What does Deferred Payment mean?
Deferred Payment refers to a compensation arrangement in which an actor, crew member, or other contributor agrees to receive payment for their work on a film or TV project at a later date, typically contingent on the project’s success or profitability. This arrangement is common in low-budget or independent productions where upfront funds may be limited. Deferred payments allow producers to complete a project without immediate financial strain, with the understanding that contributors will be paid once the project generates revenue.
Example:A screenwriter agrees to a deferred payment deal, receiving a percentage of the film’s profits once it is released, instead of an upfront fee.
Example: A cinematographer on an independent film accepts deferred payment, knowing they will only get paid if the film is profitable after release.
Did You Know?
Deferred payment agreements can be risky for contributors, as they are often based on the film’s success, which is never guaranteed!
