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Filmmaking resources for indie filmmakers, including, screenwriting, financing, producing and film distribution

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How To Build Rapport With Prospective Movie Investors (And Other Hollywood Heavy Hitters)

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If you want to to raise money to make your movie, you need to first build rapport.  This one lesson alone can accelerate your filmmaking success faster than most anything else you can do. This is especially important when you meet with prospective movie investors and Hollywood heavy hitters.

The reason is simple. People do business with people they like and trust.

Build-Rapport

(Remember this, always. Seriously.)

My first film was this silly short, shot in 16mm. It was a college project. And it was expensive.

In order to participate in the class, I had to come up with a over one-thousand dollars. That may or may not seem like a lot of money to you. But when I was in college, I didn’t have it.

I was broke!

I saw a job advertisement in the local paper that seemed interesting (this was years before the internet.) Anyway, the job was with this swimming pool and spa company. They needed someone to travel to regional fairs and carnivals to sell hot-tubs.

Yeah. Before I made and distributed movies, I worked at a carnival. Don’t judge me.

Can you picture this? You’re at a local carnival. Probably chomping on french fries and funnel cake. And as you’re walking to find a chocolate milkshake to wash it all down, you stumble into the hot-tub tent.

Picture this:

I’m pitching you a ten-thousand dollar hot tub that you have no desire to buy.

At the time, I wasn’t the best sales guy. In fact, I had no idea what I was doing. I kept pitching and pitching, but the ice cream eating customers were not buying.

Worse, they ignored me cold and often walked away.

My filmmaking dreams faded with each rejection.

But then one day, this old timer sales guy came up to me and said the following:

“You know why you aren’t selling?”
“No,” I said.
“It’s because you ain’t taking time to build rapport.”
“Rapport?”
“Yeah. You need to connect with these people. Make a friend first.”

Rapport is simply a feeling of connection between you and the person (or people) around you. To build rapport, you simply need to ask some questions, shut your mouth and listen. Once I understood this, I took time and got to know each prospect BEFORE I went into the pitch.

In the weeks to follow, an interesting thing happened. I found out that a lot people were just visiting to fair so they could eat ice cream. They had no desire to buy a hot-tub. So I did not waste time pitching my offer. Taking time to build rapport also allowed me to find people who were actually interested.

By the end of the summer, I was the top hot-tub sales guy on the team.

This allowed me to produce my first short movie, and I also had extra money left over.

But Jason – What does this have to do with filmmaking?

Years later I realized taking time to build rapport while selling hot-tubs is the exact strategy you will use to build rapport with movie investors and Hollywood Heavy Hitters. It’s amazing how small jobs can teach you BIG lessons!

Here is a quick filmmaking video.

BUILD RAPPORT

I’ve said it time and time again. If you cannot connect with people, garnering any measure of success in the movie industry will be difficult. The good news is, with a few strategies and techniques, you can begin to build meaningful and profitable relationships with people at an accelerated rate.

Establishing rapport is the first step to creating a Hollywood relationship.

FILMMAKING ACTION STEPS

  1. Read the trade journals, national newspapers and watch the news whenever you can. This will keep you informed of current events, including sports, finance and especially entertainment. (So you can find stuff to talk about.)
  2. When you’re informed, finding conversational topics between strangers will come easier – This is a skill you’ll need when you got out and pitch to prospective investors or Hollywood heavyweights for the first time. I know I just mentioned it – but in Hollywood, there are two trade journals. Daily Variety and the Hollywood Reporter. Read them!
  3. This one should be obvious, but watch every movie you can. (Seriously.)
  4. Read the following books: How to Win Friends & Influence People and Never Eat Alone (These are general business books, but useful to your filmmaking.)
  5. Since communication is mostly body language, one effective technique to building rapport involves mirroring and moving your body in sync with the person you’re talking with. (Just don’t be obvious about this.)

As you meet more people, you’ll begin to expand your context of reality. People will provide you with ideas, help and often introduce you to other people. Add this up over time and you’ll soon see how each person you meet potentially creates a positive ripple effect that will propel you in the direction of your Hollywood goals!

RESOURCES
If you are looking for tips and strategies for getting movie money, check out The Film Finance Guide. It was authored by myself and Tom Malloy. Keep in mind the Tom Malloy has raise over 25M in film funding to produce his firs feature film. Head over the Film Finance Guide here.

The Secret To Filmmaking Success

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If I could go back and talk to myself ten years ago… And if I could only share one filmmaking success tip, what would I say? In two words: Cold Calling.

I know this may sound unrelated to filmmaking. But I can tell you that success is not created in a vacuum. It is created with the help and support of other people, including mentors and customers.

filmmaking success

The Secret To Filmmaking Success

While it is true that some people stumble upon contacts and get lucky, I would venture to say that over 90 percent of self-made successful people got what they wanted in life by utilizing some variation of the following three success tips:

First: They knew what they wanted.

Second: They made a plan to get what they wanted.

Third: They picked up the phone and cold called people who could help make their plan a reality.

Think about it. Could you go to “networking events” and try to find folks to help introduce you to the appropriate contact? Yes. But just as easily you could pick up the phone, call your prospective contact’s place of business and try to get him or her on the phone to make your pitch.

Will you get through? Maybe. Maybe not. But if you had a list of 100 prospects and you called all the people on that list, odds are good you would find someone willing to sit down with you.

Why is this important to your filmmaking? Because unless you ASK for what you want, how is anybody in life going to know how to find you?

If you would like to find out more about networking, success strategies and most importantly – how to find prospective investors for your next movie, you might want to grab a copy of my filmmaker checklist.

Can’t Find Film Investors? Here’s The Magical Filmmaking Equation

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One reason you aren’t finding investors is because you don’t know how many units you need to sell in order to breakeven. Having spent the majority of my career working in film distribution, I can tell you that the filmmakers that get the best deals are those who do their homework.

So in order to make back your money and (hopefully) make a profit, you’re going to need to crunch some quick numbers. And don’t worry. The magical filmmaking equation is simple.

filmmaking equation

The Magical Filmmaking Equation

Let’s suppose you go out and raise some money to make your film. And let’s say you make your movie, but you do not garner a dream distribution deal. And for the sake of this article, let’s say the only way you can recoup your investment is by making a $5 profit from each VOD unit sold.

The formula would look something like this.

  • $100 dollars = 20 units at $5 each.
  • $1000 dollars = 200 units at $5 each.
  • $10,000 dollars = 2,000 units at $5 each.
  • $100,000 dollars = 20,000 units at $5 each.

Once you know how many units you need to sell, then you can focus on HOW you’re going to do it. What casting, marketing and distribution choices will you make to help reduce risk and improve the chances for success?

For example, what happens when you cast a famed social media star with a million subscribers in a secondary role? What happens if you partner with another organization and do a massive email blast to a few thousand people? And what about traditional PR and other buzz building tactics.

While this filmmaking equation isn’t exactly magical, it’s pretty darn useful. Once you know your numbers, you can start planning your film. You’ll be light years ahead of filmmakers who are just guessing. And if you liked this, you’ll love these filmmaking tactics.

The Secrets of Successful Online Movie Advertising

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If you want to be a successful filmmaker, you better learn a thing or two about online movie advertising.

The reason I emphasize online movie advertising is because most movies end up in some sort of video on demand platform. And because many of the most popular platforms exist online, selling movies on the internet is very similar to selling anything online

This means you now have the ability to create online movie advertising campaigns to drive people to your point of sale.

If you’ve been reading my filmmaking stuff for any length of time, you know I’ve been sharing similar advice with filmmakers for years. I first published my thoughts back in 2010 – Here’s the article called Financing Movies With VOD Sales Projections. As you’ll read in the comments, most people thought I was crazy.

Fast forward to a recent job interview with a well known distribution company. I kid you not, the whole conversation revolved around this thing called conversion science.

“Jason, WTF is conversion science? I’m a filmmaker. I failed science!”

Look. I am trying to help you. You’re obviously reading this because you want to know the secrets of online movie advertising. And I’m telling you, the big secret is this thing called conversion science.

movie advertising

 

The Secrets of Online Movie Advertising

Here’s the thing about business (that most filmmakers ignore). Everything in business is measured in profit and loss. So if you spend money for online movie advertising, you better get that money back, plus a profit on top.

So here’s the question: How do you know if your online movie advertising is working?

This one is simple. You track your advertising campaigns. If you make more money then you spend, you’re doing OK. But if you start throwing money into an online movie advertising black hole, you have a BIG problem.

And before we get too crazy, there is something you need to know.

The whole reason you want to do your homework is so you don’t end up depending on the glaringly flawed and totally outdated distribution strategy:

“Gee, I sure hope we get into a film festival and garner a great deal.” 

Hope is not a sustainable business strategy. It is a lottery. And it’s outdated.

Online Movie Advertising Formula

Whenever you think about your movie advertising strategy, it helps to think about some real world scenarios. And because we are talking numbers, I am going to share a basic direct marketing ROI (return on investment) formula.

Here are the MAJOR Filmmaking Challenges:

  1. With no promise of pre-sales, or minimum guarantees in 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?

Here is a formula you can test and tweak. Plug in numbers and play around with assumptions.

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) = ?

If all of that seems like a bunch of gobbledygook, you’re not alone. In the real world, most marketers utilize software, an online calculator and spreadsheets to help clarify assumptions.

But here’s the rub.

When you actually crunch the numbers on a One-Million dollar budget by selling $20 dollar DVD’s in Amazon (which is a totally high price), and you rely solely on Pay Per Visit advertising at $.05 cents a visit – Even if you’re lucky enough to garner a 1% conversion, you would need to sell 100,000 units (which allows for a 50% marketplace fee).

Or to put it another way, to get these results, you would need 10,000,000 targeted visitors, visiting your website.

Yes, ten Million people! Which is outlandish… 

This means you will have to think very carefully about your movie budget, marketing budget, your distribution strategy and obviously, you’ll need to make sure your movie actually has a market large enough to support the budget.

If you would like to start planning your distribution, you might want to check out my “How To Sell Your Movie” system.

How To Establish A Production Company Without Going Broke

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Successful filmmakers take time to establish a production company. In fact, it is an essential part of your filmmaking career. And given all the changes taking place in our industry, you should probably take a few seconds to stop what you’re doing, read this article and then click here and tweet it to your friends. 

Before we get too far into the nuts and bolts of how to establish a production company, it’s important that you understand something. If you’ve been following filmmaking stuff for any length of time, you know that one of my key filmmaking success philosophies is to stop asking permission to make your movie.

establish-a-production-company

Establish A Production Company Without Going Broke

Making a film time consuming, challenging, and at the end of the day nobody cares about your film project more than you do. Well, actually, people will care when you make it easy. More on this in a second. But first, check out this note. It is typical of the stuff filmmakers send me every week.

Here is a recent example of someone asking for permission (What NOT to do)

Hi Jason,

I’ve been reading Filmmaking Stuff for over a year and love your emails. My problem is, I have lots of great ideas for a movie. But I can’t find anybody willing to produce my movie for me.

I thought about establishing a production company. But I don’t really want to do that stuff. (I just want to make the movie.)  If I send you my screenplay will you produce my movie for me?

It is really good! Please let me know ASAP.

Filmmaking Frank

I am going to be frank with filmmaking Frank. Aside from his unwillingness to go the distance on his film or at the very least, establish a production company – What he is asking is a very difficult request. As much as I would love to read his script and spend the next three years of my life producing it into a film, I am currently focused on my OWN projects.

I’m not trying to be a jerk either. The idea of dropping everything that I am doing to establish a production company (for Frank) and then  produce Frank’s movie is not appealing. And it may not make good business sense. This is what they mean when they say: “Rejection is nothing personal.”

Most agents, producers, directors and other filmmakers have a full plate of stuff they are working on. The only time they will stop what they are doing is if your project seems more promising than the one they are currently working on.

(Read that again if you need to.)

Here is an example of how Filmmaking Frank could grab attention:

Hi Jason,

A few months ago, I grabbed your Film Finance Guide. (Great stuff there.) After going through the guide, I decided to stop waiting for someone to give me permission.

I went on to establish a production company. Then I talked with my lawyer, got some paperwork and then located a prospective investor. I’m happy to report he has funded my film and we have 500K in escrow!

One minor issue. I don’t know crap about distribution. And I’m in over my head. I’d love to find out if you have any bandwidth for one on one film distribution coaching. Happy to discuss a fair rate too, if it makes sense.

Would you have time to get on the phone?

Frank

Do you see the difference here? In this example Filmmaker Frank took time to establish a production company and actually do the work. He raised money and presumably knows the scope and scale of his movie. He also took time to research me, my background and write an email focused on  my interests.

From a busy professional perspective, Frank got my attention by preemptively answering my BIG question:

“What’s in it for me?!?”

Based on the email, someone willing to help him would probably be able to negotiate:

  • Consulting fees.
  • Credit on his (fully funded) movie.
  • A new collaborator and friend.
  • Possible back end percentage.

The point here is, in the second example, Frank disarmed me. He made me think that working with him would complement my current business, not distract me from it.

Establish A Production Company (Now!)

Taking time to establish a production company allows you to take the necessary steps towards the fun part of filmmaking, which is actually making your movie. But before you get all hog-wild with emails and invites for co-production ventures, you need to know a few things.

As a filmmaker, the moment you start putting your project together, you’re in business. It is at this point that many filmmakers get a business card and set up a website, touting the wonders of their upcoming projects. It is also at this point when many costly mistakes are made.

How you decide to establish a production company and then conduct your filmmaking business can have legal and tax ramifications.

Before you produce a feature film OR speak with any prospective investors regarding your movie project, you should first speak with a qualified professional on ways you can protect your personal assets from liability. These professionals will help you decide on the appropriate business entity for movie. And in this way, you can establish a production company the right way.

Movie_Plan_Pro

Additionally, the moment you decide to start putting a project together, you should also seek out the legal and tax advice of qualified professionals. After meeting with these folks, you might find that operating your production company under the protection of a corporate entity (such as a corporation or LLC)  may provide safeguards that you otherwise were not aware of.

The steps of setting up a business entity are pretty simple, but they could be a little costly depending on your state (or country) laws and tax liabilities. Also, as a general disclaimer, I am not qualified to offer legal or tax advice. So I can only talk about my own experience – which may not be right for you.

Here are some Action Steps to establish a production company:

1.     Once you have a desired company name, chat with an attorney about establishing a proper legal structure for your company. Each state is different in terms of laws and tax consequences. Create a team of trusted tax and legal advisers. These folks will help guide you towards raising money and also keeping everything legal.

2.     I REPEAT – Talk with a qualified professional first. If you’re short on cash, many states offer an organization of lawyers for the arts. Check with your state film commission or do a web search for appropriate contact information.

3.     Once you establish your company, create a website, logo and a business card. These marketing materials will share consistent colors, fonts and logos. Make sure everything looks great. If you are spending more time focused on the “look” of your company, you have lost perspective. Your primary goal is to make movies, not fiddle with websites.

If you’d like more information on any of this stuff, check out the filmmaker checklist.