22
Jan
Doing a Deal
by Rick Patton
/ 6 Comments
Rick Patton on the set of “Bird on a Wire” in Victoria, British Columbia.
Many young people working in the movies start off with a certain disdain for business. For them it’s about the work, about the film. Money is necessary but it’s not why you do it. Young filmmakers routinely beg, borrow, and steal to get a movie made. Sort of like drugs. They do it even if it means they have to eat mac and cheese for a year. That’s OK when you’re in your 20’s and no one is depending on you. I did that myself. There were certainly times starting out when I would have paid someone to let me work on a movie. Unfortunately, that is not a career. It may be an obsession, a creative high, and a lot of fun, but it’s not a career. This section is about that time in your life when you want to get paid for what you do, even if you really enjoy doing it. At some point most successful film people turn a corner and start to approach their work as professionals. If you intend to work on films for a living, you come to grips with the business. It may surprise many to learn that freelance film people are often very sharp business people. I remember my shock and amazement when I learned that the easy-going, shabby hippie key grip standing next to me in the lunch line owned 2 apartment blocks and a condo in Maui. All he ever talked about on set was movies and how much he loved his job.
It is widely understood in the film industry that when you agree to do a show, you will show up all day, every day, no matter what, until the project is finished. It’s an old-school tradition, part of an unwritten code. If you take a day off it means you or someone close to you has died. A quick trip to the dentist is OK if a tooth is killing you, as is a trip to emergency to have a limb set or to stop profuse bleeding. If you have a highly contagious disease everyone will probably want you to stay home. The fact that the film is awful does not constitute an excuse to bale. The director being a screaming megalomaniac does not constitute an excuse. If those things bother you, don’t take the job in the first place. This is not some anonymous office job. Most of the people involved will be putting their reputations on the line when they make a film. Some people mortgage their homes. If you walk off a film, your professional reputation may be seriously damaged for years to come.
Before signing on to mix or do sound on a project it is important to make a deal for your services. This applies to documentary and feature projects equally. Never, ever, start on a project without a clear understanding of how much and when you will be paid. Clear understanding means in writing, signed by the producer or production manager, for any project lasting more than few days. This piece of paper is often referred to as the “Deal Memo” (see link below). It may be a one-page memo or it may be a formal contract requiring several pages. The Deal Memo spells out exactly the agreed amounts for the hourly, daily, or weekly rate for yourself, a daily or weekly rate for your gear, number of paid hours included in a daily or weekly (flat) rate, overtime rate to be paid above the flat, your rate for “travel days”, and any other items or services for which you expect to be paid. You need to specify, to the day, when you will be paid. Many producers or production managers have budgets that are less than what the project requires. It’s common for them to nickel and dime you once the shooting is under way. That’s their job. That’s what they get paid for. Having a Deal Memo helps avoid misunderstandings that may crop up and leads to a better working relationship. Be firm if a producer you don’t know says you don’t need a Deal Memo, gives you a hurt look, and says, “You don’t trust me?” Don’t fall for that. Some sort of Deal Memo is standard throughout the industry. It is normal to have one, whether you’re working for a small independent producer, a TV network, or a Hollywood studio. If the producer turns out to be a crook, the Deal Memo will give you something solid to take to court.
Independent freelancers need to cover everything when signing on to a project: rates, insurance, expenses, package rental, whatever. Union members are usually covered to some extent by the union contract, but even union members, especially those with equipment, need a Deal Memo. Freelancers are on their own. It always helps to do a search on the producer and the production company and see what their story is. If they don’t come up on any search engine it usually means they are green, inexperienced, and may be doing their first project. They may have no history managing a production and a budget. This is a caution flag, but not necessarily a reason to turn down the show. It may be someone you know and trust or just someone that you think can do the job. Weekly paydays are probably the best for most producers whether it’s their first movie or 100th movie.
Beware of Indy producers and production managers who present you with a low-ball offer while promising you a job on their “Next Big One”. This is a very old scam. If they do, in fact, ever get The Big One, they usually hire a senior IA mixer with a 20-page resume. Even if the PM tries to get you on The Big One, the Big director or the Big studio people will insist on someone they know, with Big credits. I’ve been on both sides of this equation. In most cases the Big One never comes. Most young technicians fall for this scam at least once. I know I did. It is a normal progression for talented people to work their way up the food chain, moving from smaller to larger productions. Producers and Production Managers move up the same way. Contacts and friendships made in the low budget world can become building blocks for bigger and better things. Effective production teams can move up together. Doing a great job for a reasonable rate is a more productive strategy than hoping for someone’s Next Big One.
Some jobs just don’t pay anything at all. Even if you are doing a freebie, it may still be possible to get paid for your equipment. Don’t hesitate to ask. Find out if they are getting the camera gear for free. That will tell you something. Many sound techs start out with a few unpaid projects at the beginning of their careers. It may be the only way to get your foot in the door. Once you do a few unpaid shows, you’ll get over it. It’s always interesting to find out if everyone is working for free or only certain people. It’s OK to volunteer on a project you believe in but you don’t want to wake up and discover that everyone got paid but you.
The signing of the Deal Memo is usually preceded by a meeting with the producer or the production manager. It may be the same meeting during which you are told you have the job, or you may have had a phone call saying “you got the job”, but no mention of rates or money. A good production manager will look for any signs of weakness or insecurity and exploit that insecurity to get you for a lesser rate. The best defense is to go into the meeting with a good idea of what the prevailing rates are in your area for a project like the one under discussion. You need to know your competition and have a good sense of what alternatives the production manager may have. Is it the busy season? Do you have any kind of edge on your competition? You should always be aware of what is union scale, even if you’re not in a union. If you aren’t clear about what is the going rate, make a few phone calls. If you have a lot of experience and a solid resume, go for the high end of the range. If the job represents a big step up for you, consider accepting something less. Keep in mind that you will never, on this planet, get more than you ask for. It is usually a good strategy to propose a higher rate with the idea you can move down as the negotiation progresses. It can happen that Sound is actually budgeted at a higher rate than what they offer you. If they can get you for less, they will. There’s no need to act offended at a low-ball offer. Stay relaxed and friendly, but hold your ground. The best production managers will observe you closely, read your body language, and watch your eyes. Some of them have done this 1000 times and they may have uncanny abilities to read you. It’s an art. It’s best to have your figure firmly in mind before you walk in the door.
It’s good to have a minimum rate below which you will not go. You may be tested on that rate so don’t be surprised if the meeting ends without anything being agreed. Your minimum rate is useful to you only if you are willing to walk away from a low-ball offer. The PM should be able to read that in your eyes. It can happen that your phone will ring later that day with the production manager saying “we managed to find the money” and “would you please drop by and sign a Deal Memo”. Then, of course, they may never call you because they hired someone else willing to work for less. Even so, most production managers will respect you if you stick to your guns, and it can work for you later, on another job. Sticking to your guns builds character and, ultimately, your reputation.
I probably negotiated over 100 deal memos in my career. Towards the end it became clear to me if a Production Manager accepted my rate without a word of protest, I must have missed something. Either that, or the PM was tired, sleep deprived, or just off his or her game that day. In cases where you are dealing with a producer or production manager you know well, your deal will probably be the same as it was on the last show. In that case negotiations will be pleasantly brief. Even if your rate is not an issue, it is still a good idea to go over the details just to make sure there will be no surprises later.
View a Deal Memo sample (225K PDF)
Source: film.art.columbia.edu
©Richard Patton 2009
This article, and Richard Patton’s previous Set Etiquette piece, are extracts from an upcoming book, with the working title “Sound Man“, by Richard Patton. “Sound Man” is a life-experience download from a filmmaker/technician who spent 40 years making and working on movies. Rick Patton worked on just about every kind of movie ever made, from student films to major Studio features. He traveled the world shooting documentaries with the National Film Board of Canada, worked on Avant Garde Underground films, TV series, Commercials, and major theatrical releases like “Happy Gilmore” and “Seven Years in Tibet”. His sound mixing credits run well into the 100’s of titles. “Sound Man” is aimed primarily at students and technicians in the early stages of their careers in film and video production, but may also provide some laughs for seasoned Pro’s. Each chapter is a humorous mix of practical technical advice, salted with anecdotes and tall tales. “Sound Man” is scheduled for publication in early 2009.
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Thank you.
Hey Rick,
Thanks for the thoughtful article. A general question, when you are hired onto a production is it customary for the production company to cover insurance an any rental gear that is used or is that something the contractor's insurance usually covers?
Nice article. Any update on when the book will be released? Who's publishing it?
I could have used you fifteen years ago! I've made every error you mentioned, some twice!
Any tips on how to meet new PM's? I was wishing there was a Production Manager's Ball and I was invited and presented by the Butler and I had just the right tie and suddenly they all wanted to dance with me. It ain't gonna happen.
I'd like to preorder a copy of "Sound Man".
This is one of the most appreciated, useful and necessary aspects for those involved in providing production services on any level. My sincere thanks to
Richard Patton for provding the article and a specific example that can serve as a useful tool to conduct business in a professional manner. I agree with his advice and would encourge everyone in the production community to use a deal memo or service agreement.
When you get it in writing, you illiminate potential misunderstanding. Thanks Trew Audio for making this information available because it serves to improve the Professionalism of the production community.
Jim Choi,
Thanks for bringing this up. Insurance questions come up a lot. I'll add an insurance section to the book.
Most professional productions have insurance. They usually rent lots of things, including expensive camera gear. They normally work with borrowed money. Suppliers and lenders usually insist on production insurance. That insurance can cover the sound gear while it's on set or in transit. You know you're insured when the production gives you a Certificate of Insurance showing your name as a "Loss Payee" or as "Additional Insured". Certificates of Insurance are standard forms issued by the production's insurance company. You can bet your boots that the camera rental house got one.
Rick
I'm sorry this took me so long to get around toreading Rick. Nice article and a lot of very useful info. Thanks for taking the time to help educate!