Agency Questions & Answers

The Guild has received a request from its Hawaii branch to interpret certain sections of its Agency Regulations [Rule 16(g)], namely:

1. Can a SAG-franchised agent advertise his/her talent agency business?
2. Can a SAG-franchised agent actively promote a separate business (such as a modeling school, seminar or a photographer), regardless of whether that business is directly or indirectly associated with the agency?
3. What kind of fees can a SAG-franchised agent charge?

1. Can a SAG-franchised agent advertise his/her talent agency?

Yes, but only under limited circumstances. Generally, SAG regulations prohibit such a practice:  “Agents shall not advertise through newspapers, magazines or mailings to the general public seeking clients for representation, registration or other forms of representation involving the payment of any fees directly or indirectly in the form of commissions, registration fees, referral fees or otherwise. It shall also be deemed a violation of this Section if any agent after notice fails to take action and desist from such activities.” See Section VIII(C)(8) of Rule 16(g). However, the national office, working in conjunction with the local SAG council, granted a limited waiver to this prohibition for the Hawaii market in or around June 1998. This limited waiver allows any SAG-franchised agency to generally advertise (even noting its SAG affiliation) in local newspapers, provided the advertisement is not a solicitation for specific clients or the offering of specific services (e.g. “seeking young woman, 17-25” or “we can get your headshots done” etc.). The Hawaii and/or national office would be pleased to assist its agents in ensuring they are effectively complying in this area. Failure to follow these guidelines may potentially result in the revocation of the limited waiver and/or subject the agent to disciplinary action.

2. Can a SAG-franchised agent actively promote/participate in a separate business (such as a modeling school, seminar/workshop or a photographer), regardless of whether that business is directly or indirectly associated with the agency?

SAG regulations prohibit such a practice: “Agents shall not use or authorize the use of their agency name or the names of agents or sub-agents to be used to attract clients for personal management firms. Agents may not use or authorize the use of their agency name or the names of agents or sub-agents or employees to be advertised in conjunction with other groups or schools , e.g., photography; business management; radio, television, dramatic schools; coaching; or little theatre” [Emphasis added]. See Section VIII(7)(a) and (b), Rule 16(g). Although an agent may have a relationship with schools/modeling businesses etc., such an affiliation must be kept separate and apart from the talent agency at all times so that potential clients cannot confuse the two entities. Because of this, a SAG-franchised agent is prohibited from using his/her name and/or the name of the agency to generate business opportunities for these other entities. These restrictions apply whether the business is directly or indirectly associated with the talent agency. Again, the Hawaii and/or national office are available to assist any agent seeking compliance information. SAG may also assist in the creation of disclaimer language, where necessary, to assist an agent who wishes to entertain such relationships. Please note that no agent may make representation of a SAG member contingent on enrolling in any school, course or workshop to which they are affiliated. Failure to follow these guidelines may subject the agent to disciplinary action.

3. What kind of fees can a SAG-franchised agent charge?

SAG franchised agents may only collect, as their compensation, a 10% rate of commission.  See Sections VIII (C)(2) and XI (a), Rule 16(g). Moreover, no agent may attempt to circumvent this commission limitation by any other means:“Said limitation of commission may not be avoided or evaded by any device or arrangement for the payment to the agent of additional compensation for other services to be rendered by the agent to the actor, such as, by way of example but not by way of limitation, services for publicity, photography or securing publicity photographs, “on” or “off” camera agency audition tapes, demo reels, or similar materials, business management, personal management, coaching or dramatic schools, casting or talent brochures or agency-client directories in which the agent has a direct or indirect interest […].” This prohibition extends to agents who attempt to charge members a fee for photography, headshots, self-improvement courses (or other forms of “education”), workshops/seminars, any administrative or overhead expenses, Internet or media fees, and like charges.

We hope this clears up any confusion that exists regarding these issues. Again, please do not hesitate to contact the Hawaii Office at (808) 596-0388 or Zino Macaluso, national director, Agency Relations at (323) 549-6745 if you have any additional questions or concerns.