Selling Price

[S Moore]

I read somewhere that, typically, spec scripts from new writers get sold for between 0.5 and 1.5% of the movie's anticipated budget. Is this true? If so ... ... does the rate frequently go above 1.5%? ... if I see that a script has sold for $1 million, I am to suppose that the film's budget is $100 million? ... are "point" rates similarly structured?

[gpower]

The usual number is 5% of the budget, but this will vary with each studio.

[Done Deal]

The usual number is not 5% of the budget. That would mean a writer would be paid $2 million for a $40 million feature. Not going to happen. Trust me. The "rule of thumb" when doing a contract for a non-set amount, is to say that the writer will ultimately be paid somewhere in the neighborhood of 1.5% of the budget. Thus a writer would be paid $600,000 for a $40 million dollar film -- and even that's pretty high. A lot depends on who the writer is, what they've written before, what stars or directors have shown interest in it and so on -- many things. And points... At this stage FORGET POINTS. New writers and even established writers aren't getting points. Particularly new writers. Also people generally don't see much money from points because of the studio accounting system. Get the money up front! And points are not part of the percent. They might affect what percent you get in terms, of the writer saying "I'll take less money for points," but otherwise they are separate. Good luck. And get a lawyer to the contract.

[ferds]

I just wish to thank Bill Marquardt for responding to my question (regarding this topic) thru e-mail before I'm able to post as a registered user.

Thanks, Bill!

[Taotropics]

You will be paid for your script EXACTLY what the market offers. So if there is one interested party, you will be paid WGA minimum + 10% above that, about 50K for writing services and an option for the script itself. The only time a new writer would EVER get into six figures for any budget film is if there are two or more interested parties that "bid it up", at which point, all rules cease, except that they wouldn't pay three million for a nine million dollar indie film, ie: basic budget 1.5% serves as a ceiling for the price. But by no means should this be expected.