This is the third commercial I did for The Canal House that ran on a local cable station. I posted the second one on 10/05/05. Commercials 2 & 3 were running at the same time. Feel free to comment.
We follow a plan I picked up at WEVA - it seems to work pretty well for us.
We charge $750 for a "simple" :30 spot - which includes writing the script, any needed video work, editing, VO and delivery to Comcast. However, we also act as an advertising agency, working with an account rep at Comcast to create ad packages specific to each customers needs. Comcast then bills us each month, we review the bill (and work with Comcast to correct any errors if there are any) and then bill the customer. Comcast gives us a 15% agency discount (so we keep 15% of what the customer pays). We don't have any set limit on the amount of hours - just the promise that if the customer doesn't like the ad we produce, we'll fix it or they don't pay for it. Actors or special circumstances (like long distance travel) are extra.
I typically charge $150 to tag an ad (if the client has access to national advertising), this covers the cost of dubbing from BetaSP to miniDV and any VO with a little left over for me.
Thanks for all of the valuable information. The good news is that I did a total of 7 commercials for 5 clients. Only one client, The Canal House, ever met me so actually it is almost as if I never really did anything.
In my case my friend had his own show on the cable station and sold commercial spots to get his salary. For commercials he worked with a cameraman and obtained the footage. The film was delivered to me and I did the rest. I also edited several “guest appearances” that were a part of the show. So the cable station was the production facility for the show except for the guest shots which I did. Again the footage was delivered to me and I edited it. I would ask for additional footage, if needed, in order to have working material. Then the Canal House wanted to do some additional advertising on the local sports broadcasts. The cable station sent him to my friend to do the work but the cameraman was not available so I ended up doing the filming.
I am interested in continuing to doing commercials. Hopefully I will be able to post one here again in the future using the information and expertise shared on this post.