When you’re making a movie, one of the big terms you’ll hear tossed around is minimum guarantees in film distribution. At first, it sounds like the dream scenario—a distributor handing you a check up front. But here’s the reality: an MG isn’t some magic payout. It’s really just an advance on your film, and it comes with strings attached.
In this article, I want to break down what minimum guarantees actually are, why you need to be careful when chasing them, and what better alternatives might look like.
What Is a Minimum Guarantee?
A minimum guarantee (MG) is when a distributor or sales agent pays you a lump sum to license your movie. It’s basically an advance against future earnings. The distributor has to make that money back first, and then any additional revenue is split according to the terms of your deal.
The problem is that many filmmakers get caught up in the idea of an MG as free money. But remember—it always has to be recouped. And if the MG is small, the distributor may never pay you again because they’ll bury you in marketing expenses or bad terms.
Why Chasing MGs Can Backfire
Years ago, every filmmaker wanted a minimum guarantee. It was the sign you’d “made it.” These days, they’re rare, and when they do show up, they often come with traps.
Here’s the issue: let’s say a distributor offers you a $5,000 MG. Sounds nice at first. But then you look at the fine print—heavy expenses, marketing fees, or clauses that make it impossible for you to see more revenue. That means you may only ever get that one check.
Meanwhile, another company might offer no MG but a fair split, like 75/25 in your favor. Every dollar that comes in, you keep $0.75. That can add up to much more than a small advance ever would.
The Importance of Revenue Splits
When I started my own company, I knew I didn’t want to play the MG game in a shady way. I wanted filmmakers to make money as revenue rolled in—not just once at the start.
Think about it this way: if your movie earns $100,000 and your split is 75/25, you’re walking away with $75,000. Compare that to a $5,000 MG where you may never see another dime. It’s not even close.
That’s why you should always weigh the long-term potential of a revenue split against the short-term thrill of an advance.
When Minimum Guarantees Do Make Sense
Now, I’m not saying MGs are always bad. If you’re lucky enough to get a serious offer—something in the six- or seven-figure range—that’s almost like a buyout. In those cases, you can pay off your investors, close the deal, and move on.
But those situations are rare. Most of the time, small MGs aren’t worth the trade-offs. What matters more is who you’re working with. Do they have a reputation for paying filmmakers? Do the terms look clean and fair? If the answer is yes, then skipping the MG and starting your revenue split right away could be the smarter play.
Don’t Just Go MG Hunting
At the end of the day, my biggest piece of advice is this: don’t just go MG hunting. Focus on the bigger picture. The right partner, the right terms, and a clean revenue split will often earn you far more than a quick advance ever will.
So the next time someone waves a small MG in front of you, stop and ask: is this really helping my film, or is it just giving me one check that keeps me from making more?
Final Thoughts
Minimum guarantees in film distribution may sound like a win, but they’re often just a distraction. If the MG is huge, great—take it. But if it’s small, be careful. A fair split with a reputable company could pay you over and over again, long after that one-time check would have been spent.
Filmmaking is about playing the long game. Don’t sell yourself short chasing an MG when the real money could be waiting in the revenue splits.
