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.

The question I have for you dear filmmaker is this: How do you know when the movie project you’re working on is right for you?

The answer: When you are so excited and enthusiastic that sleeping, even for a few hours is a burdensome.

To survive and thrive as a filmmaker, you need this type of energy. If you hate the thought of your project, then chances are, it’s the incorrect project for you.

Posted under FILMMAKING

As an independent filmmaker, the prospect of putting together a project and creating something awesome out of an idea really gets us going. Serious indie filmmakers stop at noting until the movie is actually in the can – or these days – in your hard drive. Still if you’ve been working to make movies for any length of time, you know there are days when you hit obstacles, sometimes so seemingly insurmountable that you just want to give up on your project. Don’t do it!

Here are 5 filmmaking tips to help you push forward:

1. Remember Perspective – you’re not performing brain surgery. You’re attempting to make a movie. This is a fun business. This is a privilege.
2. Facing Rejection – Always ask WHY? Sometimes your pitch is perfect, but your audience is wrong. Make sure you’re talking to people who are actually interested in your type of project.
3. Break down BIG goals – Setting out to make your version of impossible, possible can be overwhelming. It is important to break all of your goals into smaller, more manageable tasks
4. Missing Personal Deadlines – It happens. Sometimes people cry. I suggest you simply change your deadline.
5. Your Peer Group – If you surround yourself with negative losers, you lose. Make it an ongoing habit to always surround yourself with winners.

I know 2011 is right around the corner. Do yourself a favor – make this your year. No more excuses. Grab a camera and start capturing stuff.

Happy Filmmaking!

Posted under FILMMAKING

A few weeks back, I came to the realization that selling movies on the internet was no different than any other kind of eCommerce. So using the same forumlas I utilize to market my Action Packs, I plugged some numbers into an internet marketing ROI calculator.

I did this because the prospective investors in my life often ask how their money will be spent and recouped. Given the discriminatory nature of traditional distribution, I wanted to see what it would take to make internet distribution a viable sales channel. So I started crunching numbers with one assumption – if filmmakers can make the numbers work for each project, filmmakers would no longer have to rely on the glaringly flawed: “Gee, I sure hope we get into a film festival and garner a great deal” distribution strategy.

That strategy is a lottery. Not an investment. And it’s outdated.

So I got down to business and crunched some numbers. To my delight, I found some answers – but after publishing my article on internet movie distribution, many people kindly wrote to tell me that my numbers are incredibly unrealistic (and that is putting it nicely.) And I totally agree.

Looking at my results, it became quite clear that recouping even a measly 1M dollar budget by selling $20 dollar DVD’s in Amazon, relying solely on Pay Per Visit advertising  at  $.05 cents a visit, while, at the same time crossing our fingers for a 1% conversion would require that, firstly – you would need to sell 100,000 units (which allows for a 50% marketplace fee). And secondly, assuming a 1% sales conversion, to get these numbers, you would need 10,000,000 site visitors, visiting your website. (Yes, ten Million people) – which WE ALL AGREE is outlandish!

But in all of the debate, despite the negative responses, and the haters who took special care in hating me, and the seasoned producers who took meticulous care in ignoring the math and instead, decided to point out my spelling mistakes and poor use of grammar – Despite all the backlash – very few people (OK, pretty much nobody) even tried to offer a better solution.

So I decided to provide YOU with the chance to save the independent movie industry. If YOU can answer the following questions, you will help push indie filmmaking into the next era. In fact, YOU will help us make indie filmmaking a profitable business.

Are you ready to change the world of independent filmmaking forever – for the better? Here is your chance!

Here are the MAJOR Filmmaking Math Problems:

1. With no promise of a traditional distribution deal, how do filmmakers justify a budget large enough to pay freelance day rates, while at the same time project enough direct DVD and VOD sales to recoup the initial investment?
   
2. And assuming only 1% of your website visitors buy your movie, then how many people must visit your website so that 1% recoups your initial investment? (Don’t forget to include marketplace costs.)
   
3. How much will this cost in advertising?
   

The Formula:

To possibly help you,  I provide my formula (below) in hopes someone with more math experience can test and tweak until this starts to make sense. Here is what I have so far:

Movie Internet Marketing Formula

U = Unit Sales Goal.
A = Amount you pay advertiser per website visit.
C = Projected conversion percentage rate.
X = Number of Visitors Needed.

(X)C = U
EQUATES TO: X= ?
THEN:  X(A) = ?

–>Thank you. Please click here if you would like to comment or offer your own formula and results for the world to see!

Posted under DISTRIBUTION, FILM FINANCING

Since most people in LA are involved in some aspect of the movie industry, it isn’t surprising that most of the holiday coctail party conversations I’ve had of late, revolve around some aspect of the movie industry. That said, what is surprising to me are the vast numbers of people I meet who report spending years searching for ways to hand their movie projects off to someone else – someone who will magically do all the “business stuff” and make a movie appear.

Sometimes I think filmmakers do things just because they believe it’s the way things HAVE to be done. That doesn’t necessary make it right. And admittedly, I’m not always right. But how I conduct my movie business works for me. And if you’re reading this, I assume you’re looking for some perspective just a little left of center. So here we go.

Here are my 5 rules for modern filmmaking success.

1. Quit asking permission. It’s a waste of time.
2. Create your own business plan and budget.
3. Create the movie you can make this year, not next.
4. Learn money. (Know the difference between cash flow and capital gains!)
5. Similar to #1, quit making excuses. Grab a camera and push “record.”

And as an added bonus – because I’ve been meeting a lot of actors lately – if you’re an actor, stop handing out headshots and start producing! Then cast yourself in your own projects. Creating actual projects are a lot more fun than doing another demo reel.

Posted under FILMMAKING

As we get closer to an independent filmmaking business driven by video on demand distribution, I am on the hunt for various case studies that can help filmmakers navigate the changing world.

I caught wind of an indie production company based in Australia called Rapidfire Productions. This is a production company that operates as a self sustaining modern moviemaking business. They develop, produce and distribute their genre specific titles through their own distribution arm. David W. Allen is one of the producers. Earlier this week he stopped by Filmmaking Stuff to share some ideas on how to make, market and sell movies through new forms of internet distribution.

Jason Brubaker
What is your name?

David W. Allen
David W. Allen

Jason Brubaker
How did you get started making movies?

David W. Allen
I have always been into making movies with my long time best friend and director of our most recent feature, “The Gates of Hell,” Kelly Dolen. As kids in our early teens we would always be running around with a video camera making home movies and writing our own horror and action screenplays.

Jason Brubaker
And then when you felt ready, you made the shift to features?

David W. Allen
Yes. Our first feature length film was a low low budget vampire flick called ‘Reign in Darkness’ which we both wrote and directed. We only had $49k to make this with and considering the budget it came out okay.

Jason Brubaker
Sounds like an exciting first feature.

David W. Allen
We jumped on a plane to LA wide eyed and innocent to sell our film and make it big in Hollywood.

Jason Brubaker
I felt the same way after our first feature. It’s like you work so hard to make the impossible, possible. Hollywood sure seems like the logical next step.

David W. Allen
Ahhhh how naive we were all those years ago. [Laughter]

Jason Brubaker
So what happened? Were you able to sell the movie for an amazing cash advance and get a 3 picture deal?

David W. Allen
We ended up getting a distribution deal with a sales agent who we were introduced to by an entertainment lawyer.

Jason Brubaker
Was it a good deal?

David W. Allen
No. We got ripped off and didn’t see a great deal of money for the film. That was 10 years ago. Today the title is still selling out there, online. The movie is making money for other people but not us.

Jason Brubaker
How did that change your perspective about traditional distribution?

David W. Allen
I learned a very valuable lesson with ‘Reign’ and vowed if we ever made another feature film we would distribute ourselves.

Jason Brubaker
I agree with you. Especially when it comes to video on demand distribution.

David W. Allen
I could see where the Internet was heading and knew it was going to be the way to reach our future audiences with our Independent films.

Jason Brubaker
What is Rapidfire Productions?

David W. Allen
Rapidifire Productions was established by Kelly Dolen and myself in 1999 with the sole purposed to produce a diverse, wide range of Independent high concept genre films, ranging from action, drama, horror and sci-fi.

Jason Brubaker
So you are staying very genre specific?

David W. Allen
Our long-term goal was to make commercially successful projects that satisfy a marketplace craving for intelligent genre films and build a distribution arm for low budget Indy films.

Jason Brubaker
And it sounds like your title called “The Gates Of Hell” fits your model. Tell us about the project.

David W. Allen
The Gates of Hell is a dark psychological thriller and horror flick which is inspired by a combination of “old school” films like The Exorcist and The Thing and the adrenalin of cutting edge video games like Gears of War and Manhunt.

Jason Brubaker
Could you tell our readers where to find out more about your movie?

David W. Allen
Here is the website: www.TheGatesOfHellMovie.com

Jason Brubaker
How did you come up with the idea?

David W. Allen
It was back when Kelly and I were sharing a place together and we were talking about what we can make next for a low cost and high commercial value. We were talking about a filmmaking seminar we attended in Melbourne, Australia conducted by Dov Simmens, a Hollywood indy filmmaking guru.

Jason Brubaker
I am familiar with Dov and his work. What was the most inspiring advice he gave you?

David W. Allen
He said the best thing to do with your first film is to get a bunch of young people and take them to a single location and chop them up.

Jason Brubaker
Ha! I think that is sound filmmaking business advice.

David W. Allen
That was the thought process that ignited the idea for The Gates of Hell.

Jason Brubaker
So once you had your idea, what came next?

David W. Allen
Kelly and I started brainstorming ideas and we come up with an old condemned orphanage that used to house discarded deformed children that upper class people didn’t want.

Jason Brubaker
That sounds like a true horror movie.

David W. Allen
We researched this online to see if in fact a place like this did exist and they did back in the early 1940’s. And then we added some Hollywood to the idea and the first treatment was written.

Jason Brubaker
So once you had the treatment, what came next in your process?

David W. Allen
From there Kelly ran with the idea and developed it into a screenplay which was constantly developed over some years to get it to a stage where it was ready to make. We had a local artist drawing characters for the film and story boards you name it was all happening.

Jason Brubaker
What was your role during this time?

David W. Allen
I focused on the producing and marketing. I was responsible for developing an internet marketing strategy, building the website and creating the entire online distribution business model. I planned an online release from the very beginning.

Jason Brubaker
Building your movie business plan based on an internet marketing strategy is a very new concept. Was there any pushback from other producers or investors?

David W. Allen
The Investors had no intention of going down this path. They wanted the big blue sky and Hollywood. But I knew in the end they would end up going with my plan to self-distribute.

Jason Brubaker
What was Kelly’s role?

David W. Allen
Kelly went out and raised the large majority of the money from investors of our previous film and the new investors came from people he knew from his years selling home audio equipment at the large retailer JB HI-FI. The main investors were customers of Kelly’s from this store and over the years they come to value him as a friend more than just a shop assistant.

Jason Brubaker
So would you say that filmmakers must first understand the value of relationships?

David W. Allen
There is such a valuable lesson to be learned here especially with the social networking explosion on the Internet… Success is all about the relationships both online and offline.

Jason Brubaker
That makes me remember a quote I learned while selling overpriced hot tubs in college. “People buy from people they trust and like.”

David W. Allen
In my opinion this is the key to being successful in offline and online business and film distribution. Over time your followers will come to trust you and believe you, so when you have something to sell they will be far more likely to buy because they feel like they know and trust you.

Jason Brubaker
So let’s talk more about your movie sales strategy. How did you handle the sales, marketing and distribution?

David W. Allen
After the film was completed we took the film to a number of film festivals such as Screamfest, Amberg, Sacramento, and NYC. We also attended some film markets such as AFM and Cannes.

Jason Brubaker
Were you able to gain any traction?

David W. Allen
The film had great reviews but with all the positive hype around the the film the distribution deals were not very favorable and we didn’t want to go down the same path as we did with our first film ‘Reign in Darkness’ where were got a raw distribution deal.

Jason Brubaker
That is a tough choice. Many first time feature filmmakers will consider deals that do not pay a dime, just for the validation that comes from someone else saying “Great work! You’re a REAL filmmaker!”

David W. Allen
Yeah. But being passionate about everything Internet, I was pushing the proposal of just self-distributing online. But it was a hard sell to our investors who wanted to see the film in cinemas and up in lights.

Jason Brubaker
That is interesting. I guess some of those folks need traditional validation too?

David W. Allen
Well, all I wanted was to see a positive net return for sales of the film and focus on introducing the film to its market online and letting its popularity spread over time.

Jason Brubaker
Sounds like a pragmatic approach to your modern movie business. Were you able to get your way?

David W. Allen
I managed to get my way in the end with a little compromise. The investors wanted to see the movie in the cinemas so we did a distribution deal with an Australian distributor for Australian and New Zealand rights.

Jason Brubaker
Sounds like a hybrid deal. You retain some rights, while licensing other rights through other channels. Was this a profitable strategy for your movie?

David W. Allen
As I am writing this, the distributor is still yet to do anything with ‘The Gates of Hell’, which is no surprise to me, but a big lesson for the investors who wanted a quick return and blue sky.

Jason Brubaker
At least you can move forward with your own internet movie marketing strategy. Can you tell us a little more about your marketing plan?

David W. Allen
My marketing plan is simple. With very little money, I am taking the advice of a brilliant marketer Seth Godin and build a tribe and sell the movie to that tribe who over time will spread the word.

Jason Brubaker
What are the mechanics involved in building a tribe?

David W. Allen
I will be collecting emails from prospective customers so we can sell them backend products that they actually want.

Jason Brubaker
What about marketplaces? Where will you actually sell your movie?

David W. Allen
My distribution plan is to start off with selling the DVD then when I get some traction in the market I will approach a VOD distributor and then an iTunes aggregator and Amazon. I will also look at Netflix but I will wait until it gets more popularity so to get a better upfront fee.

Jason Brubaker
You mentioned DVD. Who is going to handle your DVD fulfillment?

David W. Allen
For the DVD distribution I use a company called Disk.com. They were highly recommended to me by some of my Internet marketing peers who use them to create and distribute their information products. They are based in the USA and is a great place for the shipping of the DVDs within the US and throughout Europe and the UK. There are some great companies here in Australia but the shipping costs would be way too high given our main market is in the USA and UK.

Jason Brubaker
Outside of distribution and your website, how are you spreading word of mouth?

David W. Allen
Facebook Pages and Twitter play a bit part in my strategy. I use these platforms to build what is called Market Leadership. I also hit the forums and get involved in the top ones and this is a great way to get people to check out the film.

Jason Brubaker
What about getting prominent website owners to review the movie?

David W. Allen
I am sending out copies to influences in the market place, people who already have a large following in the horror market and if they like the film they will tell their tribe about it.

Jason Brubaker
When I first saw your movie website, I was impressed. I think it has all the components necessary to create a movie sales funnel. But you also have something called an opt-in box to build your mailing list. How important is a mailing list for modern moviemakers?

David W. Allen
Very important! It is such a valuable asset for filmmaker if they don’t abuse it. It takes so long to build traffic to your website so you want to be capturing as many leads as possible so you can stay in touch with them, send them cool free stuff and then sell them backend products related to their film.

Jason Brubaker
Yes. I think filmmakers need to take charge of sourcing their own core audience. But what about in-between projects? How do you leverage your list?

David W. Allen
Between projects, the other thing filmmakers can do is introduce other people’s related products to their list for a fee or on an affiliate basis. Over time your mailing list will become very valuable. The bigger and more responsive the list, the more other industry players will want to pay filmmakers money to get related products or films in front of their subscribers.

Jason Brubaker
What suggestions do you have for other filmmakers who want to create their own movie business?

David W. Allen
Look at the market you’re making the film for first. This is a business and if you are going to spend money on making a film you better be sure there is a big enough and hungry enough market out there to buy your film and other backend products.

Jason Brubaker
You keep mentioning marketing related products. Could you explain this a little more?

David W. Allen
I look at the film itself as a lead generation product for the purpose of building a big list. I am not all that concerned about making the money back on the DVD itself but on other monetizing avenues over time including advertising.

Jason Brubaker
That is an interesting concept. Most filmmakers do not think like marketers. Yet if we want to make money making movies, it makes sense that we would need to diversify our product offerings.

David W. Allen
The modern filmmaker needs to think beyond the film itself as the only means of generating income. The money online is where the eyeballs are. Think about it.

- – -

To find out more about Rapidfire Productions and their titles, GO HERE

Posted under DISTRIBUTION, INTERVIEWS

One of the most important filmmaking strategies you must adopt in this era of modern moviemaking is a long term perspective. In years past, filmmakers focused on making one movie, selling it and then moving on to the next movie.

While the idea of creating multiple titles over the course of your filmmaking career has not changed, it is now vitally important that you plan a series of movies from day one. The reason for this is simple. You are now solely responsible for the success of your movie business. And to stay in business, you will need to create a profitable library of titles that continually pay you.

To use a real estate business analogy, in years past you built a house and sold it for maximum profit. But these days, given the changes in the real estate market, it makes sense to hold onto the house, rent it out and collect rent checks every month. This is the difference between capital gains and cashflow. And as an independent filmmaker, the growing demise in DVD sales outlets means that filmmakers must now focus on creating multiple titles – and increasing cashflow, over time.

Step 7 – Leverage Your Following.

As I mentioned previously, creating a highly targeted mailing list is now essential for your success.

Thinking long term, the most important component of your movie making success is establishing a loyal following. From a business perspective, the size of your mailing list will provide a solid metric on which to base forward looking revenue projections. In other words, you can take look at your list and say “two percent of our followers bought this movie. I wonder how many fans will be interested in my next movie?” But instead of guess work, you can send your followers an email and ask them.

As you grow your community your fans will begin to know you, know your company and celebrate your work. And as long as you continue to provide good entertainment, you may eventually reach mass great enough to fund your future movie projects. Imagine how much prospective investors will appreciate your pitch when you already have one-hundred-thousand fans eager to buy your next movie?

In the end, the heart and soul of all forms of distribution is finding an audience willing to pay you for your work. Video on demand simply removes the middle-man from the process and allows you to connect directly with the people who matter the most – your audience.

Posted under DISTRIBUTION

When I published my article on leveraging VOD sales to finance your movie, I had no idea that a simple internet marketing formula for filmmakers would be such a polarizing issue. I can’t tell you how many Los Angeles based movie producers responded negatively through email.

One guy even told me my grammar sucked.

So to clarify, I was not trying to ruffle any feathers. I was simply applying a standard internet marketing ROI formula to a product available through video on demand. Nothing more.

All of this was based on the premise that selling movies on the internet is no different than selling any other downloadable product (where you are lucky if you convert 1%)

This is based on experience. I learned how to market and sell movies on the internet when our first feature did not garner a traditional distribution deal and we ended up selling on Amazon. Back then I personally knew a bunch of filmmakers in a similar situation – all had titles but no deal. Since that time, even more filmmakers have flooded the market with titles. Couple this with the decline of various DVD sales channels, and suddenly a crappy $25 backyard indie can now share virtual self space with $25M movies.

For those of us who produce features without any sort of pre-sales, instead of telling prospective investors “If we are lucky, we might get into festivals and garner a distribution deal.” We can finally reach our audience without asking permission. And to me, this makes the indie movie business like any other small business… Produce a product and then market, sell and distribute your product.

This said, I totally agree with one of the readers who said my equation for returning a 1M dollar budget was preposterous. He was right. Anybody who thinks you can magically generate the mass amount of sales needed to recoup even a 1M dollar investment without a substantial outlay of cash towards advertising is mis-guided. Which is what those formulas reveal.

I wasn’t trying to present an indie movie panacea. We are all trying to find profit in business competing with (what I think is the indie movie equivalent) of sweat shop labor produced goods. So in terms of the person who said I’m trying to seduce “starry eyed producers,” I would say that finally having non-discriminatory VOD sales channels like Amazon, and especially iTunes finally gives us producers something to get excited about.

Whether or not we can find the marketing formula to justify our budgets remains the ongoing challenge. I for one am working my butt off to find the balance between budget and the amount of marketing needed to recoup the money – and hopefully create an ongoing stream of revenue.

My model of moviemaking isn’t for everyone. In fact, many of you have great relationships with distributors and are still making money in DVD and theatrical. Awesome! But if you are a filmmaker still relying on the “Sundance Dream” to recoup your budget – or if you are a filmmaker with a title collecting dust in your bedroom closet, I hope my article offered a little optimism.

At the same time, feel free to share your own thoughts on VOD distribution.

And spelling an grammatical tips are welcome from filmmakers too.

Posted under DISTRIBUTION

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

Making movies is both awesome and incredibly challenging. And becoming a professional filmmaker requires a certain amount of dedication that is easy to talk about – but not always easy to live by.

In my filmmaking career, I’ve experienced heartache as well as the surreal, super exciting moments that come when people get to know me and my work. Making stories and building an audience that supports our work is the reason we do what we do.

But in order to get from point A to point B, it is essential that you create a clear and exciting vision for your filmmaking future… Because (believe me) you’ll need something exciting to focus on, should things get challenging…

… And as a filmmaker, things always get challenging.

I have known many people who started out their filmmaking careers with all the movie making passion, energy and enthusiasm in the world, only to drop their dreams at the first sign of trouble. Other friends have disappeared without ever making a movie. And one of my friends went crazy, stole a bunch of money from his filmmaking team and left town.

Why? Because creating a dream for yourself and paying the price, (no matter how hard) to realize your potential -  that’s the tough part.

I’m serious about this. Making a career making movies is a long term game. It won’t happen over night. In fact, success probably won’t find you on your first feature or your second feature film. So you have to get tough.

Here is a strategy worth applying to your own life: One of the mental attributes that all successful people share in common is a never ending ability to keep their eye on the prize. And if you’re looking for the secret formula for all your filmmaking success, it is this: patience plus unyielding persistence in a face of adversity will get you through a tough spot. NEVER give up!

GOALS

Here is what separates the professional filmmaker from the horde of crybabies.  They have goals. And you should too. And I’m not just talking general stuff, like “Hey, I want to make movies and get rich and all the crap.” Who doesn’t (on some level) want the things that sort of lifestyle offers?

But what I’m asking you to do today, dear filmmaker is to set very specific goals for your filmmaking future.

What does your ideal future look like?

In order to create meaningful success in both your filmmaking career and your life, you MUST get a clear idea of what you want. This will involve not just setting goals for yourself, but actually taking out a pen and writing them down.

The following actions will help you hone in your movie ideas, your money ideas and also help you paint a picture of the wonderful life you want to live:

ACTIONS

1. Take out some paper and write down three ideas for movies you want to make in your lifetime.
2. How much money would you like to have?
3. How much money do you have now?
4. What will you do to get the money you need?
5. The people you hang out with will influence your success. Are you hanging out with people who share your vision? Or, are you hanging out with negative people?

After this, you’ll get a pretty good idea of where you are and where you want to go. From there, you can begin to take steps in your desired direction.

Here is an affiliate recommendation. A few years back, I stumbled upon the following audio program and even though it talks about general goal setting, I totally thought it was a great tool for helping me refine my own filmmaking goals: Master Strategies for Higher Achievement: Set Your Goals and Reach Them – Fast! (Your Coach in a Box)

I don’t know if I’m hitting a nerve with you or not. But long before I made my first money making movies, I can remember driving around my small home town dreaming of a time when I would not only have a few features under my belt, but I also dreamed of a time that I could share my experience with you.

If you find yourself faced with filmmaking self doubt, you’re not alone. The important part is that you at least get a picture of what you want that is very specific. Then you should take time to work backwards. And who knows, maybe a decade from now we will be working on movie projects together.

Posted under FILMMAKING