Expense Caps

When you say expense caps... do you mean the costs that the distributor passes back to you in terms of markets, PR, DVD production etc?

- Also Thunder did you get the one sheet I emailed you?
 
I did get the one sheet. Sorry I haven't responded. Just got slammed with work the last few days.

As for expense cap I mean several contracts I've seen they have X amount for merketing, Y amaount for Promotional and Z amount for delivery... all $20,000+. That seems really high considering. I figure the total expense cap shouldn't be more than $20,000 - $30,000.
 
Ha no probs. Just wanst sure being that my email has been a bit fun of late!!!

The expenses for our sales agent deal for Left For Dead worked out at around $7500k. That's some big arse posters, screeners, one sheets and representation at Cannes and AFM. That was pretty resonable.

The York Entertainment direct distribution deal worked out at far more than that, but they covered half of the costs and got half of the sales (more or less the exact % escapes me for the moment). But it still worked our aorund the middle of your range. This wasn't the best deal BUT we kinda knew what it would be and wanted it out in the US...

Our UK deal through Supersonic we do not get charged any costs but take a slightly smaller % of the revenue which means we will see far more back. A very good deal and something you may want to think about.

So for sales agents I'd say look at a cap of around $10-20k in expenses which is pretty fair and should cover all markets, posters, online, duplication etc. For direct distribution deals (and I still always advise against getting your own direct distribution and instead doing it through sales agents) your end should be no more than around $20,000-25,000k MAX.
 
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