PRODUCER 20 PERCENT COMPENSATION?

[omar robles]

Hello

We are about to begin work on a film I have been planning for a while. I have gotten a producer to come aboard to oversee the filming. He has worked on a lot of low budget films. Anyways he presented us with a contract in which it states that he would be compensated 20 percent of the revenue once the film is sold. He claims this is a standard producer contract. My question is 1) Is 20 percent fair to compensate someone that hasnt put in money. 2) If its not fair what price would be fair. He has resources and connects. So maybe to justify the 20 percent i could see him pushing the film to get sold. Any input would be greatly appreciated.

 

[Richard Foster]

I will not name the name, but I have access to an Academy Award winning producer to act as producer on an independent feature for a flat fee. And not too far out of line a fee, either. And he has lots of connections. Lots.

Also I refer you to this article.

http://blogs.indiewire.com/tedhope/...dium=email&utm_campaign=Ted Hope&utm_content=

The point is what is the producer doing and how much value is that to you.

 

[Alexander Ibrahim]

Well, my thinking is that most "producers" deserve the quotes, and not the money.

Richard's post sort of says it all. Roughly 20% is what an academy award winning major producer is looking to take.

Basically I agree with Richard, but want to expand on his last point: "What is the producer doing and how much value is that to you?"

Unless your producer has credentials like that, I'd advise you to negotiate them down significantly, or ask them to contribute more.

Now, in my opinion ... the best producer is one who puts in the production work.

The first step they should take is to make sure you have an good DP onboard early, and that there are solid plans for a well staffed and equipped camera, grip and electric departments. Getting those departments in order is usually fairly easy, and it also is best single guarantor of success during production. If they didn't ask you about this, I'd be worried.

Then they should turn their attention to your pre-production. They should get a top notch 1AD/UPM to schedule and budget the show. They should be working with the Director and DoP. They should identify which scenes are problematic practically and see how to solve that. It may be a rewrite, or some smart production solution - but solve the problems in pre-pro.

Stuff like that.

It's film making common sense.

The thing a great producer brings is the ability to solve the problem in a way the serves the film, as opposed to capitulating to circumstance.

I produce too, so here is a quick difference.

Need a shot where you are on the top of the Empire State or Chrysler Building, with two helicopters and a pile of assorted gear?

I can call the NYC film office and work my way through the process.

I can also find ways to get the shots done as VFX when I get shut down by the film office.

A good producer already knows who to call to reach the person who can say "yes" and is willing to do so. They already know what that person needs to hear to be ready to say yes.

They have experience co-ordinating two helicopter flights with camera and shooting on the "ground" and they know the DoP's to call who do aerial work, and they can get that one rigging crew who specializes in prepping ground locations for flyover photography.

My point is that they are going to look at your film, figure out where the tough spots are, figure out which you need to fight for, which to let go and get you through this.

When it comes to distribution, the only producers who can truly promise to help you before you shoot the film are the ones that have already produced and sold several films. They have a good track record of making win-win deals and people will make a deal with them just because they are attached as producer. They may be able to "pre-sell" some of the films rights before you shoot first frame.

If I produce your film, I know a couple of people I've never done business with I can call.

There are a hundred other things a great producer can do for you.

So who do you have on your hands? What are they offering to do, and what can they do that they haven't offered? Do they have a track record of delivering?

 

[Craig Parkes]

If the producer is over seeing the production, and isn't raising funds and doesn't have a name that will attract sales agents or isn't specifically being brought on board because of their creative ability to wok with the director or ability to create deals when it comes to sales and distribution, and they haven't been involved in the raising of und for th film, then they aren' so much a producer as a combo line producer/production manager. And a line producer/prouction manager would have a rate for the project in most cases, not a 20% cut of revenues.

There are no standard deals for producers, except maybe standard deals offerred by stusios. But in the independent world everything is up for negotiation and every project is different.

And what sort of revenue is that, net, gross, producers net? If there isn't a lo mor detail in the contract that describes exctly the terms of thei back end involvement, then I would be hugely wary about anyone looking fo 20% of revenues as that is a terribly ill defined term. If the contract is a lot more specific then you my hvless to worry about, r more to worry about, but its impossie for someoe to determine that unless they cn o over the ontract and give you experinced legl advise. Get your entertainment lawyer oto o over the cotract. If you on't have one, you need one. Simple as that.

 

[Alexander Ibrahim]

If the producer is over seeing the production, and isn't raising funds and doesn't have a name that will attract sales agents or isn't specifically being brought on board because of their creative ability to wok with the director or ability to create deals when it comes to sales and distribution, and they haven't been involved in the raising of und for th film, then they aren' so much a producer as a combo line producer/production manager. And a line producer/prouction manager would have a rate for the project in most cases, not a 20% cut of revenues.

I'm a little confused - but I think I mostly agree.

I think you are saying that a producer works creatively with director and has great sales and distribution deals, plus can bring funding to a project.

I think you are saying that a line producer/UPM will oversee the production handling a lot more of the day to day work.

Where I disagree is that a good producer will dig into those details as well, blurring the line between these categories. They sometimes do the work themselves directly, but often bring a team of people to get it done.

There are no standard deals for producers, except maybe standard deals offerred by stusios. But in the independent world everything is up for negotiation and every project is different.

Well, I'd go further - there are no standard deals except at the entry level of the crafts. (where you'll likely get scale as set by your craft's union.)

 

[Meryem Ersoz]

Hello

We are about to begin work on a film I have been planning for a while. I have gotten a producer to come aboard to oversee the filming. He has worked on a lot of low budget films. Anyways he presented us with a contract in which it states that he would be compensated 20 percent of the revenue once the film is sold. He claims this is a standard producer contract. My question is 1) Is 20 percent fair to compensate someone that hasnt put in money. 2) If its not fair what price would be fair. He has resources and connects. So maybe to justify the 20 percent i could see him pushing the film to get sold. Any input would be greatly appreciated.

How about graduating the contract, depending on what he actually does?

If he does X, then he gets X.

If he sells Y, then he is guaranteed Y.

Et cetera. Be sure that if you are giving, you are getting equal value. Everything is negotiable, and he is probably coming to you with the maximum that he thinks he can get away with asking.

I would never guarantee 20% of my project to one person, unless that person was doing something huge.

For one thing, you foreclose on what you can promise to an actual investor, if you find one. If they see that 20% of the project is already given away, they may not be interested in financing your project.