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14 Money-Saving Talent Tips

Your advertising agencies are most likely signatories to one or more national talent union contracts.  By using union talent, you are promised "category exclusivity," which means the performers in your commercial cannot appear in a commercial for a directly competitive product, as long as you are paying use and holding fees.

When hiring union talent, consider the following:

1) When using on-camera, or voice-over talent for a test commercial, it may be possible to pay them a "Demo" rate, rather than the higher "Principal" rate, if the commercial is not being aired.

2) Instead of hiring a casting agent to find voice-over talent, your agency can save significant dollars by a) listening to existing talent demo tapes, and b) considering talent that has been used in the past for similar commercials (including any test versions).  If casting is deemed necessary, try to narrow the field to 2-3 favorites before auditioning them.

3) For on-air commercials, cast for "scale" talent, before resorting to "over-scale" talent. There is an ample supply of good actors - and most of them would jump at the chance to appear in your commercial.

4) Do your best to cast all talent in the city you plan to shoot.  Flying talent in from other cities can be very expensive.  They are paid first class air fare, and full session fees for each day of travel, as well as all other travel expenses.  If the talent is traveling on a weekend, they are paid overtime. It adds up fast!

5) If you have a number of performers in your commercial (e.g., on-camera/off-camera actors, singers, musicians, etc.), ask for an estimate of residual fees before you produce your commercial.  Talent can be quite costly, and this is the best time to reduce the number of principal performers, if necessary.

6) On-Camera Principals are defined as anyone who is seen and speaks, anyone whose face appears silent and is identified with the product or product message, and anyone who is seen in close-up, is identifiable, and illustrates or reacts to the product or service.

Extras are none of the above.  However, Extras can appear in the foreground and be recognizable, as long as they are solely providing atmosphere.  If there are doubts as to whether a performer should be classified as an Extra or a Principal, then hire them as an Extra.  Extras are paid a lower fee, and they do not require residual payments. 

If, when the commercial is finished, it is determined that the talent should be classified as an On-Camera Principal, the agency can "upgrade" an Extra to On-Camera Principal status.  However, it is very difficult to "downgrade" an On-Camera Principal to Extra.   Don't accept the argument that an Extra cannot be auditioned or directed.  These are common misconceptions.

7) When scheduling multiple actors for a shooting day, the production company/agency producer should make sure that the talent call times will minimize or avoid any overtime.  Talent should not have to stand around waiting to perform.  Their call time should allow enough time for wardrobing, make-up, and hair styling, but that's all.  And, of course, they should be released as soon as their performance is completed.  Overtime adds up quickly and it pays to avoid it if possible.

8) If planning to use the commercial on the Internet, in a foreign country, or for theatrical and/or industrial use, be sure the performer will grant the rights to such use before hiring them.  There are established union rates for these additional areas of usage, which must be paid, if applicable.

9) Make sure your agency has a procedure in place that advises you on the expiration of cycle dates for your commercials.  As soon as you're through airing a commercial, release it.  Do not continue to pay holding fees longer than necessary.  On the other hand, do not release a commercial prematurely, because you will have to re-negotiate with each perfomer if you want to use it again.  And, after 21 months from date of initial performance, you will have to re-negotiate with each performer anyway.

10) Weigh carefully the advantages of using celebrity talent.  Is the talent relevant to your product or service?  Is the premium you have to pay worth the return on investment?

11) For overscale talent, never accept the notion that there is only one actor/actress who can do the commercial. This puts you at a distinct disadvantage when negotiating.  Be prepared to walk away.

12) If you are going to negotiate a special contract, anticipate options and negotiate them upfront (e.g., number of commercials covered, types of media [print, radio, collateral, personal appearances], options for additional years, etc.).  You don't have to pay for these options now - just agree on what the fees would be if the options were exercised.  Remember, you have a lot of leverage before you hire the talent, and none after.

13) Also consider any provisions regarding test marketing periods, regional or international use, restrictions on talent appearing in competitive advertising, how much of the talent's time you will require, what cancellation and expiration provisions you would like, and what other provisions, such as morals clauses, death or disability clauses, etc., you feel are appropriate, or are required by your company's policies.

14) Finally, if your advertising features a continuing character to be played by an overscale performer, make sure to explicitly state in the contract that the advertiser owns and controls the character.