TUESDAY'S BIZ TIP:
WHAT ARE MY OPTIONS?
Hey, we all know what selling a script is all about, right? That's when some producer
gives you six figures for 110 pages of typing - and you get to tell off all of those people
who told you that you were a dreamer and to get a real job. But what exactly is
optioning a script? Who can you tell off? If you option a script, do you still need to get a
real job?
An option is renting a script to a producer. It's just like renting an apartment - but you
are the landlord. Someone pays you an agreed upon amount for an agreed upon time -
then they move in. They have temporary ownership of your script. While that script is
under option it is not yours - you can't sell it, you can't show it to other producers, you
can't complain about what the producer does with it. The script isn't yours for as long as
the option lasts.
The purpose of an option is to "rent" the rights to a producer so that he can take the
script to a studio or other financial source to obtain funding. Producers usually do not
have any money of their own and MUST go to studios or financial sources to get the
money to pay you for the script. In the old days a producer on a studio lot had
"discretionary funds" to buy scripts on their own. The studio would give them a
allowance to buy scripts with... but in today's economy a producer is lucky to get office
space out of a studio. Producers have to submit scripts to the studio the same way we
submit scripts to the producers... then cross their fingers and hope the studio wants to
buy the script. If a studio passes, the producer can take it to another studio or even an
outside financial source (unless they have an exclusive with one studio - then it's dead).
An independent producer may have contacts at various studios or with several outside
funding source and they need to "shop" the script until they find someone willing to fund
the film. The producer needs to option the script to prevent the studio from
circumventing them and cutting them out of the deal. If the producer owns the script
(even if it's just a rental) the studio or third party financial source has to deal with them.
An option is not some sort of booby prize - it is a step in the purchase of a script. Most
option agreements spell out the purchase price of the script - it's all about buying the
script! You'll want to make sure that purchase price is on a sliding scale by film budget.
On TREACHEROUS my option deal was designed for a low budget theatrical, but when
the producer set it up at Hemdale (TERMINATOR) and stars signed on, the budget
quadrupled but my pay rate stayed exactly the same. The director would have been
payed more with the new budget, but not the writer! I learned my lesson - from then on
my contracts have been set up so that my pay goes up when the budget goes up. This
is stuff your lawyer will deal with when the time comes - but you'll probably have to
remind them.
OPTION TIME
There is no average option time... but I always try to get the shortest period of time
possible. Usually four months (with another four months for twice the original option
money). The last thing I want is for a producer to have the project get turned down...
and still have MONTHS AND MONTHS left on the option. It'll be sitting on the
producer's shelf collecting dust... and dozens of other producers will then come out of
the woodwork and want to buy it from me... but I can't sell it because it's still under
option. That's what happens every time! A couple of years ago a producer optioned a
brand new script of mine for 6 months... and no sooner had I signed the contract than
three other producers called me asking about the script. The guy who optioned the
script couldn't get it off the ground, and I couldn't sell it to the other guys who were
interested. By the time the option period was over, the other companies were no longer
interested. If the option period had only been 4 months I might have been able to stall
the other companies until the rights reverted back to me. Keep the option period short!
SHOPPING AGREEMENTS
Another method is to limit the studios or financial sources that the producer can go to -
this is called a "shopping agreement". This can either be used in conjunction with a time
limit or without. My option contract on THE PRICE OF FEAR limited the producer to 10
networks and studios - they couldn't take the script to anyone else. That way I knew
who had read the script, and had many other places to take it after the option had
expired. The script hadn't been read by everyone in town (as it might have been under
an option based on time alone). Though I agreed not to market the script for the four
month period of the option, and never to market it to their 10 companies. If one of those
10 companies later expressed an interest in the script, the producer had to be part of
the deal (even if the four months was up). Basically, the producer "rented" my script
forever for those 10 companies. One of the companies on the list was TBS - who
wanted to make the film. My lawyer and their lawyer put together a deal... which fell
apart when NBC announced they were going to make the same true story. I got my
script back - and I can sell it to anyone in the world except those ten companies on the
list.
Under WGA rules "Shopping Agreements" may be granted without compensation - but
the writer is in the driver's seat, here. If a producer claims poverty but loves your script,
you might decide to allow them to take it to ONE studio for whatever they can afford...
and maybe even come up with an escalating deal for each subsequent company they
go to ($50 the first company, $100 for the second, $150 for the third, $200 for the
fourth). According to WGA rules a producer can not shop a script to a company without
permission from the writer. These rules don't apply to non-signatory companies, but
contracts do - so get your agreement in writing!
SHOW ME THE MONEY!
There's a tip in rotation that talks about free options... have you ever found an apartment building
where rent was free? There is no standard option amount - everything is negotiable...
but Writer's Guild has minimums that signatory companies must adhere to - no less
than 10% of the WGA minimum for each option period up to 18 months. That makes
$5,848 for 18 months the minimum option. This doesn't apply to non-signatory
companies, but you want to be paid a fair amount for giving up ownership of your script
for a couple of months. 1% - 1/2% of the (lowest) purchase price per month is probably
fair... so you'll end up with at least a couple of hundred dollars for four months even on
a dirt cheap low budget film. A normal low budget film will probably pay you at least
$750 for a 4 month option.
If you option your script for 4 months, you want to make it renewable for another 4
months... but at about twice the price. Why? You want to create an incentive for the
producer to get off their butts and get to work. If they know it will cost them more money
the longer they take to get your project off the ground, they're gonna get a move on!
Again - all of this is negotiable. You may option your script for half a percent of the
purchase price for the first 4 months and 1% per month for the next 4 months... and
maybe even create a third option period for 2% per month. Producers understand
money, so you want to create financial penalties for foot-dragging.
How much any company pays gives you a pretty good idea of what they think your
script is worth - back in the late 80s my TREASURE HUNTER script was optioned for
$5,000 for 4 months. If someone offers you a free option or a $1 option they probably
don't care enough about the script to spend much time trying to find financing. You're
better off setting up a VERY limited shopping agreement in that case.
The purpose of an option ISN'T to tie up material, it's to "rent" a script for a limited
period of time so that a producer can take it to a studio or third party financial source.
It's a step in the purchase of the script... not a destination.
An expanded version of this script tip is part of the new BREAKING IN Blue Book!
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Tips FAQ
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STORY IN ACTION SERIES!
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***
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All About Rewrites!
Rewriting In Waves?
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The Perfect Ending For Your Story!
The First Ten Pages Of Your Screenplay Are Critical, But What About The Last 10 Pages?
Creating the perfect ending to your story! This 100,000 word book shows you how to end your story with a bang, rather than a whimper. Everything from Resolution Order to Act Three Tools to Happy or Sad Endings? to How The Beginning Of Your Story Has Clues To The Ending (in case you were having trouble figuring out how the story should end) to Falling Action to How To Avoid Bad Endings to Writing The Perfect Twist Ending to Setting Up Sequels & Series to Emotional Resolutions to How To Write Post Credit Sequences to Avoiding Deus Ex Machinas, to 20 Different Types Of Ends (and how to write them) and much more! Everything about endings for your screenplay or novel!
Only: $4.99
NO KINDLE REQUIRED! Get the *free* app (any device, except your Mr. Coffee) on the order page on Amazon!
All About LOGLINES, TREATMENTS, and PITCHING!
LOGLINES, TREATMENTS, and PITCHING! Blue Book!
Distilling Your Screenplay!
Loglines, Treatments, Pitching, Look Books, Pitch Decks, One Pagers, Rip-O-Matics?
You have written a brilliant 110 page screenplay, but how do you get anyone to read it? You need to distill it down into some form of verbal moonshine or story rocket fuel that will ignite that bored development executive or manager or agent and get them to request your screenplay. But how do you shrink those 110 pages into a 25 word logline or a 2 minute elevator pitch or a one page synopsis or a short paragraph? This 100,000 word book shows you how! Everything you need to know! From common logline mistakes (and how to solve them) to how your pitch can reveal story problems to the 4 types of pitches!
272 Pages - ONLY $4.99!
READY TO BREAK IN?
THE BUISINESS SIDE
*** BREAKING IN BLUE BOOK *** - For Kindle!
Should really be called the BUSINESS BLUE BOOK because it covers almost everything you will need to
know for your screenwriting career: from thinking like a producer and learning to speak their language,
to query letters and finding a manager or agent, to making connections (at home and in Hollywood) and
networking, to the different kinds of meetings you are will have at Studios, to the difference between
a producer and a studio, to landing an assignment at that meeting and what is required of you when you
are working under contract, to contracts and options and lawyers and... when to run from a deal!
Information you can use *now* to move your career forward! It's all here in the Biggest Blue Book yet!
Print version was 48 pages, Kindle version is over 400 pages!
$4.99 - and no postage!
Movie Magic Screenwriter is the best selling screenplay formatting software and the choice of Hollywood professionals. Screenwriter automatically formats while you write so you can focus on what you're writing, not where it goes on the page. It also formats for television, stage, novels and comic book scripts so you've got an all in one package for any story you want to write. Academy Award Tech Winner!
* * * Buy It!
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E BOOKS PAGE
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E BOOKS: New Blue Books and Novelettes!
I am expanding all of the Blue Books from around 44 pages of
text to around 200 pages! Some are over 250 pages! See what is availabale and what is coming soon!Also, I've been writing Novelletes and there
will soon be novels. E BOOKS: BLUE BOOKS & NOVELLETES
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ONLINE CLASSES
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MY OTHER SITES
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B MOVIE WORLD Cult Films, Exploitation, Bikers & Women In Prison, Monster Movies.
FIRST STRIKE PRODUCTIONS Producing my own scripts, investment possibilities, pipe dreams.
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NAKED SCREENWRITING CDs
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The NAKED SCREENWRITING CLASS ON CD!
The 2001 London Class on 8 CDs! Recorded *live* the morning after the Raindance Film Festival
wrapped. The two day class on 8CDs, plus a workbook, plus a bonus CD with PDFs.
The 2 Day Class on CD!
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BOOKSTORE
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Every screenwriting book in the world!
SCREENWRITER'S BOOKSTORE
In Association With Amazon.com
From the latest screenwriting book to
guides for finding agents and producers... all with at the
Amazon.com discount!
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BOOKLETS & PRODUCTS
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FIRST STRIKE BLUE BOOKS
Each Blue Book is 48
pages and focuses on a different aspect of screenwriting. Dialogue. Visual Storytelling. Your First Ten Pages. Act 2 Booster. Protagonists. Great Endings. Seventeen Blue Books now available!
THE SECRETS OF ACTION SCREENWRITING The Best Nuts & Bolts Screenwriting Book On The
Market!
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BILL'S CORNER
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My
nineteen produced films, interviews with me in magazines,
several sample scripts, my available scripts list... And MORE!
...............................BILL'S CORNER
Available Scripts
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CLASSES ON CD
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CLASSES ON CD! Take a class on CD! GUERRILLA MARKETING - NO AGENT? NO PROBLEM! and WRITING THRILLERS (2 CDs). Full length classes on CD. Now Available: IDEAS & CREATIVITY, WRITING HORROR, WRITING INDIE FILMS, more!
Take classes on CD!
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