The TRUTH About Minimum Guarantees Every Filmmaker Needs to Know

Are you looking to sell your film and wondering about minimum guarantees (MGs)?
We've got the TRUTH about MGs and why they shouldn't be your top priority when signing with a distributor or sales agent.
We'll share common mistakes many filmmakers make and how to avoid them. We've included a real-life example and actionable tip you want to take advantage of.
Remember to like and subscribe for more filmmaking tips and tricks! And if you're interested in learning more about film distribution, check out our film distribution training.
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(00:00):
Hey there, it's Tom Malloy from filmmakingstuff.com. Are you a filmmaker just completing your film and wondering how to sell it? You may have heard of a minimum guarantee or MG and wondered, "Well, what is that and how do I get one?" Simply put an MG as a payment for your film against the profits. These were popular in the days of DVDs and home videos, but with video on demand, getting an MG has become maybe a little bit more challenging. And that's a problem because filmmakers often focus solely on getting an MG and letting that be the deciding factor in signing with a distributor or a sales agent. Don't just consider the MG. You may also want to look at the reputation of the sales agent and the distributor potentially, and how they'll promote and represent your film. For example, I met a horror filmmaker a few years ago who said he would only accept a hundred thousand dollars minimum guarantee.
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Now, at the time, our distribution company had offered him a $10,000 MG to show that we had skin in the game. Now, he passed on the deal only to return a year later, and by then, the film was older, less fresh, and a harder sell. I've personally worked with distributors who didn't pay an MG, but they worked hard to market and promote my movies. And in these cases, they did a great job with the movie and I was able to build long-term business relationships. So the key is don't limit your film by saying you'll only accept a specific minimum guarantee. Think carefully about your long-term movie producing goals. If you like this video, smash that like button and please subscribe. And if you're interested in learning more about film distribution, you'll find a link to my film distribution training in the description below.