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.

As a filmmaker, once you have a great screenplay and an initial break down and budget, your next step is to take your proposed budget and put it into a business plan. The business plan will help you determine how the money will be spent and hopefully recouped.

Independent movie investors invest because (aside from having an appetite for risk) they want a return on their money. Creating a business plan provides your prospective investors with a road map on how the investment dollars will be spent and hopefully recouped.

In the past, trying to project returns was a pain in the butt, oftentimes based on speculative data. This is mainly because independent movie distribution was discriminatory. And as a result, after production, many independent feature filmmakers held their breath in hopes their movies would get into a film festivals, build buzz, and (hopefully) garner awesome distribution deals, complete with cash advances.

Unfortunately those old business plans, focused on what is commonly referred to as the “Sundance Dream,” were flawed – And thankfully, that dream (or nightmare) is over.

Given the birth of VOD distribution, filmmakers now have the ability to access and enter into a non-discriminatory marketplace as soon as your movie is ready. As a result, you can now create movie sales projections from day one.

To get started, answer these questions:

Modern MovieMaking Model

1. Who Is Your Target Audience?
2. How Large Is Your Target Audience?
3. How Will You Reach Your Audience?
4. What Is Your Marketing Strategy?
5. How Many VOD Sales To Break Even?

While I won’t get into the actual mechanics of marketing and selling your movie here (My Action Guide How To Sell Your Movie provides you with an actual step-by-step plan for getting your movie seen and sold), I will simply note that a marketing plan must now be included with your business plan. And in that marketing plan, you’re going to add some marketing math.

Truth be told, math is a weak subject for me (and I dare say, most of the filmmakers I know) – but luckily there are many spreadsheet templates that allow you to project the marketing return on investment for your movie. One of the early formulas I use is related to pay per visit advertising.  With pay per visit advertising, you simply pay for targeted traffic to your movie website. This works well if you have a movie with a dose of controversy and a strong hook.

Let’s assume only 1% of the targeted folks who actually visit your website, buy. Then how many visits will you need to sell 100 units?

100 units = Our goal for this ad campaign.
$.05 = Amount you may pay advertiser per visit.
X = Number of Visitors Needed to buy 100 units if only 1% buy.

(X).01 = 100 units
EQUATES TO: X= 10,000
THEN 10,000($.05) = $500 paid for targeted traffic.

So in other words, if you were lucky enough to get a 1% return, you just paid $500 dollars in pay per visit advertising to sell 100 units of your movie. But let’s go one step further. Let’s assume you’re like me – and you hate order fulfillment and shipping. So you decide to let a company like Amazon’s Create Space or iTunes (or some other popular marketplace) handle your order.

Video On Demand For Rent
100 units ($3) = $300 – 50% paid to marketplace = $150
minus $500 paid for advertising = -$350 NEGATIVE

In this VOD rental scenario, the Pay Per Visit Ad numbers don’t work, unless you like losing money.

—
Video On Demand For Download
100 units ($10) = $1000 – 50% paid to marketplace = $500
minus $500 paid for advertising = BREAK EVEN

In this VOD download to own scenario, the numbers work a little bit better. Assuming you’re lucky enough to get 1% of your money returned, at least the advertising pays for itself. But unless you can increase profits, pay per visit advertising is going to be very difficult method for returning money to your investors.

—
Physical DVD Sales
100 units ($20) = $2000 – 50% paid to marketplace = $1000
minus $500 paid for advertising = $500 in profit.

Ah ha! If you’re fortunate enough to get 1% return on your pay per visit advertising, you can see how physical DVD’s sold at $20 dollars may offer a slight profit margin. In other words, in this scenario, for every $.50 cents you spend, you get $1 dollar back.

So let’s tackle the bigger problem. Let’s try to get a return on our 1Million dollar movie, selling physical DVD sales and using pay per visit advertising alone:

Movie Budget = 1 Million dollars
Physical DVD Sales using Pay Per Visit Advertising

$1,000,000 divided by $20 per unit = 50,000 Units

Since we will give 50% to the marketplace for all sales, we will need to project for double our budget.

100,000 units = Our goal for this ad campaign.
$.05 = Amount you may pay advertiser per visit.
X = Number of Visitors Needed to buy 100,000 units if only 1% buy.

(X).01 = 100,000 units
EQUATES TO: X= 10,000,000 (Yes, TEN MILLION people.)
THEN 10,000,000($.05) = $500,000 paid for targeted traffic.

100,000 units ($20) = $2,000,000 – 50% paid to marketplace = $1,000,000
minus $500,000 paid for advertising = $500,000 in profit.

So to break even, you would need to sell 100,000 units and make $2,000,000.

Filmmaking Conclusions

Based on this scenario, as a filmmaker you will (obviously) need to expand your promotion beyond pay-per-visit advertising!

But importantly – and most AWESOMELY -  for the first time in independent moviemaking history, you can now treat your movie business like any other small business. Find the marketing formula that works for your movie and crunch your numbers until they work. Once you have a plan, then simply include your marketing costs in your budget.

While there are no guarantees in any business, having a plan for marketing, sales and distribution sure beats the old days when your only plan for ROI involved crossing your fingers in the hopes someone will offer you a profitable, traditional deal. Treating your movie business like any small business simply means you don’t have to ask permission. You can make your movie NOW!

And your prospective investors might take notice…

- -

Can you do me a favor? If you liked this filmmaking article, could you kindly retweet or share it with your friends?

Posted under FILM FINANCING

If you’ve made a feature film, congratulations! As an independent filmmaker, you’ve just accomplished a feat that many find impossible. You’ve put together a cast and crew, refined your script, found some financing and in the process, you’ve even figured out how to ignore all your significant other’s not-so-subtle hints that a career selling life insurance wouldn’t be that bad.

But behind all the excitement, you and I both know there is one nagging question on your mind. And it is the same question asked by every independent feature filmmaker. You’re wondering: “How am I going to sell this thing?”

That is a good question. And if you’re crossing your fingers for a huge paycheck and a three-picture Hollywood deal, what I’m about to tell you is going to be very different than what you had hoped for.

Thanks to technology, any person with a thousand dollars can grab an HD camera and create a backyard indie. And while this does not guarantee quality, it does create a market flooded with cheaply produced movies. Couple this with a decline in traditional sales channels and your odds of finding a profitable deal have become increasingly challenging.

For most filmmakers, this revelation comes as a shock. After all the work you put into making your movie project a reality, the prospect of putting a no-deal DVD onto a bookshelf and failing to get a return on investment is discouraging. And if it wasn’t for the internet, I’d probably tell you that a career selling life insurance wouldn’t be too bad.

But I have good news! Like you, our first feature was met with empty distribution promises and crappy deals. So by necessity, we started selling our title on Amazon as both a physical DVD and a video on demand download. At first, none of the producers liked that idea. I mean, even if a traditional deal sucks, at least there is still validation of seeing your title on the shelves at the local video store…

Then we made our first sale. We thought it was an anomaly. How could we possibly make money with our movie? We had no stars. We had no formal distribution. And most people on earth had never heard of our title (including you.) But then we made another sale… And then a third… And then a dozen…

That was 2006. Since that time, our movie has sold in ways we never imagined. As a result, every four months I get a nice check. And while it’s not enough money to buy my retirement, I can’t complain.

This success was enough to convince me that making money as an indie filmmaker is no longer about the BIG pay day. These days filmmakers need to create good work, find their target audience and focus on selling movies consistently over time. As a result, I now believe the modern moviemaking model is to eventually create multiple streams of movie income.

For many filmmakers, this sort of talk might be crazy.

Think about it. In years past, filmmakers only self distributed their movies when they had to. It wasn’t a choice! But these days, filmmakers can choose to self-distribute, because 9 times out of 10, making your title available on Amazon and iTunes and other popular VOD marketplaces can potentially pay more than a traditional deal. Because a deal that pays zero is not a deal. (Of course I’m expressing my opinion.)

The following “How To Sell Your Movie” checklist will provide you with a broad overview of how to market and sell your movie without the middle-man.

This checklist should be considered a good start – but many of you will want further information. For that, check out: www.HowToSellYourMovie.com

Wherever I thought it would help, I’ve mentioned partner companies and affiliates. This means, if you follow my suggestions and use one of these services, I’ll get a commission. The folks I mention are good people. And you can ignore my links at will. I won’t be upset. But if you like this checklist, tell your filmmaking friends to check it out!

That said, let’s get started!

How To Sell Your Movie – Check list

1. Create a website specific to your movie. Go to www.MovieSiteHost.com and grab hosting for your site and reserve your domain name there. When you purchase your hosting, a domain name is usually included in the purchase price.

2. Branding is the marketing equivalent of matching your belt with your shoes. Don’t make your marketing complicated. Make sure your colors, logos, posters and fonts are consistent.

3. Most filmmakers make a crazy website with all sorts of bells and whistles. Your website should be simple. You should have a trailer, an about page, a buy now button, links to your social networks and an audience list.

4. Out of everything I mention, getting people onto your audience list is most important. An audience list will allow you to collect a name and email address of your visitor. To build an opt-in list, which is FREE for the first 500 subscribers, check out: www.AudienceList.com

5. Take a moment to think about your target audience. Hopefully you have a marketable hook for your movie, and a plan for reaching your target demographic. If not, figure it out!

6. Get your movie selling as a Video on Demand rental and download. To do this, upload your movie to the many VOD marketplaces, such as iTunes, Amazon and NetFlix. For an easy way to accomplish this, try www.MovieSalesTool.com

7. You can sell DVDs too. Amazon’s Create Space makes this easy. And even though it’s more expensive, I advise you to stay out of the shipping business. Let CS manufacture your DVDs and fulfill your orders on demand. This way, you can focus on increasing your sales, as well as your next movie projects. Not shipping.

8. Your trailer is your sales tool. Upload your trailer to YouTube as well as other, popular video sites. Make sure your trailer mentions your website. Put your focus on optimizing YouTube. Why? Because YouTube is both a social network and the second largest search engine on earth (also owned by Google.) It’s worth it!

9. Write press releases related to the availability of your movie. Include back links to your site. Send the release out via one of the online press release submission sites. In addition to this, don’t be afraid to call magazine editors and journalists who write for your target audience. As they say, if you don’t ask – you don’t get!

10. Join online forums related to your target market. Create a profile, complete with a signature link to your website. Now, whenever you join a conversation, you’ll spread your links.

11. Just because you’re in a forum doesn’t mean people care about you or your movie. If you join conversations without adding value – or if you become one of those spam happy people who talk about your movie and fail to add value to the discussion, you will be seen as a spammer.

12. If the idea of contributing to forum conversations annoys you, then just pay for advertising on the site. The whole point is to increase awareness of your movie and get prospective audience members to your site.

13. Create a facebook page, a Twitter account and join the popular social networking sites. Again, you’ll want to build a fan base for your movie. And to manage it, try www.Ping.Fm This tool allows you to update all your social networking sites at once, which is cool!

14. The purpose of using social networks is to connect with your target market, spread word about your movie and once again, lead people off the networks and onto your Audience list.

15. The reason you can not rely solely on social networking for your audience list, is because many of those sites have gone out of vogue. I lost 10K “friends” on one of them. As a result, I estimate this tip is worth $100,000.00.

16. Additionally, have your webmaster put a button on your website so people can tweet, bookmark, and share your movie website with friends on their social networking sites. (Can you please click the tweet button at the top of this article?)

17. If you have the budget, purchase some offline advertising in publications related to your movie. To find related publications, go to a book store and look for magazines. Also, try Google.

18. All of these methods are intended to get people back to your website. The purpose of your site is to get people to watch your movie trailer and click the BUY NOW button. Anything that distracts these visitors must go!

19. You’ll soon realize that most people will not buy your movie on their first visit to your website. If they don’t click, then at least try to get them to opt into your audience list. Then you have a chance of getting them to buy later.

22. Out of all the people who click the BUY NOW button, many won’t buy. But some will!

23. Consider using that money to purchase more advertising and then repeat the cycle. The goal is to keep investing and reinvesting the money until you produce a self sustaining machine.

24. Sales will tend to level off after a few years. This is the normal. When this happens, find some other filmmakers with a movie geared towards the same target audience. Offer to promote their movie to your audience list. If these other filmmakers have an audience list too, ask them to promote your movie. Be willing to pay them a cut of your profits.

25. Time for your next project. But unlike before, you’ll have a strong mailing list at your disposal. And as a result, you can now ask yourself the following magical questions: “How many VOD downloads do I have to sell to recoup my investment? And how am I going to sell them?” Answer those questions, and you’ll also be talking the talk with your investors.

Once again, if you liked this check list, you’ll love my latest action guide:

>>> www.HowToSellYourMovie.com <<<

Happy Filmmaking! (And tell your friends!)

Posted under DISTRIBUTION

If you’re one of the many independent feature filmmakers who is trying to navigate the ever changing world of digital self distribution (so you can still make a living by making independent movies). . .

I have an AWESOME solution for you.

And No. I’m not talking about iTunes and their snobby indie movie selection mechanisms. Nor am I talking about Hulu’s wonderfully new nickle and dime subscription service (I say that with sarcasm.)

But RATHER, I am referring to an even bigger player. One that can’t be ignored.

YES! I’m talking about Google. Specifically, I’m referring to YouTube and their new movie rental service, called (not surprisingly) YouTube Rentals. This is the latest pay-to-view solution to hit the indie filmmaking world (and in my opinion, one of the most exciting!!!)

With YouTube Rentals, filmmakers will be able to upload your movie and expand your reach. And this amazing VOD outlet will provide filmmakers with an awesomely cool new way to generate revenue – on one of the most popular video streaming sites in existence.

Here are 5 reasons why Indie Producer Jason Brubaker thinks YouTube rentals is cool:

1. Familiarity – Most people are already conditioned to watch YouTube videos.
2. Community – Your fan base can subscribe to your profile, get updates, make comments and tell you how much they love you or hate you.
3. Trust – People trust YouTube. This increases the odds that people will make a purchase with their credit cards.
4. Marketplace – Like iTunes and Amazon, you already have a gazillion people on the website. Just being at the party increases your odds for revenue.
5. Communication – When you make a movie, how cool will it be to email your list and say “check my movie out. It’s on YouTube.”

So if you’re interested in making your content available for rent on YouTube, you can find more info by following this link: YouTube Rentals

Posted under DISTRIBUTION

When I was working to produce my first feature, I had no idea what I was doing. I knew I wanted to see my name in the credits, but didn’t know how to do it.

Fortunately, I also had the phone number of someone who had traveled the same path years before. I contacted this person and asked for advice.

When venturing into new areas of understanding, it is essential to seek out advice from people who have real-world experience. Asking the wrong person for advice may create conversational fluff, but won’t get you what you need. For example, if you wanted to learn how to develop six-pack abs, would it make sense to ask an obese person for advice?

Remember, just because someone has a title or education doesn’t mean they are fully qualified to help you. Find the people living what they teach. Sure, it’s possible an obese person may have a fitness education; but based on experience, they aren’t living it. A person’s advice is limited by their experience.

Later, when I was looking for ways to self distribute an indie feature on the internet, I asked a former studio executive for advice. It was a mistake. After a long conversation, I found out the “expert” had never made an independent feature or any money self-distributing an independent feature. Yet, he was happy to provide advice.

So whenever you’re asking for filmmaking advice, be careful!

Posted under FILMMAKING

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!

- – -

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

I originally published this article with The Independent, a great resource for filmmakers.

Picture this! By some miracle to end all miracles, born of equal parts luck and blind determination, you’ve managed to rise above the never-ending barrage of questions from “concerned” friends and family who’ve always thought your talk about making movies was reckless. You’ve put together a cast and crew, refined your script, found some financing and in the process, you’ve even figured out how to ignore all your significant other’s not-so-subtle hints that a career selling life insurance really wouldn’t be that bad. To be honest, looking back, even you aren’t really sure how you pulled it off. Yet, despite all of the concerns and self doubt, you’ve somehow managed to make the impossible possible. You’ve made your first feature film! And, by definition, you’re finally a real filmmaker.

So, as your significant other drinks celebratory champagne with your family, friends and whatever members of your cast and crew are still speaking to you at the wrap party, you and I both know there is one nagging thought still rattling around in the back of your mind. It’s the same thought shared by every independent feature filmmaker. You’re asking yourself, how am I going to distribute this thing?

As a feature filmmaker, your distribution strategy will fall into one of two categories. Either your movie will be picked up, marketed and sold through various outlets by one of those distribution companies you read about in the trades, or you will sell it yourself. This is the major difference between traditional distribution and self-distribution. Regardless of which path you take, there are certain fundamental steps you must complete to ensure the film makes a smooth transition from the edit suite to the marketplace.

Preparing to Find a Distributor

When finding a distributor, many filmmakers partner with sales representatives, agents, lawyers or consultants to help get their movies seen and, hopefully, sold. It is during this time that the representative will often furnish the filmmaker with an extensive checklist of deliverables that include (with some variation): the movie master, talent agreements, high resolution digital photos for use in promotion, a credit lock, talent bios and press kits, a copyright registration form, chain of title and just about every other legal clearance the distributor can think of to minimize liability. One area where first-time filmmakers often stumble is in properly securing the rights to each and every bit of music included in their flick.

According to Richard Abramowitz of Abramorama, a marketing and distribution consulting firm that specializes in independent films, “Sometimes filmmakers include a song in the background that can’t be removed from the dialogue track, or a character sings along to the song in scene. If the music isn’t fully cleared, then the filmmaker either has to pay [for the rights] or cut the scene entirely.” As you can imagine, finding one of these errors can significantly delay, or even derail, your potential distribution deal.

Because of these surprises and to further mitigate risk exposure, most distributors will require Errors and Omissions insurance. According to Mark Litwak, of the Beverly Hill’s based law firm Mark Litwak & Associates, “E&O insurance is malpractice coverage for filmmakers. It protects the insured from liability arising from negligence in not securing the rights, permissions and clearances needed to exploit the film.”

Assuming the movie reaches a deal and all the elements are delivered, the filmmaker’s involvement in the project is minimized as the distributor assumes control of the marketing, public relations, packaging, duplication and quality control. From there, the distributor will get the movie into their marketplace pipeline, which may involve anything from movie theatres to any number of straight-to-DVD outlets.

Preparing for Self-distribution

Distribution as we know it is changing. With models like video-on-demand and fulfillment services becoming more and more integrated with not-so-independent conglomerates like Amazon.com, the options for reaching a global marketplace is wide open. Sooner than you think, all content may very well be available with the push of a button. While the prospect of cutting out the middleman is exciting to the independent filmmaker, as your own distributor, you now bear sole responsibility for both the success of your movie and the safeguarding of your personal liability should any legal issues arise. To many, this means purchasing E&O insurance, converting the movie website into a sales funnel, capturing leads, creating the DVD cover art and finding ways to efficiently reach your target audience at a minimal cost.

Stacy Schoolfield, whose film Jumping Off Bridges (view the trailer here) was successfully self-distributed in 2007 after a great festival run, says, “Self distribution provides more control over the film. Where you might only end up with 3 percent of traditional distribution profits, you could end up with much more through self-distribution.”

Stacy, who produced and managed distribution of the film, said her strategy involved showing Jumping Off Bridges, ultimately about a group of friends struggling through adolescence, to carefully selected niche audiences, building a mailing list and making the movie readily available on her website. “At our first screening at SXSW [the South by Southwest Film Festival], there were people from the local Teen Suicide Prevention/Mental Health awareness group. They came up to us and said they could use the film in their outreach and education. It was a new idea for us, and after more research, we found out that there were lots of groups like that across the country and we started reaching out to them. You have to know who your audience is and then pull out all the stops to reach them.”

Thanks to the Internet, finding the appropriate audience is becoming increasingly more efficient. According to Dana LoPiccolo-Giles, managing director of CreateSpace, which provides filmmakers with direct access to the Amazon marketplace, “Films with a specific focus may see higher sales due to niche audiences and less market competition. Some keys to online sales success are having an attractive, effective cover design that will look professional/interesting as a small thumbnail on web searches. Filmmakers should choose online keywords carefully, and make sure the name of the title will help the film be found in searches. Often a subtitle as part of the name can make it more specific and easily searchable.”

Regardless of whether you plan on selling directly to your marketplace or chose to take the time-honored distribution route, getting the appropriate releases, licenses, and clearances during pre-production will only help your movie make a smooth transition from screening room to marketplace. Once everything is in check, then you too can enjoy a little champagne… before getting ready to start the whole process all over again on your next project. Picture that!

Posted under DISTRIBUTION