Should I negotiate a commercial contract or use an agent?
David,
I was just cast in a National commercial which will be based on my user testimony. I understand that with this commercial I will be eligible for a SAG card. I do not have an agent. This opportunity fell into my lap. I am filming the commercial next week and need advice as to whether or not I need to negotiate a contract for pay with residuals. How should I go about doing this? Do I need to run off and find an agent ASAP to assist me with such an endeavor? Please advise! Thank you!
Kelley
Answer: Kelley, thanks for asking. And, big congratulations on your booking a national commercial. You’ve actually asked a number of questions in all that you’ve submitted, so let’s see if we can take these one at a time … (continued in David’s answer below)
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Answer: Kelley, thanks for asking. And, big congratulations on your booking a national commercial. You’ve actually asked a number of questions in all that you’ve submitted, so let’s see if we can take these one at a time. I know time is of the essence, so I’ll type as fast as I can.
First, let’s look at the project as you’ve outlined it. You say you understand you’ll become eligible to join SAG via this spot. I’d need to know who told you this to be able to answer the question accurately. If it was the production company for the spot that told you this, that tells me it’s a SAG project, and that they’re willing to use Taft-Hartley to get you into the union. On the other hand, if it’s a friend who assumed that because you got booked on a commercial, not knowing whether it was SAG or not, you automatically become eligible for SAG, that’s probably not the case.
I mention this because your project sounds like it might be an infomercial type of spot, with product user testimonials that use actors as “users”. Maybe you actually use the product and like it, and maybe you don’t. But either way, it’s more common that projects like this are non-union. If this project is union, that’s great. But be prepared for disappointment should you talk to the production team and they tell you it’s a non-union shoot.
Here’s the bad news. If it is a non-union shoot, it will be highly unlikely that you will be offered anything but a buyout contract. That is far and away the norm with non-union commercials: they offer you a lump sum for worldwide, all media, in perpetuity rights, with no residuals. That means they can use you anywhere, on radio, TV, internet, print or any other medium, and do so forever, with no additional payments other than your compensation for the shoot.
Here’s the good news. If it’s a SAG commercial project, then you don’t have to worry about asking for residuals, because no SAG commercial project exists that doesn’t include very clearly defined markets, time periods and set amounts of residual payments based on usage. That usage can vary from something as small as a local small market spot for a quick two week period, all the way up to a national spot that runs for years. And the pay is proportional to the usage. You won’t have to ask; it will all be covered under the pre-existing SAG Commercial contract.
Here’s even more good news. If it’s not a SAG spot, and it’s non-union, there’s still the option of simply declining the booking if they don’t offer you a considerable amount for your buyout. As an example, if the spot will run for a year nationally, you could make around $5000 between the session fee and the residuals every 13 weeks. So, ask for that. In your negotiations, ask for a similar amount as your buyout. There’s nothing stopping you from passing on the work if you don’t get what you want money-wise.
Be aware that this will not make you eligible for SAG, but it may net you more money. And also be aware that you’ll be on your own to collect that money – no union will be there for you to make sure the producer pays on time, or pays a penalty to you if they don’t live up to their end of the bargain.
The last part of your question is about having an agent negotiate this for you. I recommend that if you can find one (and it shouldn’t be hard given that you’ll be giving them a percentage of your earnings for this work), that you have the best one you can find do the negotiation. Ask a fellow actor that you trust who is already represented if they might call their agent on your behalf – that way, you’re getting someone who is already a trusted resource.
A good agent will be skilled in making sure your contract, whether SAG or non-union, is not leaving out any of the protections that you should be afforded on set. The agent will also make sure that you’re paid properly (they make more money the more money you make) and on time. They can also vet the production company to make sure that you’re being hired by a reputable firm, not just some fly-by-night producer. Finally, the agent will make sure that you are properly Taft-Hartleyed into the union if it actually is a union shoot.
This is exactly the way some actors get their agents – they come to one with an opportunity in hand, needing the expertise of that agent, and it turns into an on-going relationship. Here’s hoping that everything turns out just great for you, and that this is the start of a great career and a beautiful agent-actor relationship.
What’s your answer to this acting question? Let me know in the comments below.
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LikeDislikeValuable & good advice. Great answers!
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LikeDislikeGreat questions! And absolutely great advice, once again David. Thank you!
David, Thank you so much for the great advice! I have a lot of questions to ask the production company now. They told me that I would be SAG eligible after the commercial, if I wanted to join. On a side note, I received a check in the mail today for the screen test, which was unexpected. Since this opportunity fell into my lap, I have been rolling with it as a great blessing. However, I want to be wise with it as well. I greatly appreciate you taking the time to answer my question so quickly and thoroughly! Your website offers such a vast array of expertise which is exactly what I need when it comes to negotiating my way around the acting community.
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LikeDislikeDavid, I just a buyout check from my agent for a nonunion commercial i did. The job paid as follows : $600+ 20% session fee
$4000+ 20% buyout
$100 for fitting.
I received a ck for $3999.00 for the buyout w him saying he kept $1 for shipping and handling. :( i haven’t received the other checks. Another actor in the spot did get his checks.
besides being cheap and petty, is that even legal of him to take a $1 when he got 20% as well?
How should i ask him about the other checks?
Thanks Mike
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LikeDislikeThis all sounds very non-union, and that means you don’t have any laws or rules on your side – everything is negotiable. It may be that he’s double dipping – charging you 20% while taking the 20% overage from the production company (just because they pay 20% additional doesn’t mean that’s all the agent may be due). That’s not usually illegal, unless you have a contract that states otherwise – you should consult an attorney about what your agreement actually is.
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