Write an article based on this "Tell the author you are interested in their work. Set the length of your option. Negotiate the option fee. Agree to a purchase price. Determine the author's cut of net profits. Negotiate other rights. Discuss how the author will be credited. Identify how you exercise your option. Ask the publisher to sign a release."
You might need to negotiate with the author's agent, especially if the author is well-known. However, independent self-publishers and less known authors frequently don't have agents. Introduce yourself and explain you want to make a film of their book. As a producer, you won't buy the film rights right off. For example, you probably don't know if you can even get financing for the project. Instead, you'll buy an "option," which gives you the exclusive right to buy the film rights in the future. The option lasts for only a certain amount of time, usually 12-18 months. Try to get an 18-month option, which will give you extra time to pull together financing for the film. The author might disagree, but you should push to get as lengthy an option period as possible. You can also get the right to one or two extensions of the original option period. You probably need to pay for the option. There's no formula for how much you should pay, but you should begin by assessing the book's popularity. A hot bestseller probably has many people bidding, so you might need to offer high five figures or even more. However, a book that's been out for a while might only cost you $5,000 for the option. With more obscure books, you might not have to pay any money. Instead, you can promise to do your best to get the film made. Talk to other film producers to see how much they have paid for options. This is the amount you will pay for the rights if you ultimately exercise your option. Negotiate this amount at the same time you negotiate the option so that you can include it in your option agreement. Generally, the amount you pay will be based on the written direct budget. The usual formula is 2.5%, and the option price is usually set off against the purchase price. Remember to include a floor and a ceiling. For example, your budget might end up being tiny, which means the author will walk away with peanuts. You can protect against this by setting a minimum, say $7,000. Also set a maximum amount in case your budget is much higher than you expect. Authors typically get around 5-10% of all net profits (and not only the producer's share). You'll also need to agree on how to define net profits. There are two standard ways: The definition used by the picture's domestic theatrical distributor. The definition provided by the picture's financers. Think ahead about what other rights you should negotiate at the same time as your option. At a minimum, you'll want to include the following: Rights to sequels. You might buy the rights before a book is even published. If it turns out to be a smash hit, then the author will probably create sequels, and a different producer might scoop up the film rights them. Reversion rights. After you exercise your option, you might hit a snag and not make the film. Authors don't want to wait around forever, so they want their rights to revert to them. You can set a deadline for getting the film made, such as seven years, and also require the author to reimburse you for expenses. You have many options for crediting an author, and this may be a sticking point for some authors. Consider the following: You give an on-screen credit that reads something like, "Based on the book Poison Ivy written by Michelle Jones." This credit might have its own screen as part of the opening credits or just be part of the credit roll at the end. Some authors might also want credit in the paid advertising. If the author is famous enough, their name might be included in the title of the move, e.g., Sidney Sheldon's Bloodline. You need to give the author notice that you're going ahead and exercising your option to buy the rights. Generally, you can exercise your option by sending the author a written notice or just staring principal photography. Sometimes publishers hold onto the rights of books they publish. Before signing an option agreement, ask the publisher to sign a release. This document will confirm the publisher doesn't have any rights you are seeking.