When actors book commercial gigs, they typically negotiate a fee that covers their time and expenses. But often this figure also includes a “minimum usage fee” (aka an royalty). This means that the actor will get paid another fee every time the commercial airs. Whether it’s a one-time payment or a percentage of the residuals, the amount actors get paid for each airings varies greatly depending on the role and casting director. This post breaks down how much commercial actors usually get paid for each airings, as well as what negotiations you should have in place so you can be compensated appropriately.
Interesting Articles to Read:
How Much Do Actors Get Paid for Each Airing of a Commercial?
Like all contracts, the amount actors get paid for commercial airings is negotiable. The standard practice is to use the term “minimum usage fee” which is a one-time fee that covers the actor’s time and expenses. But often this figure also includes a percentage of the residuals. Residuals are a percentage of the advertiser’s total media spend. So, the more the commercial is aired, the more you’ll get paid. Many contracts also include a “pro-rate clause,” which means you’ll get a percentage of what’s paid out on the day of the airing. For example, let’s say you booked a commercial that pays $500 for each airing. The commercial airs 50 times in a year. Assuming there’s no pro-rate clause, you get paid $500 for each of the 50 airings. But if there’s a pro-rate clause, you get paid a percentage of what’s paid out on the day of the airing. So if on the last airing you get paid $70, you get a total of $600.
What is a residual and why does it matter?
A residual is a percentage of the advertiser’s total media spend. In other words, the more the commercial is aired, the more you’ll get paid. Residuals are paid to actors, stunt people and creative teams who are members of SAG-AFTRA. They’re based on the media buy, which is the amount advertisers pay for commercials. There are two ways to get residuals: being a member of SAG-AFTRA or negotiating a deal based on the use of your image. SAG-AFTRA members automatically get paid a percentage of the media buy. So, the more the commercial is aired, the more you’ll get paid. Non-union actors who aren’t a part of SAG-AFTRA can negotiate a deal based on the use of their image. In other words, they’ll get paid a percentage of the media buy if they request it.
Residuals: Who Pays and How Much?
Advertisers are responsible for paying residuals to SAG-AFTRA members. But most advertisers choose to pay residuals to non-union actors as well. There are two types of residuals: daily and end-of-contract. Daily residuals are paid on the day the commercial airs. And end-of-contract residuals are paid out when the contract between the advertiser and agency expires. Most contracts have a clause that dictates who pays residuals. Sometimes the advertiser will cover the residuals. Other times the production company will cover them. Daily residuals are typically 10 percent of the media buy. And end-of-contract residuals are 15 percent of the media buy.
Which types of actors get paid residuals?
Residuals are typically paid to actors who are members of SAG-AFTRA. But some advertisers will choose to pay non-union actors as well. Residuals are based on the Media Buy. So, the more the commercial is aired, the more you’ll get paid. – Commercials aired on Network TV: SAG-AFTRA members get paid 10 percent of the media buy. Non-union actors get paid 15 percent of the media buy. – Commercials aired on Cable TV: SAG-AFTRA members get paid 5 percent of the media buy. Non-union actors get paid 10 percent of the media buy. – Commercials aired on Radio: SAG-AFTRA members get paid 5 percent of the media buy. Non-union actors get paid 10 percent of the media buy. – Commercials aired on Digital: SAG-AFTRA members get paid 2.5 percent of the media buy. Non-union actors get paid 5 percent of the media buy.
Negotiating Residuals
If you’re being hired as a non-union actor, you should negotiate a deal based on the use of your image. In other words, you’ll get paid a percentage of the media buy if you request it. Most advertisers will offer to pay a one-time fee. But it’s in your best interest to negotiate a deal based on the use of your image. You should also negotiate a deal when you’re hired as a SAG-AFTRA actor. One of the first things you should do is ask who’s paying for residuals. If the production company is covering the residuals, you should negotiate a deal based on the use of your image.
When you shouldn’t expect to get paid residuals
Commercial actors won’t get paid residuals if the commercial is under 90 seconds long. Or if the commercial is aired on a show that’s not produced for commercial purposes (like the news or talk shows). You also probably won’t get paid residuals if you’re SAG-AFTRA and the advertiser is a non-union advertiser.
Conclusion
Commercial actors often negotiate a deal based on the use of their image. And although it’s rare, some advertisers will pay non-union actors a percentage of the media buy. Most contracts include a “minimum usage fee” that covers the actor’s time and expenses. But often this figure also includes a percentage of the media buy. Most contracts have an expiration date. And once the commercial has been aired enough times to reach the contract, you won’t get paid any more money. That’s why it’s important to negotiate a deal that provides residuals for as long as possible.