When Donald Sutherland filmed his two days on comedy traditional Animal Home, he was supplied a flat charge of $50,000 or a diminished charge and 15% of the eventual field workplace takings. He took the assured charge … and ceaselessly regretted not capitalising on one of many greatest comedies of all time. His two days’ work may 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 discuss 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 neighborhood theatre contracts, though on uncommon events it could apply to an unbiased movie.
Earlier than we dive in, we should be very clear about one thing. This text was written by a producer and trade inventive who has been on each 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? Finest 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 looking for, 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 possibly promise some type of financial compensation (and due to this fact appeal to a extra skilled stage of actor.) Nonetheless, there may be 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 supplied as the only compensation for work on a manufacturing, or supplied up together with a flat, assured charge. 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 a number of primary figures readily available, you need to be capable of calculate the tough ballpark of what your lower could also be. To do that, we’re going to show you a fast budgeting software for unbiased exhibits we name the 25% rule.
- Multiply the quantity exhibits within the season by the variety of seats within the venue. Then multiply that quantity by the most affordable potential ticket choice (often the concession/seniors charge.) No matter quantity you provide you with is the utmost sum of money a manufacturing could make. Right here’s an instance: 10 exhibits 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 when 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 to work out your lower? 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. Should you had been promised 10% of our instance present’s income ($21,000) you then’re taking a look at a most lower of as much as $2100. Not a nasty pay day in any respect.
This quantity will be bigger or a lot smaller. For example, full-price tickets could also be nearly double the concession, slicing 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 choice between revenue share and a flat, assured charge, you’ll have an vital choice to make. Earlier than you accomplish that, weigh up the professionals and cons of every choice:
A flat charge, assured by a contract, is the safer wager. It might even be probably the most worthwhile within the occasion that the present doesn’t promote effectively, or the manufacturing funds blows out. If both of those disasters happen, you’re lined fully and the producer is obligated to fulfil the settlement by which you signed on.
Nonetheless, a revenue share association will be extraordinarily priceless. It’s price weighing up the clout of the corporate and the opposite creatives, the advertising funds and the venue—which is to say nothing of the standard of the script itself. Should you assume the present shall be well-liked and profitable, then revenue share would possibly internet you an thrilling chunk of change.
When to Comply with Revenue Share
As there is no such thing as a assure of cost in a revenue share deal, you need to enter into such an settlement fastidiously. Are you able to afford to work on a venture that will not pay you a dime? There’s no hurt if the reply is “no”. In reality, studying when to say “no” to a task is a foundational ability for each actor to develop of their profession.
Now for a extra optimistic observe. If it’s an excellent venture you consider in, and you’ll afford to work free of charge, then a revenue share settlement is icing on the cake. You may find yourself with nice critiques, a line in your CV, an entire new wing of your inventive neighborhood, some priceless appearing expertise and sufficient cash to shout your castmates a spherical of drinks on the finish of the run. Doesn’t sound so dangerous while you put it that means.
Should you’ve bought 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 venture that’s going to place you in severe monetary peril—irrespective of how attractive the function could be. That means lies resentment and burnout.
Inspecting your Contract
All particulars of a revenue share settlement shall 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 usually just a few pages lengthy. Many will utilise an analogous format, akin to a boiler-plate that the producer discovered on-line. And because of this 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 that despatched it to you.
Typically… often… hopefully… the issue you encounter is an oversight, or a sign of a producer’s mistake or inexperience, fairly than an indication they’re merely evil. So speak to them. See when you can resolve the difficulty with a clarification or an modification to the contract. You at all times have the choice to stroll away.
Word: Only a fast reminder that this text is not written by a lawyer. When you have the means/the entry, it’s finest to indicate a contract to a authorized skilled.
Widespread Crimson 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 excellent quote by legendary Hollywood producer Samuel Goldwyn. “Verbal agreements aren’t definitely worth the paper they’re written on.” If anyone guarantees you a revenue share association, get it in writing. A contract is finest, an e-mail on the very least.
- The revenue share estimate is wildly excessive. If a producer guarantees you a revenue share of hundreds in change for you signing on to a present, they’re seemingly making an attempt to hook you in with the promise of fortune and glory.
- The producer received’t focus on/amend the contract. It’s at all times price inspecting your contract and speaking it over with a producer if in case you have any doubts. If they’re unwilling to do that, or are reluctant to vary a facet of the contract with out good cause, that’s price allowing for.
- You don’t know what share of income you’re entitled to. Understand how a lot you’re getting. Should you suspect there are factors lacking within the settlement, you are able to do a fast verify in together with your fellow solid and creatives and guarantee all people’s items add as much as 100.
- The producer received’t present you a funds. You’ve got a proper to know the way the cash is spent, significantly 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 browse it fastidiously.
- You might be being paid in tickets to the present. No different option to put it: this one is a flat-out rip-off. If a producer tries to pay you in tickets to your personal present, or units apart tickets so that you can promote so as to obtain cost, they’re hoping you’ll drum up enterprise by way of household and pals. That’s not your job.
Conclusion
So there you might have it: our information to revenue share for actors. Let’s depart the subject with a bit 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 a bit religion with regards to 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, identical to you. Search for the great in that individual, even when the contract is primary and their funds is formidable. You’ll be stunned what number of issues neatly resolve with some wholesome dialogue.
Good luck!
