I believe the compensation structure should generally be based on a percentage. While risk certainly influences the final share distribution, the labor contribution should also be factored in. This isn’t required now, obviously, but I think it’s generally fair and a more fair world is what I want to live in.
For this to work you would have to specific ban those workers from being allowed to negotiate away their percentage in exchange for guaranteed wages. Because many people would want to make that trade for good reason, because these types of out-of-the-blue success stories are are the exception not the rule.
a fixed rate pay for the work actually being done (because no matter the success or failure, you put the work in)
a percentage of the profits if the product is successful.
Investors should not be able to claim any more than, say, 50% over their initial investment. That’s already much, much better than any return rate you’d get on other investments, and it would actually benefit those who put in the work, and not the guy who had some spare change to gamble on something (that spare change being a life changing amount for any single person).
Now the film cost 750k to produce. Let’s say that marketing and such cost 9 million (it didn’t but let’s presume). That is 210 million pure profit.
750k for sets, props, costumes and salaries. Presuming around 500k went to salaries, that’s ~90 people making that ~7k each (obviously different roles make different amounts but let’s equalise here).
Now, if the investor took 10 million, that’s still a 1300+% return on the investment! And the remaining 200 million, would mean over $2mil payout per person for the entire crew.
Which, in my opinion, would be the fair split. Average people could never even become near that kind of ROI on any kind of gambling, and the investors here literally just put the money on the table. They didn’t do anything else.
I believe the compensation structure should generally be based on a percentage. While risk certainly influences the final share distribution, the labor contribution should also be factored in. This isn’t required now, obviously, but I think it’s generally fair and a more fair world is what I want to live in.
For this to work you would have to specific ban those workers from being allowed to negotiate away their percentage in exchange for guaranteed wages. Because many people would want to make that trade for good reason, because these types of out-of-the-blue success stories are are the exception not the rule.
Compensation for work should be twofold:
Investors should not be able to claim any more than, say, 50% over their initial investment. That’s already much, much better than any return rate you’d get on other investments, and it would actually benefit those who put in the work, and not the guy who had some spare change to gamble on something (that spare change being a life changing amount for any single person).
Now the film cost 750k to produce. Let’s say that marketing and such cost 9 million (it didn’t but let’s presume). That is 210 million pure profit.
750k for sets, props, costumes and salaries. Presuming around 500k went to salaries, that’s ~90 people making that ~7k each (obviously different roles make different amounts but let’s equalise here).
Now, if the investor took 10 million, that’s still a 1300+% return on the investment! And the remaining 200 million, would mean over $2mil payout per person for the entire crew.
Which, in my opinion, would be the fair split. Average people could never even become near that kind of ROI on any kind of gambling, and the investors here literally just put the money on the table. They didn’t do anything else.