Film Sales Agents and Distributors

Before you decide to sell your own projects, you should seriously consider whether or not a sales agent or distributor is right for you. First things first, learn the difference between the two:

SALES AGENT: A sales agent represents filmmakers in order to obtain distribution for their films. They are supposed to develop a marketing strategy with the filmmaker so they can obtain such distribution.

DISTRIBUTOR: A film distributor handles the release and marketing of a film.

My company has gone through a multitude of sales agents who have also called themselves distributors. Every single one of them ripped me off by not paying my company or claiming expenses so that they pay a lot less than they are supposed to. Even sales agents that my partner and I have vetted by getting references and whatnot have turned out to be very bad.

Telling you to “do your due diligence” is not just a suggestion—it’s a necessity. If you are considering working with a company, look them up on IMDb and reach out to producers that have worked with them in the past. Ask questions such as, “How you been paid on time?” and “Have you ever had any issue being paid?” Look them up on the Better Business Bureau. At the very least, do an internet search on their name. Make sure you pay attention to what people have to say about their experiences with the companies that you are interested in working with. You could save yourself a massive headache by learning from other filmmakers.

I’d like to give you an example here: I attended the American Film Market in 2015 to publicize my film and learn about buyers. (I literally had no idea what I was doing.) I shared a room with a sales agent that had at least four dozen films. My colleague and I shared the sales room with him for a week straight, watching people coming in and out of the room, doing business with him. He seemed like a really nice guy, and he was very interested in representing my film. I had other interest and didn’t want o lock in with a sales agent when we hadn’t even filmed the movie.

In January the following year, my team and I met with some bigwigs at a major company in Los Angeles. I was overwhelmed and I panicked, especially with the numbers that were being thrown with me. I reached out to the sales agent that we shared the room with and entered an agreement with him. I thought everything was great, even though he was working on a 20% commission plus $24,000 marketing fees.

Fast forward to May that same year, where we went to the Cannes Film Festival and the Marche du Film at Cannes. Nine people from my film went, and the sales agent had a booth. He signed us with a distributor, but didn’t tell me what the deal was. I was excited that the film had a deal, but it wasn’t until three months later when I learned that he signed a deal that was 20/80… 20% for my company and 80% for the distributor. Not only that, the sales agent kept the $2,000 minimum guaranteed.

It has been nearly six years that the distributor picked up my film, which was released by a major company. According to the statement from last month, the film has earned over $105,000. Unfortunately, the distributor says that I’m still down $148 because they paid for the MPAA rating, E&O Insurance and some other things.

As for that sales agent, I sued him for $2,500 in small claims court and won. He was ordered to pay me, but told the judge that he needed a payment plan. The judge allowed it. I received one payment of $500. He has been in collections since. Know what? It doesn’t matter. He changed the name of his company and is still preying on first-time filmmakers.

That was my first experience with a sales agent and distributor. They both made many promises to me, but never delivered. As a filmmaker, you need to learn how to compartmentalize and not fall for the sweet-talking agents. They tell you exactly what you want to hear. They know what you are looking for, and what it will take to woo you into signing with them. We all fall for it as filmmakers. We want to hear that our film will be a success and that we will make a lot of money. Once you sign on that dotted line, though, you lose your rights to your project.

Do you understand that? When you sign an agreement with a sales agent and/or distributor, you lose the rights to your project(s) for a specific period of time. That 20/80 deal expires in October, 2026. Fortunately, it’s just for the USA and Canada. Still, it’s a nightmare that could have been avoided if I knew more. I have another sales agent representing the film for international sales, and he accidentally made a deal for the USA for $1,500. According to the deal that I have with him, I would have earned $900. However, he had to send the $1,500 to the sales agent that represents the film in the USA and Canada, and I’m only receiving $300 from that sale. (Incidentally, the sales agent that actually made the sale gets $0.)

Sales agents essentially own the rights to your projects until the end of your contract. That means that they can do whatever they want, whenever they want. They simply report the earnings to you and cut a check according to your agreement. They don’t have to run sales by you. They don’t have to tell you what amount they are selling your project(s) for until your sales report. You have absolutely no control over your sales whatsoever.

If you don’t want control over the sale of your film, then find a reputable sales agent and/or distributor. Ask fellow producers for recommendations. Comb through IMDb with the same genre of projects that you create and see who they have as representatives. Weigh your options. Do your research. Don’t make quick decisions, and certainly don’t let a sales agent or distributor pressure you into making a quick decision. Trust your gut. Pay attention to red flags.

If you do want control over the sales of your project(s), then do the work to make the sales yourself. It’s difficult, but it isn’t impossible. It’s time-consuming, but it pays off. It’s frustrating, but it’s worth it in the end.