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
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.
