Twitter Rant: Jeff Willis on the Reality of Spec Script Sales
Earlier this week, studio executive Jeff Willis went on a Twitter rant about the reality of spec script sales contrasted to the way the media often reports on them. Reprinted in its entirety by permission.
https://twitter.com/jwillis81/status/572479313754255360
On entertainment news sites, the script “sales” they announce are often a little more complicated than an initial reading might indicate.
In most cases, a company acquiring a script is closer to the process of leasing a car than it is to, say, buying a movie on Blu-Ray.
That is to say, companies typically option (rent/lease) the property for a period of time before they pay the whole purchase price.
They option stuff because they typically want to see if a project is viable (if they can get talent interested, secure financing, etc.)…
…before paying tens or hundreds of thousands of dollars (sometimes millions) for a project they may or not be able to make.
So they pay a fraction of the whole purchase price (for WGA deals it’s 10% at minimum) to control it for a limited period of time.
When that time period is up, they can either buy it for the whole purchase price or give it back to you (and you keep the option money).
That the total purchase price of the script is agreed to in the option deal. But that purchase price might be broken up in several steps.
For example, the total value of a script purchase might be $250,000. But that doesn’t mean the writer got $250,000 when he signed the deal.
It might be $25K for an option, $100K for the purchase, and $125K for a sole credit bonus. So while the total value of the deal is $250K…
…the writer doesn’t actually get that $250K all at once (or maybe not 100% of it ever depending on whether all terms of the deal are met).
n the above example, if the credit ended up being shared with another writer, the original writer wouldn’t get that last $125K of his deal.
And if the initial option fee is applicable against the purchase price (which it usually is), the purchase price is actually only $75K.
And don’t forget that option deals often include a writing step or two.
https://twitter.com/jwillis81/status/572481512441921536
And those steps are often spread over the course of months, if not years. So a $250K sale may not even provide a six-figure annual income.
That deal might mean $50K this year (option + rewrite), $75K next year, and $125K five years from now (if the movie is actually made).
I know this takes away a little of the luster of those big writer deal announcements, but if you want to be a professional screenwriter…
…you have to be realistic about the structure of your business deals and what you can expect to be paid when.
This isn’t a career where writers typically sell a script for an upfront $250K and then live off that golden egg for years at a time.
For most writers, an annual income is derived from a variety of projects: an option payment here, a rewrite there, a polish over there…
Until you’re at the top of the writer hierarchy, writing is a VOLUME business. You make a living by working on a lot of different projects.
I’ve talked about option deals before so I don’t want to rehash too many of the particulars here…
…suffice to say that there are a LOT of variables and payment schedules that go into a script purchase. Most of it isn’t up-front money.
All of this, though, is going on behind the scenes between prodco business affairs departments and the talent’s reps.
None of that is typically disclosed in a news announcement of a sale. If anything, an announcement may know the general terms…
…which is when you see details like, “$50K against $500K” or “low sixes against seven figures” quoted as deal terms.
That tells you the up-front money, which is typically applicable “against” the total value of the contract. In the above examples… (1/3)
…the first writer is getting only $50K of his $500K total up front, and the second is only getting $100K-$300K of her $1M+ (2/3)
The rest of that money is paid over time as contractual terms are met. The writers did NOT get paid the big-dollar amount right away. (3/3)
When an entertainment news outlet reports a “sale,” they’re usually only half right.
On the one hand, yes, a deal was reached for the purchase of the script. On the other had, the script likely wasn’t actually sold outright.
So when you read “Studio buys Writer’s script!”, what it probably means is “Studio options Writer’s script for a while, might buy later!”
https://twitter.com/jwillis81/status/572484530096873474
That’s not meant to be flippant or disparaging against writers who option a script or sign a multi-step deal. Both are fantastic news.
But it’s important to understand the difference between how news outlets report deals made with writers, and how writer deals actually work.
I’ve known more than one writer who excitedly quit his day job when he “sold” a script, and then was stuck when he realized…
…that the “sale” actually meant less than $10,000 in his family’s pocket for the next twelve to eighteen months of the option period.
Don’t buy into the hype and the cottage industry that feeds on convincing you this is an easy industry with big bucks for one-off work.
By all means, be excited about announcements in the trades where a writer’s made a sale or booked an assignment. They’re worth celebrating.
Just don’t disillusion yourself by thinking those announcements are a “one hit and he’s got it made” kind of situation. They’re usually not.
Here’s a rule of thumb: If a major studio acquires a spec script, you can generally assume it is a sale. If an independent prod co or financier is involved, chances are it’s an option deal with some steps involved toward the sale price. Not a perfect way to interpret news reports, but generally reliable in my opinion.
Re other outlets’ reporting and what I’ve done here since 2008: As I always say, tracking spec script deals is an inexact science. My practice has been only to post about deals verified by one of the major trades or inside information from people working in script development I trust.
To provide as honest an assessment of acquisitions, I have adopted the practice of referring to them as ‘deals’ instead of ‘sales,’ and noting where it can be determined if they are outright purchases or options.
The larger picture is something Jeff speaks to in this latest Twitter rant: You have to think beyond your latest spec script. It’s not just about the script. It’s about you developing the practices of a pro screenwriter. To succeed, you have to know the craft. You have to immerse yourself in the world of stories, cinema and the movie business. Yes, you need to focus on the spec you’re crafting right now, but the smart move is always to be developing your skills and understanding of what it takes to be a working screenwriter.
Those are the type of lessons I try to convey each day here at GITS. It’s what I teach at Screenwriting Master Class: Practices and principles grounded in decades of experience working in this business. So always be writing. But also always be learning the chops required to handle working as a writer in Hollywood.
Here’s hoping you sell a high six figure spec script. Yes, the odds are against you. Yet it can and does happen. I’d be lying if I said it couldn’t because it happened to me. Beyond that, here’s hoping you develop as a writer so you are prepared to build on that initial success enabling you to carve out a sustained career in the business.
About Jeff Willis: Jeff has spent the past decade working in studio business affairs and production management. He started his career as an assistant at Beacon Pictures (BRING IT ON, AIR FORCE ONE), then moved on to work with startup production companies Our Stories Films (WHO’S YOUR CADDY, JUMPING THE BROOM) and Troika Pictures (THE CALL). He’s been with The Weinstein Company (DJANGO UNCHAINED, SILVER LININGS PLAYBOOK) for the past four years and currently serves as their Vice President of Business Affairs & Production Administration. Jeff is also a screenwriter; his first produced feature (THE RIGHT GIRL, written with Bob Saenz (@bobsnz)) is in post-production and due to air on Pixl TV and ABC Family in the coming months.
You may follow Jeff on Twitter: @jwillis81.
You may read all of the Screenwriting Twitter Rants here.
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