CrashDaily at 2012-02-03 13:55:00:

Some of these numbers are deceiving by the way. Makes it sound like the studio writes you a check for 500K when you sell a spec for "mid six figures" -- Here is an actual example of a sale that was reported in Variety as "mid-six figures" and what all was involved: The actual deal= 200 against 425 (so they use the 425 to get the mid six quote) 200k breaks down as... 100k up front for the spec. 65 for rewrite. 35 polish. So up front= 100 - 10 agent/10 mgr/5 lawyer = 75. We're a writing team. 37.5k each. Wga $500...so 37k minus tax since the studio pays you as an employee, and now you have your big payday for the "half mil" deal = $27,750. Now the real fun begins. They love the "concept" but actually want a different execution. This is the first rewrite, which is not really a rewrite it's more of a brand new movie, aka a "page one." So you have a few meetings, do beat sheets that are not "officially" requested, otherwise they'd have to pay you, but you do them to fully illustrate that you have a handle on exactly what they want. So finally the producer/studio are happy that you are going in the right direction -- this takes a couple months, easy. Now you get commenced on the rewrite and your next pay check: 1/2 of the rewrite money= 32.5k - 25% reps= 24.3k, split that with partner, pay wga, tax= $8970. Okay, finally ready to start writing. And because your spec was sold with a big producer, you do a couple drafts under the table, "producer drafts," before you ever hand in this first "rewrite" to the studio. This is because the producer scares the crap out of you by, correctly, telling you that you have one shot to nail this with the studio or they will lose interest. So you do 2 new drafts to get the producer happy, who is essentially trying to predict what the studio really wants. Then you turn in. Paid balance of rewrite: $8970. Now it's been circa 5-6 months since you made your sale. After each draft you're waiting for these big shots, who have a gazillion other projects they're managing, to chime in... So cutting to the chase the same process happens with the polish. Studio has notes, you explain how you'll execute and they finally commence polish, you net $4860. Write another draft, producer notes, address those. Turn in...$4860. Now you're about 10 months in. You have devoted 100% of your time to this because your reps essentially tell you that since this is your first big studio sale, you MUST nail this thing. They say things like, "whatever happens you CANNOT tank this thing!" seriously that's an actual quote. So needless to say, all eggs in this basket. So now you've spent most of a year on the "rewrite" and "polish" of a spec that you spent half of the previous year working on. And you're done, praying it gets a greenlight since no more cash unless it does, or they execute optional steps, which is rare because if you haven't nailed what they want by now, and they still believe in the project they will hire someone else. So now your movie is in the queue at the studio who has a ton of movies in active development, and so does your producer since you lined up with a big shot. In our case the draft was well received but a rival studio released a very similar movie, too similar, and that was pretty much it. Moving on. The against money (225k) goes bye bye. So six months to write the spec. 10 months busting ass on it for the studio and producer. For a take home total of... $55,410 or 16 months work at $3460 per month. Obviously double it if you write solo, but still... This is just one case. But this is a much more common scenario than the spec that gets sold, the writer does a polish and it goes into production and he/she walks with the full enchilada in a few months.

Scott at 2012-02-03 21:02:08:

Funny you should post this, CD, because yesterday I had been prepping a new Business of Screenwriting column on money which I will be including in an eBook I'll be bringing out this year. What you've written is true enough, but there's also this: Agent: 10% Manager: 10% Lawyer: 5% WGA: 1.8% Throw in a business manager and/or accountant, the piece of the pie can get very slim. Conversely assuming your movie gets produced, you can expect every quarter a nice green envelope with a residual check. I've made almost as much money on K-9 through residuals than I did through my original deal to the delightful tune of several hundred thousand dollars. Even after all these years, I still get thousands of dollars a year from K-9 residuals as well as Alaska, even Trojan War. The other thing is if you're adroit at stacking projects, you're not just relying on one project, but 2, 3 or more in play at any given time. But your take is well laid-out and accurate, something an aspiring screenwriter needs to be aware of as they break into the business. Thanks for laying out that info!