Recruiter's Glossary

Examples: Nielsen Ratings • Live+7 • Talent Contract

Backend Deal

Term from Entertainment industry explained for recruiters

A Backend Deal is a type of payment arrangement in the entertainment industry where talent (like actors, musicians, or producers) agrees to receive a portion of the project's profits after it has made money, instead of getting paid fully upfront. Think of it like getting a smaller salary now but a percentage of ticket sales or streaming revenue later. This approach is common in movies, TV shows, and music projects where budgets might be tight at the start, but there's potential for big earnings later. It's sometimes called "points on the backend" or "profit participation."

Examples in Resumes

Negotiated Backend Deal for lead actor resulting in 5% of net profits

Structured Backend Deals and Points on the Backend for entire cast of independent film

Managed Backend Deal distributions for streaming revenue across multiple projects

Typical job title: "Entertainment Lawyers"

Also try searching for:

Entertainment Attorney Talent Agent Business Affairs Manager Contract Negotiator Entertainment Deal Structurer Talent Manager Film Finance Manager

Where to Find Entertainment Lawyers

Professional Organizations

Industry Networks

Example Interview Questions

Senior Level Questions

Q: How would you structure a backend deal for a streaming project with multiple revenue streams?

Expected Answer: Should explain how to account for different revenue sources like subscription fees, advertising, and licensing, while considering factors like territory rights and platform-specific calculations.

Q: What are the key considerations when negotiating backend deals for international co-productions?

Expected Answer: Should discuss international tax implications, currency exchange considerations, different market valuations, and how to structure agreements that comply with multiple countries' entertainment laws.

Mid Level Questions

Q: What's the difference between gross and net participation in backend deals?

Expected Answer: Should explain that gross participation is calculated from total revenue before expenses, while net participation comes from profits after costs are deducted, and discuss typical percentages for each.

Q: How do you ensure transparency in backend deal accounting?

Expected Answer: Should discuss audit rights, regular reporting requirements, clear definition of deductible expenses, and systems for tracking and verifying revenue.

Junior Level Questions

Q: What is a backend deal and when might it be used?

Expected Answer: Should explain that it's a profit-sharing arrangement where talent receives a percentage of profits after release, often used in lower-budget projects or when upfront costs need to be minimized.

Q: What basic elements should be included in a backend deal contract?

Expected Answer: Should mention definition of profits, percentage share, payment schedule, audit rights, and reporting requirements as fundamental components.