Advice: Take the deal or Wait.

capitalP

capitalP

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Hey guys, I have a situation with a distributor (which shall remain nameless) who wants to acquire my feature film. The deal I'm being offered is a straight to DVD release in Blockbuster, Walmart and other outlets.

But it's a backend deal with no upfront money and a 50/50 split after they recoup $100,000, and they want the rights for 15years. So basically what they're saying is I'm never gonna see any money.

Should I hold out to see if I can get another distributor which can make me a better offer? I have another distributor who's interested but they won't let me know anything till October, and this other company is giving me a 2 week deadline to decide or they'll walk.

My film got into a big festival and that's why I'm getting these offers. This is the first festival the film got into, I still have alot more festivals I plan on submitting to.

I've been speaking to several individuals, and they all tell me it's a bad deal. Just wanted to hear what some of you guys think.

What I'm afraid off, I sign the deal and something better comes along, but if I don't sign, then I never get another offer.

I had hoped to get a little advance money so I can put towards my next film. But having my film in Walwart I guess will make up for not getting an advance...

I know this is a good problem to have but I just wanna hear some thoughts.
 
Find out how much they're chagring in marketing, promotion... in other words like you say... you don't want them coming back and saying... it costs us $100k to market it when it only cost $10k...

15 years seems high also...

See if you can get an advance at least to cover the budget plus 10% then at least you pay back your investors and give them a small profit...

But a lot of that will be based upon who's in it...
 
I think Barry

I think Barry

I think Barry Green is right.
He's simplifying your problem.
Why take a deal that you won't get anything from?
You could bundle this film with the next one you make is one option
or just wait for a better offer.
 
I agree. I'd never take a deal on the backend where I don't know how much they are really making. I had a distributor try to take my old movie overseas and said he would do the 50/50 thing. I said I want to see the books if we do it that way. He said I couldn't see the books on my movie, but he'd just send me my residuals. I turned it down and I don't feel bad about it. Id rather have $20K upfront than NoK on the backend.
 
Yes, just counteroffer for some reasonable up front $$. $20K? With no counteroffer, you definitely get $0. With the counteroffer, you have a slight chance of more than $0.
Remember that with $0 upfront, the distributor has no motivation to promote your film, because they have nothing to recoup. Remind them of that in the counteroffer. If they say no, they are probably a fly-by-night distributor mining 'free' films from desperate indies.
 
GaryinCalifornia said:
Find out how much they're chagring in marketing, promotion... in other words like you say... you don't want them coming back and saying... it costs us $100k to market it when it only cost $10k...

15 years seems high also...

See if you can get an advance at least to cover the budget plus 10% then at least you pay back your investors and give them a small profit...

But a lot of that will be based upon who's in it...
Click to expand...

They said their spending $80,00 in domestic marketing and $20,000 for international marketing. And Yes I agree 15 years is a little high but guess what..? They originally wanted it for 25yrs but I talked them down to 15.

And, yes I'm trying very hard to negotiate an advance. I just hired a lawyer who's gonna help me if I decide to go with the deal and he will try and negotiate some kind of advance.

Barry_Green said:
Why would you take a deal that gives you nothing?
Click to expand...

That's what alot of people have been saying. I guess my answer would be for the exposure.


jls4 said:
I agree. I'd never take a deal on the backend where I don't know how much they are really making. I had a distributor try to take my old movie overseas and said he would do the 50/50 thing. I said I want to see the books if we do it that way. He said I couldn't see the books on my movie, but he'd just send me my residuals. I turned it down and I don't feel bad about it. Id rather have $20K upfront than NoK on the backend.
Click to expand...

This could be something I can have my lawyer negotiate with me, see if the distributor would let me see the books. I highly doubt they would agree to that, but it's worth asking. Because we all know how accounting can be creative with the numbers, in their favor.
Dan Vance said:
Yes, just counteroffer for some reasonable up front $$. $20K? With no counteroffer, you definitely get $0. With the counteroffer, you have a slight chance of more than $0.
Remember that with $0 upfront, the distributor has no motivation to promote your film, because they have nothing to recoup. Remind them of that in the counteroffer. If they say no, they are probably a fly-by-night distributor mining 'free' films from desperate indies.
Click to expand...

Since I'm really no negotiator, this is where the lawyer would come in handy. The guy I'm dealing with has negotiated deals for indie directors before, friend fellow filmmaker friend of mine actually referred me to him.
 
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You seem as if you really want this deal. And while I know it's hard to find a good deal. I'll say this. When I was selling my last movie. I ran into 2 people who had their movies "stolen". Basically a distributor "bought" the film through residuals but they never saw a dime of that money. So be careful. You've put in a lot of work, so unless they are like 20th Century Fox or Universal, remember you can sign your movie away and no t know it.
 
If they're willing to put up 100 grand they should be willing to give you a reasonable advance. For me, the discussion would go no further than that if they aren't. If they are, then there's the rest of the deal to hammer out...
 
Yeah, turn the tables on 'em. Say "Tell you what, you're gonna spend $100k on this... give me $50k up front, and then you can keep 100% of the first $200,000 that comes in." See how they like them apples.
 
as long as it's not exlsusive, you have nothing to lose. You can gain exposure though.
Doesn't sound like there will be any money in this one for ya but exposure is great.
 
Some great points are brought up. If they are willing to put $100,000 in the movie they should atleast give some kind of advance.

And, they do want the exclusive rights for 15yrs.
 
i would think you would be better off doing self distribution with at least the possibility of making something than basically giving away the film you worked so hard to make.

how would you feel a year or so from now if the distributor hasn't really put a lot into distribution, but maybe enough to fill their side of the contract legally. then you got nothin, and you don't even have your film.

i vote no. :thumbdown
 
Ok. I'll keep you all posted what I decide to do. I now have a one week deadline, my lawyer's gonna try and negotiate a better deal for me.
 
please

please

Whatever you do, don't just give it to them with a backend contract
If they don't want to give advanced even though they are putting 100k for promo, they are bullshitting.

Take an advanced, no less than 20k

Better to have $0 for your film and still have it
then have $0 and not have your film
Awesome to have $20,000 in your pocket, and your film will get exposure.
 
Some of my past clients have been duped by distributors before and got nothing. Believe me, this has literally driven my clients to tears.

It sucks to get a distro deal with "promises" of money when you get nothing at first and a year later, you still get nothing and the distributors pretend you don't exist anymore. Plus thanks to some crazy laws, you can't even do anything about it.

I'm only an editor, but I have seen the distro side of things and you have to be really careful if distro companies won't give you anything upfront.
 
Everyone is right, it's a bad deal....... Waiting might not be a bad thing.
Let me know what you decide to do Pat.
 
You can always negotiate to keep self distribution rights and do your own marketing as well. This is becoming more common
 
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