Do You Know What a Holding Fee Means?
If you are fortunate enough to book a Union TV commercial
and get a check that is labeled Holding Fee, do you know what that means?
To help explain this important term, let me give you some background information
about how actors and models get paid for SAG-AFTRA TV commercials.
The Union (SAG-AFTRA and Holding Fees)
There are many complicated formulas that go into figuring out
how much actors get paid when doing a Union commercial.
Here are just some factors that can determine how much you will earn
from working on a Union TV commercial
Is it a local spot, where it is only airing in one area?
Is it a regional spot where it might air in 2, 3 or more states.
Is it a national spot (which is what all commercial actors dream to book) where it is airing throughout the United States
Or is it a “Class A” commercial meaning it’s airing during a specific show
that airs during prime time (think Superbowl or any prime time TV show)
This Was a National TV Spot
This was originally a national modeling ad for AT&T.
They liked my work and asked me to audition for the National TV spot as well.
So happy to book this job. For the TV spot, they spent over $10,000
just building a huge can that I actually needed a ladder to get in and out of.
Not Sure About the Rules – It Can Get Complicated
TV commercial fees can get complicated
Except for the Class A TV commercials, principal actors in TV spots
get paid every 13 weeks (as long as the spot is running.)
That check will include the session fee
plus the units for the city or markets where the commercial is airing.
What Are Units?
The fees change and you can check out the SAG-AFTRA web site to
get the latest details, but we earn around $22/unit. Every city has
a specific amount of units attached to the city. The larger
the market, the more units it has.
The 3 largest markets in the United States are Los Angeles, Chicago
and New York.
Booking a National TV Commercial is so Exciting
It is very hard to book a national TV commercial, but I know
people who have earned $250,000 from one spot.
Now, if the company decides that they no longer want to run the TV
commercial, then the actor stops receiving their “residual checks.”
Holding Fee
If the company decides that they either are not sure if they are going to
air the spot again or know that they want to air it at a later date, the
talent will receive a “Holding Fee.”
That means that the TV commercial is not currently airing so the actor
will receive the session fee, but no units.
By paying a holding fee, the actor can’t do a TV commercial for a competing
company because they are still being paid for the spot. This holding fee
check will continue to be sent every 13 weeks.
Conflicts
There are times where you can receive a “holding fee” for a TV spot
and still do an ad for a similar product.
I once had a 2 year exclusive contract for a hotel chain. I could not work for
other competing hotels.
I was asked to do an ad for a small local hotel. My agent asked the client
if they viewed this small hotel as competition. They did not and I was allowed
to do an ad for another hotel.
Don’t make the mistake that some actors and models make by accepting a job
and not revealing the truth when asked if they have any conflicts running.
You could not only lose representation with your agent, you could be held
financially responsible for all of the money spent on producing a TV spot
that can’t be used.
So, now you know what “holding fees” are all about. Hope you start getting
those checks. And, better yet, start getting residual checks because your
TV commercial is running.
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About the Author: Aaron Marcus
Aaron Marcus has been a full-time actor and commercial model for over 36 years.
His new book, How to Become a Successful Actor and Model is an Amazon Best Seller.
Aaron has given his seminar: "Book the Job" over 800 times spanning 3 continents.
He also offers online workshops.
Aaron saves 5 days each month to give private on-line coaching sessions.
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