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The TV and film business is a contact sport. Not for the meek, nor the naive. It’s arguably the most difficult industry to find work in, let alone thrive or survive in. Making it out of the development trenches at major companies and having many years of negotiating option deals for TV series pitches, I’ve repeatedly seen that when a new producer or creative finds that opportunity, their excitement and uncertainty often works against them. They want it so bad, they either agree to a bad deal, or their newly inflated ego ruins the deal.

Bringing professionalism to the table when pitching a TV show means knowing how to manage your expectations with studios, while calling their bluff and showing them you know better about certain aspects of their proposal. The weak “producer” folds because they think that standing their ground might ruin future dealings. The truth is, if you don’t push back, they won’t respect you, and future negotiations will only be more difficult. It’s time to set your standard.

I’ve brought projects to bear that started bidding wars between networks. I’ve been shut out by greedy producers and then leveraged them into having to pay more by bluffing them. I’ve partnered with new creatives who gave away the barn when they didn’t need to, and helped others grab executive producer credits and more points when they were ready to settle for much less. Having had Executive Producer partnerships in contract with TV and film studios like Propagate Content, Relativity Media, Magical Elves, Dick Clark Productions, and others, I learned that each company has a different style of how they engage producers with shopping agreements or partnership deals, just as each project has different factors that inspire the structure of the deal.

I’m sharing this bit of insight to empower you to engage strategically, setting yourself up in smart negotiations. Here’s 7 negotiation know-how’s that will help you get a better deal:

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THEY WON’T GIVE YOU WHAT IS FAIR UNTIL YOU PROVE YOU KNOW BETTER:

The executive who picked up your project is going to have a positive, forward thinking rapport with you, while their business affairs department is going to do what they are charged to do- save money by minimizing exposure and financial outlay to you. Keep in mind that it’s not just knowing how to respond to any low-ball deal points included in the proposal, but knowing what they purposely omitted. When you bring that to light, be ready for them to respond with “that’s our policy.” That’s when you politely remind them you didn’t negotiate their policy, and this project has its own life and unique facets that require certain standards. Or better yet, say nothing and hold your ground. Here’s three items to look out for, and stand for:

• Reversion of Rights:

Often you’ll see they didn’t include a reversion of rights in the proposal. That is, when the term of the agreement expires, all rights in the project revert back to you. It’s an easy correction and they won’t push back on it. Otherwise, they’ll marry themselves to the property, making it impossible for you to move forward independently.

• MAGR:

If you originated the project as a producer, allowed them the exclusive shopping rights, and they’re free to solely negotiate their own contract directly with the studio or network, then you deserve to be tied into their adjusted gross receipts. This is ancillary money made by the producing entity or studio from the exploitation of the series or film beyond the basic producing fees. It’s where you make the good money; distribution in other territories, other methods of exploitation, products, etc. If they insist you participate in “Net” instead of “Gross”, then ask for their definition of Net profits along with a right to audit. Keep in mind, a safe measure is to consider Net as being 1/3 of Gross.

• Spin-offs:

It’s another common omission that they like to try to get away with. Be sure you have inclusion in any spin-off series as a producer (under their umbrella), under the same terms of the agreement for any “spin-offs”, whether it’s a satellite series of the franchise, or a new series based on one of the characters in your series. 

DEAL AS IF THEY ALREADY HAVE NETWORK INTEREST… BECAUSE THEY DO: 

KNOW that they almost always “soft pitch” their network connections to know if it’s worth moving forward on. If they wait to negotiate your credit, or coin, it can work to your advantage.

They risk the deal being stalled when a network offer is in play, adding pressure for them to bend a bit more toward your counter proposal. In the same hand, Always consider agreeing to “will be negotiated in good faith” for any financial terms. It always baffled me when a studio would allow that, because once the project is down the road and they have to negotiate a series or pilot order with the network, you’ll have twice as much leverage to get a better deal than if they locked you in early. You can still negotiate respectfully, and you’ll get that extra half-point that pulls any low-ball terms back to a fair deal.

USE ATTORNEYS FOR LONGFORM DEALS, BUT NOT FOR SHOPPING AGREEMENTS:

Unless your project is a high-profile property, most shopping agreements are free options- no money up front. While you’ve “sold” the pitch, the company that’s optioned it from you is the one who will be using their resources to develop the project. So it’s fair to agree to a shopping agreement with no upfront fee, and all the more reason to not retain an attorney for such a simple deal memo. Attorneys will demand a fat retainer and bog down the process, putting you in the hole financially with the project when there’s no option money being provided, and frustrating what are preliminary negotiations as a way to prove their worth. 

THE PSYCHOLOGY BEHIND NEGOTIATING YOUR OWN DEAL IN EARLY PHASES: 

It’s not difficult to know how to respond to an initial proposal, because not all things have to be solved in the first round. While you do want someone with experience to review the proposal, you can get it close to closing if you know what to look for before hiring someone to button it up. The production company or studio will see that you understand standards and omissions (things they left out for their own benefit) and will feel pressure when you have an attorney waiting in the wings, because they know that it can reboot the entire process.

CALL THEIR BLUFF:

You must be willing to walk away, and that’s communicated by leaning only so far into their low-ball offer after having countered with a number, percentage, or participation that is slightly more than you deserve. When you move no further and don’t respond, that shifts the pressure to your executive contact who will then be prompted by their business affairs attorney to “nudge” you. Keep smiling, being forward thinking, and do not comply if they say “this is going away if you can’t get closed with them.” That’s actually their own fear that they’re projecting on you. Let it simmer, and watch them finally return with an extra point of participation in your favor. That is how your executive at that company becomes the glue in the project, not just for your interests, but for the project’s.

THIS ISN’T THANKSGIVING, SO STOP HANDING OUT PIECES OF THE PIE:

When dealing with inexperienced creatives or producing partners, it’s very rare to find one who actually brings something to the mix that benefits the project, even if it’s the original project itself. While it’s always more fun to collaborate and share accomplishments with others, you may quickly arrive at a realization that they don’t actually know what they’re doing, or that because of their inexperience, they create repeated mistakes during the development and sales process that jeopardizes the project and gives away leverage. It can also tarnish your reputation with the connections you have, also leaving you to carry the unending and tedious burden of managing all communications and strategies with multiple entities involved. Always make sure that any “producing partnership” with any new person is “Non-Exclusive.” That way, when you get mired in the muck, you can stop collaborating, move on, and never waste your time and resources on them again. 

KEEP TALENT AT ARMS LENGTH:

When your project keys on a specific person (as subject, star or participant) do not position them as a partner in your producership. You are setting them up to negotiate their own deal, not to dilute yours. Many new producers will make commitments too early in the process and find that not only did they give away part of their equity, but they may have hitched their wagon to the wrong horse. Keep them separate by empowering them to be in a position to make their own deal. If the studio or network doesn’t like them, then you’re not thrown out of the process with them.

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I’ll be expanding this article as your questions inspire, so feel free to comment and question!