Unlocking the Full Potential of Union Talent with the SAG-AFTRA Commercials Contract
Mastering the SAG-AFTRA Commercials Contract can feel overwhelming for many producers, especially when budgets are tight and timelines are short. While having a basic understanding of talent calculations, key contract terms, and deadlines might get the job done, it often leaves money on the table. For producers, maximizing value while staying compliant with union rules is crucial, yet many are missing out on lesser-known contract provisions that could significantly cut costs and streamline production.
With over a decade of experience as a SAG-AFTRA signatory, we’ve uncovered the contract’s most overlooked yet valuable facets, specifically within the commercials agreement. In this blog, we’ll explore how you can leverage these hidden opportunities to save money, avoid common pitfalls, and optimize your talent spend. Read on to learn how a deeper dive into the SAG-AFTRA Commercials Contract can improve your bottom line and elevate your next commercial production.
1. Navigate Extra to Principal Performer Upgrades Without Triggering Claims
Navigating extra-to-principal performer upgrades is beneficial for advertisers and producers because it helps control production costs and avoid unexpected talent fees. Union talent can file claims to be upgraded from an extra to a principal performer, which would require higher pay. However, only a small number of claims will qualify, and understanding the specific conditions for upgrades allows producers to take preventive measures on set.
To be eligible for an upgrade, an extra must meet the following three conditions simultaneously:
Be easily identifiable
Appear in the foreground
Illustrate a product or service or react to the commercial message.
In efforts to avoid claims of upgrades, directors and producers may find themselves in a position where they feel the need to tread carefully.
Here are some actions directors and producers can take on set without triggering an upgrade:
Speaking directly to extras
Using extras in a crowd scene
Positioning extras in the foreground atmosphere
This allows your production to remain compliant with union regulations while keeping your talent budgets under control, ensuring smooth and cost-effective commercial shoots.
2. Maximize Talent Value in Social Media Productions by utilizing the Social Media Waiver
The Social Media Waiver offers opportunities to maximize your talent’s value. Below we offer a few expert tips:
Record multiple commercials for the same product or advertiser in a single session, all covered under one session fee.
Air your spot across all social media platforms for 15% of sessions for each 30-day cycle.
Extend on YouTube for an additional 15% for a 30-day cycle, increasing visibility without breaking your budget.
By using these strategies, you can make the most of your talent while staying within budget, amplifying your campaign’s impact across digital channels.
3. New Terms through The Low Budget Digital Waiver
As of June 2024, SAG-AFTRA has added new terms to their new Low-Budget Digital Waivers. The new terms includes:
Principal performers (OCPs) at scale session rate
Extras are paid at the general session rate
Use and edits continues to be negotiable
No stunts, no celebs, or exclusivity are permitted
Full budget spots must be filmed on separate days from low budget shoots.
Understanding these terms can help you streamline your productions, while allowing you to maximize the value of your talent and resources while staying compliant with union regulations.
4. Leverage OPOs to Hire SAG-AFTRA Talent Without Full Signatory Commitment
An OPO (One Production Only) contract offers producers a flexible way to engage SAG-AFTRA talent for a single commercial without becoming signatory. Key benefits include:
Hire union talent on a one-time basis: Engage SAG-AFTRA talent without committing to a full signatory status, perfect for smaller or test projects.
Limited to three OPOs: You can use up to three OPO contracts before needing to signatory, giving you room to experiment with union talent.
Test the process: This option is ideal for producers looking to gain firsthand experience with hiring SAG-AFTRA talent, helping you understand union processes before fully committing.
An OPO contract offers a cost-effective, low-commitment way to explore the benefits of working with union performers.
5. Use Waivers For Tailored Solutions for Unique Production Needs
The SAG-AFTRA Commercials Contract offers different types of waivers for advertisers and producers to help accommodate specific production needs:
Nights and weekends waiver: When shooting is restricted to specific times of day, you can request a waiver to avoid paying premiums fees.
Example: Shooting a commercial at a school. They may only allow productions to film after school hours or only on weekends that may involve paying night and weekend premiums. The nights and weekend waiver can avoid these fees given your location time restrictions.
PSA’s (Public Service Announcements) waiver: Projects that intend to use donated media, such as PSA’s, Public Service Announcements can avoid paying residuals. The union can waive residuals as long as the media is donated.
Section 8D waiver: Section 8D waiver applies for non union performers who are essential to the film project. For example, patients at a hospital sharing their experience in interviews can apply for the Section 8D waiver.
The union would need to know important details, such as:
How many people are involved?
How are they being selected?
Why is their participation necessary for the project?
Real people waiver: This waiver covers shooting at a live event, “man on the street” interviews or a hidden camera scenario where no scripting and no casting are involved.
Producers are required to notify the union within 60 days after it first airs. This waiver cannot be used to stage a commercial but allow you to use film captured at existing live events.
Circumstances of special dispensation waiver: Every project is unique and may require special accommodations. This waiver closely considers the circumstances around your project and will determine if it merits special accommodations. Consult with union experts to determine if special accommodations can be granted.
6. Leverage Co-Ed Productions with Unlimited OPO Agreements for Cost-Effective Internal Projects
Co-Ed productions are film projects that include educational, or instructional videos. Co-Ed productions are divided into two separate categories:
Category I: Co-ed film projects that are intended for internal use.
Category II: Co-ed film projects that are intended for public use.
You can leverage them for a multitude of reasons:
Unlimited OPO agreements: Co-Ed contracts allow you to hire SAG-AFTRA talent for internal projects without the usual signatory limitations, providing flexibility and cost control.
Ideal for internal use: Perfect for educational or instructional videos that will be used within the company and not aired publicly.
Cost-effective solution: Maximize value by producing high-quality content for internal training or communication while staying within budget.
For example, an automobile company can create instructional videos covering new products for employee education using this flexible, affordable approach.
7. Maximize Savings with the Regional Commercials Code: Discounted Rates, Digital Reach, and Extended Coverage
The Regional Commercials Code modifies the standard regional commercials contract, focusing on small regional reaches. It provides significant benefits for advertisers and producers shooting regional commercials:
Discounted rates: Whether you’re using OPO or full signatory agreements, enjoy 70-80% discounts on session rates, helping you manage talent costs effectively while covering both use and broadcast.
Digital and expanded reach: For an additional fee, extend your commercial’s reach beyond the region, allowing digital distribution or airing in neighboring states—perfect for maximizing your campaign’s visibility without overspending.
Extended coverage: Secure session fees, broadcast rights, and digital use for up to 21 months, offering long-term cost savings and flexibility in how and when you air your commercial.
These advantages help you produce high-quality regional content while keeping your budget in check and your reach as wide as possible.
Conclusion: Ready to Maximize Union Talent Value for Your Next Commercial?
The SAG-AFTRA’s Commercials Contract offers many opportunities for advertisers and producers to maximize value from their union performers. However, navigating the SAG-AFTRA’s Commercials contract can be time-consuming and require experience that your team currently lacks.
That’s where we come in.
CMS Productions is a third party union signatory to SAG-AFTRA Commercials, Corporate Educational / Industrial & Interactive Media agreements. We’re happy to assist with helping you maximize your union talent value while controlling costs. Contact us today to request our rate sheet.