FEES & ROYALTIES
I’m sure you were hoping that I'd be able to tell you exactly what to charge for your services... but the truth of the theatrical industry is far more complicated than a set fee or an hourly rate. At the heart of what I'll talk about is the word FAIR. I put it in bold and capitalised FAIR because it really is the most important word on this page.
This doesn’t necessarily mean that the fee from this particular job should cover all your time and expenses, but you should have other means by which you can subsidise it, which won’t be affected by this extra work. If the answer to this question is a resounding NO, then you should approach the producer and tell them. It may be that they can find some more money for you. If they are unable to be flexible then you should think seriously about whether you should take the job.
This is a really important question to consider. A young, exciting company just starting out will not be able to pay you as much as an established producing house. But there can be huge advantages to getting in on the ground floor of a talented company. Think of companies like Kneehigh, Complicite and Les Enfants Terribles now substantial theatrical powerhouses putting on big budget productions. All started from a small fringe troupe. And in most cases the composer that was with them in the early days is still with them now. I have followed this particular route myself with a few companies that are just now (after years of battling away, touring and making work) beginning to get regular funding. I am fortunate to receive a considerable amount of work through these companies and their connections. In the case of one, I worked for free as part of a collective ensemble, but we quickly moved on to being able to pay ourselves. In the case of others I worked for a fee that I considered to be less than I would have liked to charge but was able to live on the wage and considered the advantages of working with talented newcomers to outweigh the economic difficulties. In both cases this decision has repaid itself countless times over as these companies have grown and continue to hire me to work for them. So consider it carefully. In particular consider the quality of the work a young company is producing, if it excites you as a creative, go for it. If it does not, perhaps let it slide. A larger producing house will be able to offer more in terms of payment and indeed will often be bound by agreements that have been hard won by the Writers Guild of Great Britain but perhaps it will offer less in terms of future opportunity. It may be that they work with you again if you do a great job for them, but remember the pool of composers/lyricists they can offer to is much larger and there are some big name writers out there that they could potentially pull in. So consistency of future work is not something they may be able to offer. What they can offer (in addition to the economics) is the ability to get your work out in front of a huge audience. The larger regional theatres can pack in up to 2000 people per performances. That’s 2000 people hearing your work every night for (perhaps) a lengthy tour. If the work is good then this could be really big for you and could lead to other producing houses seeing/liking your work and offering you jobs as a result. So consider that, consider whether the trade off is fair. My advice with larger producing houses however is that if the amount you are being offered is just not workable for you, it will not do you any harm to come back to them and ask for what you believe is a reasonable amount for your time. Remember it’s not about being greedy, it’s about being FAIR.
It's possible to find out what other creatives on the project are being paid...
You will need to find out this from the producer, some will be unwilling to tell you, but some will let you know. If the producers don't want to let you know that's completely up to them. It's then worth asking other composers, lyricists and bookwriters how much they've been paid. This is one of the great advantages of being part of the writing community, I highly recommend joining Mercury Musical Developments and doing the BML Workshop Course. Both provide a huge range of opportunities to connect with other writers, producers and venues. Being able to go to these folks when you need advice is only one of the great advantages to membership.
If you are able to figure out what what other creatives are being paid then you should consider the amount of work you will be doing in comparison to them (essentially in hours put in) then see if you think that is FAIR. If you don’t think it is, go back to the producers with your reasons (often they won’t necessarily understand the amount of work that goes into your material, it’s up to you to explain to them how it works. You will be doing yourself and composers everywhere a great service!). In fact this is where it will pay to meet some other creatives and talk to them about what they actually do (lighting designers, sound designers, producers, choreographers, directors, musical directors etc). Because unless you have at least some idea about what amount of work the others are going to be doing you won't be able to figure out what is fair for you.
Whilst I have nothing against the profit-share model (it can be a useful way of getting your work seen) the realities of profit-share can be deceptive. In my opinion (and it is just that!) the only companies who should be doing profit-share are those at the beginning of their life and really, for them to survive, any money that they earn from their show should be poured back into the company so they can continue making better quality work. It is my view that if you work for a profit-share production that does not make considerable profit you should be offered an ongoing and irrevocable stake in the work of the company. The first company I worked with (Paper Balloon Theatre) created our first show on the understanding that any money earned would go towards our next production and as soon as we did a production that allowed us to pay ourselves then we would. Paper Balloon is still working as a company today and I still write all the music and lyrics for our work. It’s also worth considering, if you are the instigator (as many writers are) of a profit-share production, am I being FAIR to those who are giving their time to present my work. Am I keeping them informed of the realities of how much they will be getting? Should I offer them a stake in the company? All important things to consider. It is important to note that of all of my actor friends who have taken part in profit share productions, some have gotten agents off the back of them, some have been seen by casting directors and some have even received some profit. But there are no guarantees. Those actors weighed up the advantages and considered it FAIR and that is up to them, you should ask yourself the same question. Having said all that, this is just one person's opinion and I'm sure there are alot of things that I haven't thought of regarding profit shares that are excellent models, write in if you know of other advantages!
For those just starting out, these terms can be a little confusing. So, to clarify:
1. Commissioning Fee: Usually this is an amount designed to cover the time it will take you to complete the work prior to opening night, but also will often include attendance at press nights, and rewrites during previews etc. This is yours to keep and can be anything from £50 through to £25,000 depending on who you are working for.
2. Attendance at Rehearsals: One of the strangest things about our industry is the variation around this question. Should the writers be present throughout rehearsals? Or should they just let the approved creative team get on with the job? In the world of playwrights it is standard for the writer to be external to the rehearsal process. However, in the creation of new musical theatre, which is an exceptionally collaborative work which can require substantial work between first rehearsal and opening night I personally believe it is essential that the writers be in the room if not full time then as much as possible. It is also my OPINION that the writers should be paid a decent wage for their attendance at rehearsals that is no less than the minimum that anyone else in the room is receiving and that this should be separate to the commissioning fee. I state that this is my opinion because not once in my professional career has it been offered to me. At the moment, it is standard to include a writer in attendance fee (currently around £67 per day) negotiated by number of days required (usually a couple of runs towards the end of the rehearsal process, dress rehearsal and previews. One way around this is to ensure that, aside from being the writer you are also part of the rehearsal creative team. This is simpler for composers as depending on your skill set you can be on the creative team as orchestrator, musical director, sound designer or musical supervisor. For the lyricists and bookwriters this is far more difficult, if you have the skillset then the only way of doing this is by being in the room as director or assistant/associate director. It is because of this difficulty that I believe that writers in new musical theatre, in addition to their writing responsibilities, should be considered members of the creative team. It should also be noted that there is a reason for some directors and MD's not wanting the writers in the room! They can be irritating as hell, always looking over your shoulder and possibly undercutting the rehearsal process. But they don't have to be. Do us all a favour and don't be one of those writers, when you're in the room, be quiet and respectful to the process, only give your thoughts/opinions either when asked for or in private to the director only. This will lead to a much happier rehearsal process for all involved.
2. Royalties: This is a percentage of the box office of the production. This will only be calculated either whilst the production runs or on completion of the run. It is important to note that industry standard for the writing team (on Broadway and Westend commercial productions) is a % of Net Box Office (NBO: Usually 6% - 2% lyric, 2% music, 2% book) or a % of Net Weekly Operating Profits (NWOP: Usually 15% - 5% lyric, 5% music, 5% book). Please note that NWOP will usually be far less than NBO and indeed can be extremely low if the producers have chosen to take a portion of that profit to offset their initial costs. In the instance of an NWOP royalty it is VITAL that you ensure that you are offered a Minmum Weekly Guarantee (MWG). This is a set amount (depending on the size of theatre) that the producer must pay the writers regardless of whether any profit is made at all. On the West End, the MWG is £500 per NBO percentage point in theatres over 1250 capacity and £400 per NBO percentage point in theatres under 1250 capacity. Often writer agreements will have both NBO and NWOP in the agreement with which one being used being at the producers discretion. Ideally you would always aim for NBO but as long as you have the MWG in place you can be assured of something reasonable. And bear in mind with future/multiple productions potentially in the pipeline for successful shows this amount can increase exponentially.
The above is standard for West End and Broadway productions and also some of the larger regional theatres, but please note that whilst 6% is the standard for commercial musical theatre, your composer or lyricist royalty agreements can vary greatly depending on the level of the producer and their capablility. Particularly if they are adapting a well known book or film, producers will often have to pay considerable royalty to the underlying rights holders which can impact on the amount that is realistic for them to offer you. I have taken projects offering everything from 0.25% through to 5% of Net Box Office. It depends entirely on the amount of work that goes into the production and the ability of the producers to pay the creatives and whether you think it is FAIR.
It's also possible to be offered an Advance on Royalties in order to make the show. This means that your commissioning fee will come from your expected royalty for the show, which means (if this amount is £1000) that you will receive £1000 to write the show in advance but the first £1000 of any royalties normally due to you would go back to the producer. The important thing to ensure in this case is that the advance is NON-RETURNABLE and NON-RECOUPABLE, meaning that even if the show doesn't get into production the producer will not be able to take that money back from you.
Ideally you should aim for commissioning fee and a royalty.
A commissioning fee for the actual writing of the show and then a royalty on any and all productions. Most of the work that I have done has been a mixture of commissioning fee alone or commissioning fee plus royalties. I believe you should be paid a fee for your work. Sometimes this will be an advance against royalties (in commercial theatre) sometimes it will be yours to keep on top of royalties. I have been paid fees ranging from £200 through to £20,000 and everywhere in between for a single job. More established composers get paid much more but I am still making a name for myself and the companies I am working with are taking a chance on an unknown composer and are helping my work get out there, therefore I consider it FAIR to me to be paid less. Some people will disagree with me on this and say that I if I’m doing the same quality work then I should be paid the same. They are allowed to disagree, after all it is not them who needs to consider whether it is fair. I’ll give some examples of splits I have done which I have considered fair:
a) Early career: £250 flat fee plus 3% perpetual royalty on profit.
I considered this FAIR because the show was by a talented young fellow with a fringe following and two young producers were involved. It was a one man show, easily tourable with small set and one tech guy. It was topical and booked for an Edinburgh Fringe run and a tour afterwards. I considered this fair because it actually was likely to make a profit (and it did) it would have an ongoing life (it has since been seen Off Broadway, in Europe and all over the UK), my work would get alot of attention and press (it has) and it was a young talented group of people with whom I hope to work in the future. And most importantly I was creatively excited by the work. Please note the word NET here, this is an important word, if you can always go for NET BOX OFFICE.
b) Later career: £3000 flat fee plus 1% royalty in NET BOX OFFICE.
I considered this fair because it was a fairly big show going on a big tour, the royalty was on box office so I would get an earning regardless of production costs. The commissioning fee was reasonable for the amount of work concerned. I would get the chance to work with brilliant creatives at the top of their game so it would be a brilliant learning curve. My work would get seen by a huge range of people and it would get national press coverage. For someone at this stage in my career I considered that to be a FAIR exchange.
c) Later still career: £4,500 commission fee plus 4% royalty on NET BOX OFFICE.
d) Even later: £13,750 commission fee, £6,000 advance against royalties, plus 15% NET WEEKLY OPERATING PROFIT and MWG
This doesn’t necessarily mean that the fee from this particular job should cover all your time and expenses, but you should have other means by which you can subsidise it, which won’t be affected by this extra work. If the answer to this question is a resounding NO, then you should approach the producer and tell them. It may be that they can find some more money for you. If they are unable to be flexible then you should think seriously about whether you should take the job.
This is a really important question to consider. A young, exciting company just starting out will not be able to pay you as much as an established producing house. But there can be huge advantages to getting in on the ground floor of a talented company. Think of companies like Kneehigh, Complicite and Les Enfants Terribles now substantial theatrical powerhouses putting on big budget productions. All started from a small fringe troupe. And in most cases the composer that was with them in the early days is still with them now. I have followed this particular route myself with a few companies that are just now (after years of battling away, touring and making work) beginning to get regular funding. I am fortunate to receive a considerable amount of work through these companies and their connections. In the case of one, I worked for free as part of a collective ensemble, but we quickly moved on to being able to pay ourselves. In the case of others I worked for a fee that I considered to be less than I would have liked to charge but was able to live on the wage and considered the advantages of working with talented newcomers to outweigh the economic difficulties. In both cases this decision has repaid itself countless times over as these companies have grown and continue to hire me to work for them. So consider it carefully. In particular consider the quality of the work a young company is producing, if it excites you as a creative, go for it. If it does not, perhaps let it slide. A larger producing house will be able to offer more in terms of payment and indeed will often be bound by agreements that have been hard won by the Writers Guild of Great Britain but perhaps it will offer less in terms of future opportunity. It may be that they work with you again if you do a great job for them, but remember the pool of composers/lyricists they can offer to is much larger and there are some big name writers out there that they could potentially pull in. So consistency of future work is not something they may be able to offer. What they can offer (in addition to the economics) is the ability to get your work out in front of a huge audience. The larger regional theatres can pack in up to 2000 people per performances. That’s 2000 people hearing your work every night for (perhaps) a lengthy tour. If the work is good then this could be really big for you and could lead to other producing houses seeing/liking your work and offering you jobs as a result. So consider that, consider whether the trade off is fair. My advice with larger producing houses however is that if the amount you are being offered is just not workable for you, it will not do you any harm to come back to them and ask for what you believe is a reasonable amount for your time. Remember it’s not about being greedy, it’s about being FAIR.
It's possible to find out what other creatives on the project are being paid...
You will need to find out this from the producer, some will be unwilling to tell you, but some will let you know. If the producers don't want to let you know that's completely up to them. It's then worth asking other composers, lyricists and bookwriters how much they've been paid. This is one of the great advantages of being part of the writing community, I highly recommend joining Mercury Musical Developments and doing the BML Workshop Course. Both provide a huge range of opportunities to connect with other writers, producers and venues. Being able to go to these folks when you need advice is only one of the great advantages to membership.
If you are able to figure out what what other creatives are being paid then you should consider the amount of work you will be doing in comparison to them (essentially in hours put in) then see if you think that is FAIR. If you don’t think it is, go back to the producers with your reasons (often they won’t necessarily understand the amount of work that goes into your material, it’s up to you to explain to them how it works. You will be doing yourself and composers everywhere a great service!). In fact this is where it will pay to meet some other creatives and talk to them about what they actually do (lighting designers, sound designers, producers, choreographers, directors, musical directors etc). Because unless you have at least some idea about what amount of work the others are going to be doing you won't be able to figure out what is fair for you.
Whilst I have nothing against the profit-share model (it can be a useful way of getting your work seen) the realities of profit-share can be deceptive. In my opinion (and it is just that!) the only companies who should be doing profit-share are those at the beginning of their life and really, for them to survive, any money that they earn from their show should be poured back into the company so they can continue making better quality work. It is my view that if you work for a profit-share production that does not make considerable profit you should be offered an ongoing and irrevocable stake in the work of the company. The first company I worked with (Paper Balloon Theatre) created our first show on the understanding that any money earned would go towards our next production and as soon as we did a production that allowed us to pay ourselves then we would. Paper Balloon is still working as a company today and I still write all the music and lyrics for our work. It’s also worth considering, if you are the instigator (as many writers are) of a profit-share production, am I being FAIR to those who are giving their time to present my work. Am I keeping them informed of the realities of how much they will be getting? Should I offer them a stake in the company? All important things to consider. It is important to note that of all of my actor friends who have taken part in profit share productions, some have gotten agents off the back of them, some have been seen by casting directors and some have even received some profit. But there are no guarantees. Those actors weighed up the advantages and considered it FAIR and that is up to them, you should ask yourself the same question. Having said all that, this is just one person's opinion and I'm sure there are alot of things that I haven't thought of regarding profit shares that are excellent models, write in if you know of other advantages!
For those just starting out, these terms can be a little confusing. So, to clarify:
1. Commissioning Fee: Usually this is an amount designed to cover the time it will take you to complete the work prior to opening night, but also will often include attendance at press nights, and rewrites during previews etc. This is yours to keep and can be anything from £50 through to £25,000 depending on who you are working for.
2. Attendance at Rehearsals: One of the strangest things about our industry is the variation around this question. Should the writers be present throughout rehearsals? Or should they just let the approved creative team get on with the job? In the world of playwrights it is standard for the writer to be external to the rehearsal process. However, in the creation of new musical theatre, which is an exceptionally collaborative work which can require substantial work between first rehearsal and opening night I personally believe it is essential that the writers be in the room if not full time then as much as possible. It is also my OPINION that the writers should be paid a decent wage for their attendance at rehearsals that is no less than the minimum that anyone else in the room is receiving and that this should be separate to the commissioning fee. I state that this is my opinion because not once in my professional career has it been offered to me. At the moment, it is standard to include a writer in attendance fee (currently around £67 per day) negotiated by number of days required (usually a couple of runs towards the end of the rehearsal process, dress rehearsal and previews. One way around this is to ensure that, aside from being the writer you are also part of the rehearsal creative team. This is simpler for composers as depending on your skill set you can be on the creative team as orchestrator, musical director, sound designer or musical supervisor. For the lyricists and bookwriters this is far more difficult, if you have the skillset then the only way of doing this is by being in the room as director or assistant/associate director. It is because of this difficulty that I believe that writers in new musical theatre, in addition to their writing responsibilities, should be considered members of the creative team. It should also be noted that there is a reason for some directors and MD's not wanting the writers in the room! They can be irritating as hell, always looking over your shoulder and possibly undercutting the rehearsal process. But they don't have to be. Do us all a favour and don't be one of those writers, when you're in the room, be quiet and respectful to the process, only give your thoughts/opinions either when asked for or in private to the director only. This will lead to a much happier rehearsal process for all involved.
2. Royalties: This is a percentage of the box office of the production. This will only be calculated either whilst the production runs or on completion of the run. It is important to note that industry standard for the writing team (on Broadway and Westend commercial productions) is a % of Net Box Office (NBO: Usually 6% - 2% lyric, 2% music, 2% book) or a % of Net Weekly Operating Profits (NWOP: Usually 15% - 5% lyric, 5% music, 5% book). Please note that NWOP will usually be far less than NBO and indeed can be extremely low if the producers have chosen to take a portion of that profit to offset their initial costs. In the instance of an NWOP royalty it is VITAL that you ensure that you are offered a Minmum Weekly Guarantee (MWG). This is a set amount (depending on the size of theatre) that the producer must pay the writers regardless of whether any profit is made at all. On the West End, the MWG is £500 per NBO percentage point in theatres over 1250 capacity and £400 per NBO percentage point in theatres under 1250 capacity. Often writer agreements will have both NBO and NWOP in the agreement with which one being used being at the producers discretion. Ideally you would always aim for NBO but as long as you have the MWG in place you can be assured of something reasonable. And bear in mind with future/multiple productions potentially in the pipeline for successful shows this amount can increase exponentially.
The above is standard for West End and Broadway productions and also some of the larger regional theatres, but please note that whilst 6% is the standard for commercial musical theatre, your composer or lyricist royalty agreements can vary greatly depending on the level of the producer and their capablility. Particularly if they are adapting a well known book or film, producers will often have to pay considerable royalty to the underlying rights holders which can impact on the amount that is realistic for them to offer you. I have taken projects offering everything from 0.25% through to 5% of Net Box Office. It depends entirely on the amount of work that goes into the production and the ability of the producers to pay the creatives and whether you think it is FAIR.
It's also possible to be offered an Advance on Royalties in order to make the show. This means that your commissioning fee will come from your expected royalty for the show, which means (if this amount is £1000) that you will receive £1000 to write the show in advance but the first £1000 of any royalties normally due to you would go back to the producer. The important thing to ensure in this case is that the advance is NON-RETURNABLE and NON-RECOUPABLE, meaning that even if the show doesn't get into production the producer will not be able to take that money back from you.
Ideally you should aim for commissioning fee and a royalty.
A commissioning fee for the actual writing of the show and then a royalty on any and all productions. Most of the work that I have done has been a mixture of commissioning fee alone or commissioning fee plus royalties. I believe you should be paid a fee for your work. Sometimes this will be an advance against royalties (in commercial theatre) sometimes it will be yours to keep on top of royalties. I have been paid fees ranging from £200 through to £20,000 and everywhere in between for a single job. More established composers get paid much more but I am still making a name for myself and the companies I am working with are taking a chance on an unknown composer and are helping my work get out there, therefore I consider it FAIR to me to be paid less. Some people will disagree with me on this and say that I if I’m doing the same quality work then I should be paid the same. They are allowed to disagree, after all it is not them who needs to consider whether it is fair. I’ll give some examples of splits I have done which I have considered fair:
a) Early career: £250 flat fee plus 3% perpetual royalty on profit.
I considered this FAIR because the show was by a talented young fellow with a fringe following and two young producers were involved. It was a one man show, easily tourable with small set and one tech guy. It was topical and booked for an Edinburgh Fringe run and a tour afterwards. I considered this fair because it actually was likely to make a profit (and it did) it would have an ongoing life (it has since been seen Off Broadway, in Europe and all over the UK), my work would get alot of attention and press (it has) and it was a young talented group of people with whom I hope to work in the future. And most importantly I was creatively excited by the work. Please note the word NET here, this is an important word, if you can always go for NET BOX OFFICE.
b) Later career: £3000 flat fee plus 1% royalty in NET BOX OFFICE.
I considered this fair because it was a fairly big show going on a big tour, the royalty was on box office so I would get an earning regardless of production costs. The commissioning fee was reasonable for the amount of work concerned. I would get the chance to work with brilliant creatives at the top of their game so it would be a brilliant learning curve. My work would get seen by a huge range of people and it would get national press coverage. For someone at this stage in my career I considered that to be a FAIR exchange.
c) Later still career: £4,500 commission fee plus 4% royalty on NET BOX OFFICE.
d) Even later: £13,750 commission fee, £6,000 advance against royalties, plus 15% NET WEEKLY OPERATING PROFIT and MWG
