When Donald Sutherland filmed his two days on comedy basic Animal Home, he was provided a flat payment of $50,000 or a lowered payment and 15% of the eventual field workplace takings. He took the assured payment … and endlessly regretted not capitalising on one of many largest comedies of all time. His two days’ work might have netted him near $20 million. This text is about when and how one can take your slice of the pie as an actor—albeit on a extra modest scale than the late nice Donny S. Let’s speak about revenue share agreements, and what they imply for actors.
Revenue share is an compensation settlement between a producer and/or firm and a manufacturing member. It ensures {that a} participant will obtain a share of the manufacturing’s income as soon as gross sales have been recouped. Revenue share is predominantly present in unbiased or group theatre contracts, though on uncommon events it could apply to an unbiased movie.
Earlier than we dive in, we must be very clear about one thing. This text was written by a producer and trade inventive who has been on either side of a revenue share settlement. I’m many issues, however two issues I’m not are a lawyer or monetary advisor. Right here as a result of a contract appears fishy or the numbers don’t add up? Greatest to hunt direct assist within the type of authorized experience. Nonetheless, if a street-smart, crash-course on the subject of revenue share is what you’re trying to find, then look no additional.
Let’s start with the fundamentals:
What’s Revenue Share?
Revenue share is an settlement made between a producer (or firm) and an artist in a manufacturing. It stipulates that the artist will obtain an agreed-upon share of income, as soon as bills for the manufacturing have been recouped.
Revenue share is especially well-liked within the unbiased theatre scene. It may well promise some type of financial compensation (and due to this fact appeal to a extra skilled degree of actor.) Nonetheless, there’s often a tacit understanding {that a} revenue share settlement is extra a gesture of excellent will than it’s a assure of a good-looking payday. To supply revenue share to an actor or inventive is a mark of respect. It demonstrates a recognition of their funding of time, expertise and energy right into a present.
Revenue share could also be provided as the only real compensation for work on a manufacturing, or provided up together with a flat, assured payment. In unbiased theatre, the promise of each is uncommon, as revenue share is a great tool for conserving manufacturing prices low earlier than tickets are bought.
How A lot Will I Earn in a Revenue Share Settlement?
No surprises right here: the reply to this query will change from manufacturing to manufacturing. Nonetheless, with just a few fundamental figures readily available, you need to be capable to calculate the tough ballpark of what your minimize could also be. To do that, we’re going to show you a fast budgeting instrument for unbiased reveals we name the 25% rule.
- Multiply the quantity reveals within the season by the variety of seats within the venue. Then multiply that quantity by the most cost effective doable ticket possibility (often the concession/seniors charge.) No matter quantity you give you is the utmost amount of cash a manufacturing could make. Right here’s an instance: 10 reveals x 80 seats within the venue x $35/concession ticket = $28,000
- The 25% rule has you calculate one quarter of this quantity, which is what you’d stand to make should you bought one quarter of the seats in each present. $28,000 / 4 = $7000. That’s your funds: secure, manageable and doesn’t depend on a sold-out season to maintain you out of debt.
How does this enable you work out your minimize? Calculate the utmost gross sales, subtract the present’s funds (verify with the producer on this) after which divide that quantity by your share level. If you happen to had been promised 10% of our instance present’s income ($21,000) then you definately’re taking a look at a most minimize of as much as $2100. Not a foul pay day in any respect.
This quantity may be bigger or a lot smaller. For example, full-price tickets could also be nearly double the concession, reducing the required variety of seats to promote. So any revenue share estimate needs to be precisely that: an estimate. Don’t go spending that cash till it’s sitting in your account.
Revenue Share vs. Flat Charge
In case you are fortunate sufficient to be given an possibility between revenue share and a flat, assured payment, you’ll have an vital determination to make. Earlier than you achieve this, weigh up the professionals and cons of every possibility:
A flat payment, assured by a contract, is the safer guess. It could even be probably the most worthwhile within the occasion that the present doesn’t promote properly, or the manufacturing funds blows out. If both of those disasters happen, you’re coated fully and the producer is obligated to fulfil the settlement by which you signed on.
Nonetheless, a revenue share association may be extraordinarily worthwhile. It’s value weighing up the clout of the corporate and the opposite creatives, the advertising and marketing funds and the venue—which is to say nothing of the standard of the script itself. If you happen to suppose the present will probably be well-liked and profitable, then revenue share may web you an thrilling chunk of change.
When to Comply with Revenue Share
As there isn’t any assure of fee in a revenue share deal, you need to enter into such an settlement fastidiously. Are you able to afford to work on a challenge that will not pay you a dime? There’s no hurt if the reply is “no”. The truth is, studying when to say “no” to a task is a foundational talent for each actor to develop of their profession.
Now for a extra optimistic word. If it’s an amazing challenge you imagine in, and you’ll afford to work free of charge, then a revenue share settlement is icing on the cake. You can find yourself with nice critiques, a line in your CV, an entire new wing of your inventive group, some worthwhile performing expertise and sufficient cash to shout your castmates a spherical of drinks on the finish of the run. Doesn’t sound so dangerous once you put it that method.
If you happen to’ve received the choice to decide on between a flat charge and a share level, it’s as much as you. How a lot are you prepared to gamble on the present’s success? Simply do not forget that you need to by no means tackle a challenge that’s going to place you in severe monetary peril—irrespective of how engaging the position is likely to be. That method lies resentment and burnout.
Inspecting your Contract
All particulars of a revenue share settlement will probably be specified by your artist contract. After getting this doc in your palms, learn it fastidiously earlier than you signal and return it to the producer.
Impartial theatre contracts are typically just a few pages lengthy. Many will utilise the same format, akin to a boiler-plate that the producer discovered on-line. And for this reason any confusion or ambiguity in a contract ought to warrant a dialog. If there are vital particulars you want clarified, or if something is lacking or appears incorrect, speak to the one who despatched it to you.
Usually… often… hopefully… the issue you encounter is an oversight, or a sign of a producer’s mistake or inexperience, slightly than an indication they’re merely evil. So speak to them. See should you can resolve the problem with a clarification or an modification to the contract. You at all times have the choice to stroll away.
Notice: Only a fast reminder that this text is not written by a lawyer. In case you have the means/the entry, it’s greatest to indicate a contract to a authorized skilled.
Frequent Purple Flags
Lastly, let’s look over some frequent pink flags for revenue share agreements. These are the sorts of points that warrant some additional scrutiny, or maybe a dialog:
Be cautious if:
- There is no such thing as a contract. Right here’s an amazing quote by legendary Hollywood producer Samuel Goldwyn. “Verbal agreements aren’t well worth the paper they’re written on.” If any individual guarantees you a revenue share association, get it in writing. A contract is greatest, an electronic mail on the very least.
- The revenue share estimate is wildly excessive. If a producer guarantees you a revenue share of 1000’s in trade for you signing on to a present, they’re seemingly attempting to hook you in with the promise of fortune and glory.
- The producer gained’t focus on/amend the contract. It’s at all times value inspecting your contract and speaking it over with a producer you probably have any doubts. If they’re unwilling to do that, or are reluctant to alter a facet of the contract with out good cause, that’s value allowing for.
- You don’t know what share of income you’re entitled to. Understand how a lot you’re getting. If you happen to suspect there are factors lacking within the settlement, you are able to do a fast verify in along with your fellow solid and creatives and guarantee all people’s items add as much as 100.
- The producer gained’t present you a funds. You may have a proper to understand how the cash is spent, notably if funds doesn’t exist so that you can be compensated up-front. Most corporations will share a full funds report inside 28 days of funds being finalised. Chase this up if it doesn’t materialise and skim it fastidiously.
- You might be being paid in tickets to the present. No different solution to put it: this one is a flat-out rip-off. If a producer tries to pay you in tickets to your individual present, or units apart tickets so that you can promote with the intention to obtain fee, they’re hoping you’ll drum up enterprise by household and associates. That’s not your job.
Conclusion
So there you will have it: our information to revenue share for actors. Let’s go away the subject with slightly optimism. As we acknowledged above, revenue share is an indication of excellent will greater than anything. If it’s constructed right into a manufacturing, you possibly can take that as an indication that the producer or firm cares about actors.
Attempt to have slightly religion on the subject of resolving points and coping with uncertainty. The cash-person on a present might not have your inventive temperament or expertise. However they’re nonetheless dedicated to creating the very best present for an viewers, similar to you. Search for the great in that particular person, even when the contract is fundamental and their funds is formidable. You’ll be stunned what number of issues neatly resolve with some wholesome dialogue.
Good luck!
