7 Actionable Steps to Raise In-Kind Donations for your Indiefilm.

Filmmaking is HARD.  Making your first movie is even harder.  You have to gather all of the stuff you need to make your movie, often working with funds that you’ve saved up yourself.  Sometimes you’ll have some additional funds from your friends and family, an inheritance, crowdfunding or some other windfall, but even with any or all of those funding is likely to be tight.  

So as part of my ongoing efforts to make filmmaking easier, here’s an entry-level guide to getting in-kind donations for your film.  

Try to get fiscal sponsorship

Fiscal sponsorship is essentially an arrangement where a non-profit organization lets you borrow their tax deductible status for the purposes of taking in donations.  If you can get fiscal sponsorship from a reputable 501C-3 non-profit organization, any donations you take in will be considered tax deductible.

Generally, the non-profit will take a fee as part of letting you use their 501C-3 status.  Most of the time, this fee is somewhere around 9-10%.  How this will apply to in kind donations is something you’ll have to work out with the organization from which you seek fiscal sponsorship.

Being able to solicit donations as tax deductions from local businesses makes it much easier to convert them as it gives them an additional incentive to help you.  

Consider what products could appear on screen.

In order to figure out what you might be able to get donated, you first must discern what you need.  Go to your Day out of Days report (DOOD) and check out what might be the most likely elements you could get a donation for.  You can work from these lists for the next steps.

Figure out where you can get what you need.

Once you have a list of what you’ll need, it’s time to figure out where you can get it. First, cross off the stuff you already have. Make a list of 3 potential places you could procure any of the items on your list then move on to the next step.

You’ll have to spend some money on your production, this extension can help you save.  

Before we go into how to get free stuff for your movie, it’s important to remember that sometimes the wise move is to spend a little bit of money to save a lot of time.  For those situations, This Chrome extension can help you find the best deals on a lot.of things you’ll buy anyway.  Check, it out here.    

Approach local businesses about donations.

You can approach the 3 businesses to see if they’ll discount, donate, or loan you the items you need. 

They’ll be a lot more likely to donate to you if you have the fiscal sponsorship.  If you’re a student, you should definitely say so, as it makes them even more likely to donate what you need to make your film.  

While mom-and-pop stores are easier to approach, many large chains have some level of budget for these sorts of donations.  Grocery stores normally have something they can give away to non-profits, and this can be a great way to cut your craft services budget.

Don’t be afraid to call major brands, but don’t expect too much 

If you’re bold, you could approach a major brand about getting some in-kind donations for your movie.  This could be getting Starbucks to donate a bunch of beans for craft services, or Mercedes letting you use a car from a dealership for a day.  If you do this, you should be aware that the chances for success are not as high as approaching a mom and pop shop, but the potential rewards can be huge.

Just keep in mind, if you are trying to get something from a local store in a massive conglomerate, it can be easier to go into that store first.  A lot of brands are looking for ways to increase visibility, sometimes directly, and sometimes through third-party brokers.

In fact, according to a study from hubspot 60% businesses small and large have stated that they rely heavily on micro and nano influencers to build trust in those brands. For the uninitiated, nano influencers have 5,000 subscribers or fewer and micro influencers have 50,000 subscribers. It’s not exactly the same space, but it’s a similar one.

Keep Track of everything you’ve raised.

Getting Donations will increase the Production Value of your film, and you should keep track of the value you’re adding. Not all budgeting platforms can track this in line, but you should keep a separate tally somewhere.  Eventually, a distributor will ask you what your budget was and you should include your in-kind efforts.

Thanks for reading, and we hope you found this article useful.  It you want more film business content, check out my free film business resource pack!  

5 Mistakes that cost filmmakers TENS or HUNDREDS of THOUSANDS of dollars

Film Distribution is a weird and wonky system full of highly specific jargon and terms of art that are meant to be difficult to understand by its very nature.  I’ve already written several blogs on the basics of how these agreements are structured in a way that a person who is not a lawyer should be able to understand. However, even if you gain an understanding of this wonky system, there are a lot of things that can really hurt your film’s bottom line.  Some of these things could even erase any profits you might have otherwise seen.  Here are 5 mistakes I’ve personally seen filmmakers make that have cost them a minimum of 5 figures per filmmaker.  

Not Fully Appreciating Exclusivity

Managing the rights of an independent film isn’t easy.  There’s a lot more to it than uploading to Amazon and expecting a few million hits.  In fact, making your film available on any wide-scale platform is going to make it nearly impossible for a sales agent to sell whatever territory the film has already been exploited in.  Even if you take the film down, you’ve blown exclusive deals, and those are the only deals that pay anything notable upfront.  One of the first things a territorial distributor does is to google the film from their home country to see where it’s currently available.  If they see it’s available in their territory, they decline.

I’ve lost multiple territorial sales for multiple filmmakers due to someone prematurely exploiting a film in a certain territory without letting the sales agent know about it.  Don’t be one of those filmmakers.

To be clear, films are not evergreen and there will come a time when the smart play is legal wide aggregation in order to cut losses from piracy and build your notoriety in those territories in order to better sell future work.  That time starts at the earliest 2 years from the market premiere of the completed film.  If you do it too much faster, you could be leaving significant amounts of money on the table.  

Sending Screeners too early

Most of the time a distributor, sales agent, or even producer’s rep will only watch a film once.  Additionally, they’ll only watch the first 5 minutes of it and if they’re not hooked, they won’t keep watching.  I’ve seen many distributors walk out of buyer screenings around that mark.  There’s very little you can do to prevent this from happening entirely.  Even though a strong hook in the first 5 minutes will help lessen this happening, buyers are busy people with too many films to watch so you won’t be able to fully prevent it due to shifting market demands and mandates. 

What you can control is how early you send out your film.

In general, it’s unwise to submit anything aside from the final, finished cut of your feature film.  Distributors and sales agents get a lot of submissions, and often won’t watch with the eye of what the film could be, only what it is now.  While they may give you some leniency because they know it’s not finished there’s more than likely going to be some degree of subconscious response reminding them that they weren’t big on the film when they watched it.  That will manifest in several ways, nearly all are bad for the filmmaker. 

Dropping promotional assets too early.

It’s totally natural to be excited when you get your new promotional assets like your trailer, your poster, box art, or anything of the sort.  When excited, I’ve seen many filmmakers run straight to social media to show off to their friends.  This is unwise.  

Distributors use poster drops and trailer drops to get press coverage in the trades to grow awareness of the film on a global level.  If you just put it up on Facebook, we can’t get the same drop in the press.  Your friends will be more impressed if you drop an exclusive from BloodyDisgusting, Collider, or /film to show off your poster, trailer, or exclusive sneak peek.  In general, it’s always wise to ask your distributor if you can show off their work to your social media contacts, if they say they’re looking to get an exclusive, hold off and check back in a week or so for a status update.

Making the wrong Genre

I know, I know this one has been beaten into the heads of most independent filmmakers.  There’s a reason for that though.  The sad fact of the matter is that not very many people watch dramas without names or high-level accolades.   A bad horror movie is an easier sell than a great drama.  If you make a drama, without recognizable names you’re only likely to make money in your home country, and at least in the US, you’re likely to make significantly less than you would have made if you made something like a thriller.

One suggestion I often give on this front to filmmakers who are still in the script stage is to consider telling the same story in a different way while emphasizing suspense over emotion in order to make the film into a thriller instead of a drama.  You’re going to make a lot bigger splash with a thriller than a drama, and if all other things are equal in terms of cast and production quality, you’ve got a much better chance at recouping your investment.  

Pulling their film without a plan.

Sometimes you have to take your film back from a distributor.  There are a lot of sharks out there and there’s a good chance you’ll need to exit a distribution agreement at some point in your filmmaking career.  Generally, when it’s time do to this you will have a very good reason to do so.  That being said Just because you’ve taken your independent film down make it as though it was never there.  If the film is taken down, platforms often won’t put it back up through a different distributor, meaning you’ll be in a rough spot to get it back up.  

This is not universal, but it is common that once a film is taken down its exceedingly difficult to get back up.  To be clear, if your distributor or sales agent is in breach of contract you may not have a better option than to take your film down.  You just need to be aware that you might have some trouble putting it back up, and you won’t make any money from the film in the interim.  

As I said at the top, this all gets wonky really quickly.  It’s more than most filmmakers can really take in over just a few times sitting down at their computer.  That’s why Guerrilla Rep Media offers FREE monthly content digests delivered straight to you as part of our Indiefilm Business Resource pack.  It’s easy to sign up and once you do you’ll receive a monthly email full of useful educational content completely for free.  Additionally, you’ll get lots of other goodies like a free e-book, free white paper, investment deck template, festival brochure template, and more.  Sign up below.  

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The Underlying Cause of Many Issues Facing The Indiefilm Industry.

As an independent filmmaker, you probably didn’t get into the game to sell widgets or do insurance paperwork as your primary 9-5.  As such, it’s completely understandable that indie film producers wouldn’t really consider the distributor’s perspective when making their independent films. Filmmakers got into the industry to make movies, which is an all-encompassing goal in and of itself.

Speaking from the other side of the negotiation table, there’s an issue that most independent filmmakers just don’t consider when they’re setting out to monetize their work.  That issue is around the uncertainty of market demand that really only matters at least three years after you write your script, as well as the uncertainty that requires distributors and studios to plan for the inevitable unpredictability of that faces the film industry and likely always will.

This article is meant to outline some of the issues associated with uncertainty for those creatives so that they can better account for it down the line.

Content is King, but only if it’s good

For a long time, I thought that the saying content is king was primarily a platitude said by speakers at conventions to keep filmmakers making films.  Obviously, distributors need films to sell in order to run their business. What most speakers leave unsaid is that there is such a gargantuan dirth of under-monetized independent film out there I thought it was something primarily meant to keep the film buyers in a superior position so they could get away with some of the shenanigans we all know independent film distributors and sales agents for.  Having led a distribution company for a few years, I can say that both I and the speakers who say content is king on stage were wrong.   Content is king, but only if good.  

Well-made, engaging, commercial films will get distributors fighting for the right to distribute.  Bad films will get bad deals which means the filmmaker is unlikely to ever see a cent.  Unfortunately, the same is true for good films in a non-marketable genre, or with a hard-to-define audience.  

Only about 1 in 10 films makes money

After having released many movies, I can tell you from experience that only about 1 in 10 films will make enough money to cover their budget over the course of a 7-year term distribution agreement.  I know that’s a rough pill to swallow, but you should know it going in. About 20-30% of the others can make a meaningful portion of their budget back over the same time period if they’re working with an ethical sales agent or distribution company.  The rest will get little to nothing back. Again, all of that is assuming you have a distributor or sales agent who actually pays you and is transparent in their bookkeeping, which is rare.  This basic reality of the business influences many more choices made by your distributor than you may realize and greatly informs the business model and operations of distributors.  

Nobody can pick winners all the time.

In the words of William Goldman, nobody knows anything.  Having said that, I think Goldman’s statement is overly broad.  I think there are so many factors that weigh on a single film’s success there’s absolutely no way that even the best distributor or analyst in the world could Plan for and create hit after hit. Pixar did in their early days, but they also had a functional monopoly of hot new technology and the finances and resources of Disney, so it’s not exactly a realistic use case for those of us operating on the independent side of the industry. In the world of distribution, if you get about half of the acquisitions you make to over-perform expectations you’ve done extremely well and you would be inducted into the hall of fame if we had one.  On average, the best of us only get around 35%, but even if you get around 25% you’re still doing pretty alright and will likely keep your job.  

This functionally means that even if your sales agent or distributor is being entirely genuine about their expectations for the film there’s at least a 50% chance they won’t be able to live up to their most optimistic projections.   Again, I don’t mean this as a slight to those of us who work in acquisitions.  There are so many variables that are impossible to predict.  One example of such unpredictable complications (at least for the time) would be the initial release of The Boondock Saints hitting theaters the same week as the Columbine Shooting in Colorado.  While mass shootings are sadly a near-daily occurrence in the US in 2023, Columbine was one of the first of its kind.  Due to a fear of inadvertently endorsing vigilante justice, most theaters that were set to play the film dropped it. For a while this made The Boondock saints was one of the biggest box office bombs in movie history.

There’s no way a studio executive, writer, producer, or anyone involved in the release of this film could have predicted that, and as a direct result the film massively underperformed.  Since it was a pretty modest budget for the time and the film found a second life as a cult classic it’s likely it remained as big a flop as it started.

Granted, this is an extreme example, but it is indicative of the butterfly effect that can cause even the best film with the best team to underperform.  

Producers can’t always be relied on to help market their work.

Marketing a film is expensive and time-consuming.  If you don’t have a big name to help you make a big splash, you’re going to need to help your distributor spread the word about your movie if you want it to find success.  There are so many films released on a weekly basis that without the filmmakers helping to push the film to rise above the white noise caused by the glut of feature film releases the film doesn’t stand much of a chance of finding an audience.   Unfortunately, not all producers can be relied upon to help market their own work.  

Even at this late date, many producers feel that it should be entirely on the distributor to make their film a success.  After all, isn’t that what their commission and their fees are for?  While I can understand the sentiment and I even agree that most distributors should do more to earn their commissions it’s not as simple as it sounds.  Independent Film Distributors have a lot more to do than it may initially appear. Delivery to each platform is extremely time-intensive, and we also need to handle a lot of regular pitches, shifting mandates, filmmaker relations, investor relations, buyer relations, press relations, and a whole lot more.  If you work with us to make our job easier, you’ll get more meaningful attention paid to your film as we won’t have to spend time identifying and engaging with the core audience. 

In the end, if you won’t promote your own work, how can you expect anyone else to? For more, read this blog.  

RELATED: Why you NEED to help your distributor market your film (If they’ll let you)

A known cast helps everything, but the competition is fierce, and not everyone is honest.

In general, the best way to rise above the white noise created by the glut of independent films released on a regular basis is to attach a star to your film.  I know, I know.  Everyone says this, and it’s both hard and expensive.  While it’s not as hard or expensive as you may think if you do it properly, it’s still outside the reach of most sub-100k feature filmmakers.  If you do get a celebrity attached to your feature film, you’ll almost certainly get a lot of distributors coming to you in an attempt to procure the rights to your film.  

Unfortunately, a mediocre genre film with a B list name in it is more likely to garner a decent return than a great film of the same genre without a name in it. Of course, exceptions exist but it is a key indicator that’s likely to lead to success.

The issue here is that while you may be able to get multiple distribution offers for your film, not all of them will be companies you want to work with. Most sales agents and distributors will do whatever they need to in order to get the film from you.  After they get the film, whether they even live up to their own contract isn’t a guarantee. In most cases, it’s exceptionally difficult to get your rights back.

The outcome?  Consolidation and risk aversion, Exploitation of Filmmakers, or sales agents make their own micro-budget content.

There have been massive industry-spanning consequences resulting from the high level of uncertainty coupled with dwindling revenue from physical media and transactional video-on-demand sales.  Many of the resulting decisions that have led to extreme consolidation of the industry are made simply out of a need for the sales agent or distributor to make payroll, although often those issues extrapolate into something else.  Additionally, almost all of them are bad for filmmakers. 

The most obvious example of negative consequences for filmmakers is the fact that many contracts are structured in a way that exploits filmmakers by passing through disproportionate risk and falsified expenses.  This is covered across the internet so I won’t go too far into it here.  Additionally, in the last few years, the industry has been consolidating into the hands of fewer and fewer companies.  This leads to less competition for acquisitions, which means lower payments, less transparency, and an explosion of growth in the exploitation mentioned above.  Simply put, when there are fewer companies who can buy your film, they don’t have to do as much to get it.

Given all of this uncertainty, sales agents and distributors are less likely to acquire content outside of the standard genre fare they know they can sell.  This means newer voices and content are likely to get lost in the shuffle.  In order to combat this, some sales agents have started their own production lines to develop content that fits the needs of their buyers.  The most notable recent example of this was Winnie The Pooh, Blood & Honey Which was made by ITN Studios.  ITN was a distributor and sales agent for quite a while before Stuart decided the best move was to create a bespoke model for his buyers.   It worked wonders and many sales agents are following their example.

The problem with the direct production model is primarily that it creates a new kind of competition for filmmakers, and could quite easily mean that the traditional method of acquisition for independent films is disrupted in a way that leaves independent artists completely out in the cold.  

Again, all of these issues are greatly influenced if not caused by the issue of uncertainty of the independent film industry. Uncertainty faces every industry, but the level of it is significantly greater than in most other industries outside of early-stage high-growth startups or perhaps certain types of small businesses. However, there is one thing that is certain for filmmakers. If you sign up for my Newsletter you’ll get my independent film resource package which includes an independent film investment deck template, festival promotional brochure template, monthly content digests segmented by topic, a free e-book, white paper, and more!  Click the button below to add it.

Thanks for reading, more next week, and please share this if you liked it!

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The 5 Pervasive Issues Preventing the Emergence of New US Film Hubs

If you’re a filmmaker, you probably already know a lot of other filmmakers in your area.  If you don’t, you should.  That’s one reason why film community events are absolutely vital for the independent film industry.  It’s far from the only reason that communities of independent filmmakers are vital for your success as an independent filmmaker.  

I’ve been involved with a few film community organizations ranging from Producer Foundry to Global Film Ventures, and even the Institute for International Film Finance.  I’ve also spoken at organizations across the country.  From the experience of running more than 150 events and speaking for a few dozen others, I’ve noticed some commonalities across many burgeoning independent film communities, so I thought I would share some of my observations as to why most of them aren’t growing as quickly as they should.  Without further ado, here are the 5 pervasive problems preventing the growth of regional film communities.  

Lack of Resources

It’s no secret that most independent films could use more money.  It’s true for film communities and hubs as well.  In general, most of these community organizations have little to no money unless they’re tied to a larger film society or film festival.  Unfortunately being tied to such an organization often prevents the work of community building due to the time and resources involved in the day-to-day operations of running a film society or the massive commitment that comes with running a film festival.  

Compounding the issues with a lack of resources is that a community organization built to empower a regional film community isn’t something that you could raise equity financing from investors.  Projects like this are much better funded using pages from the non-profit playbook.  There are organizations looking to write grants specifically for film organizations seeking to empower communities.  You can find out more about the grant writing process in this blog below.

RELATED: Filmmakers! 5 Tips for Successful Grantwriting.

While local film commissions do provide some support to locals, their primary mandate is generally built for a different purpose that I’ll discuss in the next of my 5 points.  

Most tax incentives emphasize attracting Large Scale Productions, not building local hubs

Most film tax incentives are heavily or sometimes even entirely oriented on attracting outside productions as a means to bring more revenue to the city, state, region, or territory.  This is understandable, as many film commissions or offices are organized under the tourism bureau or occasionally the Chamber of Commerce.  Both of those organizations have a primary focus on attracting big spenders to the local area in order to boost the economy.  

RELATED: The Basics of Film Tax Incentives

This mandate isn’t necessarily antithetical to the goal of building local film communities.  There is nearly always a local staffing requirement for these incentives, and you can’t build an industrial community if no one has work.  Some of the best incentives I’ve seen have a certain portion of their spending that is required to go to community growth, as San Francisco’s City Film Commission had when I last checked.  Given that the focus of the film industry is focused on attracting outside production, there is often a vacuum left when it comes to building the local community and infrastructure as a long-term project.  

Additionally, given that film productions are highly mobile by their very nature using tax incentives to consistently attract large-scale projects is almost always a race to the bottom very quickly.  If a production can simply say to Colorado that they’ll get a better deal in New Jersey, then the incentive in Colorado fails its primary purpose.  Eventually, these states or regions will continue a race to the bottom that fails to bring any meaningful economic benefit to the citizens of the state.  While the studies I’ve seen on this often seem reductive and significantly undervalue the soft benefits of film production on the image and economy of a state, the end result is clear.  If all states over-compete, eventually the legislatures will repeal the tax incentives.  After that, outside productions will dry up.  

When this happens, local filmmakers are left out in the cold.  The big productions that put food on the table are gone, and there’s no meaningful local infrastructure left to fill the void that the large studio productions left.  

Creating a film community is a long-term project with Short Term Funding.

It takes decades of consistent building to create a new film production hub.  People often have the misconception that Georgia popped up overnight, and this isn’t true. While the tax incentive grew the industry relatively quickly on a governmental timescale, I believe the tax incentive was in place for nearly a decade ahead of the release.  Georgia’s growth was greatly aided by local Filmmaker Tyler Perry’s continual championing of the region as a film hub.  

Most of the funding apparatuses available for the growth of film communities are primarily oriented toward short-term gains.  That makes long-term growth a difficult process, but if cities and regions outside of NY, LA, and ATL are to grow it needs to be a part of the conversation.  

There are some organizations out there pushing to build long-term viable film communities outside of those major hubs.  Notably, the Albuquerque Film and Music Experience has a great lineup of speakers for their event in a few weeks.  I’m one of those speakers, so if you’re in the area check it out, and check out this podcast I did with them yesterday.  

It’s hard to bring community leaders together

As I said eat the top, I’ve been involved with and even run several community organizations.  One consistent theme I’ve noticed is that most community leaders are very reticent to work with each other in a way that doesn’t benefit them more than anyone else.  This means that one issue I’ve seen consistently is that while there are disparate factions of the larger film community throughout most regions it’s nearly impossible to bring them together to build something big enough to truly build a long-term community. 

Most filmmakers and film community leaders are much happier being the king of their own small hill than a lord in a larger kingdom.  

Filmmaking is a creative pursuit, and it requires some degree of narcissism to truly excel.  This is amplified when you run a local film community.  Sayer’s Law states: “Academic politics is the most vicious and bitter form of politics because the stakes are so low.” If you replace the word “Academic” with “Filmmaking” can be said for the issue facing most film communities. Call it Yennie’s Law, if you like. #Sarcasm, #Kinda.

I discussed this in some detail with Lorraine Montez and Carey Rose O'Connell of the New Mexico Film Incubator in episode 2 of the Movie Moolah podcast, linked below.

The industry connections for large-scale finance and distribution generally aren’t local.

If you’ve read Thomas Lennon and Robert Ben Garant’s book Writing Movies for Fun and Profit you’ll already know that LA is the hub of the industry, and if you want to pitch you need to be there.  Given the fact I live in Philadelphia, I believe it should be fairly clear I disagree with the particulars of the notion the overall sentiment remains true.  Also, if you haven’t read it click that link and get it.  It’s a great read.  (Affiliate link, I get a few pennies if you buy. Recommendation stands regardless of how you get it.)

If you want to make a film bigger than at most a few million dollars, you’re going to need connections to financiers and distributors with large bank accounts.  You can find the distributors at film markets, but all of the institutional film industry money is in LA.  While you may be able to raise a few million from local investors, it’s really hard and it is an issue facing the growth of independent film communities nationwide.  

Another issue is around the knowledge of the film business and the logistics of keeping a community engaged and organized.  While I can’t help too much with the latter, I can help you and your community organizers on the knowledge of the film industry with my FREE film business resource Pack!  It’s got a free e-book, free macroeconomic white paper, free deck template, free festival brochure template, contact tracking template, and a while lot more. Just that is more than a 100$ value, plus you also get monthly content digests segmented by topic so you can keep growing your film industry knowledge on a viable schedule.  Click the button below!

As I said earlier, I’m speaking at AFMX this year.  If you like this content and you’d like to have me speak to your organization, use the button below to send me an email.

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7 Things I Learned as CEO of a US Film Distributor

If you’re reading this, you might already know that I founded and lead a company called Mutiny Pictures.  That company has since sold to Bayview Entertainment. Given I’ve been a producer’s rep for quite a while, I thought I was prepared to step up to leading a team to take films to market directly, I found that while I was up to the task there was still quite a lot of personal growth involved for myself and every level of the team. This is to be expected out of any new venture.  Here are some of the biggest things that I personally learned throughout running a US Distribution company.  

(Almost) Nobody pays on time.

Filmmakers often complain about Sales agents and Distributors not paying on time.  While it goes without saying that there are a lot of shady, dishonest sales agents and distributors out there, I was surprised exactly how few reputable companies did not pay on time.  Given that when it comes to film distribution and international sales all stakeholders are part of the same waterfall or pay chain, if one stakeholder is paid late that eventually means that the filmmaker is paid late. We can’t pay you money we don’t have.   

So if you’re a filmmaker reading this, you should know that just because your sales agent is late on their reports doesn’t mean they’re not being honest with you.  It also doesn’t mean that they’re the reason you’re being paid late.  It’s entirely possible that possible their vendor, supplier, or other provider hasn’t paid them yet. 

That said, they should still communicate with you about when this is happening, and if they’re paying late you should still be tracking it as much as you can.  

Analytics and Reporting really, REALLY suck at every level of the distribution.

Given I do other forms of online and affiliate marketing and used to run marketing for a tech startup, I was utterly flabbergasted by the utter disgrace that is analytics around digital film marketing.  In most industries related to digital marketing, the insights are nearly immediate.  However, If you deal with a servicer or aggregator, they often won’t give you any level of real-time insight.  The best most do is once a week, which is nearly meaningly when it comes to agile marketing practices.  

I did find a workaround for my clients, so I’ll share it here.  If you’re a filmmaker and want better insights, sign up for the Amazon affiliate program and use those links to your film to market it. This is less about the few extra cents you get from pushing your work and more about real-time sales insights.  It can cause some issues around online postings and social media algorithms though, so it’s not a perfect system.  I’d love better suggestions in the comments if anyone has any.

Insurance and legal paperwork are way more of the job than you realize.

This wasn’t exactly a surprise.  At its core, film distribution and international sales are businesses based almost entirely around tracking rights and trading signatures on paper.  is entirely about buying and selling intangible rights restricted by non-physical attributes like territory, right types, region, and other highly specific terms of art.  It’s easy to mess this up, so it only makes sense to have solid insurance coverage.  What I didn’t expect was how many hours in my standard week were around litigious paperwork around insurance, compliance, reporting, and proposals, as opposed to growing the business. 

Additionally, you as a filmmaker will need to provide a lot of insurance paperwork.  

You have to pitch earlier than you think.

If you want to have a film on all major TVOD platforms, you generally need to have them pitched/placed 5-6 months ahead of the date.  You can do it in 3 months on a rush job.  This was surprising given I submitted my first book for publishing less than 3 days before it was available on Amazon.  If you sell to an SVOD outlet, they normally require delivery at least 3-6 months in advance as well, and they’ll either pay over the course of the license or a set period after the license begins.  

Payouts take longer than you think.

Reporting is one thing, payment is another.  Most platforms only pay quarterly, and they pay 30 days after the end of the quarter.  There has recently been an additional 90-day delay that was initially for COVID, but that seems to be less of an issue than it used to be.  Additionally, they won’t pay for partial quarters, meaning if you launched in February, you won’t get any data from a lot of platforms until August or even November. If there’s a service involved, you might get an additional 30-day delay.  

This makes it really hard to run a business, and the only thing you can really do is use a different aggregator or servicer.  You can supplement this with direct vendor payments from streamers and physical media outlets, but those are only getting more difficult to place.  There are very few companies that are occupying the servicer or aggregator space in the market, and unfortunately, the ones with the greatest physical reach tend to also have the worst reporting timelines.  

There’s a great amount of room for an aggregator with fast recording and greater ability for brick-and-mortar physical releases.  However, given the rapid decline of physical media, there might not be time for such a company to access that window before it closes forever.  

The industry still operates on a tentpole model.  

The sad truth of the matter is that on the ultra-low budget scale, only about 2 or 3 in 10 movies make money.  If your sales agency or distributor is made up of really good curators, you might be able to get that to 4 or even 5 out of 10.  If you’re hitting that high, most industry people will be amazed.   If you’re running a distribution company, this means you either need to be exceptionally picky and run a very lean company, or you need to take everything you can and see what sticks.  I’ve written another piece on this going into more detail. 

Producers get in their own way a lot.

I said earlier that it’s no secret that there are a lot of shady sales agents and distributors out there.  That said, not all filmmakers are saints either.  Some filmmakers are a complete joy to work with, but others will second guess everything you do and think that the only film that you should ever focus on is theirs.  

I had a filmmaker say precisely that to my face.  We got tons of press for this person, but nobody wanted to watch it and the film tanked.  When this filmmaker wasn’t getting the returns they expected they started taking up a ton of time in angry calls and emails.  This reduced A LOT of my available time to actually get their film out there, which further impacted the returns and became a vicious cycle.  

Marketing a movie is best when it’s a partnership between the filmmakers and the distributor.  In general, you should discuss when you’re making any level of announcement with your distributor so that it can make the biggest possible splash.  It’s generally unwise to drop assets like posets and trailers without talking to your distributor, as you may ruin potential exclusive press drops.  Worse, if you put your film up in various territories through self-distribution channels, it could cost you thousands or tens of thousands of dollars in lost revenue.  Even if you can take a film down, most buyers won’t want it if it’s already been placed on any platforms in their region. I could go on about this for a while, so I’m going to leave it for another blog.  

This is a collaborative process, so they’re definitely give and take, but keep in mind there’s probably a reason you didn’t self-distribute and instead decided to work with your distributor.

In the end, this is a relationship business.  If your distributor likes you, they’re more likely to go the extra mile for you.  That’s a reality of human nature. If you want your distributor to like you, you might want to grab my free IndieFilm business resource package as it’s got lots of goodies to help make marketing your movie easier for all involved.  The resource pack got templates for contacting distributors, and tracking that contact so you don’t bug them, an e-book on the film business, and a whitepaper on the metrics of the film industry.  Plus, you’ll get monthly content digests to help you better understand the industry in a manageable way and occasion updates on new releases, courses, workshops, and announcements from Guerrilla Rep Media.  Check it out below.

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How COVID-19 Affected the Indie Film Industry

Many Filmmakers, like everyone else affected by COVID-19, are itching for some level of a return to normalcy.  Unfortunately, like many others think that there may never be a full return to normal.  It may well end up as a pre-COVID and a Post COVID period.  Similar to how the world changed before and after the great depression, 9/11, The internet, or World War II.  Societal traumas tend to leave lasting scars, and that tends to effect the market as a whole and certain industries in meaningful ways.  So let’s look at what one executive producer thinks is likely to happen in the film industry as a result.

2023 Update: I put some self-reflection on this blog commenting on how I think my predictions were, and adding more context to what’s happening in 2024 and beyond.

1. The Majors will bounce back quickly

Historically, the film is industry mildly reversely dependent on the economy.  It remains one of the cheapest ways to get out and one of the best ways for families to bond while in isolation.  The most unpredictable part about this recession’s likely impact on the film industry is the much greater presence of free or cheap entertainment options available right now as compared to the past. 

In any case, A significant amount of the pain that’s likely to be felt from this crash is going to be on the lower end of the spectrum.  Right now many of the major studios are already gearing up for their next projects since the projects they have will either be released ahead of schedule while people are quarantined or they’ll need to find alternative release plans. 

2023 Update: This was right. The majors bounced back quickly. They may not bounce back as quickly from the strikes though.

2. Freelancers will be hurt in the short term.

There’s no sugarcoating this.  Freelancers are going to be hurt in the short term.  Government stimulus may help, but won’t solve the issue.  If you’re in a position to help out by hiring someone to help with your web maintenance or other jobs they can do in isolation, you should do so. 

As this crisis continues to drag on, it’s really important we band together as a community and help each other to get work made, even if it ends up making many of us less money than it normally would. 

2023 Update: I was wrong, it wasn’t just freelancers that were hurt. As Aide dries up we’re likely to see a lot more pain on the lower 3 quintiles of the economic spectrum. I think this will hurt the entertainment industry as we’re a mass-market product that still only makes significant margins from transactional sales. I’m not sure film is still reversely dependent on the economy, and I’d write a blog about it if someone comments.

3. SVOD Surge

Given people are going to be locked at home with less money than normal and lots of time, we can expect to see viewership and subscriptions to Subscription Video on Demand platforms go up significantly.  Not all of these new subscribers will cancel when we return to the new normal.  I’m not the only one seeing this, it looks like development and acquisitions are on the rise form many of these people. 

It’s very possible that the balance of power between distributors and creators could see a minor shift in the coming months as distributors are going to need more content and the current embargo on production in many states, regions, and territories might cut down on the glut of content that’s been driving down acquisition prices recently. ​

2023 Update: The consolidation in streaming platforms ended up keeping license fees for the major streamers as low as they were pre-pandemic. It’s unlikely that trend will get much better any time soon.

4. AVOD Surge

Given the general financial issues that were facing the majority of Americans prior to this recession, many may seek to cut recurring subscription services.  This may well give rise to AVOD platforms like TubiTV and PlutoTV.  I bet Fox is really happy that they bought Tubi right about now. 

2023 Update: This was very much true, but the amount of consolidation in the AVOD space is looking like there will be a royalty cut due in part to advertisers tightening their belts. This will cause a lot of problems for indie productions.

5. TVOD Plummets

Transactional VOD hasn’t been healthy for quite a while.  If people are hurting for money, it’s unlikely they’ll continue to buy movies one at a time when there are so many films that are available for free or with a low subscription cost.  This might not happen immediately, but as the crisis wears on and belts get tighter the TVOD crunch might well continue to worsen. 

2023 Update: This one was right on the money. IT’s a rough time for micro-budget films outside of SVOD and AVOD.

6. ​Presale Surge

Given that we’re likely to see a surge in demand for content right as equity markets are drying up we may well see a surge in presales from distributors in order to fill the gap.  This is somewhat speculative, but there is ample historical precedent, most recently in 2008 after the economic meltdown.  However, it should be noted this can only go so far given production embargos. 

2023 Update: Presales did surge, and they’re still growing for small and midsize films. I’m negotiating a few right now.

7. Theaters may fold at a high rate

Theaters have been in trouble for quite a while.  Independent theaters have been very hard hit, but even giants like AMC may end up closing many of their locations instead of re-opening them.  The possible Amazon Acquisition of AMC is really quite interesting for the entire landscape. Drive-throughs also seem to be seeing a bit of a resurgence.

​2023 Update: Some indies folded, the chains largely survived, although some smaller chains took a haircut. Luckily, theatrical exhibition is still around.

8. Rise of legal simulstreaming

People are feeling lonely and isolated.  Film is an inherently social medium.  Given we can’t go to the theater as we did before, we might end up seeing the rise of simulcasts for consumers to watch content with their friends.  This is something that happened with the Netflix computer App, and Alamo Drafthouse starting virtual streamings limited to certain territories is quite an interesting development. 

2023 Update: Sadly I was wrong about widespread simulstreaming, but I am aware that it happened with families via zoom a lot at peak quarantine.

9. Death of DVD greatly Hastened

It’s no secret that physical media (DVD/Blu-Ray) has been in trouble for a while now.  Now that it’s been confirmed COVID-19 can live on plastic (like a DVD case) for several days, I can see consumers being even more hesitant to buy movies like this when there are so many options available on Streaming for free. 

2023 Update: I was right about this one, although there’s a bit of a nostalgic re-emergence of rental stores going on so there may still be a very limited niche market for physical media.

10. Easier Microbudget sales for a time.

I’ll end on a cheerier note for Most of my readers.  Acquisitions seem to be picking up since so many catalogs are being watched much more quickly than originally expected.  This spells an opportunity for many filmmakers.  

2023 Update: It was easy for a little bit, but the WGA (And probably SAG) strike may still represent an opportunity for micro-budget filmmakers. That said, I stand in solidarity with the Union and I think the cause is just, but I don’t really think micro-budget films are similar enough to be called competition, so let’s get those low-budget films out there so we can swell the ranks of the guilds.

If you want someone to help you sell your movie, track down a presale, or strategize how to market your movie Check out Guerrilla Rep Media Services below.

Also If you’re not convinced about Guerrilla Rep Media Services yet, grab my Free Film Business Resource pack for an ebook, a whitepaper, an investment deck template, and a whole lot more.

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What Screenplays are Studios ACTUALLY Buying?

If you’re a screenwriter, you have two options.  Produce it yourself, or option your work to a producer.  In order to option your work, you need to understand who is going to buy your movie.  Unfortunately, there’s more bad and incomplete information than there is good information out there.  Recently, a client of mine forwarded an email he got back from a contact in Hollywood who worked as a script doctor.  This email epitomized that bad information, so I thought I’d redact any contact information and publish it for others to learn from as well.  (I did check with my client first, and he was good with it.)

Here’s what the script doctor said Hollywood wanted.  Their responses in title, mine in the paragraphs following.

1. Contained Thriller or Horror: ideally one location about 5-8 actors (no A-listers needed). This is most scripts being bought or sold these days.

These are great if you’re producing the film yourself and looking to do it as cheaply as possible.  Films like this can be shot on the cheap, so it's significantly easier to produce them. Given that horror or thriller movies are less execution or name-talent dependent they have a greater chance to sell on the strength of the genre alone. Given that, such producers are more interested in them.  Unfortunately, these are the vast majority of the films made every year that find some degree of place in the market which has resulted in a massive glut in the market and each film makes next to nothing. 

I know this because I've repped several of them.  Most times the script doctors don’t actually know how the producers or production company end up getting paid, as the writers (and ESPECIALLY "Script Doctors”) are paid up-front

More than 20,000 films are made in the US every year, at most 10% of those get distribution to any meaningful degree.  Thrillers and horror films are the only projects that have a chance at getting into that to 10% without IP or Talent, but in the end you still end up competing with 2,000 other films, most of which have better assets and positioning than you do.  This is why I'm increasingly advocating other paths forward.

In general, the only way this is advantageous is if you produce it yourself.  We're doing family films because that's what most every buyer wants right now, and there's an easier pipeline to follow that has a better chance of success if it gets done.  ​

2. Something with an existing IP. A novel, a graphic novel/comic book, a short story, a short film... anything that already has a fan base or following ideally.

This is why I’m currently helping a client option the rights to some books, as it's the most reliable path to success even if its slightly longer path it is a better chance at success.  If you want to get a film made first to make that part easier, it is a viable path.  However, if you want to raise a larger amount of money so your film has a better chance at finding a bigger distributor and bigger audience, then you’ll need some level of recognizable IP.  I heard Brett Ratner say in an interview at AFM several years back that if he was just starting out what he’d do is read voraciously and find the newest up-and-coming IPs.  To option and use to build an audience.  The alternative is to generate your own IP, but that in itself is a very long road fraught with danger, as this video from Lindsay Ellis illustrates very well. 

RELATED VIDEO: HOW TO GET YOUR BOOK PUBLISHED IN 10 YEARS OR LESS!

Also: HA! He thinks expanded short films sell.  That hasn't really been true for more than a decade since the amount of ready-to-sell feature films being made has ballooned, in fact, it's almost like features are the new shorts in terms of distribution revenue.  But that's a topic for another day.

3. A specific character piece for an actor looking to stretch themselves. If you’ve got a character-driven piece and can get an A-list actor attached because it is something they haven’t done before, you’re good to go.

I heard this a lot in film school, but the real-world applications are limited.  That is to say, while there is a kernel of truth in this concept, when it comes down to the implementation it's really more a platitude or truism at this point.  There’s a strong case to be made that casting against type has its merit.  The issue is that in general, the only way you can make it work is if you have a direct path to the name talent you want to talk to, and even then you have to get lucky and catch them at the right time. There are reasons I know this that I can’t publicly say…

4. Anything that will do well overseas. With China eating up all of our movies, they need scripts that are, fun, fast, action-packed and translate well and easily (aka not a lot of dialogue).

Again, something of a platitude or truism.  Of course, you have to think about overseas, which is one big reason that comedies and dramas are complete no gos. The books below go into that in more detail than I can in a blog. (yes, there are affiliate fees, but it's only pennies and I picked the books custom for this blog.)

That’s the basics right now. Of course, the caveat is if you write a brilliant script, it doesn’t matter what genre it is, but in reality, your chances of having it made, sold, and even optioned are very difficult roads ahead.

And here's the crux of the disagreement with this script doctor.  The brilliant script isn't so much as a way of breaking through any of the other things you need to be listed above, it's more a prerequisite to succeeding with any of them.  We all hear stories of films making it through the studio system, but these are the exceptions, not the rules.  

If selling your script doesn’t seem worth it, you’ll need to produce it yourself. You’ll probably need money to do that. If you want to raise money, you’ll need a myriad of documents, starting with an investment deck. My Free indiefilm resource pack has you covered with a template for that, as well as a free e-book, whitepaper, and a bunch of other templates too. Snag it for free in the button below. Thanks for reading, and if you liked it, please share it with someone who needs to know about selling their script.

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18 Steps to GROW your Filmmaking from Shorts to Features

Every filmmaker wants to see their work on the big screen.  However, given the state of the indie film theatrical market, very few filmmakers can pull it off outside of the festival circuit.  Especially for their first films.   It requires a lot of skill, and an idea that appeals to a wide audience, ideally an audience you already have an in with.  So how do you scale your films to that point?  Well, this blog can get you started.

In order to get a theatrical run for your film in today’s day and age, you need a distinctive voice, flawless technical execution, great writing, an audience you know how to reach, and some level of recognizable name talent.  But those things don’t come cheap.  Here’s a roadmap starting with what you can start as soon as you finish reading this blog. 

1. WATCH A LOT OF MOVIES.

I know, this is about filmmaking, but in order to develop your voice you need to consume the work of others.  If you consume the work of others, you’ll find things to emulate.  There’s no reason not to do this.  Many professional filmmakers I know try to watch 2 movies they have not seen a week and at least 2 movies they have seen in order to revisit and better understand the craft. 

2. MAKE SHORTS AS QUICKLY AND CHEAPLY AS YOU CAN

In order to develop both your Voice and your skills, you need to churn out some content.  Assuming you’re working full-time, you may want to try to make 12 limited to no budget shorts in a year.  One per month.  This will let you hone your skills and develop your work.  Don’t spend any money on this. 

3. GET CRITIQUE ON YOUR WORK.

The Filmmakers Subreddit as well as many groups on Facebook offer the ability to share your work for the purpose of critique.  Getting critique from other filmmakers will help you both develop your network, as well as your skills.  This can be a tricky prospect, but I've seen some decent feedback happening on the R/Filmmakers Subreddit.

4. SCALE UP FOR A BIG SHORT.

Now that you’ve honed your craft and developed your voice, you should try to make something of a calling card.  This time, instead of spending a month on it, spend 3 months on it.  Limit yourself to a few locations, but get a bigger crew and spend a little money on this.  Continue to grow your presence on social media while you’re at it.

5. SUBMIT THAT SHORT TO FESTIVALS TO BUILD YOUR BRAND.

You need more than rapid iterations to scale your brand.  You also need validation.  Start submitting to local fests so you can attend them and build your network.  As you’re submitting, make sure to continue to build your brand and your engagement on social media.  Do everything you can to get press once you get into festivals.  You probably won’t get major press, but you should definitely reach out to the smaller local papers. 

RELATED - 6 Rules for contacting Press 

6. START WRITING YOUR FIRST FEATURE, WEB SERIES, OR OTHER SALABLE PRODUCT.

As you’re doing this, start fleshing out the concept for something bigger. Something more than skill building.  Something you can actually sell.

7. AFTER YOUR FESTIVAL RUN IS DONE, DO ONE LAST SHORT.

This one is for all the marbles.  Make the short in the same genre and generally same feel as your feature.  It doesn’t have to be a proof of concept short, or the short to get the feature financed, it has to show you can pull off a feature.  Spend between 3 and 6 months making it perfect. 

8. SUBMIT THE FILM TO GENRE FESTIVALS AND BIGGER FESTIVALS.

Now that you’ve got what will (hopefully) be your last ever short, time to start making relevant contacts in the corner of the industry you seek to inhabit.  Submit your film to the relevant festivals, including one or two big ones then finish your big project script.

9. CROWDFUND YOUR NEXT BIG THING.

Yeah yeah yeah.  I know everyone hates crowdfunding.  However, if you do it right, you can fund a large portion of your movie for free, and get a huge piece of validation to help you, close distributors and investors.

10. SHOOT AND EDIT A FEATURE FILM

Expect this to take a year, but make sure you finish it well and in a technically adept way so that you can get distribution.

11. SUBMIT THE FILM TO ALL THE FESTIVALS YOU GOT INTO BEFORE, PLUS THE MAJORS

The reason you did your last two festivals was to make contacts, time to start calling them in.  Submit your film, and travel to all the ones you can.  Only wait for one major before giving your premier to a tier 2 festival. 

12. GET DISTRIBUTION FOR YOUR FEATURE OR WEBSERIES

This product won’t do you much good if no one can buy it.  Distribution is hard though and it helps to have good people on your team.  If you’re already here, check out my submissions portal through the button below.

13. MARKET YOUR WORK

After the festival run is done, make sure you work with your distributor market your movie. If they’ll let you this process will take a while

14. REPEAT STEPS 9-13

Make another feature.  If you can, double the budget.  Go back to the same people you worked with before if you liked them and they did well. ​

15. MAKE A BRAND FOR YOUR COMPANY

You should also consider monetizing your intellectual property in another way, like starting to brand your production company by creating T-Shirts for your crews, and other perch for your friends.

RELATED: 4 Reasons Niche Marketing is VITAL to your Indiefilm Success

16. HELP OTHERS MAKE THEIR FIRST FEATURE

If you want to be successful you’ll need to have a strong network and weird considerable influence.  No one can survive as an island in this industry, and helping others build their resumes and work can pay huge dividends.
​

17. GET AN AGENT, OR REPEAT STEPS 9-13

If you want to scale up, you’ll need help.  An agent can help you immensely.  You’ll need to live in a hub to get one, or at least have a MAJOR win at some film festivals. 

18.  RINSE AND REPEAT STARTING WITH STEP 9. 

Unfortunately, there isn’t a single roadmap to make this work. No one could give an 18-step process for foolproof success in any industry, and the film industry is particularly tricky.

The best we can do is more a flowchart and a series of steps until you can catch a big break. The real key is making a sustainable life while you wait for that break. It’s not easy, but it can be possible.   

If you liked this, share it. It helps a lot.  Also, sign up for my mailing list to get a bunch of free goodies including an ebook, whitepaper, investment deck template, festival brochure template, and a whole lot more. Get it today!

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How and Why to treat your Production Company Like a Small Business.

Last week we talked about the 4 major types of Media Entrepreneurship, so this week I thought I’d expand on the most common production company that my readers seem to run.  That’s the small production company that they hope to scale into something bigger.  Here’s why your production company is a small business, and how to treat it like one so you can see it grow.

1. ACCEPT YOU HAVE A SMALL BUSINESS

The film is both a business and an Art.  The two don’t have to be enemies and work much better together.  For more on what I mean, click the related link below.  I have a different point to make here.

While this may seem like the goal is to become a more scalable startup, in reality, it’s probably more like a small business that may grow to a medium business in time.  You’re unlikely to be able to use high-growth strategies like Silicon Valley Tech Startups to grow your business from a prototype to a highly used platform.  The requirements are different, and the film is less suited to iterations than software and apps are.

As such, if you’re a filmmaker, you probably have a small business.  Small businesses grow slowly over time by growing their audience and scaling up their offerings as revenue and investments allow.  If you want to grow your production company as you would a small business, start by making one great film and then make a bigger and better one once you’ve found your audience.

2. BUILD & ENGAGE WITH YOUR AUDIENCE

If you want to build a business, among the most important things to have are customers.  For filmmakers, this means having a deeply engaged audience and creating content for them on a regular basis.  Part of that is creating a genuine presence on social media, but the more important part is continually creating products for that audience to give them a reason to keep coming back and engaging with your business. ​​​

3. INCORPORATE AUDIENCE FEEDBACK INTO YOUR WORK

If you really want your audience to keep coming back, it’s important that they feel valued.  Incorporating their feedback into your films can be a great way to greatly deepen your relationship with your audience.  This is something that Marvel has used to great effect.  Half of the Endgame was callbacks to fan-favorite moments from the other 73 1/3 movies in phases 1 to 3.

Some higher-level creators have an antagonistic relationship with their fans.  The only way you can really afford to do this is if you have the backing of a large network to make sure that people can’t forget to come back to your work.  TV Tropes calls this Phenomenon Creator Backlash. ​

4. GROW YOUR SUPPLIERS AND WHO SELLS YOUR PRODUCTS

If you’re a small business in the manufacturing sector (which you’re not far from) you need to make sure your product is available as far and wide as possible in order to continue to expose your work to a new audience and grow your potential customer base.  This means you need to partner with distributors.  Distributors have higher prestige and higher paying outlets than you can get to on your own.  Also, since they have access to those higher-level outlets, you’re more likely to be discovered through them than on other platforms that are inundated with so much content it’s unlikely anyone will discover the work that you didn’t drive there yourself. 

Yes, this will mean that you'll need to make a lower percentage of the overall sale than you would by yourself.  So long as you're dealing with reputable distributors, this is just the cost of doing business.  Publishers sell their books at a 55% discount over retail to bookstores, and most any distribution warehouse for a given good or service will also sell the product at wholesale price and take a cut before paying the manufacturer.  Again, for this to be valid, you need to have honest and accurate reporting throughout the supply chain. ​

5. DON’T FORGET WHERE YOU GOT STARTED

Never forget your early adopters. The people who were with you from the beginning. They can be your biggest supporters and greatest brand advocates if you continue to show you value them. However, they can sometimes be hard to please, as I’m sure I’ll see in the comments.  Both Starbucks and the City of Seattle will never forget that's where the chain was born.  You shouldn't forget the people who knew you when.  

Thanks so much for reading this! If you liked it, please share it. It’s extremely helpful. Also, consider joining my mailing list and in so doing get access to my indie-film business resource package. It’s got an ebook, a white paper, an investment deck template, festival brochure templates, and a whole lot more.

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The 4 Types of Media Entrepreneurship

Traditionally, when we think of entrepreneurs we think of Steve Jobs starting Apple in a Garage, or Jeff Bezos Traveling across the country to raise funds while writing his business plan in the back seat of the car while his wife drove.  However, there’s more to entrepreneurship than that.  Entrepreneurs find new and novel solutions to problems by building organizations despite a huge amount of risk and uncertainty.

Since this month is Entrepreneurship Month on both this blog and the blog I run over at ProductionNext, I thought I’d start out the month with a little of an expansion of Film Entrepreneurship in general.  In this post, I’ll adapt a rather notable post by Steve Blank from a decade ago to the current landscape media entrepreneurs face, as well as where you’ll most likely find those entrepreneurs.

In his post, Steve outlines that there are 4 types of entrepreneurial organizations which are generally accepted as follows small businesses, scalable startups, large companies, and social entrepreneurs.  You can (and maybe should) read Steve’s post before reading this one.  (it’s short)

If you still don’t agree that filmmakers are entrepreneurs, I recommend you read more of my writing on that topic, in particular this blog and this blog.  While I could expand these into how other film industry stakeholders like sales agents, distributors, press, critics, or YouTubers, in the interest of keeping the scope completely addressable I’ll be working with a more traditional indie film archetype. 

Small Business Entrepreneurship Exemplified by Truly Indie Filmmakers.

According to Banks, these are the entrepreneurs who run a small businesses like a bodega or mom-and-pop shops.  They have no intention of nationwide franchises, but they still do what they can to make a living for themselves and their family.  This is where the vast majority of filmmakers are.  They’re the people wanting to do what they love and find a way to get paid for it.

The owner of the bodega must figure out who buys what from them, and the way they stay afloat is through personalized service that creates a deep connection with their customers.  Convenience also plays a factor.  They can’t compete on price alone with the huge multinational chains down the street, so they need to make sure that they offer something that the mega-chain down the road doesn’t. 

In this day and age, the job is similar for indie filmmakers.  We can’t compete with the major studios, but those studios don’t target a small niche, they target everyone who has 12 dollars.  As a result, they miss a lot of people which leaves a hole open for clever filmmakers to establish an audience, keep them engaged, and build a business for themselves. ​

Scalable Startup Entrepreneurship: Best Exemplified by Indie Filmmakers on the Traditional Studio Path.

Scalable startup Entrepreneurs are people like Steve Jobs, Mark Zuckerberg, Bill Gates, or Jeff Bezos.  They start a company from (next to) nothing, and then look to do more than address an existing need, they want to disrupt the entire system by creating a need and then filling it.  In doing so, they become mega-wealthy and change the world. 

Those starting a scalable startup are faced with an incredibly high degree of uncertainty, as well as a long road to profitability.  In general, they need significant outside funding in order to succeed.  Most of the time, they must invent something that can be patented that demonstrates a novel solution to a widespread problem with a working prototype in order to raise significant funding from institutional investors.  After that, they’ll need to take on an experienced team and specialized advisors in or If they have a track record in their industry, it helps significantly.

For filmmakers, these scalable entrepreneurs are those who have already made a successful project or two and are scaling up to make something bigger.  They’ll need to have proven themselves by getting validation either in the form of a huge engaged audience, a hugely successful film, or a Tier 1 festival win just to get their foot in the door.  Once their foot is in the door, they can then seek to raise money using their previous work or a concept trailer to raise the funds to make a much bigger movie.  In order to successfully raise those funds, they’ll need a strong package of people with specialized skills and followings of their own. ​​

Large Company Entrepreneurship: Best Exemplified by Digital Divisions of major studios & networks. 

Large company entrepreneurs are people within large organizations seeking to either create new projects that solve a need that has not yet been addressed by the company that they’re working for.  Sometimes this is achieved by creating a new division, other times it's a new product from an existing research and development division.  

A couple of examples of this would be when Intuit started what would become Quickbooks, as well as many other similar projects like Quickbooks pay, expense tracking, and what would become the among many others.  For the Film Industry, I’d say the most notable recent example would be Disney+, although the digital divisions of every major network would also qualify.  Adult Swim starts new experimental projects like this on a regular basis. 

The challenges faced by large company entrepreneurs outside the film industry are as you would expect.  With a large company comes bureaucracy, bureaucracy tends to move slowly, so adapting to change can be extremely difficult.  Funding also becomes highly political, so it can be difficult to keep projects afloat.
​
For film companies, this is extremely similar.  Much of the top brass don’t want to give up the cash cows they’ve build for risky divisions that will burn through cash and not necessarily make more of it.  Also, at least until recently many of the digital divisions were considered a career downgrade from the more traditional media divisions.  We’ll see if it remains true.

Social Entrepreneurship: best Exemplified by Documentary Filmmakers.

Social entrepreneurs who care more about the benefit of the work than the bottom line.  They don’t just want to change the world, they want to save it.  Think of Tesla, OSIGroup (Makers of the Impossible Burger) or Jinko Solar.  Similarly but on a smaller scale, there’s BiosUrns (makers of a biodegradable clay urn that grows a tree from your ashes.)

Success on this front is hindered due to the perception that it’s not much of a money maker.  It can be harder to find investors as well since you’re specifically saying profit isn’t your primary concern.  Most successful companies started with one idea that they could refine and execute before moving to other ideas that complement the same customer base.  They also are very conscientious about stating that their product does more than they provide whatever it is you bought.  There are other intangible benefits associated with the purpose that customers may consider weighing in their purchase decision.

For film, this is best exemplified by documentaries, but more recently diverse media has also been put into the spotlight in as a similar cause for social change. Documentaries are different when it comes to funding, but when they’re well done there is an addressable audience that’s hard to ignore and easy to convert.  Some movies do tree-planting campaigns with ticket sales as an additional incentive to convert, and most community screenings also benefit a non-profit organization.

Thanks so much for reading!  Let me know what you think of this in the comments, and PLEASE share It helps more than you’d think.

Also, if you would like to know more about the business of film and media, one of the best ways to do so is by joining my mailing list click the button below. It’s got a free monthly digest of educational content, a free e-book, a whitepaper, and some templates to help you raise money and market your film.

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Why you ABSOLUTELY MUST Become an Indiefilm Entrepreneur

The concept of filmmaking entrepreneurship has been coming into vogue for quite some time now but has really started to take hold in the zeitgeist of our industry in the last 3-6 months.  The culmination of this was the launch of the Filmtrepreneur website, blog, and podcast.  From Alex Ferrari (Best known for Indie Film Hustle.).

However, Alex is far from the first to advocate for filmmaking entrepreneurship, despite potentially being the loudest voice in the space.  This blog at ProductionNext explores a lot of the most influential voices on this topic. I’m among although I didn’t have the foresight to brand it that way.  I think the reason for this is that more and more people are catching on that if you really want to be an indie filmmaker, the best answer in the current state of the industry is to be an entrepreneur.  Here’s why.

1. You’ve (Probably) got to

If you don’t have the ability to move to New York or LA and network your way into the studio system and don’t want to work for a local TV affiliate, becoming an indiefilm entrepreneur is your best way to make a sustainable living.  Most of us would rather not have a side gig or a 9-5 in order to keep a roof over our heads, but if we don’t build a brand and a company around our work there isn’t going to be much of an option.

In essence, building your brand, leveraging that into a community, and leveraging both of those into creating a sustainable company is your best bet to building sustainable revenue for yourself from your work.

2. There’s no money in MAKING films, only SELLING them.

I’ve said it before, I’ll say it again.  Any accomplished filmmaker will know that you only spend money when you MAKE movies.  That’s fine, and it’s true for almost any product.  However, you can’t pay your bills if all your money goes to buying lenses and camera equipment.

If you get investors, you’ll need to pay them back.  If you put the film on your credit cards, you’ll need to pay those back too.  (Also, don’t do that.)

3. If you want a sustainable career in film, you need to make money

I know I said this in the last point, but you can’t pay your rent with exposure.  You also shouldn’t pay your crew this way. In order to make money, you need to sell your film.  As such, you should consider this from the moment you start writing your script.  You should think about your audience, your marketing strategy, and who is going to absolutely love your film to the point that they annoy their friends because they just won’t shut up about it.  That segues nicely to...

4. The Notion that if you just make a great movie, people will find it is a fallacy.

We all heard it in film school, but while there are a few kernels of truth to it, it’s not even close to true overall.  It’s definitely easier to sell a good movie than a bad one, and word of mouth is still the most effective form of marketing.  That said, quality isn’t the only determining factor in selling a movie.  (Check out the box office numbers for Transformers if you don’t believe me.) Things like Genre, recognizable names, and the amount of publicity you can generate also have HUGE impacts on the salability of a film.

Regarding word of mouth, it’s like a virus.  If you don’t hit a critical mass, it won’t do you much good.  In order to get your critical mass, you need to have a strong marketing strategy and a well-defined target market that is ideally made up of an underserved niche.  The reason for the underserved niche is that it helps make it much more cost-effective to market the film.

Related: Why your film needs a niche market

5. It’s the best (and maybe only) path to true filmmaking freedom

If you want to make the movies you want to make, building a brand, a community, an audience, and a company is the best way to achieve that goal.  If you work up through the studio system, you’re not going to be likely to reach the upper echelons before relatively late in your career (if at all) Even then, you’re likely to be subject to studio mandate which will make it difficult to make the films you really want to make.

As such, if you want to make films that really strike your fancy, the best way to do so is via becoming a film entrepreneur.  I was speaking with Rob Hardy of Filmmaker Freedom about this shortly before writing this particular blog, and that’s a lot of the new direction for his filmmaking podcast, which you should check out.  (I’ve linked it below)

CHECK OUT THE FILMMAKER FREEDOM PODCAST |Apple Podcasts|

Thanks so much for reading!  If you want some help building your company, you should consider hiring a consultant with exits behind them. I’m one of those, learn more about my services in the services button below.  If you’re not ready to do that, check out my free film business resources pack. You get the Entrepreneurial Producer E-Book templates to help you make an investment deck, festival brochure, track distribution submissions, and more. It’s free when you sign up for my email list.

The SINGLE MOST IMPORTANT Asset for growing your Indiefilm Career RIGHT NOW

Last week I wrote about how distribution has changed over the last several years.  This week, I thought I’d expand on the number one most important thing for independent filmmakers when it comes to building their brand and marketing their movies. What is it?

AUTHENTICITY

Gone are the days when you could simply push out your product with a cool poster and bomb trailer that had nothing to do with the film and expect to make a lot of money.  If you’re going to be a creator, especially one who focuses on selling content to Gen Z millennials like myself you’re going to have to make sure you’re authentic about it. Here’s why

Authenticity makes you more relatable

Most people (especially younger people) have been watching insane amounts of media from a young age.  As such, we’ve learned to tell when someone is full of it.  Most of the time, we can tell when people are playing a character (even if that character is TOO idealized a version of themselves) and when they’re not telling the whole truth.  The rise of youtube and social media has shown us that millennials crave authenticity. If you want to relate to your audience, you’ll need to be authentic. 

Authenticity helps you build stronger relationships with your community and fan base.

Similarly, if you’re not authentic, it’s very difficult to build a relationship with your audience or your community.  It’s not the 80s anymore.  You can’t just blast out music and ads in a pink windbreaker, puffy shirt, big hair, and striped socks and expect people to buy your movie.  Every brand tries to build a relationship with its potential customers using various social media platforms.  However, you can have the advantage, if you’re careful about it. 

Major brands are such a large collection of people it’s not possible for them to maintain an authentic, personal brand.  As such, they generally need to spend a huge amount of money on advertising and sponsorships to keep moving their products. ​

You, on the other hand, need only be authentic and work to speak for your audience in a relatable and non-condescending way. 

Authenticity helps you organically grow your brand reach

Paid growth on social media is expensive.  Authentic, valuable content has more viral reach, and as such it will help you grow your brand, your impressions, and as a result your audience.  If something seems extremely corporate or sponsored or unrelatable, nobody is going to share it. Most filmmakers can’t afford the fees to boost content regularly enough to build their entire brand by it. 

Authenticity correlates to higher reviews

I talked about this at the top of this blog, and in much more detail in this blog. But you can’t just sell your film as something other than it is anymore. If you do, the reviews will suffer. If you made a wonderfully written break in narrative time thriller and then it gets marketed as a heart-racing action film, people are going to be pissed. I would be too, if I was expecting Commando and got Memento.

Thanks so much for reading! If you want to know more, you should join my mailing list for blog digests of blogs just like this one, as well as an awesome film marketing resource pack. That button is right below. I don’t just write about film distribution, I also used to run a US distribution company, and I still represent films to bigger players to myself. If you still need distribution for your film, you should consider submitting it. I rep on commission and there’s no submission fee.

The Problem with the IndieFilm Distribution Payment System

A lot of filmmakers I’ve worked with don’t know enough about distribution to really make a career making creative content.  This shouldn’t be a surprise, as it’s something film schools tend not to teach.  That being said, there’s a part of the equation most people just don’t talk about, and WHY it takes so long for filmmakers to get paid?  This blog addresses that.

As an aside, this is laid out from a financial perspective in the blog below.  However, we will also be tracking how much of the money goes away throughout this blog.  This will admittedly be very much oversimplified, but we’re going to be tracking it as a single dollar for ease of understanding. 

Related: Indiefilm Waterfalls 101

How long it takes for the platform to pay the aggregator

I talk about this in workshops quite frequently, but each different stakeholder takes a while to pay the next person in the pay chain.  Most of the time, this starts with the platform and aggregator relationship.  In general, this is the first section in the chain. 

Normally, the platform will take 30%-35%. This should include credit card processing fees.  So if the consumer gave 1 dollar, then we’re down to 65-70 cents. 

While exceptions exist, the platform most often pays the aggregator on a monthly basis.  After that, the aggregator will need to pay the distributor.  If you’re self-distributing, that distributor is you, but not all aggregators will deal with you in the fashion you’d prefer, for more information, read the blog below.
​

RELATED: What platforms should I release on?

How long it takes for the aggregator to pay the distributor

Once the aggregator is paid, the money will flow to the distributor.  As I stated, this may be you.  Depending on what aggregator the distributor is using, payments will be either monthly or quarterly.  Sometimes the aggregators that pay quarterly have lower overheads, so it might make sense to wait.  That said, I think the most current data you can get is necessary to make smart marketing decisions.
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If you still don’t know the difference between a sales agent and a distributor, check the link below. Most aggregators operate on more of a flat fee model, so we’ll assume that the money is passed through.  If you worked with an aggregator, you end up with about .70 cents for every dollar the consumer spent, but you also probably had to put the aggregation fees in yourself, so you’ll probably need to sell around 2100 copies (assuming they sell for 2.99 each) to break even.  You’ll also get insights within 2 to 4 months.

Related: What’s the difference between a sales agent and a distributor?

How long it takes for the Distributor to pay the Sales Agent

Most distributors don’t deal with filmmakers directly.  They’ll either deal with a Producer’s Rep or a Sales Agent.  Generally, Distributors pay quarterly to start and sometimes will move more towards bi-annually after a few years.  This can be arduous, but it’s very difficult to negotiate.

Generally, the distributor will take 30-40%.  (As of publishing this, I take 25% for direct US Distribution.) So of the 65-70 cents, we had after the platform.  That means that after the distributor takes their cut, there are between .39 and .49 cents left to the filmmaker.  (or around .52 cents if you work with me)

Also, even though I am a distributor, I work directly with filmmakers. So you’d keep .52 cents on the dollar, and be paid around 4-5 months after the initial sale is made.  (I time my reports to work with my aggregator to minimize wait times.  Plus, I cover aggregation and the majority of marketing and publicity fees.
​

Related: What does a producer’s rep do anyway?

How long it takes for the Sales agent to pay the production company

Finally, the sales agent pays the Producer’s Rep and production company. This is also generally on a quarterly or Bi-Annual basis, although there’s more room for variation here. After that, the filmmaker uses the money to pay back debts, then investors, then whoever else is left to pay back from the production.   

The Sales Agent normally takes between 20% and 30%, but they sell territories across the globe. A Producer’s Rep will normally take 10% of the money paid to the filmmaker, and will normally be paid in line with the sales agent.

So, following the chain we talked about before, by the time the sales agent pays the filmmaker, we’re looking at between .27 and .39 cents on the dollar without a producer’s rep, or between .24 cents and .35 cents with one. That’s not a great representation of what a good producer’s rep will do for you though.  (including the potential to get you paid immediately from the first sale) I’ve painted these deals in the most simple possible light to help you understand, but there are lots of single-line items that can screw you if you’re not careful.  So, while the producer’s rep may take a small piece of the pie, (.03 to .04 cents on the total dollar) they can help you make the whole pie a fair amount bigger.

Thanks so much for reading! If you have any questions for me, you might want to check out my mailing list. I send out monthly blog digests including ones JUST LIKE THIS, plus you get lots of great resources like templates, links to money-saving resources, and a whole lot more!   Or, if you’ve got a completed project and you’re looking for distribution, submit it using the link below. You can also learn more about services for early-stage projects using the other link. I’ll review it and reach out soon.

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How to Get your Movie on Netflix

Many filmmakers and even more film consumers just want to know when work will be on Netflix.   In recent years, this has become more difficult than it was previously.  IT used to be that it was a relatively easy sale to get on Netflix, although the money wasn’t very good.  More recently, the bar has been raised substantially, and the money you get for it hasn’t increased as much as we may have liked it too.  What follows is an outline of how to get your film on Netflix, both as an original and as an acquisition.

How do I become a Netflix original?

To become a Netflix original, you must be picked up by Netflix early on in development.  Generally, you’ll need to have contacts that can get you into meetings with the higher-end development executives at Netflix.  You’re also going to need to have a strong script and package already in place.  You might even need some money already in place, although that’s less important given the way most of their original deals are structured. 

At this point, if they take the project you’ll get a Presale stating that the money will be paid to you once the film is delivered complete.  After that, you’ll have to take it to a bank to liquidate the presale so you’ll be able to make the movie on the likely ambitious schedule they’ll put you on.

Generally, the pay for this is pretty good, looking very similar to other high-end presales.  If it’s well managed, and you focus on financing sources like tax incentives as part of your mix, you’ll make a decent wage and everyone involved will end up much better off.  ​Including your investors.  

Make sure you don’t send them any copyrighted material without them requesting it, that’s a blacklist you don’t want to be on.

Acquisitions.

What Netflix pays for acquisitions is a different matter, as is the process for your film being acquired by Netflix.  First, it’s important to note that you can’t approach Netflix yourself.   You will need to go through either a localized distributor or a sales agent to get to Netflix.  I do have contacts in this department, but it’s not something I’ve done a lot of business with directly.  Netflix has also gotten extremely picky about this in the last few years, favoring their original content.

If I’m completely honest, I also wouldn’t pay some of the better-known aggregators to make this approach for you. Given the volume of business that goes through them, it’s generally a very low success rate.  Sure, some of them will refund money if unsuccessful, but often there are hidden fees and the money is tied up for a decent amount of time.  When the fees from those aggregators are in excess of 10k, that’s not really good for most filmmakers. To be clear, this is not something Netflix itself charges.

It used to be that Netflix would take almost any content that was able able to meet broadcast standards. and they thought they would get a decent amount of views for it.  In recent tears, however, Netflix’s Acquisition strategy has been refocused to only accept films with a domestic theatrical, often demanding 6 figures at the box office to even consider the film.  While there are ways around this, it’s inadvisable to much other than work with a reputable distributor who has deep connections to the platform. 

In regards to their distribution payments, there’s a lot more that I’d love to say but really shouldn’t say publicly due to existing contractual obligations as well as other concerns regarding pending business. ​

DVDs Through the Mail

Most of the time when people think of Netflix, they think of their Subscription Video on Demand offering.  However, there are a surprising number of people who still subscribe to their DVD offering which was rebranded to DVD.com.  Generally, the way Netflix gets these DVDs is by simply buying discs at wholesale from the manufacturer.  They don't tend to buy too many DVDs, so even if you're getting lots of rentals you end up not making a whole lot of sales.  Most of the time, they buy fewer than 100 DVDs, which is less money than you probably think it is.  You don't see any money per rental beyond the initial purchase price.  

That said, since DVDs are almost always non-exclusive rights, the additional revenue does help, although it's nowhere near the amount of money you'd see from something like a Redbox deal because they don’t order as many discs. At least, that was true before RedBox's IPO and subsequent Acquisition.

Thanks so much for reading!  I hope this blog was useful to you.  If you’d like to learn more, I recommend joining my mailing list for regular blog digests and other resources about film distribution and marketing.  Click below for more information.

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Opinions expressed in this piece are not in any way endorsed by Netflix, Its parent company, or any subsidiaries. Opinions expressed within are solely those of Guerrilla Rep Media, LLC and its founder, Ben Yennie.

The 4 REALISTIC Ways to Sell a TV Series

Given that I work heavily in marketing and distribution, I get a lot of people submitting pilots to me.  While I’m looking to move my business in more of an episodic direction, unfortunately a pilot doesn’t do me much good.  Generally, when I tell this to filmmakers, they get surprised.  So, like any question I get a lot I thought I’d write a blog about it.  Here are the 4 ways to make a TV show.

1. Make a Pilot. (Or actually, don't)

I’m listing this one first because I think it’s one of the worst ways you can Go about making a TV Series.  Most filmmakers assume that if they make their own pilot, they’ll be able to pitch it to networks and then get it picked up.  Unfortunately, that’s not generally the way pilots work.  Most pilots that compete for TV shows are commissioned directly by networks and already have people on the inside rooting for them.

Apart from that, only about 1 in 10 (at the absolute most) pilots get made into a first season, and I think the last statistic I saw was something like 1 in 7 TV series make it past the first season.  That means for every series that makes it to season 2, at least 69 pilots are created.  Also: THOSE NUMBERS ARE ONLY NETWORK COMMISSIONED PILOTS.  It doesn’t factor for idle filmmakers who try to make their first episode on their own.  Those really aren’t good odds.   

In fact, I’d be willing to say that this option is probably the least likely of the 4 paths I’m laying out to get your series made.  Assuming that you’re not being requested to make the pilot by a major network. 

2. Make a Sizzle Reel

If you want to do more of the institutional route, then you’re much better off making a popping sizzle reel and approaching an agent who can take it to get you to the commissioned pilot stage.   I know that sounds like an additional step to the long road I outlined above, but it’s actually going to give you a greater chance at success since you’ll be working with people on the inside instead or shouting at the outside of the gate pleading to be let in.

If you don’t have access to an agent, I wouldn’t recommend going this route either.  I’d recommend you go with one of the two listed below. 

This option is probably the 2nd most risky in terms of getting your full season financed and made. 

3. Build an Audience with a webseries.

If you want to go a less institutional way to get your TV series made, you should consider making a webseries that’s very much in the vein of your planned TV Series, but perhaps on a smaller scale and definitely with shorter episodes.  Once you’ve made the webseries, your goal is to market the absolute crap out of your series and get at least a million views on the content.  Ideally on at least most of the episodes.  If you can pull that off, you’ll often have people coming to talk to you instead of the other way around. 

I’ll admit I first heard about this concept from another distribution company that I had on an old podcast.  However, I’ve talked to several of their former clients since and I no longer feel like linking to them is appropriate. 

I think this is the second safest way to get your TV Series made.  Plus, if you go this route you have a piece of content you can use to build your production company’s brand and even get some level of monetization. 

4. Shoot the entire series, then get someone to sell it.

Yeah, I know what I just said. I’m saying get to work and make anywhere between 8 and 13 full-length episodes for a first season. If you’re doing 44 minute episodes that’s 9 and a half hours of completed content. (or a bit over 4 hours if you’re doing 22-minute content.) That’s a lot to shoot, and it’s a big upfront investment for a filmmaker to make.

That being said, once this is done you’ll be able to sell your content quite easily, and you’ll have no trouble finding a sales agent who can take your content to television markets like NATPE, MIPTV, or MIPCOM. If fact, I’m looking to branch more into that market in a couple of ways. (Link Below)

This is generally the safest way to get your series made (If you can pull together the money to make it happen.) In fact, I’d say you’re more likely to have a positive return on investment taking this path than you are in a standard feature film.

Thanks so much for reading! Since I alluded to it a few times, I’ve included a link for you to submit your content below. Next to that, you’ll find a link to book an introductory call with me.

Finally, If you like this content, you should really grab my film business Resource Package.  You’ll get an ebook, a white paper, templates for an investment deck, promotional materials, distributor contact tracking, plus monthly content digests to help you grow your knowledge base on a manageable schedule.

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How to Finance your Indie Film/Media Project in 2019

The year is starting to wrap up, so now’s a good time to plan for how to make your career skyrocket in 2019.  If you’re not developing a film, you should be.  But if you read last week’s blog outlining why we’re likely going to be looking at a recession in 2019, and what that means for the film industry then you might be understandably nervous as to how you’re going to get your work done.  So here’s my advice to you.

By the way, this blog is going to heavily build on last week’s blog.  If you haven’t yet, read it by clicking below.  I’m going to reference it a lot in this week’s blog.

Related: Where the Film Industry is Headed in 2019

Angel Investment Money will be Harder to Find but can be Easier to Close.

If I’m right about the impending recession, then it’s likely that investors are going to get skittish.    However, investors will likely need to put their money somewhere.  In an uncertain economy, the film industry becomes comparably less risky, so you might want to talk to your investors about how the risk profile of the investment has become slightly less risky than it was.  However, you’ll need to make sure you have a way to capture attention and get eyeballs on your film. 

It may well be that your investors kind of took a bath when the stock market takes a pretty massive hit.  If that’s the case, and it looks like their portfolio will bounce back then you should have them ask their broker about a portfolio loan.  The blog below will provide much more insight. 

Related: One Simple Trick to Reopen Conversations with Investors

Pre-Sale Money might become more Viable

Given that we discussed last week how SVOD and AVOD platforms are likely to come out of the recession with an increased market share, it’s more likely that they’re going to need to put up their own money to finance content to keep their pipelines full. 

That said, you’re going to need to develop a good package, and you’re going to need more than just a presale to finance your film.

Consider a Pivot to Episodic Content

As discussed in last week’s blog, if a recession hits, the film markets are likely going to be in more trouble than they already are.  Given that the way we generally consume content has shifted from the theater to binge-watching shows on platforms like Hulu and Netflix.  If you have the ability to get enough money together to get an entire season of TV content together you should consider it as an alternative to financing a feature.  That being said, I wouldn’t bother with a pilot.

If you can’t get 10-13 episodes of TV content together, then you should consider a web series.  It’s easier to guarantee distribution, and if you do the web series fest circuit, you can build enough buzz to get a strong series deal out of it.  Something similar happened with Diary of an Awkward Black Girl which turned into HBO’s Insecure.

I’m currently working on a blog post that dives into this in much more detail based on a segment from one of my workshops.  When it’s released, I’ll post it here. 

Tax Incentives may well go Down.

As the economy shrinks, states may feel the need to cut back on spending.  Often, the arts are one of the first places where deep cuts are felt, especially in red states.  So if you’re planning on using a tax incentive to finance your film once the recession hits, you may want to reconsider.  I’ll admit, this one involves a lot more speculation than most of the others. 

Grants may be Tricky.

If you were counting on a grant for your film to get funded, you may be in a rough spot since when people have to tighten their belts, charitable giving tends to go way down.  This isn’t certain though.  Some larger foundations are likely going to be able to weather a few years in a bad economy before taking some big cuts. 

Now Could be a Good Time to make your First Feature

If you can make your first feature for a very small amount of money, now might be a good time. You’re likely going to have the time to kill, and some of your contacts who tend to work on corporate videos may be less busy than they were due to the recession.

If you decide to go this way, I would make sure you make a film that can be profitable on SVOD and AVOD alone, and that you spend time developing and engaging with your following across all platforms. When money is tight, it’s much easier to convince someone to watch your movie on Amazon than it is to convince them to buy it.

If you’ve made a low-budget film, and gotten it reasonably widely known and distributed, then you’ll be in a much better position to get investment when the economy bounces back.

Thank you so much for reading, and I hope you’re having a wonderful holiday. Come back next week for my final part in this 3 part series, the Hot and Not Genres of 2019!​

In the meantime, check out my mailing list!  You’ll get lots of great goodies, including blog digests organized by topic, an AFM Resources Packet, and money saving resources for film markets and festivals.

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Where the Film Industry is Headed in 2019

Sun Tzu wrote the following in The Art of War:  “The natural formation of the country is the soldier’s best ally; but a power of estimating the adversary, of controlling the forces of victory, and of shrewdly calculating difficulties, dangers, and distances, constitutes the test of a great general.”  While no one can tell what the future holds, there are some trends that many of us have been following that are greatly impacting the way we run our businesses. This blog is one observer’s look at the position of the overall independent film industry, and some level of the economy as a whole.

​The US Economy is heading for a Recession

Now I’m just a guy who helps people make movies.  I’m in no way qualified to give you financial advice or recommend stocks or bonds.  I’m just a guy who follows these things and is paying enough attention to know that the indicators are there.  So you can choose whether or not to listen to me on this one, but it is something that I’m quite certain will happen by the end of 2019.

I originally thought that the stock market would start to dip significantly around March or April, and then we’d have a fairly widespread crash around the end of October 2019.   There were a lot of things to do with the fiscal year and annual payments made by corporations to make me think that timeline would end up being about right. 

However, the stock market is already more volatile than it should be at this time of year.  I thought the Trump tax cuts that mainly financed stock buybacks would inflate the stock market longer than they seem to be doing right now.  To me, this may indicate that we’re either in for more trouble than I initially thought, or we’re going to be in trouble much sooner than October.  As of scheduling this post to be published, I’m not entirely sure which that’s going to be. 

So you’re probably thinking “Great, thanks, Ben. I read your blog for insights into the film industry, not for rampant speculation on the state of the entire economy.  I JUST WANT TO MAKE MOVIES!” Well, as I said at the top, if you want to be successful, you must understand the terrain you’re playing in, and that’s why I wrote as much about this impending recession as I did.  Now there’s probably another thing you’re thinking.

It’s Unlikely the Film Industry is still Mildly Reversely Dependent on the Economy.

Most filmmakers know that the golden age of film was during the great depression.  Most producers believe that the film industry is still mildly reversely dependent on the economy.  I’m going to buck orthodoxy here and say that I don’t think it is anymore.  At least not in the way it used to be. 

The film industry USED to be mildly reversely dependent on the economy because it was a comparably cheap way of getting out.  But now ticket prices have risen to the point that a family of 4 going to the movies will cost around 150 bucks once you factor in popcorn, concessions, parking, gas, and more.  Compare this to buying a game like Super Smash Brothers, where all 4 family members could get dozens if not hundreds of hours of entertainment for only 60 bucks.  (Although, I have yet to see a family where that would totally work for Smash.) Due to other forms of entertainment entering the marketplace, movies are no longer the cheap option.

Further, when the last major recession hit in 2008 the independent film markets took a pretty big blow, and have yet to fully recover.  If we see a massive crash next year, it’s likely that the markets are in for another blow just as they were really starting to recover.

What about the home video/VOD market?

Most people know that the home video market is kind of in the toilet.  Pretty much nobody buys DVDs outside of the Midwest and rural areas with poor internet connectivity.  This problem is likely going to get worse when the economy gets rough, as those areas tend to be some of the worst hit by economic crunches.

Regarding Transactional Video on Demand (TVOD) I think we’re going to see those sales figures dropping as well, and they’re already on the way down.  After all, why pay to watch a movie when Netflix has so many of them?

Some platforms may do alright since they’re primarily used by older people who tend to have more money.  These platforms are ones similar to Comcast InDemand, DirectTV, and Dish Network.  If I had to guess, I’d say that Dish was the most likely to lose subscribers first, as they’re already kind of the budget option, and cord-cutting has become such a viable option that those looking to save money on cable bills may look there first.

Airlines and other ancillary revenue streams are likely to see a drop in passengers, and thus likely have a corresponding drop in their acquisitions budgets for media.  This will probably affect smaller-scale projects before bigger ones because to the average consumer having the Marvel Catalog is significantly more useful than having the Criterion Collection.

That pretty much just leaves Subscription VOD (SVOD) and Advertising Supported (AVOD). 

I think that larger SVOD platforms are going to be in a very good position to gobble up more market share.  Since so many forms of distribution such as theatrical, Transactional VOD (TVOD) are likely to see their revenues diminish, I believe it’s logical to assume that the bigger named SVOD platforms will grow to take up their place in the market.  These platforms would include offerings like Netflix, Amazon Prime, Hulu, HBO NOW, and some of the new ones entering the fray like Disney and potentially Apple.  

To me, it’s only logical that as belts tighten, cord cutting will increase and these platforms are likely to largely take up the air left by the deflation of other sectors of the distribution chain.

That being said, I think that smaller services are in trouble. Fandor all but went out of business earlier in December, and FilmRise shut its doors recently. These were two services targeted at bringing eclectic artsy films to cinephiles across the country. Unfortunately, they just couldn’t make themselves profitable.

This leads to one other piece of this landscape that you should be paying attention to. You should be looking at VOD Service bundles like VRV. It’s not that dissimilar to a cable package, but much less expensive and all OTT. It looks like most of the content from FilmRise will end up in something akin to those sorts of packages, or largely absorbed into bigger platforms owned by their parent companies.

Finally, we’re on to Advertising Supported Video on demand. This one is where I think the biggest boom is going to come from. People with no money but lots of time will watch ads, and the number of people that’s true for is set to increase substantially in the event of a recession.

Thanks for reading. I’ll be back next week with my final blog of the year, which will show you how to take the information you learned here and turn it into a functional strategy for building your career in 2019.

In the meantime, make sure you’re on my mailing list, it’s a great bargain at the recession-friendly price of FREE.  You also get lots of great stuff, all of it listed on the button below

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How to Write an Independent Film Business Plan - 1/7 Executive Summary

One of my more popular services for filmmakers is Independent Film Business Plan Writing.  So I decided to do a series outlining the basics of writing an independent film business plan to talk about what I do and give you an idea of how you can get started with it yourself.  

Before we really dive in it’s worth noting that what will really sell an investor on your project is you. You need to develop a relationship with them and build enough trust that they’ll be willing to take a risk with you. A business plan shows you’ve done your homework, but in the end, the close will be around you as a filmmaker, producer, and entrepreneur.

The first Section of the independent film business plan is always the Executive Summary, and it’s the most important that you get right.  So how do you get it right?  Read this blog for the basics.

Write this section LAST

This section may be the first section in your independent film business plan, but it’s the last section you should write.  Once you’ve written the other sections of this plan, the executive summary will be a breeze.  The only thing that might be a challenge is keeping the word count sparse enough that you keep it to a single page.   
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If you have an investor that only wants an executive summary, then you can write it first.  But you’ll also need to generate your pro forma financial statements for your film, and project revenue and generally have a good idea of what’s going to go into the film’s business plan in order to write it.  I would definitely write it after making the first version of your Deck, and rewrite it after you finish the rest of the business plan. ​

Keep it Concise

As the name would imply, the Executive Summary is the Summary of an entire business plan.  It takes the other 5 sections of the film’s business plan and summarizes them into a single page.  It’s possible that you could do a single double-sided page, but generally, for a film you shouldn’t need to.  

A general rule here is to leave your reader wanting more, as if they don’t have questions they’re less likely to reach out again, which gives you less of a chance to build a relationship with them.

Here’s a brief summary of what you’ll cover in your executive summary.

Project

As the title implies, this section goes over the basics of your project.  it goes over the major attachments, a synopsis, the budget, as well as the genre of the film.  You’ll have about a paragraph or two to get that all across, so you’ll have to be quite concise.

Company/Team

This section is a brief description of the values of your production company.  Generally, you’ll keep it to your mission statement, and maybe a bit about your key members in the summary.

Marketing/Distribution

In a standard prospectus, this would be the go-to-market strategy.  For a film, this means your marketing and distribution sections.  For the executive summary, list your target demographics, whether you have a distributor, plan to get one, or plan on self-distributing.  Also, include if you plan on raising additional money to assist in distribution.

SWOT Analysis/Risk Management

SWOT is an acronym standing for Strengths Weaknesses, Opportunities, and Threats.  For the executive summary, this section should include a statement that outlines how investing in film is incredibly risky, due to a myriad of factors that practically render your projections null and void.  Advise potential investors to should always consult a lawyer before investing in your film.  Cover your ass.  I’ve done a 2*2 table with these for plans in the past, and it works reasonably well.  Speaking of covering one’s posterior, you should have a lawyer draft a risk statement for you.  Also, I am not one of those, just your friendly neighborhood entrepreneur. #NotALawyer #SideRant

Financials

Finally, we come to the part of the plan that the investors really want to see.  How much is this going to cost, and what’s a reasonable estimate on what it can return?  There are two ways of projecting this, outlined in the blog below.
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Related: The Two Ways to Project Revenue for an independent film.

In addition to your expected ROI, you’ll want to include when you expect to break even and mention that pro forma financial statements are at the end of this plan included behind the actual financial section.

Pro Forma Financial Statements.

If you’re sending out your executive summary as a document unto itself, you will strongly want to consider including the pro forma financial statements. For Reference, those documents are a top sheet budget, a revenue top sheet, a waterfall to the company/expected income breakdown, an internal company waterfall/capitalization table, a cashflow statement/breakeven analysis, and a document citing your research and sources used in the rest of the plan.

Writing an executive summary well requires a lot of highly specialized knowledge of the film business. It’s not easy to attain that knowledge, but my free film business resource package is a great place to start! You’ll get a deck template, contact tracking templates, a FREE ebook, and monthly digests of blogs categorized by topic to help you know what you’ll need to have the best possible chance to close investors.

Here’s a link to the other sections of this 7 part series. 
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Executive Summary (this article)
The Company
The Projects
Marketing
Risk Statement/SWOT Analysis
Financials Section (Text)
Pro-Foma Financial Statements.

Why Exclusivity is GOOD for Filmmakers

In closing contracts, one question I get asked a lot is why distributors, sales agents, and producer’s reps need exclusivity when we do our jobs.  Sometimes, this question even comes from the lawyers of my clients.  I understand there is risk when giving someone the exclusive right to represent your project, so I thought I would write up a blog post examining exactly why we need exclusivity.  Generally speaking, the goal is not to tie up your rights and make it so you can’t do anything with them.  There are lots of other reasons why sales agents or producer’s reps need exclusivity.

To truly understand the need for exclusivity, one must first understand the nature of our business.  We deal in the buying and selling of rights to infinitely replicate content.  If something can be infinitely replicated, the only way to ensure it's value is to control who has the right to produce it, or to authorize others to replicate the content.  

I can guarantee you that any sales agent you would actually want to work with will require exclusivity at least for international.  If you try to negotiate their exclusivity out of a contract, I can guarantee you will not be successful.  It's the nature of the business. In fact, if you try to negotiate too much to be non-exclusive, then you’ll likely just end up scaring off the sales agent. 
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Buyers want exclusivity, and if the sales agency doesn't have exclusivity, then they can't sell it to the buyer.  Producer's reps have less necessity for this normally, but if they work directly with domestic buyers, then they will generally need exclusive rights for similar reasons to why a sales agent needs exclusivity to sell international rights. ​

As a more practical example, let's say that two sales agents each have the right to sell your film.  There are a lot of territories for which only a few buyers come to the market.  There's a good chance that the sales agents would both know these buyers.  If the buyer can buy it in one of two places, then the two sales agents will just undercut each other to make the sale, and the filmmaker ends up hurt.  Giving Sales Agents exclusivity actually protects the filmmaker, if the deal is done properly.  

Further, almost all license fees and deals with a minimum guarantee require exclusivity. The buyer doesn't want to pay good money for a film, only to have it air on the competition's channel or platform at the same time.  Of course, if you're looking at Transactional VOD, this is not really the case, but those deals generally don't pay up front.  Also, that's essentially an aggregation deal.  

I'll admit, a producer's rep needs exclusivity less than a sales agent.  Since most of what Producer’s Reps do often involves shopping the film to sales agents, so long as there's a lit of who I'm approaching that's separate from who you would be approaching, there's room to negotiate.  However, since I act as a sales agent for North America, I at least need exclusive rights domestically for exactly the same reason.

Also, to avoid issues, if you’re working with a producer’s rep non-exclusively, then you’ll need to list what companies that producer’s rep will handle. If you don’t, you could be in for a tricky legal battle down the line, in case multiple approaches are made to the same company.

So I’d like to thank you for reading and say that I hope you found it helpful. If you did, you should grab my FREE Film Business Resource Package. It’s got a free e-book called The Entrepreneurial Producer to grow your filmmaking career, templates for investment decks, film festival brochures, and other money and time-saving resources. Check it out below.

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6 Reasons Filmmakers Are Entrepreneurs

Filmmakers often don’t like to think of themselves as business people.  Often, they’d rather be creative, and focus solely on the art of cinema.  Unfortunately, this is not the way to create a career crafting moving images.  In order to make a career, you must understand how to make money.  The easiest way to do that is to think like an entrepreneur.  here are 6 reasons why.

1. Filmmakers and Entrepreneurs both Must Turn an Idea into a Product.

At its core, the goal of both being a filmmaker and an entrepreneur is the same.  To take an idea, and turn it into a market-ready product.  For an entrepreneur, this product can be anything from software to food products, and everything in between.  For a filmmaker, the product is content.  Generally speaking, that content is a completed film, web series, or Television series.

This alone should be enough to see how filmmakers are entrepreneurs, but it’s not the only way the two job titles are similar

2. Filmmakers and Entrepreneurs are both creative innovators birthing something that has never been seen before.  

Every successful company does something no one else ever has.  Every successful film brings something that’s never been seen before to the market.  Some innovations are minor, others major.  Both sets of innovations are born by iterating on another idea that didn’t quite make their product in a way that the entrepreneur or filmmaker thinks is the best way. 

Innovation is at the core of both filmmaking and entrepreneurship.  Both involve intelligent and creative people who want to change the world.  Some through technology, some through storytelling.

3. Filmmakers and Entrepreneurs both must figure out who will buy their product.  

If either a filmmaker or an entrepreneur is to be successful, then they need to figure out who will buy their product when it’s ready to ship.  If they don’t know what their target market is, then it’s impossible to make enough money to keep the company going or help investors recoup so you can make another film. ​

Market research is key to this.  If you want to find out more, check out last week’s blog by clicking here. 

4. Filmmakers and Entrepreneurs both often need to raise money to create their products.

While everything else on this list is true nearly 100% of the time, this one is only true 80-90% of the time.  While some entrepreneurs and filmmakers can finance their companies out of pocket, most filmmakers need to consider how they’ll pay for the things necessary to create their chosen product. 

Both filmmakers and entrepreneurs must develop a deep understanding of fundraising if they’re going to be able to make their career in their chosen field a long-term sustainable one. 

5. Filmmakers and Entrepreneurs must both assemble a team to turn their idea into a product.  

No one can make a film or build a company all by themselves.  Both must build and manage a team of creatives and business people to create their product and take it out to the world.  Without the ability to build and lead a team to success, the film or the company will not succeed. ​

6. Filmmakers and Entrepreneurs must both figure out how to take their products to market.  

After coming up with an idea, figuring out who will buy their product, financing their vision, and assembling a team in order to create a product, filmmakers still need to get that product and figure out how to take it to market. For both, this is generally referred to as the distribution stage of the process.

For filmmakers, it’s relatively well-defined despite the information about it not being widely enough available. For entrepreneurs, their distribution plan will vary greatly by industry. But in either case, if the end user/viewer can’t access the product, they won’t buy it.

Thank you so much for reading.  If you’d like to become a better indie film entrepreneur, you should check out my FREE Indiefilm Resource package. it’s got a free e-book called The Entrepreneurial Producer, several templates to help you organize your operation including a pitch deck template, and monthly blog digests to help you expand your knowledge base.

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