No pay up front, only a partnership with him. If anyone walks away from the partnership, they lose their percentage ownership no matter if they put in 8 months of work, or any work for that matter. Thus far everyone is working for free to make the series. Is this legit?
It's highly likely legal. Contracts tend to be unenforceable if there is no quid pro quo. Seeing he if offering a percentage of ownership (and assuming profits with that) in exchange for it, then yes, it's legal. You're acting as an equity partner with a performance clause to gain this equity.
Can such a contract be binding if there is no exchange of money?
There is no need for money exchanged to make it legal.
In addition, he says if anyone walks away from the 1 year contract, they will be held responsible for all costs associated with producing the show. Is this legal?
It could be. It sounds like a breach clause to me. I'm not sure if this in combination with the rest would then cause the contract to cease, and whether it would breach and local labor laws.
He is actually a TV producer, he gets interns to do all his work, even contact people to raise funding. I am working with a great team of people, but he is the one in question to me. The opportunity sounds great. I am given a nice percentage of potential future earnings. But at times, I am doubtful because he constantly backtracks on his words and changes contract details on the fly.
I've read of this being an option to be used on productions, usually in combination with some cash payments. It is the method that I'm planning on using if/when I make my first feature. If you have a written contract, the terms cannot usually be changed without both parties agreeing to the new terms.
If you don't have a written contract and the details change on the fly, then you're probably going to be up for a real shit fight in the future and you should ask yourself if you want to continue in the situation you're in.
he is not even getting a lawyer involved in the contracts. He will use contracts found online and modify them to suit his needs.
While this isn't exactly smart, there's nothing wrong with this. There are certain legal terms that you can unintentionally use that have special meaning can change or even invalidate clauses, and occasionally entire contracts. It's just smart to have a lawyer look over the contracts.
If you are good at raising money (which is why I assume you're focusing on this aspect), then he needs you more than you need him. No filmmaker in their right mind would turn away someone who pledged to raise $$$$$ for their film, but keep X% for their troubles. In fact, if you can raise 100k for my next feature film, you can have 15% for your troubles. You'll have earned it.
This is both a fair and common practice within the duties of an executive producer (the person who sources the funding).
I have till next Thursday to sign the contract. I should indicate that even if I sign the contract, I personally can still walk away from the project, I just don't get any of the percentage I am promised, should the series make any money at all. So, I was thinking of putting in a solid few months and gauging potential success based on the content produced. Still, part of me wants to walk away by next week. Though he has a plan to make this web series a tv series that airs on tv networks, I'm just not convinced that will happen. Everything is dependent upon financing. The lead producer always emphasizes that money will come, and to be patient. But there is no guarantee.
There are so many factors to consider. Do you have enough cash reserves to be able to live until the production makes any money? Is there an exit clause that you can exercise if there is no revenue by [x] date? Do you have to pass on any work that comes up? Do you have other opportunities? Are you likely to get any?
There's a difference from working for a few months on a feature film to working for potentially a year or two on a series without making any money.
In the end, you have to make the decision for yourself. What's the best decision for you.
I failed to mention that if I secure funding, the entire team will be paid their day rates (including myself). But I will not get a cut of funds raised. Since this is web tv and potentially network TV in which we buy airtime using sponsor money, I get paid what I'm worth. According to the producer in charge, in TV I am not allowed to be a Producer right off the bat. I have to be an assistant producer, or associate producer, even if I fund the entire project.
This and this alone so far really concerns me. You are carrying all the burden of risk without the upside. This assumes you lose your percentage too. If you get paid and keep the points (mind if I ask what your points are for securing the finance?) then the deal may be fine. By the sounds of it, you'd be what's called an executive producer.
But yes, I am being used to fund the entire series through sponsorships (still a work in progress but I do get meetings with people who have money). I've already put in weeks of work and the contract is not yet signed. This would be pre-production and development work. You raise really valid points. He does lay on the guilt trip that if I walk away, there is the potential that the show will be a success and I will have forfeited my percentage. I am getting to a point where I can do my own fund raising work, but I need to at least charge a fee or get a retainer. I am not even greedy about this, just getting an average yearly income would be great for starters.
Since you have no agreement in place, there is a chance that under current labor laws, you're entitled to get paid for the work done if you walk away. It may be worth looking into.
you have to ask yourself, how many web series have actually made any money and if so how much, would it be enough to cover your years wages
There is a single episode web series that went on to make millions. So yes, the potential is there, so long as your producer is strong. I saw raw's spreadsheet about youtube content makers income a while back so it's fairly safe to I assume some make a lot, most don't.
After all this, it sounds like you should consider passing on this deal. If you do and you're good at chasing up money for productions, you'll be hot property and in high demand by the filmmakers on this forum.
Good luck and ask more questions if necessary.
