What you CAN and CAN’T negotiate in an Indiefilm Distribution Deal

A HUGE part of my job as a producer’s rep has been to negotiate with sales agents and distributors on a filmmaker’s behalf.  While I happen to think my contracts are exceptionally fair, most filmmakers tend to do some level of negotiation.  However, others can overplay their hands and lose interest.  I’ve checked up on some of the ones that did, and they didn’t make it anywhere.  So, no matter who you intend to negotiate with here’s a list of what tends to be possible to negotiate.  

One thing to keep in mind is your position as a filmmaker.  Distributors tend to have more power in this negotiation.  Filmmakers do still have power, as you own your film, but it’s important to keep in mind that in many circumstances, they’ll have significantly more options than you will. 

It’s also important to note that these contracts are only as good as the people and companies you’re dealing with.  So vetting them is important.  The link below has more information on that.  

Related: How to vet your sales agent distributor.

There are of course exceptions to these rules, but you knowing the general rules will help. Those exceptions are directly tied to the quality and marketability of your film.  

What you CAN negotiate

These are things you CAN negotiate, within reason.

Exclusions

Distribution deals are all about rights transfers and sales.   In general, you can negotiate a few exclusions to keep back and sell yourself.  It’s important to note that you shouldn’t try for too many of these though, as the distributor needs to be able to recoup what they put into your film.  Here are some of the common ones

• Crowdfunding fulfillment

• Website sales

• Tertiary regions the film was shot in.  

In general, all rights are given exclusively, but crowdfunding fulfillment might need to be carved out so you can fulfill your obligations to your backers.  I’ve never had trouble with this one.  

Generally, it’s wise to retain the right to sell your film transactionally through your own website using a platform like Vimeo OnDemand or Vimeo OTT.  Distributors tend not to utilize these platforms, so they generally won’t have an issue with it so long as they get advisement on release timing AND it’s only available on said platform transactionally.  That is to say, people must pay to purchase or rent the film.

If the film was shot in a very minor territory like the Caribbean, Paraguay, parts of Africa, or maybe parts of the Philippines, it might be possible for you to retain those territories and sell the film yourself.  Be careful with how many of those you do.  

Marketing Oversight (Home Territory)

Pretty much no matter what territory you’re from, you have some pretty meaningful ability to negotiate additional marketing oversight.  This is not an unlimited right, however, and it’s common that final say will remain with the sales agent or distributor.  It’s important to do your diligence on how they’ve used that oversight in the past.  

Term (To an extent)

If a Distributor or sales agent brings you an agreement with a 25-year term and no MG, walk away.  If a Distributor tries to get a 12-15 year term, try to get them down to 10.  That’s the industry standard for what we work on. 

Exit Conditions (to Some Extent)

You need to make sure that you have aa route out if things go sideways.  In general, you need a bankruptcy exit, and I would push for an option to exit on acquisition of the distributor, or if a key person leaves.  

What you CAN’T GENERALLY negotiate
(but should probably look out for)

Here’s what you generally can’t negotiate.  There are exceptions to how much you can negotiate this, but no matter what these are things you need to fully understand.  

The Payment Waterfall

I wrote about the waterfall fairly extensively in the related blog linked below.  The biggest issue is that most distributors start taking their commissions BEFORE they recoup their expenses.  I understand how and why they do it, but it’s generally not the best.  

The biggest negotiation you MIGHT be able to get is what’s known as a producer’s corridor, which effectively helps you get a small amount of money from the first sale.  Generally you’ll be placed (essentially) in line with the distributor or sales agent, which means it will take significantly longer for them to recoup their expenses.  That said, any way you slice those numbers, you still get paid more.  

Related: Indiefilm Distribution Payment Waterfalls 101

Related: The Problem with the Film Distribution Payments  

Recoupable Expenses

Recoupable expenses are money a distributor or sales agent invest into the marketing of your film.  They generally have to get this back before paying you.  The exception above is notable.  Generally, there is little ability to negotiate this but you should make sure you get the right to audit at least once per year.

Related: What is a Recoupable Expense in Indiefilm Distribution

Payment Schedule

The payment schedule is how often you receive Both a report and a check.  In general, they start out quarterly and move to semi-annually over 2 years.  There are exceptions, some of my buyers report monthly.  However, in general, after 2 years most of the revenue has been made, and the reports will continue to get smaller and smaller. 

DON’T EVEN BRING THESE ONES UP

These are issues you just can’t bring up.  The distributor might walk away if you do.  

Their Commission

Don’t bring up the sales agent’s commission.  You probably don’t have the negotiating power to alter it beyond the corridor I mentioned above.

EXCLUSIVITY

I wrote a whole blog about this linked below, but the basics of it are that we’re essentially dealing with the rights to infinitely replicate media broken up by territory and media right type.  The addition of exclusivity is the only way to limit the supply, which is the only reason the rights to the content have any value at all.  

DIRECT ACCESS TO THEIR CONTACTS.  

These contacts are generally very expensive to acquire, and the entire business model of the sales agent or distributor relies on maintaining good relationships with them. No distributor is ever going to give this to you. They’ll get very annoyed about you even asking.   

Thanks so much for reading!  If you think that this all sounds like a bit much, and would rather have help negotiating, check out Guerrilla Rep Media’s services which include producer’s representation.   your film using the button below. If you need more convincing, join my email list for free educational and news digests and resources on the entertainment business which include an investment deck template, a contact tracking template to help you keep track of the distributors you’re talking to, and a whole lot more.  

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7 Things I Learned as CEO of a US Film Distributor

If you’re reading this, you might already know that I founded and lead a company called Mutiny Pictures.  That company has since sold to Bayview Entertainment. Given I’ve been a producer’s rep for quite a while, I thought I was prepared to step up to leading a team to take films to market directly, I found that while I was up to the task there was still quite a lot of personal growth involved for myself and every level of the team. This is to be expected out of any new venture.  Here are some of the biggest things that I personally learned throughout running a US Distribution company.  

(Almost) Nobody pays on time.

Filmmakers often complain about Sales agents and Distributors not paying on time.  While it goes without saying that there are a lot of shady, dishonest sales agents and distributors out there, I was surprised exactly how few reputable companies did not pay on time.  Given that when it comes to film distribution and international sales all stakeholders are part of the same waterfall or pay chain, if one stakeholder is paid late that eventually means that the filmmaker is paid late. We can’t pay you money we don’t have.   

So if you’re a filmmaker reading this, you should know that just because your sales agent is late on their reports doesn’t mean they’re not being honest with you.  It also doesn’t mean that they’re the reason you’re being paid late.  It’s entirely possible that possible their vendor, supplier, or other provider hasn’t paid them yet. 

That said, they should still communicate with you about when this is happening, and if they’re paying late you should still be tracking it as much as you can.  

Analytics and Reporting really, REALLY suck at every level of the distribution.

Given I do other forms of online and affiliate marketing and used to run marketing for a tech startup, I was utterly flabbergasted by the utter disgrace that is analytics around digital film marketing.  In most industries related to digital marketing, the insights are nearly immediate.  However, If you deal with a servicer or aggregator, they often won’t give you any level of real-time insight.  The best most do is once a week, which is nearly meaningly when it comes to agile marketing practices.  

I did find a workaround for my clients, so I’ll share it here.  If you’re a filmmaker and want better insights, sign up for the Amazon affiliate program and use those links to your film to market it. This is less about the few extra cents you get from pushing your work and more about real-time sales insights.  It can cause some issues around online postings and social media algorithms though, so it’s not a perfect system.  I’d love better suggestions in the comments if anyone has any.

Insurance and legal paperwork are way more of the job than you realize.

This wasn’t exactly a surprise.  At its core, film distribution and international sales are businesses based almost entirely around tracking rights and trading signatures on paper.  is entirely about buying and selling intangible rights restricted by non-physical attributes like territory, right types, region, and other highly specific terms of art.  It’s easy to mess this up, so it only makes sense to have solid insurance coverage.  What I didn’t expect was how many hours in my standard week were around litigious paperwork around insurance, compliance, reporting, and proposals, as opposed to growing the business. 

Additionally, you as a filmmaker will need to provide a lot of insurance paperwork.  

You have to pitch earlier than you think.

If you want to have a film on all major TVOD platforms, you generally need to have them pitched/placed 5-6 months ahead of the date.  You can do it in 3 months on a rush job.  This was surprising given I submitted my first book for publishing less than 3 days before it was available on Amazon.  If you sell to an SVOD outlet, they normally require delivery at least 3-6 months in advance as well, and they’ll either pay over the course of the license or a set period after the license begins.  

Payouts take longer than you think.

Reporting is one thing, payment is another.  Most platforms only pay quarterly, and they pay 30 days after the end of the quarter.  There has recently been an additional 90-day delay that was initially for COVID, but that seems to be less of an issue than it used to be.  Additionally, they won’t pay for partial quarters, meaning if you launched in February, you won’t get any data from a lot of platforms until August or even November. If there’s a service involved, you might get an additional 30-day delay.  

This makes it really hard to run a business, and the only thing you can really do is use a different aggregator or servicer.  You can supplement this with direct vendor payments from streamers and physical media outlets, but those are only getting more difficult to place.  There are very few companies that are occupying the servicer or aggregator space in the market, and unfortunately, the ones with the greatest physical reach tend to also have the worst reporting timelines.  

There’s a great amount of room for an aggregator with fast recording and greater ability for brick-and-mortar physical releases.  However, given the rapid decline of physical media, there might not be time for such a company to access that window before it closes forever.  

The industry still operates on a tentpole model.  

The sad truth of the matter is that on the ultra-low budget scale, only about 2 or 3 in 10 movies make money.  If your sales agency or distributor is made up of really good curators, you might be able to get that to 4 or even 5 out of 10.  If you’re hitting that high, most industry people will be amazed.   If you’re running a distribution company, this means you either need to be exceptionally picky and run a very lean company, or you need to take everything you can and see what sticks.  I’ve written another piece on this going into more detail. 

Producers get in their own way a lot.

I said earlier that it’s no secret that there are a lot of shady sales agents and distributors out there.  That said, not all filmmakers are saints either.  Some filmmakers are a complete joy to work with, but others will second guess everything you do and think that the only film that you should ever focus on is theirs.  

I had a filmmaker say precisely that to my face.  We got tons of press for this person, but nobody wanted to watch it and the film tanked.  When this filmmaker wasn’t getting the returns they expected they started taking up a ton of time in angry calls and emails.  This reduced A LOT of my available time to actually get their film out there, which further impacted the returns and became a vicious cycle.  

Marketing a movie is best when it’s a partnership between the filmmakers and the distributor.  In general, you should discuss when you’re making any level of announcement with your distributor so that it can make the biggest possible splash.  It’s generally unwise to drop assets like posets and trailers without talking to your distributor, as you may ruin potential exclusive press drops.  Worse, if you put your film up in various territories through self-distribution channels, it could cost you thousands or tens of thousands of dollars in lost revenue.  Even if you can take a film down, most buyers won’t want it if it’s already been placed on any platforms in their region. I could go on about this for a while, so I’m going to leave it for another blog.  

This is a collaborative process, so they’re definitely give and take, but keep in mind there’s probably a reason you didn’t self-distribute and instead decided to work with your distributor.

In the end, this is a relationship business.  If your distributor likes you, they’re more likely to go the extra mile for you.  That’s a reality of human nature. If you want your distributor to like you, you might want to grab my free IndieFilm business resource package as it’s got lots of goodies to help make marketing your movie easier for all involved.  The resource pack got templates for contacting distributors, and tracking that contact so you don’t bug them, an e-book on the film business, and a whitepaper on the metrics of the film industry.  Plus, you’ll get monthly content digests to help you better understand the industry in a manageable way and occasion updates on new releases, courses, workshops, and announcements from Guerrilla Rep Media.  Check it out below.

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22 Indiefilm Distribution Definitions Filmmakers NEED to know

If you’re going to read and understand your distribution agreement, then there’s some terminology you have to grasp first.  So with that in mind, here’s a breakdown of some key terminology you ABSOLUTELY need to know if you’re going to get traditional distribution for your film.

This is one of those blogs I should probably start out by saying that I’m not a lawyer.  Always talk to a lawyer when looking at a film or media distribution contract.  With that out of the way, I’d recommend we get started. 

1. License

At its core, a license for an independent film or media project is the right to exploit the content for financial gain.  Every other piece of a license agreement is clarifying the limitations of that license. 

2. Licensor

A licensor is a person or entity that is licensing a piece of media to another entity to either distribute or sub-distribute its content.  In general, this is the filmmaker when the filmmaker is dealing with a sales agent or producer’s rep, or the sales agent or producer’s rep when they’re dealing with distributors. 

3. Licensee

The License is the entity that is acquiring the content to distribute it and exploit it for financial gain.  In the instance of filmmakers and sales agents, it would be the sales agent, in the instance of sales agents and distributors, it would be the distributor. 

4.  Producer’s Representative (Producer’s Rep)

An agent who acts on behalf of a filmmaker or film to get the best possible sales and distribution deals. 

Related: What does a Producer’s Rep Actually do, anyway?

5.   Sales Agent

A Company that licenses films from sales agents or Producer’s Reps in order to sub-license the film to territorial distributors around the world.

6. Distributor

A company that directly exploits a film in a given territory on agreed upon media right types.

Related: What’s the difference between a sales agent and distributor

7. ​MG (Minimum Guarantee)

This is a huge one.  It’s the amount of money you get up front from a sales agent, or a sales agent receives from a distributor.  The biggest difference between this and a license fee is that at least in theory an MG has the potential to receive more in residual payments beyond the additional payment.  In practice, this is less common. 

8. License Fee

A license fee is a set amount of money paid by a distributor to exploit media in a defined territory and set of media rights.  Unlike a minimum guarantee, a License fee is the total amount of payment the licensor will receive over the course of the license, regardless of the financial success the film goes on to achieve.  License fees can be paid in one lump sum, or over the course of the license. 

9. ​Revenue Share

​Revenue share is the other most common way films can receive payment.  Revenue share essentially means that the licensee will split the revenue with the licensor according to an agreed-upon commission generally after they recoup their expenses. 

10. ​Producer’s Corridor

A producer’s corridor is an alternate payment waterfall of money a filmmaker is paid prior to the licensee recouping their expenses.  This generally means that the producer is paid from dollar one. 

11. Term

Term is the length of time a contract is in place.  For most independent film sales agency contracts, the term is generally 5-7 years. 

12. ​Region

The instances that generally apply to traditional distribution in the modern-day region refer to a set of territories in which a film can be distributed in. While they vary slightly from sales agency to sales agency, they are generally English Speaking, Europe, Latin America, Asia/Far East, and others.

13. ​Territory

When it comes to film distribution and international sales. territories are areas within a region that add greater specificity to where a sales agent can parse rights.  Latin America is both a region and a territory.

14. Media Rights

The sorts of media that a distributor has to exploit in a given territory or set of territories. 

Related: Indiefilm Media Right types

15. Benelux

A territory consisting of Belgium, the Netherlands, and Luxembourg. 

16. Four-Wall

The act of renting theaters in order to screen your film in them.  It generally involves a not insignificant upfront fee, and as a result, all money returns to the licensor. 

17. Community Screening

An alternative to a theatrical run for films with a strong niche or cause.  See below for more information. 

Related: How Community Screenings can replace a Theatrical Run

Related: 9 Essential Elements of Independent Film Community Screening Package

18. Payment Waterfall

When it comes to independent film distribution agreements, a payment waterfall is contractual representation How many flows from stakeholder to stakeholder?  If there is a producer’s corridor or some other non-standard modifications of a license agreement, there may be more than one waterfall in said contract. 

Related: IndieFilm Distribution Payment Waterfalls 101

19. Collection Account

​​A collection account is an account that a sales agent pays into which pays out all other stakeholders according to a pre-defined set of parameters.

20. ​Reports

In the context of independent film distribution and international sales agreements, a report is a statement made monthly, quarterly, bi-annually, or annually that states all incomes and expenses for a film.  Generally, this is accompanied by a check one is due.

21. Payment Threshold

When it comes to film and media distribution, a payment threshold is a minimum payment owed by a licensee in order to issue a payment to a licensee.  This payment amount is generally dependent on what payment method is being utilized.  For instance, the minimum is for a wire transfer is generally higher than a check which in turn is generally higher than for a direct deposit. 

22. Recoupable Expense

A recoupable expense is an investment made into marketing or distribution-related expenses by a licensee.  This investment will need to be paid back before the licensee pays the licensor, with the notable exception of the producer’s corridor.  Generally, these investments will fall into one of 3 categories of capped, uncapped, and uncovered expenses.   For more information, please check out the blog below. 

Related: What are recoupable expenses?

BONUS! - Expense Cap

An expense cap is a cap on the total amount of expenses that a licensee is able to take out before paying the licensor. There are exceptions, see the related link above for more information.

Thank you so much for reading the glossary! I hope it’s Helpful. If this is all intimidating and you need a little help, consider hiring a professional to assist you in the process.  So you could consider checking out Guerrilla Rep Media’s services. These blogs Blogs are largely a public service and marketing tool for me, most of my business is from representing and consulting with filmmakers just like you.  You can learn more and submit your film via the link below.  Or, if you're not ready for that, but want to support more content like this, join my email list to stay up to date on new offerings and get an awesome film business resource package while you’re there.

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Can You Get Your Movie on Netflix or Disney+ By Yourself?

At least until recently, a lot of filmmakers assumed that they could get on any platform they needed to be on just by calling up Distribber or another aggregator like Quiver.  With the fallout of the fall of Distribber, many filmmakers are wondering what they can do for distribution.  So, I thought I’d share some knowledge as to what platforms a filmmaker can still get on themselves using aggregators like Quiver, and what platforms you’ll need an accomplished sales distributor, or producer’s rep to get on.

I’m going to break this into general media right types.  If you’re not sure what that means, learn more by clicking through to the related blog below. 

Related: Independent Film Media Right types.

Also, this analysis is based on the US Market

Theatrical

Most distributors just won’t do this for most films, however, the ones that can do it tend to either rent the theaters outright or be extremely skilled salespeople with deep connections to the booking agents for theaters who will book the films on a revenue share basis.  It's just too much work for buyers to work directly with Filmmakers in this fashion.

For filmmakers, the most economical solutions tend to be either paying to rent a theater for a few screens or using a service like Tugg, to have a screening demanded if the film has enough of a following to make it work.  I have my issues with their model, but that’s a topic for a future blog/video. 

Physical Media:

Distributors have a lot more options for physical media than filmmakers tend to.  Some distributors still replicate DVDs on a massive scale, which gives them the ability to get higher quality disks and get them into brick-and-mortar stores like Walmart, Target, Family Video, or kiosks like Redbox.  Many distribution companies also have access to libraries.  Also, Blu-Ray in general is only really available on a wide scale through a distributor.

Even if they use a Manufacture on Demand (MOD) service, they tend to have access to companies who will put them out on the online storefronts of pretty much anywhere that sells DVDs and Blu-Rays.  This is largely due to the fact that those companies tend to only publish catalogs. 

If you’re a filmmaker, you’ll generally be limited to either buying a few thousand DVDs with no guaranteed warehouse solution or distribution network, or you’ll be limited to using something similar to Createspace to put them up on Amazon. While this tends to have the highest margins, it doesn’t tend to move a lot of products, and the quality of the product is generally pretty low. 

Broadcast, PayTV, and Ancillary (Generally Airline)

To get on any network or PayTv channel, you’ll need the help of a distribution company.  Same for airlines.  These entire right types are not generally available to you as a filmmaker. 

Video On Demand (VOD)

For ease, I’m going to break this into a few categories that are generally accepted within the industry.  Those categories are Transactional VOD (TVOD) Subscription VOD (SVOD) and (AVOD)

Transactional Video On Demand (TVOD)

In General, TVOD is pretty accessible to filmmakers on their own.  Filmmakers can pay an aggregator to get you on most platforms for a fee. These platforms include iTunes, Google Play/YouTube, Fandango Now, and many others.  Also, Filmmakers have been able to put their own work up on Amazon Instant video largely for free until recently, although it seems those winds may be changing.  Either way, filmmakers can use Vimeo OTT or Vimeo On Demand to sell the film directly through their website.

There are, however, more than a Few TVOD platforms that only a distributor can access.  These include a subset of TVOD called Electronic Sell Through VOD (ESTVOD) that’s primarily used for paid on-demand offerings of cable and satellite providers, as well as the occasional hotel chain.  The hotel chains VOD offerings have greatly declined in recent years as free WiFi has become commonplace.  Additionally, there’s a service that enables your content to be rented through library systems that are only accessible to distributors with decently sized catalogs. 

Subscription Video on Demand (SVOD)

In order to get on any platform like Netflix, Hulu, Disney+, HBO NOW, HBO MAX, or any other major streaming platform, you need the help of a distributor.  Distribber SAID they could pitch you, but that turned out to not be as true as you might hope, and their pitch fee was the size of most commissions a sales agent would take.  Also, their success rate was abysmal for someone charging up front.  This was primarily due to them pitching dozens of films a month, and as such them not getting much attention.

If you want to utilize your SVOD rights as a filmmaker, you pretty much have three options.  Put it on Amazon Prime, (at least for now.) You can start your own subscription service using Vimeo OTT, or try to sell it to people who started their own subscription services that you’ve found.  I doubt those last people will have much money though. 

Advertising Supported Video On Demand (AVOD)

Finally, we come to Advertising Supported Video on Demand or AVOD.  This is an exciting space that’s only recently emerged.  The two biggest players that do it profitably are TubiTV and PlutoTV.  Both of which only deal with filmmakers and sales agents with large catalogs of high-quality, distributable films.  This means they generally only deal with distributors or sales agents.

If you’re a filmmaker, you can put your movie on YouTube in the normal way for AVOD dollars, but it’s generally inadvisable for feature film content.  It’s good for vlogs about film distribution though..,

Thanks so much for reading! 

Educational content isn’t my primary business, the reason I know this stuff is I work in the field. If you’d like to work with me, submit your project idea via the link below. Distribution and brokerage tasks are on commission, earlier stage projects involve some reasonable fees. Also, If you like content like this, you should join my mailing list. It will get you lots of great blog digests of content just like this, as well as notices of major releases from Guerrilla Rep Media.

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The 6 Steps to Negotiating an Indiefilm Distribution Deal

Much of my job as a producer’s rep is negotiating deals on behalf of filmmakers.  However, now that I’m doing more direct distribution, I’m realizing there are several things about this process that most filmmakers don’t understand.  As I tend to write a blog whenever I run into a question enough that I feel my time is better spent writing my full answer instead of explaining it again, here’s a top-level guide on the process of negotiating an independent film distribution deal.

Submission

Ashley P.
Judah J.

Donald Evans
​​Clever Username

Generally, the first stage of the independent distribution process is submitting the film to the distributor.  There are a few ways this can happen.  Some distributors have forms on their website (mine is here) Others will reach out to films their interested in directly.  Some will have emails you can send your submissions to.  There are a few things to keep in mind here, but in the interest of brevity, just check out the blog I’ve linked to below.  There’s a lot of useful information in that blog, but I will say that YES, THE DISTRIBUTOR NEEDS A SCREENER IF THEY’RE ASKING FOR ONE.

Related: What you NEED to know BEFORE submitting to film distributors

Initial Talk​

Generally, the next step is for the distributor to watch the film.  I have a 20-minute rule, and that’s pretty common.  Generally, if I make it through the entire film, I’ll make an offer.  If I don’t, I won’t ever make an offer.  If I’m requesting a call, I’m normally doing so to size up the filmmaker and see if they’re going to be a problem to work with. 

This is not an uncommon move for distributors that actually talk to filmmakers and sales agents.  Generally, we want to discuss the film as well as size up the filmmaker before we send them a template contract. 

Template Contract

Generally, when we send over the template contract, it will be watermarked and a PDF so that the filmmaker can understand our general terms.  This also won’t have any identifying information for the film on there.  We’ll also attach it. Few appendices to the contract can change more quickly than the contract itself.  My deliverables contract is pretty comprehensive as of right now, but honestly, I think I’ll pare it down soon as I haven’t had to use much of what’s in there yet. 

Red-Lining

The next major step in the process of the distribution deal is going through and inserting modifications and comments using the relevant function on your preferred word processor.  Most of the time they’ll send it in MSWord, but you can open Word with pretty much any word processor and this is unlikely to be too affected by the formatting changes that happen as a result of putting the document into pages or open office.  That said, version errors around tracking changes do happen, and if you find yourself in that situation comment on everything.

What you should go through and do is make sure track changes are turned on, and then comment on anything you have a question about and cross out anything that simply won’t work for you.

NOTE FROM THE FUTURE: Since someone commented on this at a workshop, I’m aware that Redlining has another historical context in the US, but it is the common parlance for this form of contract markup as well. I’m in favor of negotiating distribution deals, and not in favor of racist housing policies.

Counter-Offers

Generally, distributors and sales agents will review your changes, accept the ones they can, reject the ones they can’t, and offer compromises on others.  While there are some exceptions to this framework, after the first round of negotiations, it’s often a take-it-or-leave-it arrangement.  If it’s good enough, sign it and you’re in business.  If not, walk away.

Quality control

Most sales agents and distributors will have you send the film to a lab to make sure the film passes stringent technical standards. If you have technically adept editor friends, you’ll want them to do a pass first, as each time you go through QC it will cost you between 800 & 1500 bucks. You will need to use their lab, but it’s best for everyone if it passes the first time.

​If you need help negotiating with sales agents or just need distribution in general, that’s what I do for a living. Check out my services using the button below.  If you want more content like this, sign up for my email list so you can get content digests by topic in your inbox once a month, plus some great film business and film marketing resources including templates, ebooks, and money-saving resources.

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The Problem with the IndieFilm Distribution Payment System

A lot of filmmakers I’ve worked with don’t know enough about distribution to really make a career making creative content.  This shouldn’t be a surprise, as it’s something film schools tend not to teach.  That being said, there’s a part of the equation most people just don’t talk about, and WHY it takes so long for filmmakers to get paid?  This blog addresses that.

As an aside, this is laid out from a financial perspective in the blog below.  However, we will also be tracking how much of the money goes away throughout this blog.  This will admittedly be very much oversimplified, but we’re going to be tracking it as a single dollar for ease of understanding. 

Related: Indiefilm Waterfalls 101

How long it takes for the platform to pay the aggregator

I talk about this in workshops quite frequently, but each different stakeholder takes a while to pay the next person in the pay chain.  Most of the time, this starts with the platform and aggregator relationship.  In general, this is the first section in the chain. 

Normally, the platform will take 30%-35%. This should include credit card processing fees.  So if the consumer gave 1 dollar, then we’re down to 65-70 cents. 

While exceptions exist, the platform most often pays the aggregator on a monthly basis.  After that, the aggregator will need to pay the distributor.  If you’re self-distributing, that distributor is you, but not all aggregators will deal with you in the fashion you’d prefer, for more information, read the blog below.
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RELATED: What platforms should I release on?

How long it takes for the aggregator to pay the distributor

Once the aggregator is paid, the money will flow to the distributor.  As I stated, this may be you.  Depending on what aggregator the distributor is using, payments will be either monthly or quarterly.  Sometimes the aggregators that pay quarterly have lower overheads, so it might make sense to wait.  That said, I think the most current data you can get is necessary to make smart marketing decisions.
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If you still don’t know the difference between a sales agent and a distributor, check the link below. Most aggregators operate on more of a flat fee model, so we’ll assume that the money is passed through.  If you worked with an aggregator, you end up with about .70 cents for every dollar the consumer spent, but you also probably had to put the aggregation fees in yourself, so you’ll probably need to sell around 2100 copies (assuming they sell for 2.99 each) to break even.  You’ll also get insights within 2 to 4 months.

Related: What’s the difference between a sales agent and a distributor?

How long it takes for the Distributor to pay the Sales Agent

Most distributors don’t deal with filmmakers directly.  They’ll either deal with a Producer’s Rep or a Sales Agent.  Generally, Distributors pay quarterly to start and sometimes will move more towards bi-annually after a few years.  This can be arduous, but it’s very difficult to negotiate.

Generally, the distributor will take 30-40%.  (As of publishing this, I take 25% for direct US Distribution.) So of the 65-70 cents, we had after the platform.  That means that after the distributor takes their cut, there are between .39 and .49 cents left to the filmmaker.  (or around .52 cents if you work with me)

Also, even though I am a distributor, I work directly with filmmakers. So you’d keep .52 cents on the dollar, and be paid around 4-5 months after the initial sale is made.  (I time my reports to work with my aggregator to minimize wait times.  Plus, I cover aggregation and the majority of marketing and publicity fees.
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Related: What does a producer’s rep do anyway?

How long it takes for the Sales agent to pay the production company

Finally, the sales agent pays the Producer’s Rep and production company. This is also generally on a quarterly or Bi-Annual basis, although there’s more room for variation here. After that, the filmmaker uses the money to pay back debts, then investors, then whoever else is left to pay back from the production.   

The Sales Agent normally takes between 20% and 30%, but they sell territories across the globe. A Producer’s Rep will normally take 10% of the money paid to the filmmaker, and will normally be paid in line with the sales agent.

So, following the chain we talked about before, by the time the sales agent pays the filmmaker, we’re looking at between .27 and .39 cents on the dollar without a producer’s rep, or between .24 cents and .35 cents with one. That’s not a great representation of what a good producer’s rep will do for you though.  (including the potential to get you paid immediately from the first sale) I’ve painted these deals in the most simple possible light to help you understand, but there are lots of single-line items that can screw you if you’re not careful.  So, while the producer’s rep may take a small piece of the pie, (.03 to .04 cents on the total dollar) they can help you make the whole pie a fair amount bigger.

Thanks so much for reading! If you have any questions for me, you might want to check out my mailing list. I send out monthly blog digests including ones JUST LIKE THIS, plus you get lots of great resources like templates, links to money-saving resources, and a whole lot more!   Or, if you’ve got a completed project and you’re looking for distribution, submit it using the link below. You can also learn more about services for early-stage projects using the other link. I’ll review it and reach out soon.

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When should you Contact a Sales Agent/Producer’s Rep about your Film?

Seeing as how a majority of my business still comes from representing filmmakers to sales agents and distributors, it’s unsurprising that a question I get at my events and in my inbox quite often is when is the best time to approach a producer’s rep, sales agent, or distributor.  Well, as with many things I tend to blog about, there’s a short, true, and mostly unhelpful answer to that question. There’s also a longer, more nuanced, and more correct answer.  This blog attempts to answer both in under 800 words.

The Short Answer: As soon as you realistically can

Marketing a film on a budget isn’t something you can do overnight.  It takes a while to build a social media presence, as well as to build up a base to market your film to.  It’s not something that can be done efficiently overnight, so you’ll want to get some marketing support on your project as soon as possible.  That’s why you hire either a producer’s rep or a Producer of Marketing and Distribution (PMD). 

The Long(er) Answer: When you can afford them, and they’re willing to come on your project.

Most people tend to approach Producer’s Reps and PMDs only when their film is completed, or even after the initial festival run of the film.  This can shut a surprising amount of doors for you. I had one client who submitted to Sundance and was rejected outright.  The next year, after I connected him to US Distribution, the distributor talked to a programmer at Sundance who said that they would have accepted the film and programmed had it been brought to his attention. Unfortunately, they’d given premier status to another, smaller festival so it was too late.

PMDs and Distributors often have connections to help get you past the initial round of screening at major festivals, which can be all you need to actually get into the festival.  99 films out of every 100 submitted to Sundance don’t get in.  90 out of 100 of those are declined by extremely low-paid (or unpaid) staffers who look for any possible reason to decline so that the submission queue is more manageable for the actual festival programmers.  If you have the right rep, PMD, or distributors they can help you bypass that first layer of screening, giving you a huge leg up. ​

How much will this cost you?

Producer’s reps tend to get a bad rap for charging up front.  If all they’re doing is brokering your film to sales agents, and they’re taking a commission, then they really shouldn’t need to.  I don’t.  However, if I’m writing a business plan, deck, pro formas, or developing a financing, festival, marketing, or distribution strategy, I do charge upfront. We all have bills to pay, and just as you should always pay all other members of your crew, you should pay your producers too. My services are packaged based on need, more information on my services page.
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Generally, it’s wise to allot some money for marketing as soon as you create the initial budget for your film.  You should do this even if you plan on raising it at a later date, say after completion of principal photography. It may be wise to keep this budget separate given a distributor will most often foot some of the bill and sometimes it can bump you into a higher guild tier.

Related: The 4 Stages of Film Financing

If you’re raising money for prints and advertising, then you should allocate some of that money to a Producer of Marketing and Distribution (PMD) or Producer’s Rep to help you execute your marketing plans efficiently. 

Essentially, if you’re looking for a rep to do anything other than broker a completed film, you had best expect them to charge you some money upfront.  Unless the Sales agent pays you a minimum guarantee, it’s unlikely that the film or the filmmaker will get paid anything for about a year after the initial signing.  You can’t expect a Service provider to wait even longer than that to make any money, especially when there’s a significant amount of work involved in the creation and execution of the work you’re asking them to do. 

If you want more resources to help you distribute your film, you should grab my free film business resource pack. It’s got an e-book, a whitepaper, a deck template, a film festival promotional brochure template, and a whole bunch of money and time-saving resources. Also, if you need a producer’s rep, check out my services page.

Check out the tags below for related content

How to Write an Independent Film Business Plan - 4/7 Marketing Section

In this installment of my 7 part blog series on business planning, we’re going to take a look at the marketing section of the plan.  This section is likely to be the longest section, as it encompasses an overview of the industry, as well as both marketing and distribution planning.  Generally, this section will encompass 3-5 pages of the plan, all single-spaced.  This is among the most important sections of the plan, as it is a real breakdown of how the money will come back to the film

Industry

In this subsection, you’ll want to define some key metrics of the film industry.  You’ll want to include its size, how much revenue it brings in, and ideally an estimate of how many films are made in a year, as well s the size of the independent part of the film industry vs the overall film industry.  If you want help with some of those figures, you should look at the white paper I did with ProductionNext, IndieWire, Stage32, and Fandor a few years back.  To the best of my knowledge, it’s still among the most reliable data on the film industry.

The fact that the film industry is considered a mature industry that is not growing by significant margins is also something you’ll also want to mention.  You’ll also want to talk about the sectors of growth within the film industry, as well as where the money tends to come from for independent producers, and a whole lot of other data you’re going to have to find and reference.  As mentioned above, the State of the Film Industry book linked in the banner below has much of this information for you.
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Overall, this section should be about a page long.  The best sources for Metrics are the MPA THEME report and the State of The Film Industry Report. You can find links or downloads of both of those in my free resource pack.

Marketing

The marketing subsection of the plan goes into detail about both the target demographics and target market of your film, as well as how you plan on accessing them.  To quote an old friend and long-time silicon valley strategist Sheridan Tatsuno, Finding your target market is like placing the target, and marketing is like shooting an arrow.  For more detail on how to go about finding your target market, I encourage you to check out the blog below, as my word count restrictions will not let me go too deeply into it here

Related: How do I figure out who to sell my movie to?

Figuring out how you’re going to market the film can be a challenge for many filmmakers.  Generally, I’d advise putting something more detailed than “smart social media strategy.”  I tell most of my clients to focus on getting press, appearing on podcasts, and getting reviews.  Marketing stunts can be great, but timing them is difficult to pull off. 
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All of this being said, you’ll need more to your marketing strategy than simply going to festivals to build buzz. The marketing category at the top of this blog, as well as the audience, community, and marketing, tags at the bottom of the page, are a good place to start.

Distribution

This section talks about how you intend to get your film to the end user.  This section should be an actionable plan on how you intend to attract a distributor.  This section should not be “We’ll get into sundance and then have distributors chasing us!” I hate to break it to you, but you’re probably not going to get into Sundance.  Fewer than 1% of submissions do. 
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The biggest thing you need to answer is whether you plan on attaching a distributor/sales agent or whether you intend to self-distribute.  if you’re not sure, this blog might help you decide. There’s lots more to it, I’d recommend checking the distribution category or the international sales tag on this site to learn more of what you need to write this section.

Related: 6 questions to ask yourself BEFORE self distributing your indiefilm

Somewhere between a quarter and a third of all the blogs on this site are devoted to distribution, so there’s lots of stuff here for you to use when developing this plan.  If you want to develop more of a plan than distributing it yourself, it’s also something I’d be happy to talk to you about it.  Check out my services page for more.

If that’s a bit too much for you but you still want more information about the film business, check out my film business resource package. You’ll get a free e-book, monthly digests segmented by topic, and a packet of film market resources including templates and money-saving resources.

This is part of a 7 part series.  I’ll be updating the various sections as they drop.  So check back and if you see a ling below, it will take you to whatever section you most want to read. 
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Executive Summary
The Company
The Projects
Marketing (This post)
Risk Statement/SWOT Analysis
Financials Section (Text)
Pro-forma Financial Statements.

Check the tags for more content!

How to Vet your Sales Agent or Distributor

Every filmmaker has heard horror stories of distribution deals gone wrong.  Sometimes this is due to something completely unpredictable like a change in the demands of buyers or distributors, or a freak occurrence that makes the movie unpalatable.   More often than not, however, this is due to a poorly negotiated deal with a less-than-reputable sales agent.  So with that in mind, it’s incredibly important that you vet your sales agent.  Here are a few ways to do just that.

1. Get Professional Help

Distribution deals are complicated things.  It’s easy for one clause that seems innocuous to strip thousands of dollars out of your pocket.   Get yourself an entertainment attorney or producer’s rep to help you through the process.  Entertainment attorneys are generally expensive but can save you money in the long term.  Producer’s reps SHOULD work on a commission for brokerage tasks, but may or may not be able to negotiate as well as they claim. ​ Often, it’s wise to have both a rep and an attorney, as reps focus on general salability whereas

Related: What does a Producer's Rep DO Anyway?

If you can’t afford an attorney and are wary of hiring a producer’s rep then take extra time on the next several steps. ​

2. Carefully Review their base distribution agreement

There’s always some room for negotiation in these agreements, but it the arrangement is too far off of what you’re hoping for from a starting point, then the deal is unlikely to be any good.  Good places to look are at the recoupable expenses and the sales agency commission.  If the sales agent’s commission is higher than 30%, proceed with extreme caution.  If it’s higher than 35%, you probably don’t want to deal with that sales agent.

Related: The 7 Main IndieFilm Distribution Deal Points

Similarly, is the recoupable are higher than about 25,000-30,000, you should be VERY careful on dealing with them if you have a lower budget film.  If they’re at this level, you’ll want them to attend at least 5-7 markets.  That segues nicely to.

3. Ask the Sales Agent Which Markets They Attend

Traditional Film Sales and Distribution still happens primarily through face-to-face meetings at markets.  Establishing good relationships with buyers takes several touchpoints a year.  In order to really trust a sales agent with your film, you need them to attend both Cannes and AFM at a minimum.  Ideally, you want them attending EFM as well, but that market is slightly more arthouse so it can be given a miss if you’ve made a genre picture. If they don’t attend EFM, they should attend Hong Kong FilmMart.
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Read More: What is a Film Market and How Do They Work?

4. Look the Sales Agent Up on IMDb

You need to verify some of the films that the sales agent has helped distribute recently.  Looking them up on IMDb is a great way to get started.  You’ll want to look for films that are similar in genre and feel to yours, and you’ll want them to have represented quite a few films in the last 3-5 years. You should be able to find a lot of information on the company they’re working with if you have IMDb Pro, but sometimes sales companies change their names without much notice. That’s a red flag if it happens, but it’s not necessarily a dealbreaker. If it does happen, just use IMDb to look up the acquisition agent you’re dealing with.

If you have access to it, you should also look them up on Cinando. It’s worth noting that many sales companies do not keep their Cinando Profiles as up-to-date as they should.

5. Visit the Sales Agent Website

The Website of the sales agent will help you understand what they’re currently promoting.  It will also have some things that IMDb won’t.  These are things like recent press coverage, and links to their other social media profiles.  You want the sales agent to have gotten your films a good amount of press.

6. Call Filmmakers they've worked with in the past. 

If you take only one thing away from this article, let it be this.  ALWAYS call filmmakers the Sales agency has worked with in the past prior to doing a deal with them.  Filmmakers they’ve worked with in the past are the best way to get an unbiased account of whether the sales agent lives up to expectations laid out in their contract.  While other sales agents will give you opinions on that front, the sales agency game is quite competitive, so they might overstate the issues with their competition to gain a competitive edge.

Thanks for reading! If you like this, and decided you need professional help when dealing with sales agents, check out the Guerrilla rep media services page. We know the players in the game and can help you get to your goal faster. If you just want to learn more, check out the free indie film business resource pack for a free ebook, templates to help you track contact with sales agents, and even form letters to get you started on reaching out to them. These won’t substitute for professional help, but they’re a good place to start.

Check out related content in the tags below!

5 Rules for Vetting Your Producer’s Rep

The term producer’s rep has been given a bad name.  A lot of people think that Producer’s reps are just money-grubbing middlemen (or middlewomen, or middlethems) who don’t add any value to your project.  As a producer’s rep myself, I’d like to take issue with the narrative that producer’s reps are slimy con artists who will overcharge you without adding value.  Unfortunately, I can’t.  For the most part, the rumors exist for a reason.

So with that in mind, here are 5 ways to vet your producer’s rep. If you want to sign up with me, do the same.

​Ask what their upfront fees are.

If you’re simply looking for a rep to broker your completed film, then the upfront fees should be very low, or nonexistent then they’ll take a piece of the pie for the length of the deal. There are producer’s representatives who operate on a service basis, I.E. they’ll be paid a few thousand dollars with half up front, half on success. In theory, you end up paying less this way, but the incentives are not always in line with the filmmaker’s best interest.

I’ve heard stories of other reps charging 5000 dollars to represent a film to various sales agencies.  If the Rep got you a deal, the rep would then retain 35% of all money from that deal.  This is without even negotiating for a better deal with the sales agency, essentially just making a few calls and writing a few emails.  

Not all service deals are bad, but you have to do extra diligence if that’s how your rep operates.

Also, it should be noted that if you want your rep to do anything other than basic brokering, you should expect to pay them. When I work with filmmakers at an early stage to guide investment decks, help attach talent, write business plans, or any other consulting-oriented services, you should expect to pay some not-insignificant fees. Nobody on a film shoot should be asked to work for free, including us. We still have bills, and it took a lot of investment for us to develop our skills and contacts.

Related: What Does a Producer's Rep DO Anyway?

For straight representation/brokerage services, I charge nothing upfront, and as of this writing, I don’t even charge recoupable expenses.  I charge 10% for connection to sales agents, and 18% if I sell directly to buyers.  (Generally only domestically.)  I also negotiate with sales agencies and buyers to get you/us the best possible deal. 

That being said, brokerage tasks for completed films are the only thing I don’t charge upfront for.  For other tasks, I either charge by the hour or by the job, sometimes with performance bonuses or deferments. ​

2.   Ask them if they watched your movie.

If they’re offering to represent your movie, they had better have watched it.  If they try to say that they don’t remember the film because they watched 8 last week, they’re probably lying.  I watch 5-8 a week.  If I’m making an offer I’ve probably watched it all.  If I don’t think I can sell it, I stop after 20 minutes. ​

Most sales agents and Producer's Reps have a similar system.  If they can't say some specifics about your film, they're probably lying about watching it.  

3. Look them up on imdb.

You want someone who’s not all talk.  You want to see some associate, co-, and executive producing credits on their IMDb.  I generally ask to be credited as an executive producer because it’s the most accurate credit for the job I do. 

If you want to check out what I’ve done, here’s my imdb,

VISIT MY IMDB

4.  Ask them who they have direct relationships with

Any good rep will have existing relationships with some sales agencies.  That’s why you would want to hire them in the first place.  Great reps will have direct relationships with buyers.  If they can’t list out a few sales agencies that they’ve worked with in the past off the top of their head, then they’re probably not going to do their job very well. 

While I won’t list the ones I’ve worked with here, I will tell you if you ask me when on a call or after you submit your film below.

5. Call 3 of their previous clients

This is true for both Producer’s Reps and Sales Agencies.  You’ve GOT to call the clients of your rep and ask for a reference.  If you ask for references and your rep gets upset, then it’s likely a sign you shouldn’t use their services.  Honestly, It’s better if you just look up those filmmakers on IMDb and call them yourself. You can find all the necessary info on imdbPro.

Thanks so much for reading! If you’re looking for a producer’s rep, you should check out my services page. If you’re not quite there yet, but want to more know about the film biz, you should join my mailing list and get my FREE Film market resource package. Links below in the buttons.

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5 Rules for Getting a Letter of Intent (LOI) From a Sales Agent for Your Film.

In order to properly package a movie, you need three things.  Recognizable Name Talent, First Money in, and at least a letter of intent from a distributor.  I’ve covered steps for preparing for calling agents in the Entrepreneurial Producer, (Free E-Book Here.) I’ve covered some of the ways you can get first money in this blog.  So now, I’ll cover some rules for approaching sales agencies in the blog you’re about to read

The reason you need an LOI is that the cause of films not recouping their investor’s money is that they can’t secure profitable distribution.  Your investors want to know you have a place to take the film once it’s done, so they can begin to get their money back.  Before you start thinking that you’ll just try to start a bidding war after the film is done, you should be aware that generally doesn’t happen. 

Before we begin, This Packaging concepts blog series was recommended by my friend Brittany, in the Producer Foundry group on facebook.  I occasionally look to answer questions people have there, so if you want me to answer something join the group.  Or, if you want definitely want to get some questions answered, you should join my Patreon.  I’m very active in the comments. ​

1. This document isn’t a Pre-Sale.

It’s important to note that there’s a big difference between a Pre-Sale and a Letter of Intent.  A Pre-Sale is something that you may well be able to take to the bank to take out a loan against.  That is, if you’ve got a presale agreement from a reputable distributor or sales agency.  If you’re working on making your first film, that’s probably not going to happen though. 

To get a Pre-sale, you need to have a known director with a proven track record, a film that’s not Execution Dependent, and likely some noteworthy cast.  Even then, the Pre-Sale often only covers the cast.

An LOI is a much less serious document.  It’s essentially a letter guaranteeing that a sales agent will review the film on completion, and if it fits their business needs they will represent the film.  Generally, the producer will give the sales agency an exclusive first look for the privilege of using their name to help package and finance the film.  Sales Agencies can’t just give these to everyone, as it waters down their brand.  You’ve got to compensate them in some way for taking a risk on you. 

This is not the final document, you’ll negotiate a distribution agreement once the film is done.  Don’t try to negotiate one at this point, since you’ll be in an inferior negotiation position. ​

2. Make sure there’s a time window on the sales agent’s first look

If you fail to put a time window on the sales agent's first look, you can lock yourself up and potentially lose the first window on the film.  Generally, I’ll say something like 14 or 30 days from initial submission on completion of the film.  This gives the sales agency time for review but doesn’t hurt the filmmaker’s options if they take too long.  This also prevents them from tying you into a contract. ​

3. Only approach agencies that sell films like the one you want to make.

This may sound obvious, but if you’re looking for an LOI for a horror film, don’t approach sales agencies that deal primarily in family films.  If all goes according to plan, this sales agency will be distributing your film when it’s done.  You want to make sure they’re well-suited to sell your film when the time comes. ​

4. Look at the track record of the agency you want to work with

You need to look into what films the sales agent has made in the past, and how widely those films have been distributed. At this stage, doing this isn’t as important as when you negotiate the final distribution deal, but it is something you should know when going after a letter of intent. 
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Also, the track record of the sales agency or distributor has a direct impact on how valuable the LOI is.  An LOI from Lionsgate means a lot more than an LOI from someone on the third floor at AFM this year.  Looking at the track record can help you more accurately assess the value of the document you hold, so you can better present that information to potential investors. ​

5. Getting an LOI is Heavily Dependent on the Relationship with the Sales Agency.

If you walk in cold and start asking for an LOI on the first meeting, you’re not likely to be successful.  It takes time and a fair amount of correspondence to get to the point where a sales agency is willing to take a risk on you. ​

​If you don’t want to spend the time and money to establish these relationships by going to markets and having calls and emails with the sales agency, you may want to consider a Producer’s Rep. 

Most producer’s rep will require some level of upfront payment for this sort of work.  I charge a relatively small amount upfront and a larger amount on success for this sort of work.  That said, I’m relatively selective about what I take on.  If you’d like to find out more click the links below to submit your project, or book a call with me on Clarity to pick my brain about the next steps.  Alternatively, you can sign up for a free strategy session and talk about what the best next steps for you would be.  I also offer educational programs that will teach you how to get these for yourself.  Those start with a one-hour strategy session.  In this one-hour strategy session, I'll help you figure out where you are, what the next steps for you are, and what the best course of action for helping you get there would be.  

Thanks so much for reading! This is only a primer, and in order to succeed you’ll need a lot more information on the business of indie film. If you want help getting that, you should check out Guerrilla Rep Media’s independent film business resource package. You’ll get a free-ebook, lots of templates, money-saving resources, and even a monthly content digest delivered to your inbox to help you grow your indie film company and premier. It’s completely free and linked in the button below.

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What does a Producer’s Rep Do Anyway?

As stated in the article What's the difference between a sales agent and a distributor, one of the most common questions I get is What does a producer’s Rep Do?  Since that post teaches the major distribution players are by type, (you should read it first.) I will now thoroughly answer what a producer’s rep does.  
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Simply put, a Producer’s rep is a mix between a PMD and an executive producer.   A Producer’s Rep takes on a lot of the business development jobs for a film.  We wear a lot of hats.  Most often we'll connect filmmakers with completed projects to sales agents and negotiate the best possible deal.  We're skilled negotiators with a deep knowledge of the film distribution scene, and entrenched connections there.   

Would you rather watch or listed to a video instead of reading an article? Check out this video on my youtube channel for most of the same information.

If a producer's rep comes on in the beginning, we’ll do the job of an executive producer.  We'll help you finance the film in the best way possible.  not just through equity investment, but planning proper utilization of tax incentives, pre-sales, crowdfunding, occasional product placement, and sometimes helping to connect you to some of our angel contacts.   That said, if we’ve never met, you have no track record and want us to start raising money for you, that probably won’t happen.   

​Not all producer’s reps will work with first-time directors and producers, I will, but generally only on completion or near the end of post-production.   I will not help someone who I have not worked with before garner investment for their projects, except in very limited circumstances.  I will help filmmakers get their financial mix in order.  If a rep makes connections for investment, we need to know if the filmmakers I'm working with can deliver a quality product and get our investment contacts their money back.

A Good Producer’s Rep will also be able to act as a PMD, or at least refer you to a good one.   We don't just work in traditional distribution, but we can help plan and implement other tactics including proper use of VOD.  We’ll help you plan your marketing and distribution, then we’ll tell you how to implement it, helping you along the way.   We’ll help you develop the best package in order to mitigate the risk taken by our investors. If we do bring on investors, you’d best believe we’re with you through the end of the project, to make sure that everyone ends up better off.   We’ll check in and act as a coach to help you grow to the next level.   

In a lot of ways, we’re agents for producers and films. Good reps, like good agents, won’t just think about this project, they’ll help you use your projects to move to the next step in your career.

So how do you pay a Producer’s Rep? Since the services we offer are so varied, our pay scale is as well.   Some things are based primarily on commission. Sometimes that commission will come with a small[ish] non-refundable deposit that would be things like connecting to distribution. That commission is generally around 10%, but can range between 5-15%.   Some things [like document and plan creation] are a flat fee, others are hourly plus commission on completion. That would apply primarily to packaging. 

It is worth noting that not all producers reps are trustworthy.  There are some that charge 5 figures upfront with no guarantee of performance. Admittedly, no one can guarantee they can sell your film, or get it financed investment.  If they guarantee it and ask for a large upfront payment, you should be very wary of them.  However, there are some with a strong track record of doing so.  Just as you would when talking with sales agents, talk to people who have worked with them in the past.  

Most reps will give you a discount based on doing multiple services.  Remember to check last week's post for an idea of what each major player in indiefilm distribution Does! 

If reading this made you think you want a producer’s rep, check out the Guerrilla Rep Media Services section!

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What’s the Difference between a Sales Agent and Distributor?

As a Producer’s Rep, one of the questions I get asked the most is what exactly do I do?   The term is somewhat ubiquitous and often mean different things to different people.   So I thought it might be a good idea to settle the matter.   In this post, I’ll outline what a producer’s rep is, and how we interact with sales agents, investors, filmmakers, and direct distribution channels. But first, we need a little background on some of the terms we’ll be using, and what they mean.   These terms vary a bit depending on who you ask, but this is what I’ve been able to gather.

Would you rather watch/listen than read? Here’s a video on the same subject from my Youtube Channel.

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​DISTRIBUTOR / BUYER

A distributor is someone who takes the product to an end user.   This can be anything a buyer for a theater chain, a PayTV channel, a VOD platform, to an entertainment media buyer for a large retail chain like Wal-Mart, Target, or Best Buy.  The rights Distributors take are generally broken up both by media type and by territory.  

For Instance, if you were to sell a film to someone like Starz, they would likely take at least the US PayTV and SVOD rights, so that it could stream on premium television and their own app which appears on other SVOD services like Amazon Prime, or Hulu. They make take additional territories as well. 

Conversely, it’s not uncommon to sell all of France or Germany in one go. It should are often sold by the language, so sometimes French Canada will sell with France. This is less common as of late.

Generally, these entities will pay real money via a wire transfer, and almost deal directly only with a sales agent. Although sometimes to a producer’s rep, and VOD platforms will generally deal with an aggregator.   The traditional model of film finance is built around presales to these sorts of entities, but that presale model has recently shifted.   

Recently, more sales agents have begun distributing in their territory of origin. XYZ is a good example of this. Some distributors have branched out into international sales. This is something that we did while I was at the Helm of Mutiny Pictures, to allow us to deal with filmmakers directly in a more comprehensive way.

Sales Agents

A Sales agent is a person or company with deep connections in the world of international sales. They specialize in segmenting and selling rights to individual territories. Often, they will be distributors themselves within their country of origin.   This business is entirely relationship based, and the sales agents who have been around a while have very long-term business relationships with buyers all around the world.   That’s why they travel to all of the major film markets.

Examples on the medium-large end would be Magnolia Pictures international, Tri-Coast Entertainment, and Multivissionaire. WonderPhil is up and coming as well, as is OneTwoThree Media.   Lionsgate and Focus Features would also be considered distributors/sales agents, but they’re very hard to approach. They also both focus on Distribution over sales.

​Generally, these sales specialists will work on commission. They may offer a minimum guarantee when you sign the film but that is not common unless you have names in your movie. Generally, they will charge recoupable expenses which mean you won’t see any money until after they’re recouped a certain amount. In general, these expenses will range between 10k and 30k, with the bulk falling between 20 and 25k. If it’s higher than 30k without a substantial screen guarantee, you should probably find another sales agent. There are ways around this, but I’ll have to touch on this in a later blog [or book].

​A sales agent commission will be between 20% and 35%, this is variable depending on several factors, but generally 25% or under is generally good, and over 30% is a sign you should read more into this sales agent. Lately, this has been trending towards 20% with a slight uptick in expenses.

Aggregators

​Aggregators are companies that help you get on VOD platforms.   The most important service they provide is helping you conform to technical specifications required by various VOD platforms. This job is not as easy as you would think it is, which is why they charge so much.   Additionally, they have better access to some VOD platforms than others. These days, it’s very difficult to get on iTunes or most platforms other than Amazon’s Transactional section without one.

Generally, aggregators charge a not insubstantial fee to get you on these platforms, and they offer little to help you market the project. Companies like this include Bitmax and arguably filmhub or IndieRights.

There are merits to going this this route, but they can be expensive, often costing about one thousand USD upfront and growing from there. If they operate on a commission like Filmhub or Indierights, they won’t help you with marketing so you’ll have to spend a decent amount there in order to get your film seen.

Producer of Marketing & Distribution (PMD)

​In the words of Former ICM agent Jim Jeramanok, PMDs are worth their weight in gold. A PMD is a producer who helps you develop your marketing and social media strategy, your Festival strategy, and your distribution strategy.   They’re also quite likely to have some connections in distribution.   They’re there to give your film the best possible chance at making money when it’s done.

Generally, they’re paid just as any other producer would be, but if they’re good, they’re worth every penny. With a good PMD on board, your project’s chances for monetary success are exponentially better.   

​If you’re an investor reading this, you want any film you invest in to at least have access to a PMD or Producer’s Rep, if not a preferred sales agent or at least domestic distribution. (Not Financial Advice)

Executive Producer (EP)

In the independent film world, these are producers who are hyper-focused on the business of independent film. They either help raise money to make the film, or they help bring money back to those who put money into it in the first place. As such, the traditional definition in of an indiefilm executive producer is someone who helps you package projects by attaching, bankable talent, investors, or other forms of financing.    They’ll also help you design a beneficial financial mix, [I.E. where can you best utilize tax incentives, presales, brand integration, and equity, and gap debt.] in order to help your project have the best chance of success. They can also play a significant role in distribution. The latter is where most of my EP credits come from.

Often, they’ll take a percentage of what they raise or what they bring in. sometimes they’ll require a retainer, but most of the time they should have some degree of deliverables such as business plans, decks, or similar as part of that.   These fees should not be huge, but they will be enough to give you pause due to the amount of specialized work involved in doing these jobs.

Producer’s Reps

I’ll go into this much more deeply next week, But Producer’s Reps are essentially a connector between all of these sorts of people and companies.  Producer’s Reps will connect you do sales agents, aggregators, buyers, and investors. But more than that, a good one will help you figure out how and when to contact each one. Most often, they’re credited as an executive producer or a consulting producer as the PGA does not have a separate title that applies to this particular skillset. For a more detailed analysis of what exactly a Producer's Rep does, Check out THIS BLOG!

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