Recently I have been asked by several different aspiring Producers and Writers what would be the best form of payment to receive when the time comes to discuss "Points" when it comes to getting paid for your Services.
First off most Producers and Directors always try to buy your Script "outright" especially if you haven't had anything bought by a publisher or studio before. This is a bad deal for the Writer, because very often all they will pay for a script to an unknown unestablished Writer for their Script is usually $20 to 25 thousand dollars for something they are sure they will make Millions on! That is why it is so important to have a Literary Agent or an Entertainment Attorney representing your interests to the studios.
Always remember if the Studio executives don't think they can make Millions on any script they buy, they won't be at all interested in it, period!
Well just so everyone knows "Points" equal a percentage of what a Film or Television Series Grosses not just from ticket sales but from Advertising Revenues and Monies derived from products that were licensed to a certain manufacturer to make toys and many other products pertaining to the Film or Television Series.
For example Star Wars, just look at all the Star Wars toys and other memorabilia associated with it!
Believe me when it comes time for the Writer to sell his idea for a film, no matter how good the Studios think it will do at the Box Office , they always want to pay the Writer /Creator of whatever less than anyone else that will be affiliated with that project, as if that makes any sense, but that's the way it is and always has been!
There is so much Nepotism in the Film and Television Industry that's how all the relatives of the big Producers make big money from small jobs they do on the films etc.. is getting a bonus at the completion of the Run of a major film from the afore mentioned Gross Points put into a separate account to pay Department Heads etc. after everything is completed!
Prducers /Directors/ Entertainment Attorneys when representing a Studio to a Writer will try to make it seem like the Writer is getting an excellent deal by offering them a small percentage of the "Net Points",that's one of the biggest mistakes anyone can make, whether you're A Writer, Producer or Director, you will always want and have to "fight" to get a small percentage of the Gross, because no matter how much a major Film grosses they show a "Net" of next to nothing,thus there wouldn't be much in the form of payment being paid out to anyone accepting Net Points!
Also , Writers one of the most common problems you will have is creative differences with your director who will try to take what you have written in a whole different direction than you intended for it to be, thus you will also have to negotiate for some creative control which is rarely granted to a Writer unless the Writer is really well established!
Talk about creative financing, the Hollywood Moguls invented it,I'm sure,lol.
The majority of the Moguls today are decent enough to set aside a few "Gross Points" in a special account that is divvied up to all departments so that everyone who worked on a successful Film or Television Series comes out pretty well financially after the run of a major Film etc. is completed!
I hope I answered some of your questions in a way that didn't confuse you. However,if you are confused and need something clarified shoot me an email at email@example.com and I will get back to you at my earliest convenience.
Thanks for reading my posts.