The EssentialShowbiz Dictionary™

of Entertainment Industry Terms

Low Budget Digital Agreement

2 minute read | Last updated: 4 months ago

What does Low Budget Digital Agreement mean?

Low Budget Digital Agreement is the SAG-AFTRA contract designed for digital content projects with budgets under $50,000. This agreement allows for flexibility in hiring SAG-AFTRA performers for web series, digital ads, and streaming content. Even though the budget is low, actors are still protected by basic provisions, such as fair pay and health benefits. It’s commonly used by indie creators producing content for platforms like YouTube, TikTok, and social media.

Key Points of the Low Budget Digital Agreement:

  • Budget Limit: The project’s budget must be under $50,000.
  • Flexible Pay Rates: The agreement offers lower pay rates for indie creators to hire union actors while keeping production costs low.
  • Basic Protections: Even at lower pay rates, actors are entitled to health and safety protections.

Negotiation Tips:

  • Deferred Payment: For ultra-low-budget digital projects, actors can negotiate deferred payments, allowing them to be paid later if the project earns revenue.
  • Festival and Online Bonuses: For web series or digital projects expected to gain exposure, actors can negotiate bonuses if the project wins awards or goes viral.
  • Profit Participation: Actors can negotiate for a percentage of future profits from streaming or distribution if the project is expected to find a platform beyond its initial release.
Example:An indie filmmaker producing a YouTube series used the Low Budget Digital Agreement to hire union actors while staying within a $25,000 budget.
Example: A digital ad campaign used the Low Budget Digital Agreement to hire SAG-AFTRA talent for online commercials, ensuring actors were compensated fairly while keeping production costs low.

Did You Know?
The Low Budget Digital Agreement is frequently used by indie creators producing content for YouTube, TikTok, and social media!

Learn More:

For more detailed information, visit the official SAG-AFTRA Low Budget Digital Agreement page.

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