What does Micro-Budget Agreement mean?
Micro-Budget Agreement is the SAG-AFTRA contract for films with budgets under $20,000. It is designed to help independent filmmakers with very small budgets still hire union actors while maintaining basic protections. This agreement allows for maximum flexibility, often including deferred or minimal pay. The Micro-Budget Agreement is most commonly used for short films, student films, or digital content that won’t see large-scale distribution but may be shown at film festivals or online platforms.
Key Points of the Micro-Budget Agreement:
- Budget Limit: The project’s total budget must not exceed $20,000.
- Deferred Payment: Actors can be paid on a deferred basis, meaning they may only receive payment if the film makes money through distribution.
- Flexibility: The agreement allows significant flexibility for small, independent productions, including reduced pay rates and more relaxed working conditions.
Negotiation Tips:
- Deferred Pay with a Bonus: Even if deferred payment is the standard, actors can negotiate for a bonus or percentage of profits if the project becomes successful at festivals or online platforms.
- Festival Screenings: If the film is expected to enter multiple festivals, actors may be able to negotiate for additional pay or credits as the project gains more exposure.
- Creative Control: Actors might be able to negotiate for more creative input in small-scale productions, including decisions about their role or involvement in other parts of the project.
Example:A student filmmaker used the Micro-Budget Agreement to hire SAG-AFTRA talent for their thesis film, agreeing to deferred pay contingent on festival success.
Example: A micro-budget short film intended for online release used this agreement, offering actors a profit-sharing deal if the project went viral or earned revenue through distribution.
Did You Know?
The Micro-Budget Agreement is often used for student films and small indie projects that rely on festival exposure or digital distribution!
Learn More:
For more detailed information, visit the official SAG-AFTRA Micro-Budget Agreement page.
