I’ve got a few articles I’ve been planning to write, but sometimes a better idea comes along and you have to roll with it. Pro writer Derek Haas suggested that I write about how we get paid, what the various terms and methods mean, and how we can expect success or failure to impact it all.

Good idea. Frankly, I had no idea what anything meant when I started, so I hope that some of you find this of value.

There are a few basic ways to get paid as a screenwriter. You can option literary material, you can sell literary material, you can pitch an idea, or you can be hired on an assignment.

Options don’t technically fall under the WGA’s jurisdiction. Options are just rental agreements. The optioner pays the optionee a fee that grants the option the exclusive right to “set up” the project at a studio (typically as a producer). The writer will then sell the literary material to the studio.

If you sell a script, the studio has to pay you scale. “Scale” is just a term for the basic minimum amount. Right now, if you sell an original screenplay for a “big budget” film (a film that costs more than $5,000,000), scale is roughly $77,000 (including one additional rewrite step). You can learn about all of the various minimums here.

Minimums aside, however, most writers work above scale.

A typical deal for a pitch or assignment works like this…you’re paid your “quote” (your going rate) for a draft and a set of revisions (aka a second draft, often shortened to “set”). In addition, the studio will typically detail optional steps they can trigger if they desire. So, if your deal is, say, $500,000 for an original, you’ll get paid $500,000 for two drafts, but the studio might hold an option for another set for $150,000 and a polish for $75,000. If they want it, that’s what they’ll pay (and you have to write it, pending your availability). If they don’t want those optional steps, they don’t have to pay that money out.

Then there’s the credit bonus. Most writing deals include a bonus for sole screenplay credit and a reduced bonus for shared screenplay credit (I’ve never heard of anyone getting a bonus for story credit).

That’s where all this “X against Y” stuff comes in.

If your quote is $500,000 against $1,000,000, that means you get paid $500,000 for those first two drafts. If you get sole screenplay credit on the movie, you’ll get an additional $500,000 to get you to the $1,000,000.

Shared credit bonuses are typically half the sole credit bonus.

When working on deals, it’s always important to know what’s applicable against the bonus and what isn’t. For instance, the optional steps are almost always considered applicable, meaning that if you’re $500,000 against $1,000,000 and the studio pays you an additional $225,000 for optional steps, that optional money cuts into the rest of the money they owe you if you get sole credit. In this case, instead of getting $500,000 to get to the million, you’d only get $275,000 in bonus money (because you’ve been paid $500 + $225 already, and 500+225+275=1M).

Therefore, once you work beyond the initial quote work and optional steps, it’s critical to ensure that new payments are not applicable against the bonus, because you never want to be in a situation where working more doesn’t get you more.

Many writers will do an “all services deal” once the film heads into production. The all services deal is a flat payment that covers all the writing the film requires until release. All services deals should always be non-applicable against the bonus, and they should be made with care. Some kind of time limit on them is usually advised, in case a film drags on and on.

Payments are typically made for commencement and delivery, with a 2/3 - 1/3 split being ideal, i.e. you get 2/3rds of the money for a particular deal step when you’re told to commence writing, and the remaining 1/3 when you turn in the draft.

All services deals are typically tied to production milestones, e.g. you get 40% at the start of prep, 40% at start of principle photography and 20% upon completion of the film.

Unfortunately, studios are infamous for “late pay.” Writers will turn in drafts and be forced to wait weeks for payment. Or, as was the case on my first job, writers are hired and told to commence writing, but even the starting payment is held up for weeks.

My easy answer on late pay is that no writer need suffer it. My position has always been “I start when I’m paid” and “I turn in my draft when I’m paid.” Simple as that. The studio likes to say they can’t officially pay commencement until a longform contract is signed, but that’s baloney. A deal memo and certificate of authorship is all that’s required.

As far as quotes go, rewriting usually pays less on a quote basis than original work. The basic rule of thumb is that a rewrite gig should earn you about 75% of your quote for an original gig.

Of course, there’s the highly-desired weekly gig, which is a whole ‘nother thing. Weeklies are when studios hire writers on a week-to-week basis, almost always for production writing. Weekly rates tend to be quite high. The studio will always try and finagle the writer toward a polish if they think one week will turn into three or four.

That’s the tug of war that makes dealmaking so much, um….fun.

So, once you have a quote, how do you improve it (or get a “bump” in the industry parlance)?

There are three basic ways to get a bump. First, sell a pitch or spec in some kind of competitive situation (more than one interested buyer). Second, write a draft that gets a green light. Third, get screenplay credit on a film that performs at the box office or earns awards.

Some basic guidelines for what writers earn. Note that these groups exclude spec sales, which, at some point, no longer affect a quote in a specific way (for instance, Rossio & Marsilii’s $5M sale for Deja Vu doesn’t mean that their quote for an original is $5M, although I think they’re both doing just fine…)

Baby Writers: No, not my term, but commonly used around town to denote writers who are either very fresh to the business or who have little experience working. Typical quote is 100 against 250.

Typical Writers: They’ve sold scripts, maybe had a movie or two made, maybe it didn’t do so well, but they’re definitely in the game. Typical quote is 300 against 600.

Known Commodities: These are writers who have multiple credits, a number of fans at studios, a good track record and a hit to their name. Typical quote is 700 against a million.

A List: These writers have hits to their names, and are known to deliver the goods for the studio. They almost always have a few key relationships with top shelf actors, directors or producers. Typical quote is $1-1.5M against $2-2.5M.

Marquee Writers: Rarified air here. You’re talking about a pretty small number of writers who aren’t employees as much as investments. They earn more than most directors do. To be in this group, you’ll need a quote of two million against…well…more. Three million? Something like that.

I’m sure I’ve left out plenty. And it’s quite likely that people have different views on some of this stuff (particularly the last part). Lemme know what you think.