Q: Any thoughts on asking talent for Letters of Interest?
Q: Any thoughts on asking talent, etc. for Letters of Interest? They’re non-binding, right? It seems like they can allow both you and the talent to test the waters a bit, while having something interesting to tell investors about. Thoughts?
Aydrea (via the comments section on the Film Method Mailbag)
Thanks for reading my September 12th post, “Do you approach investors first or talent first?” In regard to getting letters of interest, I need to first differentiate. A letter of interest is not the same as a letter of attachment. Many filmmakers use the two terms as if they are the same. They are not. One means they are interested in the film for any number of reasons, but are not formally “attached” to the project. The other means they are attached to the project which means they have a contract in place stating they will receive X once the funds are raised. Because so many filmmakers do not understand the difference, agents, managers and talent are hesitant to do letters of interest. A letter of interest is non-binding, yes. But, the talent knows that you will be using their name to raise capital and therefore, some feel they should be compensated for that. In addition, the non-binding part can come back and bite them in the butt because the filmmaker could use their name to gain interest but then not actually use them in the film (rare but it happens) and then they don’t see a dime and their name gets somewhat watered down. Also, for filmmakers you want to think long and hard about who you are going to get these letters from because if you go out and get a letter from a lesser known actor/actress and that person is the reason the investor wants to put money in then along comes Brad Pitt or someone bigger, you may not be legally bound to the original talent, but you are going to be bound through the expectations you have set up with your investor.
Like with any aspect of the filmmaking process, there are pros and cons. You as, an intelligent and responsible producer or filmmaker need to be able to weigh those pros and cons before you get yourself into a situation that isn’t all that peachy.