guy/ or woman $5,000. Amazing! Reminds me of this episode of American Greed where the con-man convinced the family of a rapper to shell out over $200,000 to "show that they were serious". Did you ever ask this producer what is the point of the $5,000? If they are so confident in your film then why can't they take a percentage or compensation AFTER they land you this big friggin' distribution deal and after you approve it?

By the way, I read in a book that there's only about 5 producer's reps in the entire world who are worth dealing with. Wish I could remember the name of the book.

...but I'm wondering what a deal for say DVD and Digital rights might realistically come to for a small, low-profile indie documentary and ultimately if it's worth taking such a gamble on upfront fees?

You don't say!

(they actually contacted me first)

I just read this part. I guarantee you this producer is not one of the 5 that are worth dealing with. Probably a scam.

BTW does this producer rep's last name start with a Y?

 

[BA1385]

Everyone I've been in touch with who've worked with the company has been very positive (and I contacted numerous people not on the list of references they provided). I also negotiated a partial payment now, partial payment in the event of a sale deal, which I imagine illustrates some confidence on their part that they will make a sale.

So I am pretty content in working with the company, as I may not be able to secure distribution (outside of DIY) alone. My concern now though is if trying for third-party distribution is worth the expense, even if successful, or if I should just go DIY.

 

[Sweetie]

I also negotiated a partial payment now, partial payment in the event of a sale deal, which I imagine illustrates some confidence on their part that they will make a sale.

I'm curious on the negotiated details. Was it something like $1000 up front with $4000 due on completion on any sale of your film? If so, aren't you concerned that they make a $1000 (or less) sale to Netflix so they can pocket the additional $4k?

 

[BA1385]

I'm curious on the negotiated details. Was it something like $1000 up front with $4000 due on completion on any sale of your film? If so, aren't you concerned that they make a $1000 (or less) sale to Netflix so they can pocket the additional $4k?

It was actually $3,750 total - with 40% now, 60% after a sale to a master distributor that I approve of.

 

[Blade_Jones]

Only $3,750! What a bargain! LOL