Movie Industry Scams; How To Avoid Them

Scams in the movie biz and how to avoid them

Indie filmmakers, spec screen writers and newbie actors are particularly vulnerable to scams… and, because there are so many people pinning their hopes and dreams on making it into the industry, there are now many cynical “businesses” who are set up solely to take advantage of those hopes and dreams. It’s sad, but true and because it’s both incredibly easy and cheap to set up an online business, I hear more and more tales of attempted scams every single day.

So, because there seems to have been a rash of particularly bad ones recently, here’s the basic information you need to avoid these scum-bags.

Here’s a true story… a guy writes a script and, of course, he wants to see it turned into a movie, so he sends it out to some producers and after a couple of rejection letters and a whole lot of getting completely ignored, he gets a letter which says “Hey, love your screenplay… would you come in for a meeting.” After all the rejections and silence, this makes the writer incredibly happy… he’s done it, sold his first screenplay, and in his head he’s already planning the move to Beverly Hills, what the Premiere is going to be like, what he’s going to say to Scarlet Johanson when he gets to meet her, all that good stuff.

Beaming with happiness and wearing a brand new shirt, he bought just for the meeting, he goes to the producer’s office and at first everything is going great. The producer tells him how fantastic the script is, how great it is that it can be done on a low budget, how he’s excited about putting this film into production, even how he’s keen for this unknown writer to direct the movie… but (this is always the key word, by the way) of course he’s taking a huge personal risk and it’s going to cost $5,000 to package the film for investors… (beat) … so, it’s only fair that the writer share in that risk, to the tune of $2,500.

At this point the writer has a dilemma, on one hand he’s just been asked for $2,500 from a person he hardly knows, who at this point isn’t offering anything other than to spend $5,000 on packaging the film for investors… and on the other, are all the dreams of actually making a film, winning an oscar and going to lunch with Scarlet Johanson (Actually, I’m more of a Drew Barrymore man myself, but I’m not the writer in this story).

Unsure of whether this is a scam or his big break, the writer makes a really smart move, he goes to a forum and asks people what they think… (which is how I found the story), because when I’m not doing this, or making films, I’m the “micro-budget film guru” over at indietalk.com.

For me this, so obviously, sounded like a scam… and here’s why: the normal way for a producer to do business is to find a script that they believe will make money, they then purchase the rights to that script from the writer in the form of either a “buy out” where they buy the whole thing lock, stock and barrel… or, they take an option, which is where they pay the writer a small fee to own “the exclusive option to develop and produce the script” and this is for a fixed period (three years is average). This means the producer has three years to find the production money and get the movie into production, at which point the writer gets paid the actual fee for the script (normally based on 3% of the budget).

As you can see, in a normal deal the money flows from the producer to the writer. This is because the script has value. It is worth something. If it isn’t, then the producer is a fool for taking it on.

Almost every film and script scam I’ve ever seen, involves changing the direction in which the money should flow…

So, a producer who asks for money from a writer, isn’t a producer, he’s a scam artist… an online screenplay agency that charges writers for “coverage” isn’t an agency, it’s a scam (real agencies read scripts for free, because they make money off commission from sales)… and, acting “agencies” charge money to actors for headshots and publicity on their website are a scam, because real actor’s agencies make money from negotiating their clients’ contracts.

Basically, if someone wants to charge you money to get you work in this industry, it automatically means they are not able to get you any. They only need to charge you, because they can’t make any money from commission.

The second anyone asks you to pay, you HAVE TO suspect that it’s a scam… and 99.999999997% of the time it will be.

Where this issue gets more complicated is when it comes to services and training… it’s pretty easy to see a representation scam, because they just shouldn’t ask for money… however, when it comes to script consultants and screenwriting courses and “how to make a million on your first movie” type courses, then it’s not so plain and simple.

As Victoria Lucas recommends, in her very fine article on “script consultants,” the best weapon against getting ripped off is research… and I totally agree with her point, that it’s only when you have a personal referral, from someone you trust, that you can really ever know.

One of the tell tale sign of a bad consultant or a bad screenwriting guru is that you get nothing but good news on your script/film/headshots. The truth is, even when you sell a script, the first meeting with a producer is going to include a massive list of everything you got wrong. My script editor usually sends me four or five sheets of ego crushing notes… all my producers have been brutal.

One of the hallmarks of the scammer, is they blow smoke up your ass… but never say anything specific. They’ll say “I love your script”… but very rarely “I loved the way Julie stuck the pickaxe in the back of the man in the chicken suit in scene 37.” This is because scammers are essentially lazy. They are exploiting you, because they’re looking for an easy, quick buck.

So, what’s the bottom line… well,

Real producers give you money, notes and grief; bogus ones blow smoke your ass and ask for money

Real agents read your scripts for free, but don’t return your emails, except when they think there is a buck in it; bogus ones are all over you, return your emails promptly and then ask for cash

Real script consultants make you cry, want to kill yourself, wish you’d never started writing and had become a wombat farmer instead ever sitting in front of your computer; bogus ones tell you you’re fantastic, that you’re a genius… and then ask for money

Basically, in this industry, anyone who tells you how good you are has an eye on either your wallet or your ass… and anyone who treats you like shit, is probably the real deal.

(Can anyone remind me why I’m in this stupid industry! LOL)

Be safe out there
Clive

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