payment for 1st time writer

[jtownmark]

Is there a formula or standard for payment for a first-time screenwriter? I have optioned a script and need to know if what I am being offered is fair and reasonable.

[naimas]

Get an entertainment lawyer and don't sign anything until he or she has read it.

[clockwork]

Yes. Or call up an agent and ask if they'll consider handling the contract. Unless they're super busy or one of the big boys, I can't see many passing up the opportunity to make 10%. And you might even end up with representation to boot.

[naimas]

Yup, that too. It would probably be easier and cheaper in the long run to call up the agent. If it is with a signed, union company you will need the agent anyway. If it isn't, and the deal is smaller, you will still want to consult an entertainment lawyer. My experience is that it isn't just what is on the contract that screws you, but what isn't on it. An entertainment lawyer can see any problems, even hidden ones and can show you them.

[clockwork]

Definitely. The last contract I was involved with stalled for a month because of four words. We wanted them out, they wanted them in. It's very important somebody with skill and experience handle this for you.

[kullervo]

If it is a WGA-signatory deal, there are absolutely minimums in place. If it is not, it is whatever you will accept. There are no minimums, no "fair," and many option deals are for "deferred payment" or a dollar or whatever.

[nmstevens]

Yup, that too. It would probably be easier and cheaper in the long run to call up the agent. If it is with a signed, union company you will need the agent anyway. If it isn't, and the deal is smaller, you will still want to consult an entertainment lawyer. My experience is that it isn't just what is on the contract that screws you, but what isn't on it. An entertainment lawyer can see any problems, even hidden ones and can show you them.

Agreement with Naimas and everybody else regarding *not* signing without having the contract reviewed by somebody who knows what they're doing.

You might be able to get yourself an agent with an offer on the table, but this might take you time, because even with an offer, if there isn't much money, it might take awhile to find an agent that's interested, and you may not have the time.

Likewise, without much money, you're going to find that an entertainment attorney (and that's the only kind you want) won't be willing to work on commission, and a decent entertainment attorney generally charges a hefty retainer.

However -- most states have what is known as a "Volunteer Counsel for the Arts" -- where lawyers specializing in this sort of law will provide free or low cost services to members of the arts community on a semi-volunteer basis.

So you should definitely investigate this possibility in whatever state you live in. When I was starting out, I retained a lawyer through this service in New York and had a very good working relationship with him.

But whatever you do -- don't just sign it, because while you're thinking about the money now, in the long run, other issues that you're probably not even aware of are often much more important.

NMS

[crimsonlaw]

I'm piling on here to some degree, but have the contract reviewed! Nothing is worse than being blindsided because you misunderstood a term or you assumed something important was in the contract when it really wasn't.

But congrats on your recent success!

[DevelopmentExec]

I agree that you should have an agent or attorney review your contract before signing it, although I'm a little confused because you say you already optioned the script, does that mean you already signed the agreement? Option agreements lay out the terms of sale.

As has been pointed out if the producer is not a guild signatory, anything goes but to put things in some kind of perspective for you, guild minimums for a spec sale of a screenplay are in the mid five figures for a low budgeted production (under 5 million) and around six figures for a high budgeted production (over 5 million).

Option agreements often structure payment on a percentage of the production budget - I've seen them anywhere between 2 1/2% and 5%. They usually contain a floor - a guaranteed minimum regardless of production budget, and sometimes have a ceiling - a maximum amount - regardless of how high the production budget goes.

I've worked for a few prod co's that were not guild signatories and the floors on all their option agreements were at least the guild minimum rates, if not higher. The ceilings were anywhere between 200K to 1 Mil.

Dev

[nmstevens]

I agree that you should have an agent or attorney review your contract before signing it, although I'm a little confused because you say you already optioned the script, does that mean you already signed the agreement? Option agreements lay out the terms of sale.

As has been pointed out if the producer is not a guild signatory, anything goes but to put things in some kind of perspective for you, guild minimums for a spec sale of a screenplay are in the mid five figures for a low budgeted production (under 5 million) and around six figures for a high budgeted production (over 5 million).

Option agreements often structure payment on a percentage of the production budget - I've seen them anywhere between 2 1/2% and 5%. They usually contain a floor - a guaranteed minimum regardless of production budget, and sometimes have a ceiling - a maximum amount - regardless of how high the production budget goes.

I've worked for a few prod co's that were not guild signatories and the floors on all their option agreements were at least the guild minimum rates, if not higher. The ceilings were anywhere between 200K to 1 Mil.

Dev

And just to let you know how the other half lives, I've worked for a company that paid as little as fifteen hundred dollars, in total -- for a feature length screenplay.

And there are plenty of other companies that will happily offer you what's known as "deferred pay." That means that don't give you anything at all up front, but as soon as they make the movie and it's released and it goes into the black -- *then* they'll pay you whatever the contract specifies.

This is what's known as "giving your script away forever."

NMS

[icerose]

And just to let you know how the other half lives, I've worked for a company that paid as little as fifteen hundred dollars, in total -- for a feature length screenplay.

And there are plenty of other companies that will happily offer you what's known as "deferred pay." That means that don't give you anything at all up front, but as soon as they make the movie and it's released and it goes into the black -- *then* they'll pay you whatever the contract specifies.

This is what's known as "giving your script away forever."

NMS

Same here on the first statement. Sometimes you take the work you can get. I've never had to accept deferred payment though, and I agree that it's pretty much just handing your script over.

[Chris Huff]

Is there a formula or standard for payment for a first-time screenwriter? I have optioned a script and need to know if what I am being offered is fair and reasonable.

Last time I checked, the WGA puts a screenplay at something above $50k.

But, as others have noted, it's more about what you're willing to take, especially if this is your first sell. Listen when they tell you to get an entertainment lawyer for the contract. At the very least, make enough to join the WGA and money enough to celebrate.

Congrats on the potential sale.

Note: just as a plug, I also work on scripts.

[jtownmark]

Thank you all for the near-unanimous advice to seek good counsel. I am currently in that process and have already learned some ways in which I would not have been well-served to sign the option agreement as presented. The ceiling offered is pretty low for what the budget will be, and my credit would be pretty vulnerable.

Anyway, after 8 years of writing, pitching, rewriting, repitching the same script (there's a little 'don't give up' aside for you) this feels like I'm on a fast but rickety roller coaster. I'm trying to enjoy the ride while remaining cognizant of the peril that underlies it.