As an actor, your passion for your craft is at the heart of your career. But, like any profession, the entertainment industry has a business side that plays a crucial role in your success. Understanding the business aspects of acting—from contracts to agents, auditions to financial management—can help you make informed decisions and avoid common pitfalls that many aspiring actors face.
In this blog, we’ll dive into the essential elements of the business side of acting. Whether you’re just starting out or looking to take your career to the next level, understanding how the business works will empower you to take control of your career and make smart, strategic choices.
1. Understanding Contracts: What You Need to Know
Contracts are a critical part of the acting industry. They’re legal documents that outline the terms of your employment, including compensation, rights, responsibilities, and duration of the project. Understanding contracts is essential to protect yourself and ensure you’re getting fair compensation for your work.
a. Types of Contracts
There are different types of contracts you may encounter as an actor, including:
- Standard Employment Contracts: These are the most common contracts you’ll sign for acting jobs. They outline your role, compensation, working hours, and any specific terms related to the project (such as location, transportation, and accommodations).
- Union Contracts: If you’re a member of a union like SAG-AFTRA (Screen Actors Guild‐American Federation of Television and Radio Artists), you’ll often work under union contracts. These contracts have specific rules about compensation, work hours, health benefits, and more. Unions advocate for fair treatment, but it’s essential to understand the specific rights and benefits your union provides.
- Non-Union Contracts: These are contracts for projects that aren’t affiliated with a union. While non-union work can sometimes provide valuable experience, be cautious about the terms. Non-union jobs may offer lower pay and fewer protections than union gigs.
b. Key Contract Elements to Understand
- Compensation: Your pay rate should be clearly outlined in the contract. Understand how you will be paid (hourly, weekly, flat rate, etc.), and whether any additional compensation, like overtime or royalties, is included.
- Usage Rights: Contracts typically outline how your image or performance can be used after the project is completed. This might include film distribution, promotional materials, or merchandise.
- Exclusivity: Some contracts may require you to exclusively work on a specific project or with a specific production company for a certain period. Be sure to read these clauses carefully before agreeing.
- Termination: Understand how a contract can be terminated—either by you or the production company—and what the financial or legal implications may be if you decide to leave the project early.
Always read your contract thoroughly before signing, and consider seeking legal advice if you’re unsure about any terms.
2. The Role of an Agent: Why You Need One
An agent is a professional who helps you navigate the acting industry by finding roles, negotiating contracts, and managing your career. While some actors choose to work without an agent, having one can open doors to bigger opportunities and help you avoid common pitfalls.
a. What an Agent Does
- Finding Auditions: An agent works with casting directors, producers, and studios to get you in the door for auditions. They often have strong industry connections and can submit you for roles that match your skills and career goals.
- Negotiating Deals: Agents are experienced negotiators who can help secure the best pay rates, terms, and conditions for your contracts.
- Career Guidance: A good agent will provide advice on your career trajectory, helping you make strategic decisions about which roles to take and which to turn down.
b. Finding the Right Agent
- Do Your Research: Look for agents who specialize in your type of acting (e.g., TV, film, theatre) and have experience working with actors at your level. Many agents focus on specific genres or markets.
- Be Professional: Agents are looking for talent, but they also want to work with professional, committed actors. Make sure you have a strong portfolio (headshot, resume, reel) and are prepared to handle the business side of your career as well.
- Understand the Contract: When you sign with an agent, they will typically take a commission (usually 10-20%) of the roles they help secure for you. Be sure to review the agent’s contract carefully to understand the terms, including how they are paid and what they will provide for you in terms of support.
c. Do You Need an Agent?
While having an agent is beneficial for many actors, it’s not always necessary early in your career. Some actors start by booking independent roles and building their resume without an agent. However, once you begin pursuing larger opportunities, an agent can help you take your career to the next level.
3. Auditions: Navigating the Casting Process
Auditions are a key part of the acting business. Whether you’re auditioning for a commercial, TV show, film, or theatre production, understanding how the audition process works can give you an edge.
a. Types of Auditions
- Open Calls: These are public auditions where anyone can show up and audition. While they can be highly competitive, they provide a chance for actors to get their foot in the door.
- Callbacks: If you’ve impressed the casting director with your initial audition, you may be invited for a callback. Callbacks allow the director and producer to see you again, often with new material or in a different setting.
- Self-Tapes: With the rise of digital auditions, many casting directors now request self-tapes. This is when you record your audition at home and send it to the casting team. Proper lighting, framing, and a strong performance are key to nailing self-tapes.
b. How to Prepare for Auditions
- Know Your Material: Be prepared by practicing your lines, understanding your character, and knowing the details of the project you’re auditioning for.
- Professionalism: Arrive on time, be courteous, and follow any instructions provided by the casting director.
- Be Yourself: While it’s important to embody the character, casting directors also want to see who you are. Let your personality shine through in the audition.
c. Handling Rejection
Rejection is part of the process, and it can be tough, but it’s essential to not take it personally. Casting decisions often come down to factors outside of your control, like the director’s vision or a role being filled by someone else.
4. The Financial Side of Acting: Budgeting and Managing Income
Acting is a career that can be financially unpredictable. While you may land a high-paying role one month, you could go weeks or even months without work. Here’s what you need to know about managing your finances as an actor:
a. Income and Payment Schedules
- Project-Based Pay: Most actors are paid per project, whether it’s a film, TV show, or commercial. Be aware of how payment works—some contracts pay you in installments, while others offer a lump sum.
- Residuals: For TV shows and films, you may receive residuals, which are ongoing payments whenever a project is rebroadcast or distributed.
- Side Jobs: Many actors take side jobs between roles to cover their living expenses. Consider jobs that offer flexibility, such as freelance work or positions that accommodate your audition schedule.
b. Budgeting for Irregular Income
Since acting can involve periods of financial instability, it’s important to have a strong budgeting plan:
- Emergency Fund: Aim to set aside at least 3-6 months of living expenses in case you experience a dry spell in your acting work.
- Track Your Expenses: Keep track of all your expenses, including headshots, classes, and audition-related costs, as many of these can be tax-deductible.
c. Tax Considerations for Actors
As an actor, you’re considered a self-employed freelancer, which means you’re responsible for managing your taxes. Keep records of all income and expenses, and consider working with a tax professional to ensure you’re handling your finances properly. Be aware of the potential deductions you can claim, including acting classes, headshots, agent fees, and audition-related travel.
Empowering Yourself with Business Knowledge
As an aspiring actor, understanding the business side of acting is just as important as developing your craft. Contracts, agents, auditions, and financial management are all critical aspects of a successful acting career. By educating yourself about the industry and making informed decisions, you can protect your interests, avoid common pitfalls, and build a sustainable and successful career in acting.
Embrace the business side with the same passion and dedication you bring to your performances. With the right knowledge and tools, you’ll be ready to navigate the industry and take your acting career to new heights.
