Filmmaking Stuff Filmmaking Stuff provides resources for independent filmmakers. The website includes articles on how to take a story idea from script to screen, including articles on scriptwriting, producing, finance, shooting, editing, directing, marketing, distribution and how to build an audience. Filmmaking Stuff also has articles detailing how to make money making movies – including interviews with Hollywood Producers, Directors, writers and other filmmaking professionals.

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

Posted under FILM FINANCING

As I mentioned in previous lessons, the name of the game in your first feature is to cut the need for hard cash, while at the same time preserving or improving your production value… You want to make your  movie look more expensive than it is.

I also mentioned how some filmmakers employ bartering or trading to get the necessary resources.

Now, does cutting your budget and exchanging cash for favors involve A LOT of creativity and planning – YES! But we are talking about your first feature. And if you can learn to cut costs and be creative with virtually no money, imagine what you’ll accomplish when you actually do have money!

That being said – in the last lesson, I spoke about the traditional way business professionals find investors and raise funds by exchanging private equity for cash. Today, I’m going to talk about a lessor known, yet very popular way some filmmakers make their movie. It’s called the risk share method.

GET THE MONEY, PART 2

The other, more common, yet sometimes overlooked way to produce a feature is simply to ask your cast and crew if they would like to partner up and throw in some cash. Now, this is complicated and VERY RISKY and if done incorrectly, could get you into a lot of legal trouble (SO YES, TALK WITH A QUALIFIED LEGAL AND TAX PROFESSIONAL)…

But if you have 20 people working on your movie, and each throw in a few hundred dollars, you’re in the money.

ACTION

1. If you go this route, SPEAK WITH A QUALIFIED PROFESSIONAL to help you out, as this sort of structure is ripe for lawsuits if something goes wrong.
2. Get everything in writing!
3. Understand who controls the process and who doesn’t. You don’t want an equity owning production assistant telling you what you can and cannot do with your finished film. And if you take shortcuts, this could happen.

Now again, this risk share strategy has many pros and cons – way too many to write about here. But for some filmmakers, being able to successfully structure a project this way, while at the same time doing it legally could be the difference between getting a movie made, or not.

It’s been a long time since I’ve read Extreme DV at Used-Car Prices: How to Write, Direct, Shoot, Edit, and Produce a Digital Video Feature for LessThan $3,000, but I seem to remember that Rick Schmidt mentioned the risk share model in the book. I could be confused about that… But Rick Schmidt is quite a filmmaking inspiration and his book is totally worth a read.

Posted under 21 Part Filmmaking Mini-Course

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