Modern Filmmaking Business Plan

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Most filmmaking business plans are stupid. Why? Because most filmmakers have no idea how to project a possible return on investment.

Don’t feel bad. It’s not your fault.

Until five years ago, distribution was discriminatory, abusive and monopolistic. As a result, the old business model for indie filmmaking relied heavily on some 3rd party, middle-man distribution strategy. “If we are really lucky we will get into Sundance and get rich.”

These days, relying on a 3rd party middleman to buy your movie is like waiting for the Tooth Fairy. It’s a nice thought, but it’s not solid business. Instead, I recommend you answer these questions before you go into any production:

  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?

After you answer these questions, then make sure you incorporate your marketing costs into your initial budget.

You might ask: “What if I just want to make movies and sell my movie?”
My response: “1995 called and they want their dumb distribution plan back.”

Like it or not, the world of filmmaking has changed.

If you hate asking permission to become successful in your own moviemaking business, then make sure you sign up for the filmmaking stuff newsletter.

Posted under FILM FINANCING

Make Your Movie Now

Dominant learning style of target audience

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As a filmmaker, I think the idea of producing your own work is good. I don’t really believe in asking anyone for permission to make my movies – including traditional industry executives or other producers.

I see this in Hollywood all the time. People have an idea for a movie, but instead of trying to create their own movie business, they spend days, weeks, months, and (sometimes) entire lifetimes hoping to find someone else to do the heavy lifting.

While this may seem like an easy route, it can be a very difficult path. Why? Because you are relying on other people to do the producing for you. And in my opinion that takes way too long!

Imagine you are someone who desires to open your own business. Would you do it yourself? Or would you rely on someone else to do it for you?

Example: “Hey. I got this great idea for a hardware store. If I tell you my idea and show you my business plan, will you open my hardware store for me?”

Do you understand what I mean? Trying to create a business like this would be crazy talk.

Of course if you want to open YOUR own business, YOU would open it.

So if you happen to be one of those filmmakers with tons of ideas, but no feature credits, I highly suggest you focus less on finding someone to do the heavy lifting and instead, focus on testing the market to gain a realistic approach to your projects.

To get started, ask these questions:

  1. What is my Hook?
  2. Who is my intended target audience?
  3. What is my budget?
  4. Are there enough people within my target audience to justify the budget?
  5. How do I intend to reach my target audience?
  6. How much will my sales and marketing cost?
  7. From this, what is my projected return on investment?

If you’re new to the modern moviemaking model, then you will either agree with me or you won’t. In the event you like what you’re reading, then you can become part of the modern moviemaking revolution by grabbing a copy of the official Filmmaking Stuff newsletter. To grab it, go here >>

Posted under FILMMAKING

Filmmaking For a Living

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As a filmmaker, you are expected to make a product (your movie). The money invested to create your product should be less than the eventual sales of your product. If you can not figure out how to achieve this goal, you do not have a business. You instead have an expensive hobby and probably a good demo reel.

There are a lot of filmmakers who attempt to raise money without first considering how their movie will recoup the initial investment. These filmmakers say things like “I have a vision” or “I’m going to make this for the love of filmmaking. Then I’ll get into festivals, get noticed and garner a great distribution deal!” And while it is true that passion, tenacity and blind optimism play an important role in getting your movie produced and seen and hopefully sold, this alone is not enough to drive the masses to your screenings.

This happens in Hollywood all the time. A filmmaker creates a typical business plan that focuses on film festivals as the most viable distribution strategy. And played out, the filmmaker gets the money, hires a crew, makes a movie and then enters the festivals. But months after wrap, well into the festival circuit, these filmmakers realize that the market has changed. The days of awesome DVD acquisitions deals and huge upfront advances are over. And when the last frame flickers off the silver screen, these filmmakers take their dashed-dreams back to their day job.

The veterans of the industry tell us that all this distribution deal disappointment is a result of improved technology. They optimistically tell us that our lost DVD revenues will be recouped by Video On Demand. Some refer to this as simply a market correction, implying that someday, somewhere, someone will figure out how to once again pay the big bucks for movies. But this is a pipe-dream.

Here is the flaw. Most filmmakers depend on DVD distribution for a return on investment. And with deteriorating DVD sales channels, filmmakers are currently left with iTunes, NetFlix and Amazon as the most prominent VOD sales options. My question is this. Who on earth is going to pay a major advance to get your movie into a marketplace that YOU can easily access without the middle man?

This approach to the marketplace changes everything. Your business is no longer dependent on production and capital gains. Nope. These days, the focus for the filmmaker lies in creating multiple streams of movie income over the long term. And if you want to make a living making movies, you need to realize that your libary and the subsequent auidence you source (over your career)  are your major assets. And as a result, your most important filmmaking focus (aside from doing good work) is to acquire and keep a customer.

Like it or lump it, filmmaking has become a small business. The same rules now apply.

- – -

Jason Brubaker is a Los Angles based independent filmmaker and an expert in Video On Demand distribution. If you are one of the many filmmakers seeking movie distribution, you might want to check out The Independent Producer’s Guide To Distribution.

Posted under FILM FINANCING

Financing Movies With VOD Sales Projections

How To Sell Your Movie On iTunes, Amazon and Other Marketplaces For Maximum Profit, Without The Middle-Man!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…

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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

How To Sell Your Movie 25 Part Checklist!

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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

Film Production Crew Takes Action

As a filmmaker, making a feature takes time. You need a great team, which includes a great production crew. And you also need money. And you also need a little luck!

When I moved to Los Angeles, I had planned on making at least one movie per year. And despite the US economy and some other challenges, I am very happy about the features I have helped to produce. But as a producer, no matter how many movies you make, you always wonder when the next feature will take shape. And that can make anyone a little movie-stir-crazy!

Then one day, the pieces start to come together…

The first plan for my next movie is an idea. So over the weekend, I met with some key members of my film production crew, including my writer friend. Collectively, we have started working a rough idea into a fine-tuned movie, complete with a marketable hook and an established, niche target audience. If you’re just tuning into filmmaking stuff, you’ll quickly learn that starting with a defined target market in one core strategy I employ to gear us towards an eventual return on investment. (More on this in the distribution and finance articles found at Filmmaking Stuff.)

Anyway, we are getting close to finding our hook. Once we have it, we will then work on characters. Once we have the characters – and their individual objectives, we will then expand the hook into a 3 acts. We will then populate this plot with our characters. And scene by scene, we will work out ways to add something interesting into the action.

I know the system I describe may seem a bit regimented for most writer/filmmaker types. And while I agree that nobody knows nothing, by building our indie films from the marketing hook first, and the the story later (and not the other way around)  we at least have the confidence that a niche market for our movie exists. (Remember, a movie marketed to everybody is nobody! So it’s niche’s that make you riches.)

I’ve received emails from a few of you asking if I would share more stuff from the trenches. So in the days, weeks and months to come, I will continually provide insight on how we are gonna take this concept from script to screen.

If this type of front line filmmaking stuff would be valuable to you, and if you’re not already on our mailing list, you can join our filmmaking community by going here: www.FreeFilmmakingBook.com

Posted under FILMMAKING