Question by WriterChick79: Screenwriter needs advice: is 5% of net profits good?
I’m a new screenwriter, and the script house I’m working with (contractual basis) offered me “5% of the net profits realized by Client for the sale and production” for the screenplay I co-wrote with 2 others. Can someone familiar with the film industry break down exactly what that means? I have an idea, but a concrete answer is necessary. Thanks!
Best answer:
Answer by meat
What that means is that you’re not going to see a dime. Ever.
The net profit is the amount of money left over after everything has been paid. And – trust me – the amount of money to be paid out will always be more than the gross profit, which means that there will NEVER be any ‘net profit.’
You want a contract that pay you CASH, and net profits. That way you’ll at least get paid. As an aside, I’ve never contracted for net profits.
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