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Doing Business Internationally  International Sales PDF Print E-mail
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Charlotte Mickie   
What can you expect from international sales? It depends on the film, the type of exposure it receives, and the sales agent. If your film sells well – and you have an honest sales agent – you can expect overages.  Expenses have a limit in foreign sales, and the process is quite transparent.
For example, a charming, low-budget English-language film that gets very successful festival exposure can sell for as much as $1.4 million internationally (exclusive of sales to the U.S.). After deducting – for example, 25% commission and $150,000 (USD) in expenses.
 
A movie with theatrical potential also delivers the advantage of proper exposure in the international marketplace. This may mean travel opportunities for the filmmaker, as well as international prizes, accolades, the interest of prominent talent, and offers of other material and work.

TIP:
  • Usually a low budget film can’t deliver the full list of requirements of a distribution deal (the "deliverables"), so a sales company will pay for these items and will treat them as “deficiencies”. Common deficiencies are:  Errors & Omissions insurance, music & effects tracks and conversion of video masters. The costs for these items are deducted before the producer receives any net returns on the sale.

The people

The sales agent
The sales agent sells the right to distribute or broadcast your film to local all rights distributors or broadcasters either throughout the world or in specific territories, as stipulated in your agreement.  As evident in this definition, he or she is a wholesaler and does not typically sell a movie directly to the public.

But there can be exceptions to this rule. For example, international sales agents will often book movies directly into the Film Forum in New York if conventional distribution does not work out, or as a way of securing a conventional distributor while generating some revenue.

The sales agent’s job includes all these activities (and more):
  • Prepare certain international sales materials
  • Place the movie in film festivals and markets
  • Handle international press
  • Contract with the distributors
  • Deliver the movie
  • Collect the minimum guarantees and license fees
  • Monitor box office
  • Monitor revenue reporting 
  • Collect overages

 
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