I can get behind fair wages, but I don’t understand residuals. You were paid to do a job, but you also expect a cut of whatever future revenue it might achieve?
You were paid to do a job, but you also expect a cut of whatever future revenue it might achieve?
If it’s in the contract then yes.
If you’re wondering why it’s in the contract, this is very common in lots of different business types.
Up front, there may not be a desire to make a huge investment. What if isn’t a success? So you tell whoever is making , “hey, we’ll pay you measely dollars now to make it, and pay you percent of money that comes in for it down the road.” This way you can invest a smaller amount up front ensuring the thing gets made, but everyone involved gets a cut based on the future success.
Since the success/amount made isn’t determined in a one-time deal, you pay out the shares of the success over time: aka residuals.
If you don’t understand residuals, like owning stocks, which continue to pay out on future worth through dividends, when their values go up, I’d suggest you pick up a book.
I mean why not? If your labour helped create the thing, and it’s still generating value, why not receive a share of the value? Especially when higher up execs who might not have even worked on it at all are making bank from it.
I can get behind fair wages, but I don’t understand residuals. You were paid to do a job, but you also expect a cut of whatever future revenue it might achieve?
Residuals are quite common outside of Hollywood. Just look at the deal Nike made to steal Jordan away from ADIDAS.
If it’s in the contract then yes.
If you’re wondering why it’s in the contract, this is very common in lots of different business types.
Up front, there may not be a desire to make a huge investment. What if isn’t a success? So you tell whoever is making , “hey, we’ll pay you measely dollars now to make it, and pay you percent of money that comes in for it down the road.” This way you can invest a smaller amount up front ensuring the thing gets made, but everyone involved gets a cut based on the future success.
Since the success/amount made isn’t determined in a one-time deal, you pay out the shares of the success over time: aka residuals.
If you don’t understand residuals, like owning stocks, which continue to pay out on future worth through dividends, when their values go up, I’d suggest you pick up a book.
I mean why not? If your labour helped create the thing, and it’s still generating value, why not receive a share of the value? Especially when higher up execs who might not have even worked on it at all are making bank from it.