I recently received an e-mail from a writer/producer who is interested in buying my script to use as his.  He wants to know a price but I truthfully have no idea what to tell him.  The script is a comedy and is 120 pages.  I'm very excited but also nervous at the same time as I have no idea how to handle this situation.  I don't want to scare him away by asking for too much but I also don't want to low ball myself.  I'm a first time writer, what should I ask for?

1.5 to 3% of the budget is pretty common.

3% of the budget plus 3% of the back end is a fair price.

He wants to "use as his"?  What does this mean?  He just wants to produce your script -- or he wants to put his name on the script?  Anyway, I find this all very fishy (especially since you're a first-time writer).  

But try to get a feel for where this guy is coming from.  You need to find out what sort of budget is he's working with.  

You could ask for 3% of the budget or you could ask for WGA minimum (roughly $75,000).  He might tell you, "That's out of my ballpark."  So find out what is in his ballpark.  

He might also offer an option deal.  A lot of ways to go on this.  You might take a grand or two (or more) and an option period of six months to a year.  I wouldn't go any longer than that...unless he's offering a lot of money.

If it turns out to be substantial deal and substantial money (doubtful, but certainly possible), get yourself an entertainment attorney.  And of course, if he asks YOU to front any cash, run away.

If the budget is under $2mil and you are an unknown writer you can expect between $10k and $47k (47k is the WGA recommendation) but that depends on you being a member and the producer being a signatory.

If the budget is over $2mil the writer’s fee should be at least $87k. (Again the WGA minimum).

You may get a back end deal of between 1.5% and 3% of the net profits but as only 7% of all movies make a fiscal profit, (not including tax credits) don’t expect any income from that source.

Getting fee based on a percentage of the budget only works for big budget project and where the writer has a status and prestige.

The biggest fear in you post is the statement “he wants it as his”.

NEVER give your writing credit away unless you are paid mega bucks and I mean mega. Six figure at least.

It is your calling card to the next deal.

I’ve had projects rejected for funding because I do not have a published writing credit at the moment.

Although I’ve been commissioned by producers and directors all over the world. Work as a story editor for a prize winning Hollywood director. Have three scripts at different stages of production, lecture on the art of screen playwriting and am represented by a legend in the industry.

Ron, when trying to negotiate a "back end" deal, is it possible to recieve percentage points on "gross" profit or revenue?  I realize that Hollywood accounting kills almost all net profits, but it appears quite obvious to me that when a movie grosses close to double its budget, it did well and it made a big profit for someone.  

Nothing is as it appears either with the budget or box office receipts.

Anything is possible in negotiations but generally if it sounds too good to be true it normally is.

Net profits are the real profits everything else is fiction.

A Profit is after everything else has been paid for. That includes crew, marketing, distribution, interest on loans, investors, insurance and anything else.

When a film grosses double its budget, it lost money.

A movie that costs $50mil and has a box office of $120mil makes a $10mil loss unless it has 30% plus tax credits to balance it’s expenditure.

Only huge stars get points on gross - I am not sure I have ever heard of a screenwriter managing it, but if they have they'd have to be someone like Joe Eszterhas!

Frankly, with the creative accounting that goes on everywhere (not just in Hollywood Film Companies), it's always best to get the money up front!

A Bird in the Hand is Worth Two in a Bush.

Ok, Ron, so what's your take on the following movies and their production budgets vs. grosses...

Whiteout - Production Budget $35 Million.  Gross to date (including international $11 Million

Pandorum - Production Budget $40 Million.  Gross to date, including international $6 Million

Sorority Row - Production Budget $12.5 Million.  Gross to date $14 Million

Jennifer's Body - Production Budget $16 Million,  Gross to date, including international $14 Million.  I heard that the Producers of Jennifer's Body said that they weren't concerned with the weak opening, because of the "low" Production Budget, it would be a profitable film.

Based on what you're saying, these are all losers and 2 of them are major catastrophes.

Quoted from Dreamscale Ok, Ron, so what's your take on the following movies and their production budgets vs. grosses... Whiteout - Production Budget $35 Million.  Gross to date (including international $11 Million Pandorum - Production Budget $40 Million.  Gross to date, including international $6 Million Sorority Row - Production Budget $12.5 Million.  Gross to date $14 Million Jennifer's Body - Production Budget $16 Million,  Gross to date, including international $14 Million.  I heard that the Producers of Jennifer's Body said that they weren't concerned with the weak opening, because of the "low" Production Budget, it would be a profitable film. Based on what you're saying, these are all losers and 2 of them are major catastrophes.

Jeff, "Hollywood Accounting" is just the term the movie industry uses for the creative accounting that goes on in many businesses around the world. Quite often making a profit is bad for business.

Just like in Sales organisations where stupid staff negotiate a cut of profits as an incentive it is in the companies interest to ensure profits are as low as possible come the end of the FY. The smart sales people take their incentives up front as a percentage of the Gross Profit or the revenue.

Very often, even big movies fail to make a profit, but everyone who matters still get paid and the studios get their money back in various other ways. Say the department who provide lightbulbs to the production make a huge mark-up on lightbulbs. This department is still owned by the studio and thus makes a tidy profit but in terms of the particular movie they have to pay for these lightbulbs and thus a huge cost taken off the balance sheet.

At the end of the day it is virtually impossible to know how much money a movie has actually made a studio, you cannot believe a word they say. I would say however that there are very few movies that actually lose money, much less than the studios would have you think anyway. This is why Hollywood history is littered with lawsuits by writers and directors trying to claim shares of profits that the studios deny exist.

Obviously you are having difficulties with the “Dream Scale”

Whiteout

Estimated Budget $40mil

Marketing cost unpublished but allow 15% of budget $6mil.

Opening Weekend Box-office Gross $4.9mil

Total Gross to date $9.8mil = normal revenue from opening weekend 60% to distributor 40% to cinema.

The distributor deducts their costs and fees so using the above as an example net revenue to date about $4.9mil. (current figs from IMDb-Pro).

I’m not going to do the arithmetic for the others.

Normal statistics indicate that revenue reduces after opening month considerably. So it may take five years and good DVD sales to breakeven.

I agree with you, Murphy.

IMO, anytime a movie is made for under $10 Million (or around there), and grosses north of $15 Million, eveyone is happy, everyone makes money, and the movie should be considered a success.

Now, on the other end of the scale, are my first 2 examples...Whiteout and Pandorum, made for $35 and $40 Million, respectively.  Neither will make close to even half of that amount in their theatrical runs.  When all is said and done, including DVD, rentals, cable rights, etc., they may come close to what was originally put up, but they'll still be hugely in the red, and both will be rightfully so considered failures, adn bad investments for all invovled.

I can't understand why either was greenlighted for anywhere near those budgets, as it's very obvious (in my mind) that they didn't have a chance to recoup that kind of money, let alone make a profit.  And, also, neither movie looked like it cost anywhere near that amount of money.

3% of the budget sounds reasonable although you could push for 5%. If you're talking a flat fee, I'd ask for one or two grand. You could probably get away with two considering your script is on the longer side. Personally, I wouldn't worry about any figures put out by the WGA as I doubt many producers with that kind of budget browse the site. Not in my experience anyway. But you never know...

Also, the phrase "to use as his" sounds strange to me. Is that supposed to mean his name is going to show up on the writer's credit? I'd look into this.