Q. I just picked up my first "LA" option for a short story I wrote. I'll be getting 2% net if it gets made. Now I've read articles on net versus gross in the industry and my agent ways I should just be happy at this stage of my career that it was picked up...... so of course I signed. However as a writer moving forward is there anything else I should be aware of or ask for that doesn't normally fall within the option contract?
The standard definition of net profits is "you don't see any profits." So whether you get 2% of nothing or 5% of nothing is unimportant. On the other hand as a newbie you're not going to get gross. It's pretty rare for even a veteran writer to get gross participation. If the movie is a hit, you won't get more cash from the movie, but you will get asked to write other people's movies at a much better salary.
I like to ask for the right of first refusal (ROFR) to write sequels, prequels and spin-offs, as well as TV pilots. Sometimes that turns into ROFR provided that
I get a credit on the script. (No one can guarantee I get a credit because it's arbitrated by the Guild.)
If they're optioning your story or novel, you can often ask for ROFR to write the initial script. Very likely they will take it away from you after the first draft, but you'll get a screenwriting credit on the movie because when you adapted the script you brought in the plot and the characters. If you don't write the first draft, the most you'd get would be a "Based on a short story by" credit.
When I'm optioning a script, I like to ask for a production bonus based on the budget of the film. The WGC, but not the WGA, has this in the standard contract. Bear in mind the minimum scale percentage is a floor, not a cap, so you can negotiate more, if they really want the script. The nice thing about a percentage is that the producer can't really plead poverty. "But our budget is tiny." "No problem, then I get 2.5% of tiny."
Bear in mind anything that looks like "Writer will be consulted" bla bla bla is meaningless and unenforceable. "What do you think." "It sucks because this this and this." "Thanks, you've been consulted." Likewise anything that looks like "Writer will be considered." "What do you think about Joe?" "That guy? F*&& him." You've been considered.
Remember, you can insist on any contractual term, so long as you're willing to walk away. I've heard that Sylvester Stallone turned down $200,000 for the script to Rocky
, because they wouldn't agree for him to star in it. He was broke at the time. Later, someone else bought the script for scale, but with him to star in it.
You could probably tell that story about a thousand other guys who never sold their script to anyone because they insisted on starring in it.
By the same token, if you're not willing to walk away, it's hard to get anything. You don't get the contract you deserve, you get the contract you negotiate.
99% of the time it's better to have an agent negotiate for you. But you don't want to leave the negotiating to the agent. You want them to be the face of the negotiation, but ultimately you have to tell them what your dealbreakers are and how hard to haggle, and how upset you'll be if they don't make a deal.