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Distribution 101

THE BEGINNER'S CRASH COURSE IN FILM DISTRIBUTION -- Part 8: Producer's Reps, International Sales Reps, Sales Agencies

The ten-part series The Beginner's Crash Course In Film Distribution distills some of the information contained within The Insider's Guide to Film Distribution into a useful mini-guide for independent filmmakers.

Part 8: Producers Reps, Independent Sales Reps and Sales Agencies

Producers Reps, Independent Sales Reps and Sales Agencies? Who are they and what role do they play? Basically, all three are agents who handle the distribution deal of your film -- they find the deal and negotiate the contracts. I'll start by defining each and then take a look at the role they play to help you decide which, if any, will benefit you and your film best.

A Producers Rep is an agent focused on handling the U.S. distribution deal who will also help in obtaining a foreign sales agent for the international sales. A Producers Rep may either charge a fee up front or they may take a percentage of the final sale. Be aware, if you pay an upfront fee and your film doesn't sell that payment is not contingent on the film selling. The money's gone.

An Independent Sales Rep is an independent agent who functions the same as a Producers Rep in the U.S., but also handles International sales. An Independent Sales Rep will generally not charge a fee upfront and take a percentage of anywhere between 10% and 30% off the top of each sale.

A Sales Agency is an agency, not an individual, focused solely on handling sales. These sales can be either U.S or foreign, depending on the territories they cover (or if you already have a Producers's Rep handling U.S. sales. A Sales Agency will either ask for a sizeable upfront fee in the neighborhood of $15,000 or will take anywhere between 15% and 30% off the top of sales. But if they take a percentage, they must first recoup their marketing expenses, generally the first $30,000 to $50,000 of sales. Again, if you paid upfront and your film does not sell, consider that money gone.

U.S. SALES

In the U.S., a Rep or Sales Agent used to be essential in securing a distribution deal. That is no longer the case as the Internet has made it easy for filmmakers to find and submit films to distributors. And many U.S. distributors are happy to deal directly with filmmakers. But this does take a lot of time. If you do not have the time to dedicate to selling the film, a Rep or Sales Agent should definitely be brought on. Producers Reps and Sales Agents have other definite advantages as well -- such as getting your film in the door with certain distributors. It can give your film some clout to be sure.

But when it comes to negotiating distribution contracts and making sure everything is in order before signing a contract, a rep or entertainment lawyer should handle that element. And I do highly recommend using a lawyer, or Rep, at this stage. It's well worth the money to protect yourself. For first time filmmakers, or those making their first distribution deal, a lawyer or a Rep is an absolute must to negotiate the deal and look out for your best interests.

FOREIGN SALES

Where foreign sales agents or independent sales reps are still helpful is the foreign market. Many foreign distributors prefer to work with sales agents rather than filmmakers, but this too is slowly beginning to change. But finding these contacts, and deciphering which ones actually buy independent films, can be harder for the filmmaker who decides to go it alone. The job of the sales agent or rep is to attend all the international film markets and to build their list of foreign buyers, to wine an dine them and to build solid business relationships, so you can often benefit from a Sales Rep or Sales Agency handling your film in the international marketplace.

Which is the better way to go? It depends entirely on your film and how it fits into the international marketplace. For some filmmakers, the only way they'll ever see money for foreign sales is to go it alone without a Sales Agency and either depend on a Rep or lawyer to handle the sales or just the negotiating. They'll take their commission and the filmmaker pockets the rest. For others a Sales Agency may be the best option.


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