MovieChat Forums > Imitation of Life (1934) Discussion > Was the 20% for Delilah unfair?

Was the 20% for Delilah unfair?


I know nothing about running a business, but is the 20% unfair? Wouldn't the full 100% include salaries, marketing, advertising, taxes, etc. I know the manager or whatever was paid $50,000 a year iirc. What percentage do you think the Claudette Colbert character took?

When I first saw the movie, I assumed a fifty /fifty split between the women, but a friend of mine said with reinvestment into the business and the above noted expenses, 20% would be standard. That's if they BOTH took the same amount of the profits. This point was not explained in the film. On initial viewing, I assumed the percentage to Delilah to be monstrously unfair. Any business heads out there?

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I also wanted to comment on something else. If you write a book and have it published, you do not get 100% of the profits. Even though the book was your complete idea, I believe you get so much for each book sold. The more books sold, the more money you make. Of course an author who had multiple best sellers would get a better deal than an unknown.

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Well, I'm not a business head, but if I was Delilah I'd want 50%. I think that's fair.

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One way the deal could have been structured is 40 percent to Delilah and Beatrice and 60 percent sold to investors to raise capital for raw materials, manufacturing, transportation, salaries, marketing, etc. We never learn what portion any other stakeholder owns, but getting 20 percent ownership for no tangible investment is a pretty sweet deal.

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Ricky - I can tell you know a great deal more about these business matter than I do, and appreciate your response. Probably because I wondered about Delilah being taken advantage of, particularly during those times, I couldn't figure out whether she got a good deal or not. Imo Beatrice would have never cheated her, but wasn't sure about the others.

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I'd have to research the ins-and-outs of setting up a corporation in the Great Depression. One assumes there weren't as many regulations as there are now.
But I sure do suspect that Delilah was getting screwed whether she put up $300 or zero dollars; Ok, the recipe was hers, or her family's. They wouldn't have had it if she hadn't produced it. Without the recipe, there wasn't going to be any company. Plus her likeness was going to be used to market the product, ala Uncle Ben, the Gold Dust Twins and Colonel Sanders. She was going to become globally recognized. Seems to be worth more than a 20% stake.

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The way I figure.....

The guy who mentioned the idea of packaging the pancake mix probably became an equal partner or close to an equal partner.. If equal, now either owns 1/3 or at least he got 20% so the two ladies started at 40%.

They combined had very little capital. When the organization that was going to put up the money to set-up mass production / mass distribution & mass advertising - 50% ownership is reasonable when your contribution is just the idea & none of it happens with the capital. So cutting the original splits in half get her to about 20%..

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From the way the charachters were played i'd assume the both got 20% B might have been paid a salary on top of that as she was managing the business after they incorporated that delilah wouldnt have gotten as she wasnt managing it at that point

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