MONEY & PROBLEMS

Every screenwriter dreams of this day: a bright and sunny day in Los Angeles (because what else is it going to be?) and the phone rings. It’s your manager. The magic words sing in your ears: “We’ve made the sale!”

You’re first mid-six-figure spec sale! Wow! You’re wealthy. Time to buy that condo and sip Pina Coladas by the pool, right? Wrong!

Let’s go through the math.

We’re going to use $100,000 for our example because it’s a nice, easy, and round number. (We’re writers, we don’t algebra.)

You won’t get those $100,000. Not even close to it. Here are the people who need to get paid first:

-Agent 10%
-Manager 10%
-Lawyer 5%
-WGA 1.5%

Our calculator tells us that leaves you with $73,500. Living in Los Angeles, that’s already dicey and you’ll need a roommate.

And now, oops, federal and state taxes. It depends on your filing status (and deductions) but let’s go with 24% federal and 7% state.

You’re now down to about $50,000. Can you even pay your rent with that in Los Angeles?

Okay, none of that is meant to harsh your buzz. Mainly we’re trying to get across the fact that if you’re successful, you also need to be smart. (And, no, the two don’t necessarily go hand-in-hand.)

What are the smart moves to make after your first sale?

1. Don’t spend your money unwisely.
2. Keep your other sources of income until you know that you can sustain yourself via the pen (errr… computer).
3. Don’t rest on your laurels. Your representatives need more things to sell.
4. Don’t let success go to your head. Be the person that is easy to work with and delivers stuff on time.
5. Keep networking. And don’t suddenly be an asshole to people.
6. Always hone your craft. That you’ve made a sale doesn’t mean your writing is perfect.

In other words, use your common sense. This business has crushed many people (after stabbing them in the back repeatedly). Don’t let that happen to you.