Crafty Table: How to Not Get Screwed in Distribution Deals

Let’s skip the fluff. If you’re a filmmaker staring down the barrel of your first distribution deal and wondering, “How do I not get screwed?”—here’s your answer:

It all comes down to two things:

1. Trustworthiness of the company

2. The revenue waterfall

That’s it. Everything else—the marketing language, the legal provisions, the exclusivity windows—can be negotiated. But if you miss those two points, the rest won’t save you.

1. Vet the Company Like They’re Your Babysitter

You wouldn’t let a random stranger watch your kid, so why would you hand over your film—something you’ve spent years and thousands (if not more) building—to a company you barely know?

Start with IMDb.Look at what films they’ve distributed, and more importantly, when. Don’t just focus on the most recent titles. Go back two years or more. Then start cold calling.

Yes, call the filmmakers. But don’t call the ones whose movie just came out—call the ones whose movies are well past their premiere and reporting cycles. They’ll tell you what it was really like. Ask them:

• How did the premiere go?

• Did they feel supported during the marketing campaign?

• How hard did the distributor work to find new revenue streams post-release?

• Did the film make any money?

This is the only real way to know if you’re dealing with a legit team or just a content mill looking to pad their quarterly release count.

Ask about the company's hustle.You want a partner who’s actively looking for new platforms, new deals, and new ways to monetize—not someone who just uploads your film and hopes for the best.

2. Understand the Waterfall—or Drown In It

The revenue waterfall is the order in which money gets distributed once revenue starts flowing in. It’s the difference between getting paid and getting burned.

Here’s a simplified version of what a standard waterfall might look like:

1. Distributor takes their fee (usually 20–35% of gross receipts).

2. Out of the remaining funds, they recoup their expenses (delivery, marketing, trailers, QC, key art, etc.).

3. You get what’s left (if anything).

Let’s say your film earns $100,000:

• The distributor takes a 30% fee: $30,000.

• That leaves $70,000.

• Now they recoup $20K in expenses out of your $70K.

• You get the final $50K.

That’s assuming they actually cap their expenses, report transparently, and didn’t hide other fees.

Now, here's where deals diverge:

A. Rev Share Deals (No Advance)

These are “split the pot” deals where you don’t get any cash upfront. These can come with lower distribution fees (typically 20–27.5%), which sounds good… but only if the distributor believes in your movie. Because if they don’t, they won’t spend on marketing—and you’ll get 80% of a very small pie.

B. MG (Minimum Guarantee) Deals

If they’re offering a cash advance, great—you’ve got upfront money you can use for your next film. But just know that in exchange, they’ll likely want a higher fee (30–50%) and recoup that advance from your share of future revenue.

It’s a trade-off. Sometimes it’s worth it, sometimes it’s not. But now you know how to weigh it.

C. Cost-Off-The-Top Deals

These are rare but worth understanding. Instead of recouping expenses out of your slice of the pie, the distributor recoups them from the full 100% of the revenue before any split. These often come with a cleaner 50/50 split after recoupment.

This structure can work well if your distributor is aggressive, spends real money on marketing, and is actively monetizing every platform available.

Real-World Numbers

• Distribution Expenses (not marketing):

  • Low-end indie distributors: $2,500–$5,000

  • Mid-tier or studio-level: $16,000–$25,000+

• Marketing Budgets:

  • Zero (yes, some do nothing)

  • Indie push: $5K–$25K

  • Studio-level name cast films: $100K–$1M+

Whatever the size, make sure you know what they plan to spend and where. Ask for caps. Ask for detailed breakdowns.

Bonus: Why a Sales Rep or Producer’s Rep Helps

If you’re a new filmmaker with one film and no relationship with a distributor’s legal or sales teams, you’re low-priority. But if a company like ours (S&R Films) represents you, those same distributors know they’ll have to work with us again and again. That creates leverage and accountability.

Even if it’s not us, having someone credible representing your title changes how your film gets handled behind the scenes.