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Taking Care of Business
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Old January 21st, 2004, 12:24 AM   #1
Hawaiian Shirt Mogul
 
Join Date: Nov 2001
Location: northern cailfornia
Posts: 1,261
investors and producer points

a producer friend is going to try to raise 400K to finish a project.
he already gave away 30 points to crew/actors/director .

we now have different POV on points.

1) i was always under impression the producer has 100 points based on the $$ ( net) that comes to him from distribution/sales . from that he pays overhead, loans etc. if the producer takes on investors they are paid out of the producer's 100 points. so if he give 50% to investors the producer now has 50 points left to pay himself/others he gave points. so if $1000 is for distribution then 500 goes to investors .. Producer gave 30 points to crew etc and 50 point to investors so he has 20 point remaining

2) but producer says that the 50% for investors is not part of the producer 100 points. they are separate. so any net $$ that comes in pays off loans , overhead. then 50% goes to investors .. the remaining 50% now becomes the producers 100points and from this he pays out to other point persons? so if net was 1000. investor gets 500 .. and the remaining 500 becomes the producers 100 points - so he gave away 30 to crew and now producer has 70 points ...

which is the normal way it is done ?
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