You may think movie stars make big bucks, which is true in a way. But when you look at the commission they receive for their films, you realise that they don’t (statistically) get a good deal at all.
For example Matt Damon, for his last three films, has earned $1 for every $29 he generated for the studios.
Think of it this way.
Last year, a sales person I know personally, generated $1 million dollars profit (not revenue, but profit). Of this he took home about $100,000 in addition to his base salary of $80,000 plus super. All up he earned circa $200,000 before tax.
That works out to a 20% cut of earnings, or put another way, he earns $1 for every $5 profit he creates for the company. A stark contrast to the ratio Matt Damon receives.
With Damon’s commission structure, the sales person’s commission would be reduced to $34,500. This would reduce his total salary by $65,000 per year, roughly a third (32.5%) of his take home wage.
So the next time you tell yourself movie stars make the big bucks, just remember more than likely, you make a bigger cut of your sales than they do.
