paying for talent costs
taming the cost of talent
Talent costs for both television and print can be major expenses for advertisers. In fact poorly negotiated and contracted talent
agreements have lead many advertisers to not realise the value of their initial production, with subsequent roll-over fees hindering the cost effectiveness of extending a campaign beyond the original agreement.
The Industrial Award
But this award only sets minimum fees for attending the actual shoot and clearly states that the rights for use of the talents image are open to negotiation based on media exposure, geography and time. There are guidelines for fees based on territories outside of Australia, but these are just that, guidelines.
The roll over fee
Roll over fees are paid when the initial term is complete and the contract is rolled over to a new period.
The normal practice is for the whole fee to be rolled over, yet the fee is composed of a fee for the actual work on the shoot and a fee for the rights to use the image. Clearly there is no additional work for the rollover, so we suggest that only the rights component of the fee should be rolled over.
The flawed negotiation
On the other side is the agency producer who is usually up against a tight deadline and who has no tangible incentive to negotiate the lowest possible fee beyond
doing the right thing by the client.
Changing the balance
Secondly, stop using the MEAA talent agreement and put in place an agreement that is more balanced in the terms and conditions such as the P3TV Talent Agreement.
Thirdly use the P3TV talent benchmarks to set the rates you are willing to pay and push the negotiation rather than being pulled through the negotiation.
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