I just got off the phone today with a company that's planning on packaging several feature scripts to present to investors and will be producing at least 3 to 4 next year.  It was like pulling teeth asking about how much they would offer for a 6 month option. Their company is comprised of some very accomplished people who should have no problem at all finding the money to compensate me, but they talked as if it would be difficult to scrape anything together.

I explained that I wouldn't be convinced of their appreciation and passion for the script if they were unwilling to compensate me.  

I've done some background on this company and they are doing well.  Why is it that no one seems to wanna pony up any option money?  

  

I may be wrong, but...

If the investor's aren't on board yet that means there's no money. Sounds like this company just wants to have a stable of scripts in hand to present to the investors and may the best scripts win. That's probably why they don't want to pony up any money for you.

Imo, let them have the script, sign a contract and tell them that the option is non exclusive (due to their unwillingness to pay) and that you hold the right to sell this to whoever you please should that situation arise.

Just curious - Did you query these people or did they find your script on their own? Where did they find it?

Steve

Quoted from SAC I may be wrong, but... If the investor's aren't on board yet that means there's no money. Sounds like this company just wants to have a stable of scripts in hand to present to the investors and may the best scripts win. That's probably why they don't want to pony up any money for you. Imo, let them have the script, sign a contract and tell them that the option is non exclusive (due to their unwillingness to pay) and that you hold the right to sell this to whoever you please should that situation arise. Just curious - Did you query these people or did they find your script on their own? Where did they find it? Steve

Good approach.

As Steven said, they don't have funding this year. Your script will be one of a heap that they pitch to investors (I doubt it will be just three or four). If you get lucky, your script gets made. I'm pretty sure though they will want the option for at least a year. The 6-months, if that's how they start, may be extended later down the line, depending how many scripts they're pitching.

At the end of the day... what is that script doing now?

I have refused a dollar option for a similar thing. That was a couple years ago... and I still have the script. Who knows... if I'd have taken that dollar option?

The trouble with this approach by the company is that they don't actually care about you or your script. You're just one of many. But... what else you gonna do?

Quoted from SAC I may be wrong, but... If the investor's aren't on board yet that means there's no money. Sounds like this company just wants to have a stable of scripts in hand to present to the investors and may the best scripts win. That's probably why they don't want to pony up any money for you. Imo, let them have the script, sign a contract and tell them that the option is non exclusive (due to their unwillingness to pay) and that you hold the right to sell this to whoever you please should that situation arise. Just curious - Did you query these people or did they find your script on their own? Where did they find it? Steve

  

Non exclusive seems like the way to go.  I just get tired of all the excuses for why the writer can't be paid.  

If you don't have any money, (even a few hundred for an option) how are you keeping a company afloat?  

I submitted to them.  They could have easily taken my script to this same investor without telling me about the meeting.  He could say yay or nay, and then get back to me with an offer to option or buy out.  Wait until there's some actual interest before giving me a call.    

Quoted from DustinBowcot As Steven said, they don't have funding this year. Your script will be one of a heap that they pitch to investors (I doubt it will be just three or four). If you get lucky, your script gets made. I'm pretty sure though they will want the option for at least a year. The 6-months, if that's how they start, may be extended later down the line, depending how many scripts they're pitching. At the end of the day... what is that script doing now? I have refused a dollar option for a similar thing. That was a couple years ago... and I still have the script. Who knows... if I'd have taken that dollar option? The trouble with this approach by the company is that they don't actually care about you or your script. You're just one of many. But... what else you gonna do?

  

I was told they are packaging 12 micro budget scripts to be produced over the next three years.  4 will most likely be produced next year.  I was also told they've received over 700 submissions and, so far, they are only looking at 3 or 4 of them with any interest.  

Asking for some compensation for this option seems to be the only way to weed out those who are serious about your script and those who are planning on taking a stack of mediocre to shit scripts to an investor and pitching them all until they find one that sucks the least.    

Seriously though.  Why even contact me until you've pitched the investor?  He/she could say "I like this idea.  Let's see about developing this one further".  Then give me a call and make an offer for a 6 month to year option.   I don't understand this approach.  

    

I had a script optioned by a Canadian prod-co that makes films in the low million dollar range, but have gone as high as 15M. I was soooo excited when they optioned little old me's script for $1. Two years later they gave the script back to me because they couldn't get enough funding for the project. That's when I learned that they, and so many other prod-cos, option a whole bunch of scripts and try to get funding after they have the script. Sort of like throwing stuff at a wall and see what sticks.

While that script was in their hands for TWO YEARS, I was approached by numerous people about offers to option it, but I obviously had to turn them down. Now the script is dated and isn't doing anything. I worked hard on that script. Including two re-writes for the Canadians.

I will never again option a script for $1 for any length of time. Nowadays, I offer a three month option and if they can prove to me after that time that they are actively working on securing funding, I will gladly do another three months and so on. If they want more than three months from the start they will have to pay me a decent amount or flat out purchase it. Not one fricken dollar. So far, no one that's approached me about optioning a script has objected to this, so I'm sticking with it.

Good luck.

Quite frankly, if it’s going to be a prodco worth your time, they won’t act as they have. It sounds as though they’re trying to traffic on dreams, assuming the desire for a production feature credit will make you malleable.

A proper prodco has an established line of financing (or access to financiers) that allows them to develop a slate with purpose, i.e. a slate that fits a vision. Think Blumhouse.

Sound like a bunch of cowboys. Time wasters. Pia’s 3 month advice seems shrewd and sensible course of action to me.

Quoted from Grandma Bear I had a script optioned by a Canadian prod-co that makes films in the low million dollar range, but have gone as high as 15M. I was soooo excited when they optioned little old me's script for $1. Two years later they gave the script back to me because they couldn't get enough funding for the project. That's when I learned that they, and so many other prod-cos, option a whole bunch of scripts and try to get funding after they have the script. Sort of like throwing stuff at a wall and see what sticks. While that script was in their hands for TWO YEARS, I was approached by numerous people about offers to option it, but I obviously had to turn them down. Now the script is dated and isn't doing anything. I worked hard on that script. Including two re-writes for the Canadians. I will never again option a script for $1 for any length of time. Nowadays, I offer a three month option and if they can prove to me after that time that they are actively working on securing funding, I will gladly do another three months and so on. If they want more than three months from the start they will have to pay me a decent amount or flat out purchase it. Not one fricken dollar. So far, no one that's approached me about optioning a script has objected to this, so I'm sticking with it. Good luck.

Totally agree with this.

Quoted from SAC I may be wrong, but... If the investor's aren't on board yet that means there's no money. Sounds like this company just wants to have a stable of scripts in hand to present to the investors and may the best scripts win. That's probably why they don't want to pony up any money for you. Imo, let them have the script, sign a contract and tell them that the option is non exclusive (due to their unwillingness to pay) and that you hold the right to sell this to whoever you please should that situation arise. Just curious - Did you query these people or did they find your script on their own? Where did they find it? Steve

I heard back from them this morning.  I got the big NO to upfront money for the option.  

I then went the non-exclusive route.  I got the big NO on that too.      

Quoted from ericdickson I heard back from them this morning.  I got the big NO to upfront money for the option.   I then went the non-exclusive route.  I got the big NO on that too.

If it were me, I say bye bye

Quoted from ericdickson I heard back from them this morning.  I got the big NO to upfront money for the option.   I then went the non-exclusive route.  I got the big NO on that too.

See, some people like to option a LOT of scripts, that way it looks like they’ve got a lot going on, which looks good on paper and probably feeds their ego. I don’t know which is which or even if that’s the case here but, like Dave, I’d say no dice.

If you think your script is that good then write some query’s and knock on some doors. Get it out there. At the very least maybe you’ll make a few contacts and get your name and your script on peoples minds.

Quoted from SAC See, some people like to option a LOT of scripts, that way it looks like they’ve got a lot going on, which looks good on paper and probably feeds their ego. I don’t know which is which or even if that’s the case here but, like Dave, I’d say no dice. If you think your script is that good then write some query’s and knock on some doors. Get it out there. At the very least maybe you’ll make a few contacts and get your name and your script out there.

  

I know exactly what you mean.  But their website isn't obnoxious with "IN DEVELOPMENT" projects and fake posters.  It's pretty basic with only their completed films.  

When I got their first email this morning, I replied with an offer to sign a non-exclusive.  They quickly said no.  In my reply, I said that I'm never signing anything without some sort of compensation.  

I got the "I understand and all the best" response.  

Done deal.  

How do these companies ever get films made if this is how they operate?

Quoted from ericdickson    How do these companies ever get films made if this is how they operate?

I couldn’t tell you. It’s hit or miss. Like another commenter said, they don’t care about YOUR hopes and dreams, or you getting your start. At the end of the day it’s all about the money. However, if they did read your script and saw something they liked then that is cause for optimism in my book.

I’m curious as to the reason why they didn’t go with the non-exclusive option. Except for being a bunch of d**ks, what’s the rationale? Who’s going to know except for them and the writer that it was non-exclusive? The only thing I can come up with is if the same investor is approached or word gets around?  

Gabe

Quoted from Mr.Ripley I’m curious as to the reason why they didn’t go with the non-exclusive option. Except for being a bunch of d**ks, what’s the rationale? Who’s going to know except for them and the writer that it was non-exclusive? The only thing I can come up with is if the same investor is approached or word gets around?   Gabe

Then that would give the writer the upper hand if it were to be bought, and they don’t want that. Say the prodco, or whoever they are, go for the non exclusive. And say their partners want to buy it—I mean they really like it and need to have it. Then Eric, theoretically, can pull the rug out and say he either sold it already or, worse yet, another company wants it bad, and start a bidding war. Then Eric becomes a jerk, the prodco who agreed to the deal look like fools in front of their partners for starting this mess by agreeing to a non exclusive option.

To StevenClarke - Oh. Thanks for the explanation. There still d**ks in my book lol. God forbid a writer gets paid for his work or even see their work get made.

To Eric, you still have other opportunities. f**k em.

Gabe

Here's what I don't get.  

I submitted my script to them for review.  Why bother telling me about this investor?   Why not just take the script to the investor and get a yay or nay?  

Just a thought.  Wait until there's some actual interest from the money people before alerting me about an option or outright purchase.  The odds of me selling it or optioning it to an outside party before this meeting takes place are pretty slim.  

And pay the writer.  If not a lousy few hundred for the option.  It's at least a gesture of their intentions and seriousness about funding your script.  

Total agreement.

I’m a newbie so just taking a stab in the dark. I’m guessing they were trying to weed out who they were able to get in there stack for free for this supposed investor. It’s all hearsay. There’s no actual proof for the investor or the 700 submissions. It’s there word.

I’m curious as to what would’ve happened if you gave it to them for free lol. F**king bastards.

Gabe

Quoted from Mr.Ripley Total agreement. I’m a newbie so just taking a stab in the dark. I’m guessing they were trying to weed out who they were able to get in there stack for free for this supposed investor. It’s all hearsay. There’s no actual proof for the investor or the 700 submissions. It’s there word. I’m curious as to what would’ve happened if you gave it to them for free lol. F**king bastards. Gabe

I'm never doing anything for free again.  Been there, done that.  

Putting a production slate together and approaching investors is the fastest and surest way to get large amounts of money for development. However, what this deal should be is a shopping agreement, not an option.

A shopping agreement allows a producer to package scripts and look for buyers FOR FREE. They have no skin in the game, and there is no price attached to the script in the agreement, so why should any writer in her right mind do this?

First of all, 100% of the rights to the script are retained by the writer. The producer has no power over the script except a contractual obligation to try to make a deal. This also means that the writer shouldn't shop it around during the agreement period, but if a major deal comes along the writer can sell the script and there isn't much the producer can do except maybe sue for breach of contract, but producers with no money can't afford to do that and they'd probably lose anyway since they never actually had the rights for the property.

Second, shopping agreements are much shorter than options, six to nine months at most. And producers cannot automatically extend the agreement. The writer has the right to terminate the agreement at the end of the period, unless both parties choose to extend it. There might be a clause in the agreement that states the producer can extend it if she is in active negotiations with a buyer, but that cannot be longer than 90 days, and really, that's what you want, right? It protects negotiations from blowing up by writers pulling their scripts just before a deal closes.

But even then, the writer has power, because the writer has to agree to the terms of the sale jointly with the producer. Writer still as the rights to the script, they get to agree to how much it sells for, what the back end points are, everything related to the sale of the script. The producer doesn't have a choice but to try to make the best deal for the writer because the writer can say no to the money if it isn't good enough.

Having said that, option agreements are far better than shopping agreements. Producers have far more security with an option agreement and the writer knows what to expect from it and is paid for that time. If you can get an option agreement and be paid for it, always go for it. However, shopping agreements are becoming more and more common and you shouldn't ignore them.

Quoted from ReneC Putting a production slate together and approaching investors is the fastest and surest way to get large amounts of money for development. However, what this deal should be is a shopping agreement, not an option. A shopping agreement allows a producer to package scripts and look for buyers FOR FREE. They have no skin in the game, and there is no price attached to the script in the agreement, so why should any writer in her right mind do this? First of all, 100% of the rights to the script are retained by the writer. The producer has no power over the script except a contractual obligation to try to make a deal. This also means that the writer shouldn't shop it around during the agreement period, but if a major deal comes along the writer can sell the script and there isn't much the producer can do except maybe sue for breach of contract, but producers with no money can't afford to do that and they'd probably lose anyway since they never actually had the rights for the property. Second, shopping agreements are much shorter than options, six to nine months at most. And producers cannot automatically extend the agreement. The writer has the right to terminate the agreement at the end of the period, unless both parties choose to extend it. There might be a clause in the agreement that states the producer can extend it if she is in active negotiations with a buyer, but that cannot be longer than 90 days, and really, that's what you want, right? It protects negotiations from blowing up by writers pulling their scripts just before a deal closes. But even then, the writer has power, because the writer has to agree to the terms of the sale jointly with the producer. Writer still as the rights to the script, they get to agree to how much it sells for, what the back end points are, everything related to the sale of the script. The producer doesn't have a choice but to try to make the best deal for the writer because the writer can say no to the money if it isn't good enough. Having said that, option agreements are far better than shopping agreements. Producers have far more security with an option agreement and the writer knows what to expect from it and is paid for that time. If you can get an option agreement and be paid for it, always go for it. However, shopping agreements are becoming more and more common and you shouldn't ignore them.

Good topic, Rene.

Here is a link to an article I read a while back if anyone is interested.

https://filmmakermagazine.com/88008-not-an-option/#.XcL8lehKiUk

The surprising thing for newbies (like it was for me) is that even companies that have made movies that cost a few million, like Pia said, they too act like this.

It's the norm, sadly.

Quoted from Demento The surprising thing for newbies (like it was for me) is that even companies that have made movies that cost a few million, like Pia said, they too act like this. It's the norm, sadly.

Indeed