Many people ask what the difference is between a producer rep and a sales agent. Technically, they are synonymous with one another, however the argument can be made that a producer rep takes a greater interest in a filmmaker's long-term career goals. For example, while a sales agent is solely responsible for getting distribution deals for your film, a producer rep will guide you to choosing the right launch festival for your film and making sure all the right people attend your screening. Producer reps generally do not specialize in foreign sales however so they will often help the filmmaker find a reputable foreign sales agent to take over those duties.

Most distributors say that films represented by a producer rep or sales agent have a certain cachet over unrepresented films. I believe this to be true too.

One benefit of working with a rep or sales agent is since they work on commission, it is in their best interest to get the highest price for your film per territory. Furthermore, reps can squeeze more revenue out of a film by splitting up rights. For example, splitting up cable, DVD, and theatrical rights rather than doing an all media deal can mean more money down the line for the producer. A producer may unknowingly sign away all rights --cable, DVD, and theatrical in an "all media" package -- for far less money than he could get by selling the rights separately.

Distributors also prefer to deal with experienced sales people rather than producers themselves. It's not the producers' job to know the nitty-gritty details of negotiating distribution contracts. Distributors know this and are often more willing to play ball with an agent or rep.

In my experience, producer reps and sales reps charge fees anywhere between 10% and 25% per distribution deal, depending on if they have big company overheads or not. If they do, they will charge closer to 25%. If you can find a good independent producer rep or sales agent, they will charge closer to the 10% fee since they don't have the huge overheads and operating costs of bigger sales companies. Instead, you will most likely be responsible for making all your own dubs, shipping out screening cassettes to buyers on your dime, and covering all the costs of printing up fliers and other marketing materials.

A reputable sales agent should not charge you any fees up-front, rather it is customary that they will take their distribution fee off the top of every sale they make. Furthermore, if you are dealing with a big agency, keep in mind that they bear the cost of marketing your film to distributors and therefore they share in the financial risk. In this way, the sales company is motivated to sell your film and recoup their initial investment. Agents and reps have long-term established relationships with various buyers that can make a difference in securing a sale.

Selling films is a specialized business that requires comprehensive knowledge of distribution and market trends. Producers who try and make their own sales (particularly international sales) could find they've bitten off more than they can chew.

The best way to find producer reps and sales agents is by attending film festivals and getting word-of-mouth recommendations. Producer reps and sales agents will be representing their films and actively recruiting new clients at film festivals, so this may give you a chance to get an introduction and see them in action right then and there. Another great word-of-mouth resource for getting recommendations on agents and reps are internet message boards.

When searching for reputable reps and foreign sales agents you should:

1. Ask around to see what their reputation is. Ask the rep for references from other producers, and be sure call and check their references. If a rep refuses to give you references or gives you the run-around, this is generally a red flag that their reputation may be less than stellar or they may have something to hide. It is then advised to move on and find a rep who will gladly stand by the work they've done and their track record.

2. Look at their catalogue and the other films they're selling to see if yours fits in.

3. Remember producers reps are adept at getting you a U.S deal, so it's still necessary to get a foreign sales agent.

4. Look at what their success rate has been in selling films

5. Really sit down with your potential rep and ask questions about what territories they think they can sell your film in. Try to take several meetings and choose wisely. Decide who will work best for you and your film.

And remember, bigger isn't always better. For some a larger sales agency is a good fit, especially if you've been doing this for a while and have an established reputation. Larger agencies have big catalogues and can leverage their might. They can also wrap several films around one really sought after property. Meaning: if an agent or rep is representing a film that distributors are clamoring for, they can often make the sale contingent on the distributor buying several other films in their catalogue as well. It's basically selling several as a package deal. Smaller reps can't wield this card but for many, especially those just starting out, the smaller rep may be the better option. Since the larger agencies have such extensive catalogues, this is a blessing as much as a curse because filmmakers can often get lost in the shuffle. Smaller reps often have the same contacts as bigger reps and will most likely give your film more individualized attention than someone with a huge slate. It is also in the best interest of the smaller rep to not let your film fall by the wayside because their livelihood depends on it selling for as much as possible. Sometimes young and hungry is the best and most effective way to go.

Additional tips to keep in mind:

1. Have measured expectations

Don't expect to make back your investors' money through foreign sales alone. Count on recouping your money through a U.S deal, and let the foreign sales be icing on the cake.

Nine times our of ten, filmmakers will not see any money from foreign sales because the sales agencies typically have to recoup their marketing costs FIRST before they pay out to filmmakers. And with international prices at an all-time low, sales agencies rarely recoup the marketing expenses for independent films, and therefore rarely pay out to filmmakers.

2. Negotiate distribution fee and marketing expenses

As I stated previously, most sales agencies charge a 25% 'off the top' distribution fee for sales they make on your film. In addition to that, they will want to keep the first $30K - $50K in sales of your film, and claim them as 'marketing expenses'. In all fairness, I will say that a lot of money is expended in marketing films through artwork, fliers, shipping, dubbing, and the international markets and trade shows.

My suggestion if to try and negotiate these marketing caps in advance, and either ask for a lower cap (say $10K), or try for a straight 30% distribution fee with no recoupment of expenses. This would mean that for every sale the agency makes, they take their 30% distribution fee, and send you the balance. In other words, you would start getting paid from dollar one, instead of after marketing expenses are recouped. It means a little less money for you in the short run, but at least you'll be getting paid something.

3. Use a collection account

You can always make a part of your contract with the foreign sales agency that when sales of your film are made, proceeds will go to a collection account. A collection account is an independent third party that provides filmmakers full insight into the financial status of a project and protection against default and fraudulent behavior (ie: the foreign sales agency failure to disclose actual sales made and/or failure in paying out proceeds from sales).

Ask your local bank about setting up a collection account. You will better learn the details and ins-and-out by hearing about it directly from a financial institution.