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HOW TO NAVIGATE FOREIGN SALES AGENCIES
Stacey Parks

(Article published in Student Filmmaker Magazine)

A consulting client of mine recently asked how to avoid getting ripped off by foreign sales agencies. So I decided to come up with a few tips on how to protect your self from sales agents.

When looking for distribution for your independent film, you may be approached by a sales agent whose job it is to sell your film to various distributors worldwide ie: broadcast networks and DVD distributors. For performing that service, they will demand certain fees. After being a foreign sales agent for several years myself, I can tell you that most of these fees are completely warranted. Foreign sales is the one area that is difficult to take on DIY, so it's well worth it in my opinion to hire a specialist to do the work for you.

Here are three areas where you can negotiate with sales agencies to get a better deal for yourself:

1. Agency commission

The standard agency commission is anywhere between 10% and 30% of each sale made. Personally, I think 20%-25% is a fair commission to take -- so plan on negotiating this in your contract. You can negotiate lower, but in most cases you will be responsible then for all marketing expenses (see below).

2. Marketing Expenses

In addition to a sales commission, an agency will want to recoup at least $10K to $50K in marketing expenses for your independent film. These marketing expenses include things like making dubs, creating artwork, shipping viewing cassettes to buyers, and all the international film and television markets. Personally, I think $10K to $15K is a fair amount, but only if you the filmmaker are willing to pitch in and provide your own artwork, dubs, and possibly Fedex account number.

3. Producers approval

Sales agents will absolutely balk at this, but try to negotiate producers approval on sales. Otherwise, they have the authority to sell your indie film for pennies on the dollar as part of big 'package' deals, instead of what it's really worth. If they have to seek your approval before doing that type of sale, they will not be inclined to include your film in the package deals, and will have to work harder to get market value prices.

Again, these are only a few suggestions of how to deal with foreign sales agencies. Since this is my area of expertise, I cover a lot of ground on this stuff in the complete educational program Insiders Guide to Film Distribution which you can purchase at http://www.film-distribution-secrets.com.

Stacey Parks is the author of "Insiders Guide to Film Distribution", a comprehensive educational program for filmmakers and producers dedicated to film distribution and the marketplace. Stacey has worked in independent film for over 10 years, and is currently a sales executive at the BBC Worldwide in Los Angeles. She was previously a foreign sales agent for many years. You can purchase her educational program at http:// www.film-distribution-secrets.com.


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