Tips on Determining Talent Costs
Determining what talent costs is about as simple as advanced trigonometry. There are many variables that must be factored in before setting a rate for an actor or model. Typically, you’ll be working with an agent who represents the talent, and you’ll have to provide that agent with a lot of information before you can even start. Plus, many actors, actresses, and models are SAG-AFTRA members, which means you’ll pay even more to cover union dues. Also, you’ll want to remember that most agents add 10 percent on top of an actor’s fees. In fact, Variety magazine even dubbed agents with the nickname “10 Percenters.”
How much does it cost to hire a model? How much do actors cost? There’s a lot to consider when hiring talent. Follow these tips to help you determine talent pay.
Hire Talent: Video
There are many questions you’ll have to answer before hiring actors and actresses.
How will the video be used? Is it for television, web, internal corporate meetings, a convention floor, in-store? It may be one of these or a combination of many of these. The price can go up with each format.
How big is the audience? For a television ad, you must convey if your production will air locally, regionally, nationally, or internationally with the price going up for each. For web videos, it may be required that you provide an average “visitor” count.
What is the length of the video? Is this a 60-second spot or a 30-minute show? If it’s a web video or corporate presentation, where you’re not required to meet an exact time, you need to have a rough idea of the total running time (TRT).
Are there any conflicts? This is a question you need to ask the agent. If you’re producing a spot for a bank or a hospital, those clients may require exclusivity rights with an actor, meaning an actor or model may not appear in commercials for competing brands.
Speaking or non-speaking role? Speaking actors are paid more than non-speaking actors. And extras, people who fill in the background with no specific actions for camera (such as dancers on a dance floor, people walking by on a street, etc.) are paid even less. In fact, many people will volunteer to be extras for free!
How long will the video be running? Is this a 13-week run? Do you need it for a year? This needs to be determined as well. However, you do have options if you don’t want to commit to a finite amount of time. You can request a “buy out,” which means you pay a higher price for use of the video indefinitely. Also, if you commit to a year, but after a year you decide you want to continue to run a spot, you just need to contact an agent and renegotiate.
Hire Talent: Print
With print, you’re looking at many of the same parameters. However, usage fees are usually in addition to an hourly rate.
How will the image be used? Is this for packaging? A billboard? Magazine or newspaper ad? Website?
How long will you be using the image? The running periods for print are different from that of television. Typically, agencies will negotiate usage fees for one, three, five, and 10 years. Again, it is possible to get a buy out agreement, or a limited buy out where you can use the images forever but only within specific applications.
Hire Talent: Voice Over
VO talent has its own special set of guidelines.
How long is the script? Is this a 30-minute show or a 30-second commercial.
Are there cutdowns? A cutdown is a shorter version of a commercial. So if you start with a 60-second commercial, you may also cut a 30, 20, or 10 out of it as well.
Are there tags? Tags are different endings applied to the same spot. In the case of television promos, you might hear different tags like “Tonight at 8,” or “Coming up next.”
Some agencies may charge you for each tag as well as each cutdown. However, if you plan to use the same VO talent for many projects, you may be able to negotiate a flat rate for a promo or commercial package which includes any amount of cutdowns and tags for one spot concept.
Additional Talent Pay Considerations
Even once you’ve filled in all the blanks, there are other factors that can affect talent costs, such as the prestige or reputation of the agency, how popular a particular actor may be, and transportation to get to a job. Just remember the basic rule of thumb: “Bigger usually means more expensive.” A bigger role, a bigger audience, a bigger running time, a bigger script all drive talent costs up in a production so budget accordingly. And remember to always get a release form and keep it forever!
Put the Talent to Work
Once you have your talent, it’s time for the lights, camera, action! Regardless of whether you making a video or photo, you’ll need to work with a production company to bring it to life. Are you ready to start your next multimedia project? TRG Multimedia is a full-service production company offering a complete range of integrated services, including photography, retouching, and video and television production. Contact us today to see how we can help you with your next multimedia project.