deferred pay?

Azmyth

Azmyth

Veteran
Does Deferred payments ever work?

I thought we were going to be able to do that, but the $$ isn't going to come in a lump sum.. its going to be over a period of time.

the actors came on as volunteers with the understanding that if it made sufficient money, they'd be paid.. but we are looking like we are going to have to self distribute.. so there won't be a lump sum of money to divide out. How would we do that?
 
The four rules of filmmaking... Always wear a condom, never trust a vampire, under no circumstances finance a movie with your own money, and never work for deferred payment!
 
Azmyth said:
the actors came on as volunteers with the understanding that if it made sufficient money, they'd be paid.. but we are looking like we are going to have to self distribute.. so there won't be a lump sum of money to divide out. How would we do that?
Click to expand...

Did you have any crew that you signed up on deferred payment? If you used the word "deferred" then the right thing to do is to start distributing it out to whoever you told their payment would be "deferred."
 
No, no contracts were signed.

It was a verbal "if the film makes money, you will make money.. at an amount that will be determined by us at that time"...

well its that time, but the $$ could still be coming in a year from now.. how do we distribute that 26 ways? Is the question I am asking.
 
Yeah, the issue you are going through is one of the reasons to never do a deferred payment deal. Just don't do it. If you wind up making a lot of money and you want to share it with your actors, just do it out the of goodness of your heart with no agreement otherwise. Live and learn from this and in the future if you can't afford to pay your actors, simply offer them experience and an IMDB credit (if you're able to). I can tell you that almost anyone who will work for the "deferred" option will be happy to just work for the experience & credit. Deferred just isn't necessary and it's a pain, as you're experiencing. I strongly advise everyone against offering deferred payment.

Now for your current problem, the easiest thing to do is create a "lump sum" for your actors say in increments of 2600 dollars at a time and pay them each 100 dollars each once you reach that. Rather than just paying them off with each dollar that comes in.
 
I chuckled seeing this post. I've acted in 4 films with a combination per diem (set amount) and deferred payment based on a NET profit percentage. Guess how much I have seen? $0. 2 of these are released and have worldwide distribution (Ryco etc.) But that is OK because I went into it for the experience, IMDb credit, and the chance to work with some legends in B cinema who are also friends. I never expected to make a dime. As long as I'm not lied to and I'm treated with respect I'm happy. As long as you are honest and make the effort that is what counts.
 
I guess I just don't see the confusion here -
You promised money to actors when it came in.
You will have money coming in.
All you need to do is divide the money up into the proper proportions and pay it out as it comes in.

Seems like a pain, yes...but it doesn't seem that complicated.
Unless I'm missing something.

If the amounts are too small that are coming in, then do scheduled payouts every quarter or once a year.
 
i think the quarterly payouts is probably your best way to go. keep track of how much you make, every few months send your actors a check.

on the topic of deferred payment... it's always been my understanding that deferred pay is something that should be offered in most situations, but with the understanding that probably no money will ever be seen from it. As mentioned, it's a bad idea to "work" for deferred pay... but if the deferred pay agreement isn't there, it's kind of an insult. I think most actors understand that's it's very unlikely they'll actually see any money from it... but if in the event somehow the movie ends up becoming the next Star Wars, then they deserve something... and not out of the goodness of your heart, but rather as a responsibility for compensation for their work. It's nice to give them money, but they've earned it... it's not a gift.

That said, yeah, it's pretty difficult to really quantify when a movie's made money at a lot of levels, so it is a sort of do what's right kind of thing. You guys know that on paper, The Simpsons has never been profitable? And yet... come on.
 
deferred pay is the biggest scam in the industry.

producers have all sorts of ways to hide a film going into profit. as the talent or crew you are on the bottom of the list when it comes time to be reimbursed.
i cannot think of another industry where it is acceptable to base your payment on whether your employer makes a profit.

i have done several deferred pay films in the last 20 years, some on contract (screen producers association australia) and the total payments i have got are $0000.00
even though several films made money.

i would rather producers were honest and asked if i could work for nothing. at least we know where we stand. the moment deferred is mentioned
i run a mile in the other direction.
 
I guess it's a matter of preference. Personally, I'd never tell someone "No matter how freaking rich this thing makes me, you're never seeing a dime!"

But I would certainly tell them "If we make money, you'll make money... but don't expect to make any money."
 
Yep, never seen a dime for deferred pay. In the past I've given actors $50/day plus deferred (when I was shooting student stuff). I feel like any pay no matter how small will make them feel like it's a job vs a chore.
 
You must log in or register to reply here.
Back
Top