Backend Points
A percentage of film profits or revenue paid to key talent as part of their compensation package.
Definition
Backend points give talent a share of film profits or revenue beyond their upfront fee. Points can be calculated on gross revenue (more valuable) or net profits (often worthless due to Hollywood accounting). First-dollar gross is the most favorable.
Only major stars, directors, and producers command meaningful backend. Points are negotiated based on leverage—A-list talent might receive 15-20% of first-dollar gross while others receive net profit participation that rarely pays.
Why It Matters
Backend determines who truly profits from success. Upfront fees are capped, but points can generate tens of millions on hits. Understanding backend explains why certain talent commands such participation.
Net profit points are notoriously unreliable. Studios's accounting ensures many profitable films show no "net profits"—leading to the industry saying "net points are monkey points."
Examples in Practice
Robert Downey Jr.'s backend deal for Avengers reportedly earned him over $50 million beyond his $20 million upfront fee, demonstrating how points multiply compensation on major hits.
A screenwriter accepts net profit points instead of higher upfront payment. Despite the film earning $500 million, studio accounting shows no net profits—the writer receives nothing.