A Comissioner from a record label send a track to 5-10 different directors, the directors come up with some ideas for a music video and send back a treatment, at this point the director will still be unpaid.
The director who submits the 'best' idea/treatment is then selected and comissioned to make the video, then the director is paid.
As for many directors in the business, it is a precarious existance where their livelihood is dependant on each comission.
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