Should domestic and Foreign Sales be handled by separate people?

I've been getting this question a lot lately. The short anwser is YES, you should have separate people/entities handling foreign and domestic sales.

In courting domestic and international distribution, here are a few scenarios that could happen:

1. Your film gets picked up by one of the majors in which case they will take Worldwide rights and you won't have to worry about separate people selling the foreign and domestic rights to your film -- they will all be gone in one big deal. While this may sound like a disadvantage to you the filmmaker, keep in mind we're talking about one of the MAJORS picking up your film, which means you will be getting a theatrical release and which means you should consider yourself lucky to get bought out all at once and not have to worry about piece-mealing sales of your film together.

2. The second scenario that could take place is that your film gets picked up by a U.S distributor, and leaves foreign rights for you on table to deal with yourself. This is also a case where you should consider yourself lucky -- hey, you just got a U.S distribution deal! And now all you have to do is find a decent foreign sales ageny to handle the foreign sales.

3. The third scenario that could take place is a foreign sales agency picks up your film and offers to do all the foreign sales, and leaves the U.S rights on the table for you to sell yourself. This is also a good scenario in that the U.S rights are the most valuable of the lot, and you can then go and shop those yourself to U.S distributors and save the commissions that a foreign sales agent would charge you. By the way, if you get picked up by a foreign sales agent and they want to include U.S rights in your deal, I would advise to take them out of the deal and sell those rights yourself.

4. A fourth scenario that could take place is that a Producers Rep offers to pick up your film for U.S rights (and find a distributor for it), and leaves foreign rights with you. In this case, check the credentials of the Producers Rep to make sure they've got lots of U.S deals under the belts -- these days, especially if you're going for the straight-to-dvd or straight-to-cable market, you can do that yourself without the help of a producers rep.

Obviously your first choice is to get picked up by one of the majors and get bought out and make your money back all at once. However as that is getting more and more rare these days with independent films, my personal recommendation to you is to 1) shop the U.S deal yourself and save on the commissions of agents and reps, and 2) find a reputable foreign sales agent to do the foreign sales for you, since those are more difficult to handle than the U.S deal.

Good luck~ and email me with any questions!

Should domestic and Foreign Sales be handled by separate people?

I've been getting this question a lot lately. The short anwser is YES, you should have separate people/entities handling foreign and domestic sales.

In courting domestic and international distribution, here are a few scenarios that could happen:

1. Your film gets picked up by one of the majors in which case they will take Worldwide rights and you won't have to worry about separate people selling the foreign and domestic rights to your film -- they will all be gone in one big deal. While this may sound like a disadvantage to you the filmmaker, keep in mind we're talking about one of the MAJORS picking up your film, which means you will be getting a theatrical release and which means you should consider yourself lucky to get bought out all at once and not have to worry about piece-mealing sales of your film together.

2. The second scenario that could take place is that your film gets picked up by a U.S distributor, and leaves foreign rights for you on table to deal with yourself. This is also a case where you should consider yourself lucky -- hey, you just got a U.S distribution deal! And now all you have to do is find a decent foreign sales ageny to handle the foreign sales.

3. The third scenario that could take place is a foreign sales agency picks up your film and offers to do all the foreign sales, and leaves the U.S rights on the table for you to sell yourself. This is also a good scenario in that the U.S rights are the most valuable of the lot, and you can then go and shop those yourself to U.S distributors and save the commissions that a foreign sales agent would charge you. By the way, if you get picked up by a foreign sales agent and they want to include U.S rights in your deal, I would advise to take them out of the deal and sell those rights yourself.

4. A fourth scenario that could take place is that a Producers Rep offers to pick up your film for U.S rights (and find a distributor for it), and leaves foreign rights with you. In this case, check the credentials of the Producers Rep to make sure they've got lots of U.S deals under the belts -- these days, especially if you're going for the straight-to-dvd or straight-to-cable market, you can do that yourself without the help of a producers rep.


Obviously your first choice is to get picked up by one of the majors and get bought out and make your money back all at once. However as that is getting more and more rare these days with independent films, my personal recommendation to you is to 1) shop the U.S deal yourself and save on the commissions of agents and reps, and 2) find a reputable foreign sales agent to do the foreign sales for you, since those are more difficult to handle than the U.S deal.

Good luck ~ and email me with any questions!

Should Domestic and Foreign Sales be handled by separate people?

I've been getting this question a lot lately. The short anwser is YES, you should have separate people/entities handling foreign and domestic sales.

In courting domestic and international distribution, here are a few scenarios that could happen:

1. Your film gets picked up by one of the majors in which case they will take Worldwide rights and you won't have to worry about separate people selling the foreign and domestic rights to your film -- they will all be gone in one big deal. While this may sound like a disadvantage to you the filmmaker, keep in mind we're talking about one of the MAJORS picking up your film, which means you will be getting a theatrical release and which means you should consider yourself lucky to get bought out all at once and not have to worry about piece-mealing sales of your film together.

2. The second scenario that could take place is that your film gets picked up by a U.S distributor, and leaves foreign rights for you on table to deal with yourself. This is also a case where you should consider yourself lucky -- hey, you just got a U.S distribution deal! And now all you have to do is find a decent foreign sales ageny to handle the foreign sales.

3. The third scenario that could take place is a foreign sales agency picks up your film and offers to do all the foreign sales, and leaves the U.S rights on the table for you to sell yourself. This is also a good scenario in that the U.S rights are the most valuable of the lot, and you can then go and shop those yourself to U.S distributors and save the commissions that a foreign sales agent would charge you. By the way, if you get picked up by a foreign sales agent and they want to include U.S rights in your deal, I would advise to take them out of the deal and sell those rights yourself.

4. A fourth scenario that could take place is that a Producers Rep offers to pick up your film for U.S rights (and find a distributor for it), and leaves foreign rights with you. In this case, check the credentials of the Producers Rep to make sure they've got lots of U.S deals under the belts -- these days, especially if you're going for the straight-to-dvd or straight-to-cable market, you can do that yourself without the help of a producers rep.


Obviously your first choice is to get picked up by one of the majors and get bought out and make your money back all at once. However as that is getting more and more rare these days with independent films, my personal recommendation to you is to 1) shop the U.S deal yourself and save on the commissions of agents and reps, and 2) find a reputable foreign sales agent to do the foreign sales for you, since those are more difficult to handle than the U.S deal.

Good luck - and email me with any questions!

Navigating Foreign Sales Agencies

A consulting client of mine recently asked how to avoid getting ripped off by foreign sales agencies. So I decided to come up with a few tips on how to protect yourself from sales agents. Please note that foreign sales agents, and sales agents, are one in the same.

When looking for distribution for your independent film, you may be approached by a sales agent whose job it is to sell your film to various distributors worldwide ie: broadcast networks and dvd distributors. For performing that service, they will demand certain fees. After being a foreign sales agent for several years myself, I can tell you that most of these fees are completely warranted. Foreign sales is the one area that is difficult to take on DIY, so it’s well worth it in my opinion to hire a specialist to do the work for you.

Here are three areas where you can negotiate with sales agencies to get a better deal for yourself:

1. Agency commission

The standard agency commission is anywhere between 10% and 30% of each sale made. Personally, I think 20%-25% is a fair commission to take – so plan on negotiating this in your contract. You can
negotiate lower but in most cases you will be responsible then for all
marketing expenses (see below).

2. Marketing Expenses

In addition to a sales commission, an agency will want to recoup at least $10K to $50K in marketing expenses for your independent film.
These marketing expenses include things like making dubs, creating
artwork, shipping viewing cassettes to buyers, and inclusion at all the
international film and television markets. Personally I think $10K to $15K is
fair amount of expenses, but only if you the filmmaker are willing to pitch
in and provide your own artwork, dubs, FEDEX account number.

3. Producers approval

Sales agents will absolutely balk at this, but try to negotiate producers approval on sales. Otherwise, they have the authority to sell your indie film for pennies on the dollar as part of big ‘package’ deals, instead of what it’s really worth. If they have to seek your approval before doing that type of sale, they will not be inclined to include your film in the package deals, and will have to work harder to get market value prices.

Again, these are only a few suggestions of how to deal with foreign sales agencies. Since this is my area of expertise, I cover a lot of ground on this stuff in Insiders Guide to Film Distribution which you can see in the left panel of this blog ☺ www.film-distribution-secrets.com.

If you have any specific questions pertaining to your situation, please drop me an email.

How to Navigate Foreign Sales Agents

One of my clients this week asked about some typical sales agent rip-off's so I decided to list three ways that you can 'protect' yourselves from sales agents.

First of all, for all of you who don't know, a foreign sales agent (sometimes referred to as just sales agent), is a person or company who sells your film to distributors around the world. In other words, a sales agents finds distribution for your film by selling it to broadcasters, dvd companies, and theatrical distribution companies.

As some of you might know, I was a foreign sales agent myself for many years, so I can see both sides of the story. Filmmakers normally complain that sales agents sign them to lengthy contracts and then don't pay them for the sales the make. Sales Agencies retort that it costs a lot of money to market and distribute your film, so they are entitled to take a hefty commission and recoup their marketing fees before paying out to filmmakers.

Here's some suggestions of a few things you can do that will protect you from the most extreme cases of sales agency rip-off:

1. Negotiate the sales agency commission

Typical commissions for sales agents are anywhere from 10% to 30%. They will likely ask for something on the higher end at first, but you can actually negotiate them down. I think a fair commission for sales agency services are 20%-25%.

2. Put a cap on the agent's marketing expenses

Typical marketing expenses that sales agents will want to claim are anywhere from $10K to $30K per film. Marketing expenses include things like making dubs to send out to buyers, shipping costs, publicity costs like creating artwork and fliers to send out, and finally the expensive taking your film to the Markets costs. Now in defense of sales agents, these are legitimate expenses. However, these expenses can be negotiated - and since the sales agent will have to recoup whatever expenses are agreed before the filmmaker sees a dime, it is in your best interest to negotiate these as low as possible. Here's another thing, if you agree to provide your own artwork to the agency, as well as your own dubs and maybe FEDEX account number, you will have some real leverage.

3. Ask for producers approval

This is a big one, and sales agents will balk when you ask for this, but insist on producers approval before they conclude a sale with a distributor. Basically this insures you against them selling your film for pennies on the dollar which is what sales agents will do by selling a 'package' of films to a buyer. When I was selling packages, there were certain films I had to leave out of the package because I knew the producer would never allow us to sell their film for $1K or $2K - it ties up the rights in that territory and the producer will likely never see any money. So make sure this added to your contract with the sales agent, and hold them accountable to it.

Hope this helps! As always, if you have any questions just email me :)

How to Navigate Foreign Sales Agents

One of my clients this week asked about some typical sales agent rip-off's so I decided to list three ways that you can 'protect' yourselves from sales agents.

First of all, for all of you who don't know, a foreign sales agent (sometimes referred to as just sales agent), is a person or company who sells your film to distributors around the world. In other words, a sales agents finds distribution for your film by selling it to broadcasters, dvd companies, and theatrical distribution companies.

As some of you might know, I was a foreign sales agent myself for many years, so I can see both sides of the story. Filmmakers normally complain that sales agents sign them to lengthy contracts and then don't pay them for the sales the make. Sales Agencies retort that it costs a lot of money to market and distribute your film, so they are entitled to take a hefty commission and recoup their marketing fees before paying out to filmmakers.

Here's some suggestions of a few things you can do that will protect you from the most extreme cases of sales agency rip-off:

1. Negotiate the sales agency commission

Typical commissions for sales agents are anywhere from 10% to 30%. They will likely ask for something on the higher end at first, but you can actually negotiate them down. I think a fair commission for sales agency services are 20%-25%.

2. Put a cap on the agent's marketing expenses

Typical marketing expenses that sales agents will want to claim are anywhere from $10K to $30K per film. Marketing expenses include things like making dubs to send out to buyers, shipping costs, publicity costs like creating artwork and fliers to send out, and finally the expensive taking your film to the Markets costs. Now in defense of sales agents, these are legitimate expenses. However, these expenses can be negotiated - and since the sales agent will have to recoup whatever expenses are agreed before the filmmaker sees a dime, it is in your best interest to negotiate these as low as possible. Here's another thing, if you agree to provide your own artwork to the agency, as well as your own dubs and maybe FEDEX account number, you will have some real leverage.

3. Ask for producers approval

This is a big one, and sales agents will balk when you ask for this, but insist on producers approval before they conclude a sale with a distributor. Basically this insures you against them selling your film for pennies on the dollar which is what sales agents will do by selling a 'package' of films to a buyer. When I was selling packages, there were certain films I had to leave out of the package because I knew the producer would never allow us to sell their film for $1K or $2K - it ties up the rights in that territory and the producer will likely never see any money. So make sure this added to your contract with the sales agent, and hold them accountable to it.

Hope this helps! As always, if you have any questions just email me :)

How to Navigate Foreign Sales Agents

One of my clients this week asked about some typical sales agent rip-off's so I decided to list three ways that you can 'protect' yourselves from sales agents.

First of all, for all of you who don't know, a foreign sales agent (sometimes referred to as just sales agent), is a person or company who sells your film to distributors around the world. In other words, a sales agents finds distribution for your film by selling it to broadcasters, dvd companies, and theatrical distribution companies.

As some of you might know, I was a foreign sales agent myself for many years, so I can see both sides of the story. Filmmakers normally complain that sales agents sign them to lengthy contracts and then don't pay them for the sales the make. Sales Agencies retort that it costs a lot of money to market and distribute your film, so they are entitled to take a hefty commission and recoup their marketing fees before paying out to filmmakers.

Here's some suggestions of a few things you can do that will protect you from the most extreme cases of sales agency rip-off:

1. Negotiate the sales agency commission

Typical commissions for sales agents are anywhere from 10% to 30%. They will likely ask for something on the higher end at first, but you can actually negotiate them down. I think a fair commission for sales agency services are 20%-25%.

2. Put a cap on the agent's marketing expenses

Typical marketing expenses that sales agents will want to claim are anywhere from $10K to $30K per film. Marketing expenses include things like making dubs to send out to buyers, shipping costs, publicity costs like creating artwork and fliers to send out, and finally the expensive taking your film to the Markets costs. Now in defense of sales agents, these are legitimate expenses. However, these expenses can be negotiated - and since the sales agent will have to recoup whatever expenses are agreed before the filmmaker sees a dime, it is in your best interest to negotiate these as low as possible. Here's another thing, if you agree to provide your own artwork to the agency, as well as your own dubs and maybe FEDEX account number, you will have some real leverage.

3. Ask for producers approval

This is a big one, and sales agents will balk when you ask for this, but insist on producers approval before they conclude a sale with a distributor. Basically this insures you against them selling your film for pennies on the dollar which is what sales agents will do by selling a 'package' of films to a buyer. When I was selling packages, there were certain films I had to leave out of the package because I knew the producer would never allow us to sell their film for $1K or $2K - it ties up the rights in that territory and the producer will likely never see any money. So make sure this added to your contract with the sales agent, and hold them accountable to it.

Hope this helps! As always, if you have any questions just email me :)

Some Frequently Asked Questions on Film Distribution

So I've been doing a lot of consulting lately (especially for Film Independent www.find.org), and what I've noticed is that some of the same questions keep coming up from filmmakers. Therefore, I thought I'd share them with you since maybe you have the same questions yourselves....

Q: How can I get a pre-sale for my movie?
A: Unless you have a truly A-List cast, you really can't. Unfortunately, the pre-sale market for indie films died down several years ago, especially in the foreign markets. The exception to this is say for example you are making a straight-to-video film, and you have cast 2 or 3 actors who are 'proven' in the straight-to-video marketplace - in this instance, you could probably swing a home video presale from a dvd distributor. How do you know who the 'proven' staight-to-video actors are? Do some research by going into Blockbuster and seeing which actors appear on the box covers again and again of the staight-to-video films - THOSE are the proven!

Q: Can I approach distributors directly or should I go through a producers rep?
A: For U.S DVD distribution in particular, it is very easy to submit your film directly to the distributor. In the afore mentioned example, say you were able to cast a couple of these 'proven' actors in your movie....well see which companies distributed those DVD's you saw in Blockbuster, and contact them directly through their websites. Almost every DVD distributor I looked up online has an email address for their acquisition execs. They are waiting to hear from you!

Q: I've submitted to some film festivals and while I'm waiting to hear back is it ok to pursue distribution in the mean time?
A: YES! Always put as many irons in the fire as possible. I don't know if you've noticed, but many films these days already have distribution BEFORE they even get to Sundance for example.

Q: Are distributor screenings a good idea?
A: Not really. From the feedback I've gotten from distributors, the last thing they want to do at the end of their day is to go to a screening after work. They much prefer to receive a DVD from you and screen it in the comfort of their home or office.

That's it for now! More to come... :)