Every aspiring screenwriter dreams of the day they’ll type “FADE OUT” on the last page of their script and have it go on to become a big Hollywood blockbuster. Selling a screenplay is the first major milestone to realizing that dream and breathing life into the characters and story you’ve poured your heart into on the page.
But what actually happens after you manage to get a producer or studio interested in your script? Selling a screenplay is a long, multi-step process filled with legalese, negotiations, and a lot of waiting around.
From getting representation to signing options to maybe, just maybe, seeing your words projected on the big screen years later – there’s a harsh reality to the business side that every writer should understand.
In this guide, we’ll walk through the entire journey of what happens when you sell a screenplay, every step of the way. Buckle up screenwriters, it’s not as simple as cashing that million-dollar check and driving off into the sunset.
Step 1: Getting Representation
Before you can even think about selling your script, the very first step is securing representation from either a reputable talent agent or manager that specializes in representing screenwriters and their material. These industry gatekeepers have the connections and experience to actually get your screenplay into the right hands and pitched to producers and production companies.
Agents in particular are essential, as they are the only ones legally permitted to negotiate monetizing your script through options, sales and contracts with studios on your behalf. Managers can help develop your script and career, but can’t make those all-important deal negotiations.
The process of getting a script agent or manager usually starts by:
- Networking and making connections at screenwriting events, classes or through friends
- Cold querying agents/managers and sending your script and query letter out
- Getting recommendations from other represented writers
- Ideally winning or placing highly in some reputable screenwriting competitions/fellowships
Once you manage to get a talented agent or manager interested in representing both you and your script, they will start packaging your screenplay along with other scripts they are sending out in the hopes of generating interest and negotiations from production companies.
With representation in place, you are now able to move onto the first stages of actually selling your script idea to the highest bidder.
Step 2: Negotiating the Option Agreement
If a producer is interested in your script after your representatives have gotten it into circulation, the first order of business is having that production company “option” the rights to your screenplay for a set period of time.
An option agreement is essentially a temporary exclusive rights deal – the producer options the screenplay and any underlying intellectual property for an agreed-upon window of time (usually between 6 months to a couple of years), along with the ability to extend or renew that option if they need more development time.
In exchange for tying up the exclusive rights to your screenplay during that option period, the production company pays the screenwriter an upfront “option fee” that is the first real money a writer will see from selling their script. These modest option fees can range from:
- $500-5,000 for a total unknown writer’s very first script
- $10,000+ for a modestly produced script (think an indie film)
- $30,000-50,000+ for studio-sized, higher budget films from an established writer
Beyond just the specific option fee amount, other key terms your agent/manager will negotiate in the initial option agreement include:
- Option period length and ability to extend it
- What the minimum purchase price for the script itself will be if optioned
- Writing assignments/fees if drafts need to be revised during the option period
On the development/producer side, this option buys them the crucial time window to hopefully attach talent (actors, directors), secure financing, take it out to production companies and film studios, and secure that critical “green light” to take the movie into production.
For the writer who originated the screenplay, this option agreement starts the long waiting game and “development hell” that most screenplays get stuck in for years before ever seeing the florescent light of a movie set.
Step 3: Getting the Script Purchased
If all the pieces of the development puzzle come together during that initial option period – the talent is on board, the financing is secure, the script is nearing a production-ready state – then the producer will look to exercise their option agreement and outright purchase the rights to your screenplay from you.
Once a screenplay is “purchased”, this is when the big money really starts getting thrown around for the writer. After all, if it’s gotten this far, the production team clearly sees big potential in what you’ve written.
The typical ranges for screenplay sale prices are:
- $50,000-100,000 for a relatively new writer selling their spec script
- $300,000-500,000 for an experienced writer selling a spec script
- $1 million+ if the script has sauce and big names are driving the bidding war
Beyond just the purchase price though, your agent/manager will also be negotiating additional major deal points that really determine the long-term value of the sale, including:
- Writer’s percent of net profit participation
- Fees for required rewrites/polishes during pre-production
- Selling or separating other rights (sequel, comic, etc.)
- Producing fees/credits/bonuses if the writer is expected to be involved -Box office performance bonuses if the movie hits certain benchmarks
While the purchase price itself may seem lucrative, all these additional points on the writer’s deal are what the real bargaining happens over between your reps and the producers. An experienced agent can squeeze out an extra million dollars or more in total compensation for their client.
Of course, just because your script is purchased doesn’t guarantee that it will ever actually get made. A frustrating truth of the industry is that even at this late stage, most purchased spec scripts still end up dying an untimely death buried in “development hell”…
Step 4: Watching Development Hell
After getting your hopes up by having your screenplay actually purchased, now comes the most difficult part – waiting out development hell as the producers try to finally get the green light to take your script into production. Think of development as purgatory for your script as it goes through re-write after re-write to appease the various filming parties involved.
It’s at this stage where most screenplays lives get snuffed out as well. Even for those lucky enough to get an option or script sale, estimates say only 1 in every 7 or 8 purchased spec scripts actually make it into production and get filmed. The others just sit in an endless cycle of rewrites and notes that never get that final “go” signal.
For the scripters whose babies actually survive development hell, this purgatory stage involves:
- Page-one rewrite requests from directors, stars or producers providing opinions
- Hammering out budgetary, ratings or creative disagreements
- Continually updating drafts and treatments as the development drags on month-after-month
For the writers sticking it out, this usually means a steady paycheck and writing fees as they field the parade of revision requests and notes. Low six-figure writing fees for subsequent re-write drafts are common at this stage, providing helpful income as they wait on tenterhooks.
Finally, if that glorious green light is given and the movie is approved to move into pre-production, the original screenwriter will typically receive their agreed-upon fees for doing any last remaining production polishes or revisions. They’ll also get to retain website this coveted “Written By” credit on the film they sweated over for years.
Step 5: If Your Script Gets Made and Released
If a screenwriter’s spec script miraculously runs the entire gauntlet and ends up becoming an actual movie that gets filmed and theatrically released, the originating writer continues to earn payouts and residuals.
As pre-production kicks off, the writer will receive the remaining agreed-upon fees for any additional final revisions or polishes needed before principal photography begins. These fees are coming on top of the initial option and sale payments.
During production and on-set filming itself, some writers may also get hired to be an on-set producer if extensive revisions are expected. This opens up additional producing fees, bonuses and potential backend points based on the film’s final performance if the writer has negotiated those perks.
Once the film is finally in the can and ready for release to theaters or streaming, then the real windfall payouts start for a screenwriter if their fees, backend deals and royalty percentages were all structured properly by their agent.
- For scripts sold at scale, writers with net profitparticipation deal points will start earning on box office returns and media sales as soon as the movie recoups its production budget and starts seeing profit for the studio.
- For lower-budgeted independent films, net profit points of 5-15% of revenues are more common for originating writers.
- Even writers without robust backend deals continue to earn residuals and royalties from downstream revenue sources like home video sales, TV licensing, rentals/streaming, and international sales. These are baked into their original sale agreements.
Of course, for every screenplay that “makes it” to this stage and achieves box office glory, dozens or even hundreds of other scripts never get that far and end up gathering dust on a producer’s shelf.
But if your creativity, talent and hustle pay off in the end – then a screenwriter finally gets to sit back, relax and see the literal “the end” credits roll on a movie they originated years before.
Conclusion
As you can see, the journey from selling your initial screenplay to maybe, just maybe, one day tasting that sweet smell of success on the big screen is long, arduous and filled with interminable waiting. The process tests every screenwriter’s patience, perseverance and negotiation skills along the bureaucratic nightmare that is Hollywood development.
From first getting representation and shopping your script around, to option deals and eventual (fingers crossed) purchase negotiations, every single incremental step forward is hard-fought and needs an astute agent/manager fighting in your corner. Even once the big sale happens, development purgatory awaits where most projects wither and die from endless rewrites.
For those elite few screenwriters whose scripts defy the odds each year and make it through production against all conceivable roadblocks – the financial and career windfall absolutely makes all the struggle worth it. But make no mistake, selling a screenplay is more marathon than sprint, and success means outlasting and outwitting every obstacle in its path.
So keep those laptop batteries charged and those couches well-worn, screenwriters of the world. Your million-dollar words on their own aren’t enough – getting through Hollywood’s Odyssean selling process is the real test of tenacity for your script. Best of luck to any of you determined enough to run that gauntlet.
Frequently Asked Questions
What happens if you sell a script?
If you sell your screenplay, you are transferring full ownership and rights to the production company buying it. They will hire a director, cast actors, and make the movie based on your script. As the original writer, you’ll get paid the agreed sale price upfront, plus any negotiated royalties, fees or bonuses.
Do you get royalties if you sell a screenplay?
It’s possible to get royalties from selling a screenplay, but it has to be specifically negotiated into your contract. Most agreements include the writer getting residuals for subsequent revenue streams like home video, TV airings, streaming, etc. Getting a percentage of box office net profits is less common unless you have significant bargaining power.
How much do screenplays get sold for?
Screenplay sale prices can vary greatly based on the writer’s experience, budget, production company, and more. An inexperienced writer might sell their first screenplay for $50,000-$100,000. For an established pro writer, a script could sell for $300,000-$500,000 or even $1 million+ if there is substantial interest.
What are the odds of selling a screenplay?
The odds of selling a screenplay to have it actually produced into a movie are extremely low – only around 1 in 7 scripts that get purchased actually get made. Many more screenplays get optioned but never make it past development hell.
How much does Netflix pay for scripts?
Netflix is very selective but does buy screenplays. Their purchase prices are rumored to range from $300,000 to $600,000 and up for A-list writers with commercial appeal. For newer writers with strong concepts, script prices are likely in the $100,000 – $300,000 range.
Can I sell my script to Netflix?
Yes, you can submit your screenplay to be considered by Netflix’s story analysts. However, they only accept scripts through accredited literary agents, managers or producers they have existing relationships with. As an unestablished writer, getting an agent to represent you is the first crucial step.
Who owns the rights to a screenplay?
The original screenwriter automatically owns the rights and full intellectual property of their screenplay upon creation. Rights are then sold or optioned to a production company through contract negotiations.
Do I need to copyright my screenplay?
Technically you don’t need to officially register your copyright – your script is protected by copyright laws as soon as it is created and put into tangible form. However, formally filing a copyright provides additional legal benefits if ownership is disputed.
How do I get my screenplay funded?
Getting funding for an independent movie based on your script is extremely challenging without deep industry connections. Common routes are investor financing, crowdfunding, applying to grants/funds, or getting a production company to optioned it first before funding falls into place.
