Super 16mm was once used in most every independent filmmakers. Image via Wikipedia

In case you haven’t noticed, filmmaking is changing. With the emergence of awesomely great DSLR technology, making a movie is getting cheaper.

In years past, the cash threshold necessary to propel a project into production was cost prohibitive. This alone served as a major obstacle to most every aspiring independent filmmaker. Add the need for complex technology and the skilled professionals necessary for the equipment, it’s it’s easy to understand why most would-be feature filmmakers never took action.

For example, in years past, if you wanted to create an awesome picture (on a budget), you shot Super 16mm – And later, if the film was picked up, you could easily blow up Super 16mm picture to 35mm. And, I repeat – these steps were once considered an affordable option.

And let’s say you decided to follow this “economic” filmmaking route – if so, you had to raise enough money to not only cover the film and equipment, but you paid for your DP, your camera operator, someone to pull focus, someone to load the film, someone to lay dolly track and someone else to push your dolly – and once the film was in the can, you paid to get the film processed, create dailies, get it color corrected, transferred to video, edited and blown up to 35mm.

Then you crossed your fingers. . .

“UGH! Can you imagine trying to make movies like that? It makes very little sense. Especially now.”

Everything has changed. It’s been almost a decade since I’ve heard anybody in the filmmaking community seriously consider shooting their first feature on film. And why would they? These days, if you want to make a great looking movie, you grab your $2,000 DSLR camera and you start shooting.

That’s it. No film stock. No silly processing costs. No silly blow up costs. You simply take your camera out of the bag, point and shoot.

Then you edit on your computer and upload to several of the video on demand websites and that’s it. You’ve created a product (your movie) and you have taken your product to market (via digital self distribution).

AMAZING! (Or is it?)

Seriously. For producers, the evolution of DSLR is totally awesome. For all below the line crew working to make a living – this isn’t so good.

Using my previous example, let’s compare shooting Super 16mm to shooting on a DSLR. Take out an eraser and eliminate 80% of everything I just mentioned.  No more need for heavy dolly track and a dolly. No more need for the person pushing the heavy-duty dolly. Eliminate your focus puller and your film loader. Eliminate a few production assistants. And totally eliminate film processing. Not necessary.

This shift in filmmaking technology is going to create more and more projects. And unlike years past when making a movie required a gazillion dollars, the modern filmmaker can now produce viable projects “out of pocket.”

And yes, while many of the screenplays will continue to suck, rest assured that the picture will look good.

“OK. What’s the downside to modern film production?”

Producers no longer need a million dollars to make a good looking picture. Simply put, this is bad for the freelancer community.

Let’s say you’re a filmmaker looking to hire a sound guy. Normally you would have to pay him $500 dollars or more per day (which is a low figure for some, I know). Well if you’re a filmmaker shooting your first feature on a budget, are you really going to pay that day rate?

Probably not.

You’ll probably find a sound guy and get him to bring his own equipment, and you’ll offer to pay him peanuts. And if he doesn’t take the job, you’ll find someone else to replace him.

And this is the problem with modern filmmaking. There is an overwhelming supply of product in the marketplace, a glut of manufacturing – and revisiting economics 101 – your production (AKA, your indie film) can now be produced cheaply. (Sure, your product might be junk? But I’m not debating that here.)

Think of it this way, in years past, producing goods in an assembly line required hundreds of man hours. But as technology evolved, many of these jobs were replaced by robots. Well, the same can be said for many freelance production professionals. More movies, minus less budget money and something’s gotta give.

“So why don’t indie film producers just raise more money?”

Distribution.

Couple an ever growing glut of movie products coming into the marketplace with a measurable erosion in traditional distribution deals, and you can understand that the indie movie industry is saturated with an over supply of movies and less outlets.

So given these unfavorable odds of a big payday, why would any filmmaker risk a few million on a budget with increasingly less opportunities for a traditional deal?

In this regard, the only option is for producers to keep their budgets low. That way, in the event these filmmakers do not garner a traditional distribution deal, they can at least recoup some of the budget through digital self distribution.

So how can freelancers make a living making movies?

First of all, I’ve been talking about low budget indie feature films. Freelancers can still find work in the corporate, industrial, BIG budget and commercial world. And if you’re going to make a living working solely on low budget, independent pictures, I suggest you consider tweaking your strategy.

1. Get a job to pay the bills and then start producing your own movies. Seriously. I’m sure you’ve probably worked with a few morons and thought “I should be making my own movies.” So DO IT! (I’ll now plug one of Jason Brubaker’s products.)

Go to http://www.GetMovieMoney.com and get your hands on “The Indie Producer’s Guide To Financing Your Movie.” I wrote it. It’s a step by step guide to help you start thinking like a producer.

2. If you don’t want to produce your own movies, then do this. In addition to your day rate – or whatever deal those producers try to throw at you. . . Ask for back end points and at least an associate producer credit.

For clarification, what I’m suggesting is different than deferred pay. I’m suggesting you get your hands on a piece of the action. You’ll want to get a lawyer to draw up the paperwork – but imagine owning one percent and a producer credit on 100 movies. Some of those movies will hit. And when they do, you could potentially get a nice stream of cash.

Think about this – what if you got $50 dollars a month from 25 movies (25×50=$1250per month) – for life? In this regard, you would have an extra 12K per year in addition to your other work. Not great, but better than nothing, right?

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I don’t know if this sounds impossible or not to you. But with all these changes, including DSLR technology as well as digital self distribution, we can only expect things to change even more.  The future of filmmaking is a broad topic and I welcome your thoughts and comments.

Jason Brubaker writes

If you’re a member of the Filmmaking Stuff newsletter as well as our facebook group, you probably know that we try very hard to answer every moviemaking question you send. Now, granted sometimes we get busy.

So, I wanted to provide you with a list of useful, no-fluff filmmaking tools. (Disclosure: Where possible, I included affiliate links. If you don’t want to buy anything I’m selling that’s totally cool.)

With that said, if I were once again putting together my first feature, this is a loose road map of the filmmaking tools I would utilize to make it happen.

How to Make Your Movie Now!

Before you get started, set up a profile with my friends at Movie Set – I consider this site to be the glue that binds. Well beyond your typical social networking site, this service will help you create community around your movie the whole way from script to screen to your movie marketplace.

Your Script – The First Draft:

This seems obvious. But without a screenplay, it is very difficult to make a movie. Yes, I know some of you are interested in making an “experimental” movie. If that’s you, then ignore the following screenwriting tools. But if you would like to write a screenplay, here are some filmmaking tools that I recommend:

1. Final Draft – This is industry standard screenwriting software. You can also get Movie Magic Screenwriter. But I never used it. And if money is tight, you can get FREE screenwriting software here: Celtix
2. The Independent Producer’s Guide To Writing Movie Scripts That Sell, by Jason Brubaker – Yes, this is THE screenwriting Action Pack that I created. In it, you get a decade of experience, a workbook and MP3 Audio, so you can listen to it anywhere. Call it screenwriting from a producer’s perspective.

BreakDown Your Script

Ok. After you finish your screenplay, you will want to break it down. What is a script breakdown? Basically, you take everything in your script (wardrobe, stunts, locations, characters, props Et AL. . . ) And you put these elements into a schedule. Since this is your “initial breakdown,” you will use this information to determine the ball park budget of your movie. Here are the filmmaking tools I recommend:

1. Peter Marshall’s Script Breakdown and Film Scheduling Course. Peter has been in this game a long, long time. He will show you the fundamentals of script breakdown. These lessons will help you see your movie from a totally different, producer perspective.
2. There is industry software to help you break down, schedule and budget your movie. One is called Movie Magic Scheduling and Movie Magic Budgeting. If money is tight, you can also grab a copy of Gorilla. These software tools are great because you can put them on your laptop and use them in remote places, even if you don’t have an internet connection!

Get Movie Money

Once your screenplay is broken down, scheduled and budgeted – the next step in the process is getting the money. To do this, you will need to create a movie business plan. After you have your business plan, you’ll want to contact a lawyer to draw up some paperwork and help you establish a corporate entity. And after that, you’ll go out and get your movie money. Here are some great filmmaking tools:

1. Your Film Business Plan. For this, I recommend a website called Film Proposals. They have created a great business plan kit, which will provide you with a step-by-step approach to all the business stuff you would rather not bother with. Get Your Movie Business Plan Here.
2. When it comes to entertainment attorneys, one of most accomplished is Gordon Firemark. He runs a website and has very informative podcasts, full of valuable legal tips – And if you need some work beyond that, including legal releases for your movie, Gordon can help. You can check out his site by clicking here. Get on his mailing list. . .
3. Getting a business plan and putting your legal ducks in a row is only part of the process, the next aspect is getting money for your movie. I recommend “How To Make Rich Friends and Finance Your Movie” by Jason Brubaker. OK. Once again, this another one of my Action Packs. As usual, this is no-fluff. Different from all the other BS out there, you will discover how to seek out and make friends with rich people, even if you don’t know rich people. (Yet) – Access The Independent’s Guide To Financing Your Movie by clicking here.
4. I can’t forget my friends at Indie GoGo. This site will allow you to set up a profile, promote your movie project, set a financial goal and find folks to sponsor various aspects of your movie. And if you actually raise 100% of your goal, the company will throw in a bonus percentage. To GoGo, Click Here.

Going Into Production

Once you raise the money, get your cast, crew and equipment, locations and craft service, the next step is going into production. In this stage, you’ll find out if all of your planning holds up. This is going to be both adventurous and grueling. But an awesome time you’re sure NEVER to forget.  Here are several filmmaking resources that I recommend:

1. Rick Schmidt’s Extreme DV. He has a great workshop in the Bay Area where you actually complete a feature film. He is also the writer of one of the most empowering filmmaking books I’ve ever read. To check out the book, click here. To learn more about Rick Schmidt’s filmmaking workshop, follow this link.
2. Rebel Without A Crew. This is another personal favorite. Perhaps it’s a little dated, but if you can ignore the ancient filmmaking technology mentioned in the book, you will finish your read with a new found appreciation for how difficult the filmmaking process used to be. No more excuses! Get the book here and Make Your Movie Now!
3. If you’re looking for a longer workshop, I recommend the New York Film Academy as well as the Maine Media Workshops.

Post Production

After you produce your movie, you’ll want to edit it. This is the phase they call post production. And it really is the final rewrite of your movie. In the past, your post production expenses were crazy expensive. But like most things in filmmaking, technology makes your post experience awesomely affordable. Here are some tools:

1. A decade ago, all the talk and buzz in the world revolved around Avid. Now you’re like Avid who? Seriously. If you have a Mac, get yourself a copy of Final Cut Pro. It’s all but industry standard. It’s powerful and affordable. Enough said.
2. If you don’t have a Mac, find a friend who does. Re-read the previous step. And if you don’t know how to edit, find a friend who does.

Market and Sell Your Movie

I’m not going to tell you how to find a sales agent or how to make a 3 picture deal. Partially because that stuff is rare. And partly because those deals are old school anyway. I mean, who wants to hire a 3rd party when you can build a following and cash your own checks. I love this arena. I call it Digital Self Distribution. Here is how you market and sell your movie:

1. Create a trailer that actually aims to sell the movie without giving the entire story away. They call this a teaser trailer. Make sure it includes a back link to your website. Once you have the trailer, put the sucka on YouTube and all the other video streaming sites you can think of.
2. Get a domain name and website hosting. To do this, set up an account with a filmmaker friendly company. I prefer BlueHost. And yes, they pay me to say that. When you set up the site, I prefer to use the name movie in the URL.
3. Once you have your website hosting, hire a web designer to create a website for you. (Actually, you should have built a website prior to production. But I know your mind was probably focused on actually making the movie. So it’s OK.) If you burnt all your money actually making the movie, then check out this website called http://www.fiverr.com – On this site, you’ll probably find a dozen people who will create an awesome website for a whopping $5 dollars. Seriously. I’ve used it and actually got some great work!
4. Once you have your trailer and your website, you need to make sure you set up a Facebook page as well as other ways to grab visitor information. This is because most visitors will not buy your movie in their first visit. Having a YouTube page, a Facebook page and a newsletter will allow you to build a relationship with your visitors. If they don’t buy today, maybe they will buy tomorrow.
5. Get your movie selling online. There are so many outlets for this. But one of the best that I’ve found is the very independent filmmaker friendly site called Distribber. You can learn more about distribber by clicking here. Please tell em’ I sent you.
6. 5.5. And I almost forgot. Jason Brubaker (that’s me) has another product. It’s called The Independent Producer’s Guide to Digital Self Distribution. You can find out more information by clicking here.

Well that pretty much sums up the movie making process. Hopefully these filmmaking resources will be beneficial to your filmmaking process.

If you ever wondered how to get money to make your movie, you’re not alone. As filmmakers, many of us would rather focus on our filmmaking – And if we had it our way, we would save the go-get-movie-money for a producer.

Back when I started my filmmaking career, I crossed my fingers a lot, hoping that some producer would magically appear in my life, discover my  brilliant material and give me a million dollars to make my movie. Of course the reality is: you get nothing in life until stop allowing other people to give you permission.

In my situation, I did not know producers. I did not have money. And I didn’t know any rich people.  But I knew I wanted to make movies. And I knew I needed money.

Then later, as I expanded my network to include other filmmakers, my nagging question was always in the back of my mind. “How do I get the money to make my movie?”

While asking around, most people told me I needed to find a willing doctor or dentist and ask them for money. UGH! That was so frustrating. The reason? Because it’s old thinking. In the past, movies were a good tax shelter for wealthy self employed professions. Not so much anymore. (Of course I learned that the hard way!)

It wasn’t until I moved to New York City and worked with a producer when I finally learned how people REALLY finance their movies. I learned there is a well defined, systematic approach to getting money. And it doesn’t involve self employed dentists and doctors.

If you’re looking for movie money, here are some tips:

1. Ask around and see if you have rich people in your network. Then meet them.
2. People make money in different ways. As employees, self employed, big business owners and investors. Make sure you know how your prospective investor makes money. Then form your pitch accordingly.
3. Despite popular thought, most prospective investors were not born rich. Many are self made. They value hard work. And they will be looking to see what you can do for them.

As you go out and build relationships with prospective movie investors, just remember – Your independent movie is YOUR business. Respect it accordingly.

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If you are wondering how to get money for your movie – Almost every resource will tell you that you need a business plan. Very few resources will tell you how to actually go out, find prospective investors, qualify them, contact them, get a meeting and build a relationship.

Since getting money for movies was such a frustrating experience for me, I spent the last few months creating: The Independent Producer’s Guide To Financing Your Movie. In it, YOU will gain valuable insider experience so you can avoid my past mistakes, find investors and make your movie. To learn more CLICK HERE

“Discover A Simple, Step-By-Step System For Finding Investors and Getting Money To Finance Your Movie!”

As president and CEO of From the Heart Productions, Carole Lee Dean produced over 100 programs, including the popular cable program, HealthStyles, and the historical show, Filmmakers, now housed in the National Archives. As an entrepreneur she created Studio Film & Tape, and sold it to Edgewise in 2001. She created a business supporting independent filmmakers in the 70’s with raw stock and coined the name “short ends.”

In 1992, she created the Roy W. Dean Grant Foundation in honor of her late father. To date, Carole’s grant and mentorship programs have provided filmmakers with millions of dollars in goods and services and have played an instrumental role in creating important documentary films. She is the author of The Art of Film Funding: Alternative Financing Concepts and The Art of Manifesting: Creating your Future.

Carole stopped by Filmmaking Stuff to share some ideas about filmmaking.

Jason Brubaker
Could you tell us a little bit about your work and how you got into the industry?

I was married to a cameraman and went to the set each Friday night and watched them unloading those little pieces of film that I termed “short ends.” I started a business of buying them from the studios and selling to independents, thus supporting the birth of the independent film market. I found that studios even sold new film because cinematographers wanted all one emulsion so I took the 10 or 15K feet of new and sold to people like Cassavetes.

Jason Brubaker
Wow! It is amazing how those “little pieces of film” changed the motion picture industry.

Carole Lee Dean
After a few years of selling “short ends” major video companies came to me to market their stocks and I expanded into tape. I started with $20.00 from the grocery money and sold it when my sales were at $9 million a year to Edgewise.

Jason Brubaker
This is an example of taking action on an idea and bringing it to fruition, much like a movie producer.

Carole Lee Dean
Yes, I believe in manifesting. It’s a process of releasing a potential that was already there. That short ends business was just waiting for me. Thank heavens I did not know how to do a corporate business plan or I would have known that I needed a lot more money. My belief that I could do it overcame the lack of money. I bought it and sold it the same day and most importantly I always saw it as a big business.

Jason Brubaker
It’s important to think big.

Carole Lee Dean
Look at a piece of coal; it’s a black rock, right? Well, if you ignite it you have heat and light, that potential was there you just had to release it. The same applies for filmmakers.

Jason Brubaker
Yeah. I think the key to dreams is internal, not external.

Carole Lee Dean
I tell them to realize their genius. How many people would give their right arm to be a scriptwriter? Most filmmakers are writers, producer’s even actors and editors. You are Pure genius and its important to know that so you have faith in yourself and your ability to make and finish your film. By seeing your film on a daily basis, knowing each shot, You are projecting into the future a vision that you can release with your faith and confidence. Fred Alan Wolf, physicist says that when we are daydreaming and visualizing clearly we are creating that future and that a handshake across time occurs and somewhere in the future it happens just as you saw and felt.

Jason Brubaker
I have experienced what you’re talking about. Sometimes things come into my life when I least expect them.

Carole Lee Dean
My father was responsible for the student discount. I spent every Sunday with him and He began this relentless weekly request for me to give a student discount. I agreed to 3%. He said it was not good enough. Then I went to 5%. Still not good enough so finally to keep peace I agreed to 15% discount.

Jason Brubaker
I’m sure the independent filmmakers were appreciative!

Carole Lee Dean
When Fuji gave me the exclusive national distribution of their 16 & 35mm stocks I set a goal for myself to sell in 9 months and Fuji said, “Oh, that’s too high you will never hit that.” I did hit it and I asked them to give me a larger discount and my priority that I told them was non negotiable was a 15% discount for students. I got this discount and after the first ad was printed, Kodak matched that 15%!!!

Jason Brubaker
And that care for supporting indie filmmakers has stayed with you. The Roy W. Dean Film and Writing Grants have become some of the most well known for independent filmmaker. Could you tell us what criteria you look for when you evaluate potential projects for a grant?

Carole Lee Dean
I want great stories with compelling characters. We fund shorts, indies and docs that are under $500K budgets. The films must be unique and make a contribution to society. Look on the site under grants for prior winners for the type of films we fund. We just started taking features and I want to see one win.

Jason Brubaker
How long does the evaluation process take?

Carole Lee Dean
We have the first cut of finalists on the site in 60 days and your name will stay on for a year, which is very good PR. Next cut is made on the site. We highlight the top 15, then top 10, then top 5 and announce the winner. All this takes about 2 to 3 more months. Filmmakers go through 3 sets of judges.

Jason Brubaker
Let’s say you’re a filmmaker and you’re not selected? Do you offer any sort of consultation or advice to those filmmakers?

Carole Lee Dean
Everyone who applies gets a free 15 minute consultation with me. We can talk about financing your specific film or how to improve your package or marketing or, anything you want. This grant is very dear to me and I like to see you improve from entering it. Our aim is to help you get funded.

Jason Brubaker
In your book The Art of Funding Your Film, you provide a very comprehensive overview of the funding process. Given all the rules and SEC regulations, what advice do you have for filmmakers who have never funded a movie – where do they get started?

Carole Lee Dean
It all starts with a great story. That’s the most important part, work on the store, give me compelling characters that I want to spend 90 minutes with. Write and keep writing and rewriting. Send your work out to really good screenwriters for review and listen to them. Read “Save the Cat,” my favorite book on writing. Take your script to the highest level possible.

Jason Brubaker
And once you have a great script?

Carole Lee Dean
Then go to work on your business plan and find good comparison films that you can easily defend. Be honest with your return on investment, always say hypothetical ROI and show one film in comparisons that did not make a profit. Put yourself in your investor’s shoes. Would you take a million from your parents to make your film? Do you seriously think you can pay it back? Keep investors interest your priority.

Jason Brubaker
You have been very passionate about helping filmmakers manifest their dreams into reality. I read your book long before I had produced my first feature. And I can remember times when everyone in my life seemed to think my movie making goals were pipe dreams. What advice do you have for filmmakers who are working to overcome self doubt?

Carole Lee Dean
If you were making movies 20 years ago it would cost you 10 times more to make a film. So ask yourself, “why was I given so much talent and born during the third most important time in the history of mankind.” Here you are with a great opportunity and all that talent. Do you really believe the universe would put you here at this time and not finance you? Of course not.

Jason Brubaker
That is a good way to think. Especially on those days where self doubt creeps in.

Carole Lee Dean
You need to believe in your talents and know that the money will come. Do all those things on your “to do list” and keep seeing your finished film. You will find doors open where there were no doors before. You are your greatest asset.

Jason Brubaker
I know you have been trying to find ways to bring filmmakers together to share ideas.

Carole Lee Dean
From the Heart is now producing events and I will give all of your members a 15% discount on any of our products and events if your people put GRANT in the coupon code.

To learn more about the Roy W. Dean Grant or some of Carole’s upcoming filmmaking events, check out the website.

A 1987 Video Disc -- Image via Wikipedia

Over the holiday season, I spent some time back east with family and friends.

Aside from shoveling snow and fighting the cold winter in Pennsylvania, getting outside of Hollywood for a few weeks provides a time of relaxation and reflection. And at the same time, spending time with friends and family almost always reveals coming trends in the movie industry.

Let me explain.

Based on some popular entertainment oriented Christmas gifts, it’s evident that changes in the movie industry are upon us. Thanks to VOD innovations like the the Roku HD Player and some new television sets that directly link to the internet, I predict that 2010 will be the beginning of the end for movie rental kiosks, movie rental stores and as a result, studios will experience further decline in physical DVD sales (including Blue Ray.)

While my prediction may be a little ahead of the curve, I think it’s important to prepare your movie business accordingly. These innovations (over time) will eliminate traditional, physical movie sales channels – Diminished revenue may result in less production and you might experience a decrease in movie production work.

Conversely, streaming, down-loadable movies on demand will also create a enormous opportunity for filmmakers wishing to reach the global masses without asking permission. For the right producer, this is an exciting time!

But in order to profit from these innovations, let’s analyze the ripple effect. Here are some things we might expect:

5 (possible) PREDICTABLE movie business DECLINES

1. Decline in traditional home video channels (video rental business, video delivery business and home video purchases will decline.)
2. Decline in traditional hardware like DVD Players and Blue Ray Players.
3. Decline for dub houses, DVD manufactures and DVD shipping boxes.
4. Less pre-sale predictability. Tell your investors that you’ll put the movie on iTunes and then try to project potential revenue. Have fun.
5. Less investor cash means there will be two motion picture tiers for your day rate: micro budget features and mid-to-high budget studio features (with theatrical outlets for distribution.) Budget ranges in-between are becoming increasingly too risky to finance.

7 (possible) PREDICTABLE movie business OPPORTUNITIES

1. Providers of VOD and digital down-loadable content will increase.
2. Innovations in hardware (TV Sets, Roku Devices and TiVo type products) will increase.
3. Instead of getting your day rate, more professionals will be forced to take back end points. (This is the movie making equivalent to getting start-up stock options.)
4. State movie production tax incentives will influence production of higher budget pictures.
5. Distribution channels will be many. Look for more and more indie production companies to create in-house marketing arms and PR firms to promote movies across the globe.
6. Additionally, movie internet marketing experts will become an asset to your production. (OK – a little self serving. But after successfully producing and marketing one of our movies on the internet, this is something I’m passionate about.)
7. This is totally optimistic: but we might also expect more outlets for TV content. HDTV accessible website will spring up where you’ll post your content, build a VOD following and leverage your following to increase targeted advertising revenue. (Check out Hulu.com for an example.)

Great. What does this mean for you?

Save your money! Speak with a financial adviser and learn how you can make a financial plan for your future. Seriously. Learn how to make your money work for you. Then -

If you want to produce movies: these industry changes mean you should cultivate relationships with “name” actors and join forces with all the folks you’ve been working with for years and years. Start to create your own micro-budget projects and get super creative on the financing end. Find folks with equipment. Work out deals and see if you can pay in both up-front money and back-end points.

Additionally, if you go this route, you should become friends with movie producer marketers, PR professionals and sales consultants who have successfully sold movies over the net. These folks will help you create a plan for ROI – And while nothing is guaranteed, if you can create 5-7 movies in your career that supply your bank account with cash each month, it’s a nice place to be.

If you make money working as a freelancer – you may have to change some of your focus (as is very common) to television commercial work, corporate video work and high-end music video work. These avenues seem to have more frequent production instances… And you don’t have to give up months for money.

Surviving the Movie Industry in times of change is similar to surviving other industries going through change. Necessitated by the need for cash (survival), many of you will be forced to see the world as an entrepreneur. Even if you aren’t ready, you may have to learn how to produce your own profitable movies.

If you’ve made a movie or you’re working to make your movie (and I hope you are), you might also be thinking about how you’re going to sell the sucker.

I mean, despite the fact that filmmaking is fun there is a business component to it. If you fail to think in terms of Return On Investment (ROI), then getting money for your next movie is going to be even more difficult than the first, for two reasons:

1. You’ll need to worry about money to put food on the table.
2. Your prospective investors will want to see your track record.

As a filmmaker, the other factor we have to consider is our initial budget. Go too high and the chance of return could diminish. Let me explain.

I’ve chatted with a few heavy-hitting friends in the industry (that I hope to interview soon) and there is talk about what I’m going to call the “no-man’s-land” of indie movie production. That is, there is a budget range from roughly 2.5M-10M that is becoming increasingly difficult to finance.

Tax credits and other deals aside – What I’m suggesting is due, in large part to changes in movie distribution and the subsequent challenge of generating enough revenue to recoup the initial investment.

Indie film financing was always a crap shoot – but take away potential sales channels and add the fact that technology now permits virtually anyone to make a decent looking movie and you can begin to understand why this is happening.

While I’m on the subject, I’m not just talking about the indie movies. I’m including studios as well. Thanks to the success of Paranormal Activity,  there is now word that Paramount is going to launch a micro budget division and begin to churn out movies under 100K.

From a business standpoint this makes sense. You invest 100K and you get 100M – That’s pretty good! (Understatement).  But from holy crap perspective, the ripple effect of a studio churning out no-to-low budget movies could potentially rip a hole in the ways Hollywood traditionally operates. (BTW, Paramount is not the first studio to attempt this. But thanks to VOD outlets and more digital projectors in theaters, what didn’t work at this budget level in the past could very well work now.)

Lets talk some numbers…

Traditionally, when movies are financed most people including grips, gaffers, craft services and other crew – they get paid on the front end as part of the movie’s budget. We can also include some agents, managers, lawyers, Teamsters, writers, actors – and mostly everyone else too.

On the micro budget level however, there isn’t enough money up-front to pay these folks what they were formally worth. So there are a few options. Hire less people. Hire non-union folks. And offer to pay Teamsters deferred pay with the added bonus of copy and credit. (I’m adding some humor here – but can you imagine Paramount trying to offer a Teamster deferred pay?)

Ok, so what does this mean for you and your movies? Well just look at the music industry. Recording studios and record companies took a nose dive. But that hasn’t stopped people from making music or making money making music.

Instead of asking some idiot in a suit for permission to make music, musicians can now find their audiences, build a following and sell their music… Without a middle man – globally. That’s pretty amazing.

The same wide open world applies to your movie. Do good work and people will notice. Do bad work, and well, you still have the opportunity to find the 20 people in the world who think you’re brilliant. And in terms of pay structure – I made a joke earlier about deferred pay. But I am not totally opposed to some well structured back end deals. I mean, 1/4th of 1% of 100M is – it’s nothing to sneeze at.

Of course, as we all know there is no guarantee that any movie project will make money. So for you and me and most indies, it will take roughly two years of hustle to churn out a movie that we can be proud of. For the studios, they are going to churn out micro-budget movies like widgets in a factory.  The odds of success, for both of us  – the indie filmmakers and the studio are getting closer equal.

And I think that is something worth celebrating.

Is anyone else excited about this? Please feel free to comment.

Today, I’m going to offer yet another bit of perspective on the whole question of how to raise money for movies.

As you may or may not know, independent film funding can be a little overwhelming. If you’ve ever dabbled in the business side of making a movie, you know what I mean. The first time I heard people talk about writing a business plan or offering a private placement memorandum, I suddenly felt like I was on another planet. And if you’re like most filmmakers, you would much rather focus on actually getting your movie made, instead of cold calling rich and successful people to set up random pitch meetings.

• So, the first challenge you have in the world of film finance is: How do I find investors for my movie?
• The second challenge is: How will my feature film provide enough ROI (return on investment) for my investor?

Assuming you’ve followed some of my previous advice on creating relationships with rich and successful people, even if you do make a favorable impression on a few rich folks, your potential film investors may still shy away from making an investment in your project. Why? Because without star talent, a known director, a film distribution outlet and an experienced crew – it’s very tough to answer the important question of ROI.

Your potential investors want to know how you plan on spending their money, how you plan on getting their money back, and when. Can you provide your investors with this information? If not, then you can understand why independent film financing, especially for your first feature, can be a pain in the butt.

However, having worked as an account executive for one of the biggest investment banks in the world, I would like to share some thoughts and end today’s article on a positive note. If you can come up with a plan that at least attempts to answer the question of ROI – then you’re in the ball park. While I can’t say it’s common, there are a few potential investors out there, for which their excess cash sometimes burns a hole in their pocket. These folks will assess the potential for gain and loss, and despite the risk (which you will always disclose and never hide!), they will still choose to do business with you.

I have a friend (who I’ll interview in a few weeks) – but anyway, he made a short film that went viral on the internet. One day he gets a call from a random multimillionaire who says he has always wanted to produce a movie. Suffice it to say, my buddy is now in pre-production on his first independent feature film.

Stranger things have happened. What’s important is that you keep pushing forward!

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If you are wondering how to get money for your movie – Almost every resource will tell you that you need a business plan. Very few resources will tell you how to actually go out, find prospective investors, qualify them, contact them, get a meeting and build a relationship.

Since getting money for movies was such a frustrating experience for me, I spent the last few months creating: The Independent Producer’s Guide To Financing Your Movie. In it, YOU will gain valuable insider experience so you can avoid my past mistakes, find investors and make your movie. To learn more CLICK HERE

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I’ve been getting a lot of email from up-and-coming filmmakers asking if there are any websites that help filmmakers find investors for their movie. In past articles, I’ve talked about money and some reasons why you need to be very careful in this arena. But the latest series of emails reminded me of a time when I had the same questions.

So just like you, dear reader, I did a few Google searches for “Independent Film Funding.” And in the spirit of helping you avoid silly mistakes, allow me to list my top three questions:

1. How many business savvy investors are seeking filmmakers via a website built in 1995?
2. Why do I have to submit my credit card information?
3. You want me to pay you, to pitch a movie to you, so you will think about investing?

I know that most of you reading these articles would like to steer clear of unscrupulous tactics. But to do this, you’ll have to get smart. If you want to be successful as a filmmaker, you need to learn business. And I’m not just talking the movie business, but business in general. Depending where you go for money, you may have to pitch your movie idea to a soap manufacturer. Are you prepared to explain your movie business with general business terms like: cash flow, rate of return, asset, income and expense, revenue, profit and loss?

If so, you’re well on your way to talking the talk. And to address the first point of this article – I’m sure there are more than a few legitimate websites out there for filmmakers seeking funding. But there is still one predominate resource for money that happens to be incredibility relevant. It’s the rich people in your personal network.

I know what you’re thinking… What if you don’t know any rich people? Then you need to make some new friends. One easy way to find potential investors is through cold calling. When I first started, I looked for the biggest businesses in my home town. Then I found out who owned the business. After that, I called the person directly and asked to meet. Some of the people I met with back then have become good friends and trusted advisers. And now, when I have an idea for a pitch, I pitch it to them.

- – -

If you are wondering how to get money for your movie – Almost every resource will tell you that you need a business plan. Very few resources will tell you how to actually go out, find prospective investors, qualify them, contact them, get a meeting and build a relationship.

Since getting money for movies was such a frustrating experience for me, I spent the last few months creating: The Independent Producer’s Guide To Financing Your Movie. In it, YOU will gain valuable insider experience so you can avoid my past mistakes, find investors and make your movie. To learn more CLICK HERE

Even though some filmmakers think getting money is somehow limited to the arena of filmmaking, it’s not. The truth is, all budding business professionals need to shake the money tree from time to time. So luckily for us filmmakers, the world of business provides us with rules to and resources for getting money.

GET THE MONEY

The traditional ways people raise money in the United States, aside from going to a bank, is by meeting with an attorney, putting together some complex paperwork in-line with the Securities and Exchange Commission regulations, creating relationships and meeting with potential investors, asking for money – and then getting the check!

Now, this is pretty complex. So I hope you’ve taken some time to look at your movie. Do you need a few million to make it? Or can your project be made for much less? This factor alone will determine your strategy. Just keep in mind – If you’ve worked really hard to eliminate costs in your budget, then it’s possible to make a fancy looking movie for under 15K… Or less.

Yes. You read that right.

But for today, lets take a look at some traditional action steps used in raising a few million dollars:

ACTIONS

1. Cultivate a legitimate friendships with rich and successful people.
2. Get an attorney to write up something called a private placement memorandum.
3. Figure out how you’ll spend the money.
4. Figure out how you’ll get the money back.
5. Under a million and it’s doubtful your venture will be perceived as a worthwhile investment.

Now again. Raising money is a super simple subject (just find rich people and ask for the money) – but the laws and rules and regulations mean that you’ll need to know a few things about protecting yourself and your business from liability. The following resources are worth reading if you want to add to your growing knowledge base on “how do I get money to make my movie?”

I found OPM: How to Attract Other People’s Money for Your Investments–The Ultimate Leverage, to be a pretty good read. It’s not filmmaking related – but as I often say, if you want to get a step ahead of your filmmaking competitors, you need to learn a thing or two about general business. And speaking of business, I also think Risky Business: Financing & Distributing Independent Films provides some specific movie making information that I would have otherwise not considered.

In four days, I’ll send you a lesser known, secret strategy for raising funds. (And it won’t involve asking a dentist or a doctor. Promise!)

Happy Filmmaking!