Quoted from DustinBowcot It can be difficult to determine what 10% is if there isn't yet a budget in place. You could start off with one producer that wants to make a film for 1 million and end up with 3 or 4 producers all working together with a 10 million budget. Things can also go the other way. I optioned my latest feature for $1500 with an eventual 4% of budget once we all know exactly what that is. I optioned my first feature for $500 and I got 2k for my second with 3% of budget. I have been offered $1 options in the past too but always refused. I already knew that small prod cos add films to a slate that they shop around to execs in the hope of gaining funds. Although it might work out for somebody somewhere, I didn't fancy waiting around for nothing.

True:

You can always add ceiling and floors. e.g., 10% of budget but in no case no less that $XXX or no more than $XXX.

Like you, I will never option a feature (again) without payment.  Let's assume it is  standard 6 mos plus 6 mos option - I may put in a trigger point - just spit balling but something like Option price is XX, if not tendered within 3 months of the agreement then the option is void - gives the producer a little time to get their shit together and only commits the writer to 3 months. Just a thought.

I remember one company offered me a $ option where they get to keep the script for 3 years. I can't remember the name of them now, but names don't really matter much as prod cos are often set up to make one film and then it is shut down. The same people that run the prod co will then use a new prod co name for another film.

Thanks for starting this thread Dustin. After optioning a few scripts I totally agree with you. My first  hope that having optioned scripts would add some credibility as a writer, but I can see that really doesn't hold much weight. No one cares unless something has been made.

My second hope was that with an option, at least you have someone else pushing the script forward. Now it's clear that the option fee reflects the amount of effort they will put into producing. No money = no effort.

As others have mentioned, If you do go for a cheap option:
- Don't do a full year
- Put in a paid extension clause
- Add a healthy minimum sale amount
- Be careful about what you give up. What if they "produce" the movie for $1000, pay you your 5%, and now own all your characters, equal rights etc.?
- Define your role and fee for re-writes.

Quoted from RodriguezFruitbat Thanks for starting this thread Dustin. After optioning a few scripts I totally agree with you. My first  hope that having optioned scripts would add some credibility as a writer, but I can see that really doesn't hold much weight. No one cares unless something has been made. My second hope was that with an option, at least you have someone else pushing the script forward. Now it's clear that the option fee reflects the amount of effort they will put into producing. No money = no effort. As others have mentioned, If you do go for a cheap option: - Don't do a full year - Put in a paid extension clause - Add a healthy minimum sale amount - Be careful about what you give up. What if they "produce" the movie for $1000, pay you your 5%, and now own all your characters, equal rights etc.? - Define your role and fee for re-writes.

All important issues to consider

My two cents -

I never really understood the concept of a zero dollar or low cost option. It takes your script off the market. I don't want to make a blanket statement, however it seems to me that any company that would option your script for no payment would have almost as hard of a time getting the financing as you would. Maybe for ultra-low or micro budget scripts it makes sense, I don't know... just never understood why they need the exclusive. If they're interested, and they have avenues to financing, they should be able to make it happen without the exclusive.

IMO you're better off trying to package the script yourself and then look for the financing. Mind you I haven't had ultimate success with this method yet, but I've been damn close a few times, including at the moment.

And on the flip side of that argument, a few months ago I turned down $15,000 for an outright sale because I thought I had gold and the script was under review with a director. Kicking myself now. Oh well...

AJR

Quoted from ajr My two cents - I never really understood the concept of a zero dollar or low cost option. It takes your script off the market. I don't want to make a blanket statement, however it seems to me that any company that would option your script for no payment would have almost as hard of a time getting the financing as you would. Maybe for ultra-low or micro budget scripts it makes sense, I don't know... just never understood why they need the exclusive. If they're interested, and they have avenues to financing, they should be able to make it happen without the exclusive. IMO you're better off trying to package the script yourself and then look for the financing. Mind you I haven't had ultimate success with this method yet, but I've been damn close a few times, including at the moment. And on the flip side of that argument, a few months ago I turned down $15,000 for an outright sale because I thought I had gold and the script was under review with a director. Kicking myself now. Oh well... AJR

That's a shame - if we could only predict the future

Quoted from eldave1 I don't think so. As spec writers if we got a $50K purchase price on a script that would be huge - yes? 10% is just $5K.

Perhaps the American market is different. I have a well respected agent and he wouldn't get me as much as 5k on a year option. But on the flipside minimum for a sale would be more than 50k - a floor of £75 k (more like 100k in dollars) if 3% of budget wasn't more.

I just think you might miss some genuine opportunities with minimum option of 5k is all. But everyone has a price - and i respect you for setting it high.

Quoted from Anon Perhaps the American market is different. I have a well respected agent and he wouldn't get me as much as 5k on a year option. But on the flipside minimum for a sale would be more than 50k - a floor of £75 k (more like 100k in dollars) if 3% of budget wasn't more. I just think you might miss some genuine opportunities with minimum option of 5k is all. But everyone has a price - and i respect you for setting it high.

5k wasn't my minimum - just using the figure as an example. The point being having some skin in the game on the producers end.

But you said -

My minimum option price for now on is going to be 10% of the cash purchase price.

So that means you're either setting you option price high or to my original point - locking yourself into a low sale price. Just think you should keep the two things seperate if you want to have flexibility and the best deal possible.

Quoted from Anon But you said - My minimum option price for now on is going to be 10% of the cash purchase price. So that means you're either setting you option price high or to my original point - locking yourself into a low sale price. Just think you should keep the two things seperate if you want to have flexibility and the best deal possible.

I take your point - perhaps a staggered approach would be better- e.g percent changing based on purchase price

I don't think this applies to most scripts. It doesn't really apply to 99,9% of scripts just laying in a drawer somewhere. Someone wrote a script 10 years ago, it wasn't good. No one in their right mind would spend money on producing it. Renting out the script won't make him lose anything. It won't do anything at all actually.

But, I have experienced the problem of trusting people with good scripts who then didn't go anywhere with the project. That's irritating. I wouldn't mind getting $1 for loaning out a bad script though. That's a free dollar.

I've been on the other side of the table. I optioned a long-shot script on a six-month free. However, I wrote in the agreement that I could only extend the option for another six months if A) there was significant progress made towards securing a director and financing, and B) I would have to pay an option fee (it was 10% of the purchase price).

I spent six months trying my hardest to get a director. I came close with two directors who got scooped up by Netflix deals before I could finalize a deal with them. I had talent waiting in the wings but wanted to know who was directing before I could finalize with them. I couldn't even pursue financing until I had a director. I had the crew, the location, the budget, but without the right director the project wasn't going to succeed and the long shot was proving too risky for most directors.

At the end of the six months, I could have paid the fee to extend the option but chose not to. Even the writer agreed it was too risky a project. He did have success landing a writing gig though, I think having an optioned script opened the right door for him, so it worked out. But I can attest that producers can be working their asses off and still get nowhere after six months. That's why most option agreements are for at least 2 years with extensions. Even with the director I was facing months of pursuing financing.

Quoted from Jurij I don't think this applies to most scripts. It doesn't really apply to 99,9% of scripts just laying in a drawer somewhere. Someone wrote a script 10 years ago, it wasn't good. No one in their right mind would spend money on producing it. Renting out the script won't make him lose anything. It won't do anything at all actually. But, I have experienced the problem of trusting people with good scripts who then didn't go anywhere with the project. That's irritating. I wouldn't mind getting $1 for loaning out a bad script though. That's a free dollar.

I was pretty much referring to scripts that you value. If I thought my script was crap, I wouldn't worry about the option.

Quoted from ReneC I've been on the other side of the table. I optioned a long-shot script on a six-month free. However, I wrote in the agreement that I could only extend the option for another six months if A) there was significant progress made towards securing a director and financing, and B) I would have to pay an option fee (it was 10% of the purchase price). I spent six months trying my hardest to get a director. I came close with two directors who got scooped up by Netflix deals before I could finalize a deal with them. I had talent waiting in the wings but wanted to know who was directing before I could finalize with them. I couldn't even pursue financing until I had a director. I had the crew, the location, the budget, but without the right director the project wasn't going to succeed and the long shot was proving too risky for most directors. At the end of the six months, I could have paid the fee to extend the option but chose not to. Even the writer agreed it was too risky a project. He did have success landing a writing gig though, I think having an optioned script opened the right door for him, so it worked out. But I can attest that producers can be working their asses off and still get nowhere after six months. That's why most option agreements are for at least 2 years with extensions. Even with the director I was facing months of pursuing financing.

I'm sure the approach would vary depending on the credentials of the people involved. I certainly would give far more leeway if I was dealing with someone with an established track record.

Quoted from Jurij I wouldn't mind getting $1 for loaning out a bad script though. That's a free dollar.

If you're starving and really need a loaf of bread, then go for it. I don't understand why anybody would expect to sell a bad script. Unless they're just bad writers, of course... I see that all the time.