What does Commercials Contract mean?
Commercials Contract is the SAG-AFTRA agreement that governs actors working in commercials for broadcast, cable, and internet platforms. It outlines fair pay, residuals, and safe working conditions for performers. The agreement applies to all types of commercials, including traditional TV ads, web ads, and more. Residual payments are a key feature, ensuring that actors are compensated each time the commercial is aired or reused.
Key Points of the Commercials Contract:
- Residuals: Actors earn residual payments each time the commercial is aired, reused, or distributed to different platforms.
- Minimum Pay Rates: The agreement establishes minimum pay scales for all types of commercial performers, including principal actors and background actors.
- Coverage for Digital Ads: The contract includes internet and digital advertising, ensuring actors receive the same protections as with TV commercials.
Negotiation Tips:
- Higher Residuals: If a commercial is expected to have high exposure or multiple airings, actors can negotiate for higher residuals to maximize long-term earnings.
- Buyouts: Producers may offer a buyout for a flat fee instead of residuals; in this case, negotiate a higher buyout amount to cover the potential earnings lost from residuals.
- Exclusivity Clauses: If a commercial requires exclusivity (e.g., not working for a competitor’s ad), actors can negotiate a premium to offset the restriction on other work opportunities.
Example:An actor who appeared in a national TV commercial continued to receive residuals each time the ad was replayed on various channels and streaming services.
Example: A performer in a digital ad negotiated a higher buyout fee instead of accepting residual payments, ensuring a larger upfront payout for the project.
Did You Know?
Commercial actors can earn significant long-term income through residual payments, especially if the commercial airs frequently or on multiple platforms!
Learn More:
For more detailed information, visit the official SAG-AFTRA Commercials Contract page.
