profit sharing

V

vandeha

Member
Hi, all.

This is my first time directing a feature that will be shown at various film festivals and then self-distributed on DVDs. I need inputs from experienced filmmakers regarding the percentage standard in sharing of profit or the type of contract. A first time producer, who has financial backup from investors, will provides the financial support for the project. As for my part, I provide the right to my script, direct the movie, and oversee some editing and post-production. For selecting DP and production crews, the producer makes this decision. What is the percentage for me, eventhought not having fed out the money, if the movie makes profit?

Thanks
 
There is no known formula for profit percentages since all of that is negotiable on a per person/project basis. Usually a fee is set for everyone on the film and they will get paid that amount - whether it be deferred or not. If you are not getting your expected fee, then you can negotiate for a part of the profits after all deferred payments have been taken care of. I am always careful not to have to many profit participants since it takes time to track it all down, taxes and the such. Also distributors will not want to deal with a bunch of "owners." Create a single entity or two for the project, then have participants profit from there if need be.

On the feature I just completed, it was a co-production and a single investor. We negotiated a 45%/45% split for the two companies and the investor gets 120% of his investment back at first sale (first money), then all deferred is paid. After that the two companies each share 45% and the investor continues to get 10% of all future revenue. Other than the three of us, everyone else was paid at production end or deferred, but no other profit participants.

Michael
 
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