A deal memo is a short written agreement setting out what someone is being hired to do, when, for how much, and on what terms. It is not a full contract and on most productions it is what people actually work under. Getting one in place before someone starts is the single most effective way to avoid a dispute.
The principle underneath all of this: write it down before it matters. Not because anyone expects a problem, but because the things that cause problems are the things nobody thought to discuss.
What goes in a deal memo
- Names. The production company and the individual.
- The role, specifically.
- The dates. Prep days, shoot days, travel days, and wrap. All of them, separately.
- The rate, and what unit it is (day, week, or a flat fee for the job), and what a "day" means in hours.
- Overtime terms. What happens after the standard day, and at what multiplier.
- Turnaround. The minimum rest between wrap and next call, and what happens if it is breached.
- Meal breaks, and any penalty for missing them.
- Payment terms. When, how, and to whom. Weekly, or within a stated number of days of invoice.
- Kit fee, if they are supplying equipment, and who insures it.
- Travel and expenses. What is covered and how it is claimed.
- Accommodation and per diems, if applicable.
- Credit. What their credit says and where it appears.
- Employment status. Employee or self-employed contractor, which has tax consequences for both sides.
- Cancellation. What happens if the shoot moves or is cancelled, and whether any days are guaranteed.
- Ownership. That the production owns the work produced. Standard, and needs saying.
- Confidentiality, if relevant.
Two pages at most. A signed two-page memo is worth more than an unsigned twenty-page contract.
How film rates are structured
Film rates work differently from most other industries and the structure catches people out.
Day rate. The standard unit for short engagements. Usually covers a defined day, commonly 10 or 12 hours including or excluding lunch, which is a detail worth pinning down.
Weekly rate. For longer engagements, usually a 5 or 6 day week, and typically cheaper per day than the day rate. Standard for anyone on for the duration.
Overtime. Hours beyond the standard day, usually at time and a half, rising to double time after a further threshold or on the seventh consecutive day. Where union or guild agreements apply, these are defined precisely and are not negotiable.
Turnaround. The minimum rest between wrap and the next call, typically 10 to 11 hours. Breaching it triggers a penalty payment where agreements apply, and where none apply it triggers an exhausted crew, which costs you anyway.
Meal penalties. Payments triggered when a meal break is not given within a defined interval. These accumulate quickly and are a genuine line item on a badly run production.
Kit fee / equipment rental. Paid separately from the labor rate when crew supply their own equipment. This is important and often mishandled: a sound recordist's rate is for their work, and their recorder, microphones and radio mics are a separate rental. Combining them means paying a professional a poor wage while getting their equipment free.
Prep and wrap days. Frequently at a reduced rate, and frequently forgotten in budgets entirely. Most departments need them.
A day rate that looks generous on a 10-hour day is a poor rate on a 14-hour day, and productions that consistently overrun are quietly paying people less than they agreed. Crew work this out immediately. This is why the definition of a working day belongs in the deal memo, why overtime terms matter even on small productions, and why a well-run 10-hour day earns more goodwill than a badly run 14-hour one at the same money. If you cannot afford overtime, the answer is to schedule days that finish on time, not to hope nobody notices.
Finding out what rates should be
Rates vary enormously by country, city, format, budget level and union status, so no article can give you numbers that will still be true where you are.
Where to find real ones:
- Union and guild rate cards. Published in most countries, and they define the professional floor. Even on non-union work they are the reference point everyone knows.
- Regional screen agencies and film offices, which often publish low budget guidance.
- Crew listing sites, where posted rates for comparable jobs give you a live picture.
- Ask. Freelancers will usually tell you their rate directly, and asking two or three people gives you a range.
Budget tiers matter: most territories have recognized low budget agreements with reduced rates, which exist precisely so that small films can be made legitimately rather than informally.
Employment status
Worth taking seriously because it has legal and tax consequences that fall on the production.
In many jurisdictions, crew on a production are treated as employees for tax and employment purposes even for a short engagement, and misclassifying people as self-employed contractors can create real liability. In others, freelance status is standard.
The rules differ enough that the only sound advice is to check what applies where you are shooting, and to use a payroll service if the production is large enough to warrant it. Getting this wrong is one of the ways a small production discovers a serious problem after the film is finished.
The same applies to insurance, which is covered in production insurance. Employer's liability is a legal requirement in many places, including for unpaid crew.
Unpaid work, honestly
A great many short films are made with unpaid crew. This is a real part of how people start, and it can be done decently or badly.
Done decently:
- Say plainly that it is unpaid, in the listing and in the memo.
- Cover actual costs. Travel, and food on the day. Asking someone to work free and also pay to be there is not reasonable.
- Feed people properly. Not crisps and a sandwich at 4pm.
- Keep the days short. Unpaid people on a 14-hour day is where goodwill dies.
- Deliver the credit and the footage, promptly.
- Still issue a deal memo. Dates, role, what is provided, what is expected, ownership of the work. An unpaid arrangement needs written terms more than a paid one, not less.
- Be aware that unpaid does not remove your legal obligations. Insurance and safety duties usually apply regardless of payment, and in some jurisdictions unpaid work on a commercial project is itself restricted.
Done badly: implying payment that never comes, "deferred" fees on a film with no revenue path, calling it an internship, long days, poor food, and a director who never sends the finished film. Every one of these is common and every one costs you the network you were trying to build.
Paying on time
The most damaging thing at low budget level is late payment. Freelancers manage cash flow tightly, and a production that pays 60 days late is a production people warn each other about.
State the terms, then meet them. If something goes wrong, tell people before the date rather than after. Nearly everyone is understanding about a delay they were warned about and nobody is understanding about silence.
Next
That completes the chapter on people. Chapter 5 turns to the plan they will execute: everything that happens in pre-production, week by week.
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