not sure what they mean by "backend points" but if it's anything other than first-dollar gross, then they are monkey points. there is never any backend.
(i don't believe first-dollar points are typical for most writers)
not sure what they mean by "backend points" but if it's anything other than first-dollar gross, then they are monkey points. there is never any backend.
(i don't believe first-dollar points are typical for most writers)
I meant a percentage of the profits. I thought that was what backend points were but I could be wrong!
You mean profit percentages are worthless because they manipulate the numbers so a movie doesn't usually make a profit?
I've typically seen about 3-5% of producer's net profits in standard writing contracts for me.
Those supposedly never pay off, but my attorney said that for indie films they sometimes have a chance of actually paying out -- which I assume is because it's harder to play a shell game with the profits off a straight-up indie film sale.
If you're being offered a percentage of profits it's most likely a means to get get you to agree to a lower up-front payment with the expectation there will be greater rewards when the film makes a profit. The definition of 'profit' will almost certainly guarantee that you don't see an extra penny. This type of deal is often offered to first time writers in the hope they will not know any better and fall for it. It's safer to take the maximum up-front payment you can get and forfeit anything resembling back-end percentages other than a box office bonus, which they are not going to offer you anyway. The only money you are likely to see is the money you are paid up front. The devil will be in the detail - you need an entertainment attorney to scrutinize the contract and advise whether or not you are likely to see any of the enticing profits of which they speak.
not sure what they mean by "backend points" but if it's anything other than first-dollar gross, then they are monkey points.
Not at all true. Lots of good backend definitions that aren't first dollar. Cash break, for instance.
But the writer isn't getting any of that. ATB is correct. We are paid as follows:
1. Up front money
2. Credit bonus, should we get credit
3. Box office bonuses occasionally
4. Residuals
I've never received a penny of back end money in 18 years of professional screenwriting, nor do I expect to. It's boilerplate to receive 5% of "defined net profits." To put it in perspective, Identity Thief (which cost 35 and made 135 in U.S. box office alone, not to mention international, video or pay television) is about $80 million in the hole per the net profit definition.
It's baloney accounting. Don't worry about back end unless you're dealing with a very small budget and receiving little or no up front money.
Are residuals also paid on rewrite gigs? If so, how are they shared between the various writers?
You only get residuals if you qualify for credit.
I think it's 75% for "screenplay by" and 25% for "story by" or something close to that, split between all writers who qualify for that part of the credit. ("Story by," however, means you get certain other separated rights).
If you're being offered a percentage of profits it's most likely a means to get get you to agree to a lower up-front payment with the expectation there will be greater rewards when the film makes a profit. The definition of 'profit' will almost certainly guarantee that you don't see an extra penny. This type of deal is often offered to first time writers in the hope they will not know any better and fall for it. It's safer to take the maximum up-front payment you can get and forfeit anything resembling back-end percentages other than a box office bonus, which they are not going to offer you anyway. The only money you are likely to see is the money you are paid up front. The devil will be in the detail - you need an entertainment attorney to scrutinize the contract and advise whether or not you are likely to see any of the enticing profits of which they speak.
This shouldn't ever happen if you've even got a semi-decent agent, manager, or lawyer.
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