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.

Check the tags below for more related content!

The 3 Main Independent Distribution Models

We all know there’s more than one way to distribute a film.  What we might not think about is that there’s also a lot more to your independent film distribution choice than the self or traditional binary pervasive across many online forums and social media groups.  Here’s a breakdown to help filmmakers better understand the companies that are involved in distributing their indie films, and the broad business models they operate under so you can make a more informed choice.  

High Touch / Prestige Releasing

What we all want, A24, Sony Pictures Classics, Focus Features, etc.  These are the companies that release at most 1-2 films per month and generally have some degree of limited theatrical baked into the deal.  They give a lot of time and attention to every release, and they’re exceptionally picky about what product they take.  Most of the time you’ll need strong recognizable names or a top 5 world film festival to capture their attention.  Even then it’s far from a guarantee that you’ll be able to attract this level of attention. Sometimes you can sneak in through a sales agent who has a relationship but even then you’ll need a superior product to have a shot. 

The pros of this should be obvious.  Getting a distribution deal from one of these entities is a game changer for both you and your film.  If you can say that a major studio released your last film, you’ll be in a much better position to fund your next film.  They’ll put lots of time, effort, and money into promoting it as well, or at least more than every other type of company on this list.  You’ll probably even get a reasonably sized minimum guarantee out of the deal. 

There are downsides though.  The downside on the filmmaker side is that more than likely the MG is all you’ll ever see.  Even the Blair Witch Project had to go to court with a copy of Time Magazine proclaiming the film to be the most profitable film of all time to receive royalty payments from their distributor.  Unfortunately, most of us are not Blair Witch.  

On the distributor side, this model is extremely risky if you don’t have the backing of another revenue source or deep institutional investment.  Essentially, if you don’t have either of those forms of backing it only takes one flop to through the company into financial disarray.  Unfortunately, this means that we probably won’t be seeing too many companies enter at this level in the near future unless they’re spinoffs of larger tech, media, or maybe even retail companies.  

Hybrid Releasing / Producer Boosting

In this model, the distributor or sales agent relies on producers to handle the legwork on marketing providing assets and support in getting the film out there.  The key here is to view the work as a partnership, with the distributors handling assets, access, and amplification of the producer’s efforts while the producers handle the grind that’s involved with engaging the core niche audience of a film without doubling the production budget in ad spends.  

The benefits of this model on the filmmaker's end are that it allows the distributor to offer a much lower commission and significantly lower recoupable expenses.  If the company is extremely filmmaker-friendly, they’ll also pay out the filmmakers on a distributor gross corridor so that the filmmakers will receive money from the first dollar in.  This is the model I personally developed and implemented at Mutiny Pictures.  We paid filmmakers in line with the Mutiny Commission at the same rate as the Mutiny commission.  The only things that came out first were uncapped expenses for things like DCPs, special delivery costs, and legal expenses.  As such, the vast majority of our filmmakers received a check in their first report.  

For distributors, the upside of this model is that it allows the distributor to run a leaner operation while releasing 2-3 times more films than the high-touch model.  This allows distributors to take bigger bets on a-typical releases as they’re more likely to have their bases covered by the fact that statistically at least 1 in 10 films will break out when they’re properly managed.  A well-run distribution company that’s out of its initial revenue lag will be able to support itself on one breakout every two or three months, so long as they don’t overstaff.  

The Drawback of this is that it’s less likely a distributor or sales agent will be willing to offer a minimum guarantee on this model.  There are a few reasons for this, the primary being that the only companies really pursuing this model are smaller and younger and thus don’t have the backing of a large catalog consistently churning revenue.  Given that situation, it would be too big of a risk for them to offer an MG they would not be able to cover with a guaranteed sale.  The secondary reason may be that if it really is a partnership, filmmakers receiving a check early on may limit their willingness to help promote their own film.  I’ve had that happen a lot.

This model is my personal favorite, but it’s not ideal.  In an ideal world, filmmakers would be able to focus on making their next film after they deliver their first one for distribution.  Unfortunately, that’s not the world we find ourselves in.  

Shlock-Gunning / Aggregation++

Throw it out there and see what sticks.  This would include aggregators, and companies like indie rights or Filmhub, but also could include other indie labels that put out too many films a year with relatively high expenses that don’t put too much effort into selling them.  Basically, they, throw everything at a wall and see what sticks.  

I want to be clear that in the case of some companies like IndieRights or FilmHub, this model is not necessarily a bad thing for filmmakers.  Filmhub would probably not like that I’m saying this, but in general, I use them as an alternative to traditional aggregators like BitMax, Quiver, or even Distribbr.  Of any company on the shlock-gunning list, I’d say my favorite is Filmhub as they’ve found an ethical and economical way of monetizing their wide access to AVOD, FAST Channels, and TVOD platforms.  

The issue with this model is when it’s not properly disclosed.  If your distributor is giving you the high touch or the hybrid pitch but then unceremoniously dropping your film it’s a problem.  To be clear, platforms don’t always tell distributors exactly when a film will show up, so sometimes there’s a bit of this that’s unavoidable.  I would share some names of companies I know that use these tactics, but they can get a little nasty at markets given most companies would take umbrage at this sort of accusation.  One way to suss them out is their volume of releases.  If they distribute more than one film per week, you might well be dealing with a schlock-gunner.  

I might discuss the matter in future unrecorded live streams, and if you want access to those check out my mailing list, Patreon, and sub stack, all linked below. 

Thanks so much for reading, and check back next week for more.

Check the tags for related content.

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!

Check out the tags below for related content.

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.

Check out the tags below for related content!

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.

Check out the tags below for related content!

How Filmmakers Can Use Community Screenings to Maximize Impact and Profits

For those of you who are unfamiliar, a community screening model is an alternate version of a theatrical where instead of booking theaters across the country.  There are so many places with high-quality sound systems across the country that it can make a lot of sense to book these secondary locations instead of spending the money to four-wall a theater.  Since we talked about what a community screening package generally includes, I thought I’d go over what it takes to book those screenings this week. 

1. Identify your Target Audience

​As stated above, community screenings are best utilized when there’s already a strong presence of your niche audience gathered around the same geographic location.  This most likely means that you’re going to need to target a niche like the Faith-Based community, the LGBT community, or some other cause-oriented community. 

The Secret utilized community screenings to great effect, as did other documentaries like Food Inc and Forks over Knives.  This tactic is most commonly utilized by documentary filmmakers, as their films tend to attract dedicated niche audiences with slightly more ease than a narrative film would.  That said, if you can build a following for yourself and your film within this niche, there’s no reason that these same sorts of tactics couldn’t work as well. ​

2. Figure out a communal gathering place for them

If your community has a regular meeting place, such as a church, rec center, yoga studio, or other area that has a large screen that can be used to show movies it can be an extremely effective place to start talking to someone about hosting a film screening. 

Even if your film isn’t a faith-based film, some unitarian churches may still be worth approaching.  The biggest downside to places like Unitarian churches, (or general use area like a rec center) is that they don’t always have the same sort of community built around them that places like churches tend to. 

3. Research those community leads lists

Once you find an example community gathering place, you’re going to want to look for similar places around whatever region you’re looking to advertise community screenings too.  I wouldn’t generally say to do a screening at more than one location per city, but since you’re not going to close every place you try, I’d consider getting 5-10 per area you want to screen in. 

​Keep in mind, You’re living in a large, sprawling city like Los Angeles or Denver.  If you are, you might want to consider holding one in different areas of the city.  For Denver, you could consider one in LoDo, one in Aurora, one in Cherry Creek, and one in Highland’s Ranch.  In LA, you could consider one in DTLA, one in Culver, one in Burbank, one in Santa Monica, and one in Westwood, etc.

4. Create a screening package

I covered this last week since this blog was likely to come out long.  Read it below:

RELATED: The 9 Essential elements of an indifilm Community Screening package.

5. Generate marketing materials

The marketing materials I’m talking about are for marketing the people who would host the community screening, not those who would attend.  The materials for those who would attend will be covered in more detail on the expansion of section 4 next week. 
​
What I mean here are things like a pre-written email that you can plug some names into and send, a brochure on your film and why it would appeal to both your target audience and the people hosting it, a tiered pricing plan for your screenings that ideally start as a revenue share and go up from there.

6. Sell the community Screening package to them.

Finally, it’s time to dial for dollars and reach out to them. If possible, it will help your close rate immensely to send them the brochure in advance, but that can get a bit pricy. You can try sending a cold email, but it’s reasonably likely that you’d end up in more spam filters than would likely be helpful. I know that telemarketing isn’t fun, but it can be extremely useful in terms of actually moving these sorts of packages.

Thanks so much for reading! If all of this sounds like a lot, that’s because it is! Lucky for you, it’s also a service I offer. Check out the Guerrilla Rep Media Services page. If you’re still figuring out what the next steps are for your film, you should grab my free film business resources pack. It’s got Templates for festival brochures, distribution, tracking sheets, an investment deck template, a free ebook, a whitepaper on the economics of the film industry, and more. Also, you’ll get monthly content digests to help you grow your film business knowledge base on a manageable schedule.

Check out the tags below for related content!

How to get Short Film Distribution

I get A LOT of questions about how best to make money with short films.  It’s something that I think is inherently appealing to most filmmakers, to start making a little bit of passive income from every project they make.  Unfortunately, while possible, it’s not that easy, and the reasons why are relatively simple.

The root issue of why it’s hard to make money with shorts lies in basic economics.  There are far more shorts created o an annual basis than there is demand from those who are willing to pay for them.  Think about it, when’s the last time YOU paid to watch a short?  When was the last time you WATCHED a short on its own outside of a film festival or before a Pixar movie?  I might be wrong for you individually, but I’d bet that for most of you, there are crickets in the background while you try to remember when it happened.

If you’re reading this, you’re probably more likely to consume shorts so than a member of the general public.  According to the best available estimates I’ve been able to find, there are around 131,000 shorts produced every year in the US alone.  (The source for that is in a whitepaper in my resources section.) There just aren't enough people willing to spend money on these sorts of shorts.  That said, shorts have their purposes.  They can help you network, build your skills, or build your brand.  So with that in mind, here are the 7 ways to.

Also, yes.  I'm aware that there are a few sales agents who license shorts.  However, they're few and far between, and I don't see many people.  flocking to them.  

1. Use it to build your brand and your skills.  

First off, almost none of these ways to make money with your shorts are exclusive.  You can likely use more than one of them at the same time.  In fact, in many ways the more of these tactics you use the better it’s likely to be in terms of building your brand, as in order to have a meaningful brand, you must first have awareness of yourself and your work. 

Part of using your shorts to expand your brand is submitting it to festivals to see if you get in, and attending those festivals to get the most out of it. ​

Skill building is slightly outside the purview of how to make money with your shorts, but since you won't make money from a poorly executed feature, it's worth mentioning.  Shorts are great practice for you to grow your skills in whatever position you want to grow into.  

2. Use as a proof of concept for a feature.

One example of this working is the film Slingblade, which started with Billy Bob Thornton giving a riveting performance as the title character in a single location and largely a single shot.  That short then got into some major festivals, and was picked up and turned into a feature film.   

That said, this is much more the exception than the rule.  Most of the time people try to expand their short into a feature by approaching sales agents or studios, it doesn’t work.  The reason it’s as high as it is on this list is purely that when it does work, the value of it is huge. 
What would mean a lot more is if you can prove that there’s an audience for your work, which really ties back into #1. 

3. Sell it to a shorts program

PBS and a few others have short programs that will actually pay to license your short.  There are also several channels on youtube offering you “Exposure” for posting your video.  They keep the ad revenue of course.  There are brand-building advantages to doing this, as it can expose you and your work to an audience it would otherwise be difficult to reach, however, there’s not as many brand advantages as you might hope there are.  Additionally, you should not give these people the exclusive right to your short under any circumstances.

4. Put it on Amazon Prime and put considerable effort into promoting it.

As we mentioned earlier, it’s unlikely people are going to pay for your short.  #SorryNotSorry.  That said, if you can give them a way to watch it for free, then you might get something.  So you might want to try Amazon Prime. Sure you only get paid 6 cents per hour viewed, but if you happen to strike a chord and get caught up in their algorithm, it can lead to more money than you may be expecting.

Edit from the future: this sadly isn’t possible anymore.

5. Use it as an email capture giveaway.

If you’re starting to get a brand behind you, then you might want to keep some of your early shorts behind an email capture on your website.  This might also be a good place to keep some special features from your feature-length DVDs as few people tend to actually buy physical media anymore.  Using this as an incentive to join your email list can be a good way to grow your email list and expand engagement with your burgeoning community.  That being said, this is generally only advisable if you’ve already got some work and a brand under your belt. 

6. Put it on Youtube and put considerable effort into promoting it.

Starting a youtube channel is quite a lot of work. (I have no reason to know that mind, you) So doing it for a single short film isn’t going to give you a lot of traffic other than the traffic you specifically drive to it.  However, while you’re building a brand, it’s an absolute must to have it easy to find.  Vimeo has a much higher quality player, but the social features on YouTube are better.  That said, there’s not a lot of reason not to do both of them, as well as putting the film on Amazon Prime.  You probably won’t make much, but having it available in multiple places can help you build your brand more than you may think it would. 

7. Get your friends together, license their shorts, and sell your shorts as a package.

A huge drawback to marketing a single shot is the low return for the amount of effort it takes to capture the attention of people considering watching your project. So, it might make more sense to try to package your shorts with others to make the effort more worth your time. That being said, buyers at film markets have less than no interest in anthologies. As a result, neither do Sales agents. So if you do this, you’re likely in it on your own.

Thanks so much for reading!  If you enjoyed this blog, you should consider joining my email list for lots of free goodies including templates, an ebook, a whitepaper, and more. If you’re looking for direct guidance to take your project to the next level, Check out the Guerrilla Rep Media Services page. Links for both of those in the buttons below.

If you want more related content, check out the tags below!

5 Ideas For Email List Giveaways for Indie Filmmakers

Traditional marketing wisdom states that you should offer something of value to your potential customer prior to trying to sell to them.  However, this value proposition is different when you’re talking about making a film versus selling a software application.  It has to be something of value to your customers, and since most of your customers are not going to be other filmmakers you’re going to need to think outside the box and offer something that people who only consume content are going to be interested in.  Here’s a list of some ideas to get you started.

1. An unreleased short film

Unfortunately shorts don’t tend to have much value of their own.  Their primary purpose is to build the skills and the brand of the filmmaker who’s making them.  Luckily, this can make them ideal for giveaways behind an email capture.  You’re giving the consumer a taste of you style, as well as developing your relationship with them for the future. 

It’s important to note that these shouldn’t be your film school exercises or camera tests.  This should be thesis-level work if it’s going to have any value whatsoever.   If it did the festival circuit and racked up some awards then it’s likely to be a good giveaway that actually provides a decent amount of value. 

2.  A concept piece for the film you’re currently working on.

If you made a short film as a proof of concept for the feature, this can be a great giveaway once you get closer to the release.  That is, unless you have spoilers for the feature in the concept film.  If you do, you might need to re-edit the piece slightly. 

Timing this can be difficult.  I would make sure that the film is at least about to hit the first window of release before offering the concept video as a giveaway. 

3. Behind the Scenes featurettes.

With the DVD market in decline, its become much harder to get the old DVD extras than it used to be.  But even if you’re planning on having a full film distributed via transactional video on demand, (TVOD) that doesn’t mean you can’t make more content available on your website for those interested enough to seek it out.  If they are that interested, they’re exactly the sort of person you want on your email list, and they’re probably happy to join it. 

4. A copy of a script for a feature film you’ve already distributed.

This one skirts the line of being more for filmmakers than the general public.  However, if you have a film that’s already 2-3 years old, giving away the script as a value add can be quite valuable.  While most filmmakers are aware of the Internet Movie Script Database (IMSDb) but most of the general public is not.  This seems like something that could be novel to your ardent fans, and costs you very little to generate. 

​All of that being said, don’t post this as an email giveaway if it’s not already distributed. 

5. Concept art and Character Bios from the film.

The people you want on your email list are your community and your early adopters.  The rabid fans who can’t get enough of your work.  These are the sorts of people who would also love to see your concept art, behind-the-scenes photos, and more detail about the process of making the film.  Character bios can be great for this.  If you can make these little things into a behind-the-scenes featurette, then all the better.

Thanks SO much for reading!  I practice what I preach, and since my target demographic is primarily filmmakers, I give away a free resource package.  Join my email list and check it out! The package has an e-book with exclusive content, a whitepaper, a template collection, tons of research links, and money-saving resources, plus a monthly blog digest for continued education that fits your schedule.

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.

JOIN MY MAILING LIST

Check the tags below for more related content

Why Every Filmmaker Needs a Strong Personal Brand

Most filmmakers want to make movies.  However, few think about establishing themselves a brand as a filmmaker.  In the immortal words of Alex Ferrari of Indie Film Hustle: “If you don’t think you need a brand as a filmmaker, you’re wrong.”  As wonderful as I personally find that quote, I think it needs a little elaboration. What follows are 5 reasons you NEED a brand as a filmmaker.

1. It helps to further relationships with your customer

A brand is essentially the cumulative interactions any potential business partner or customer has with an entity or organization.  So in a sense, saying a brand helps you further your relationships with your customer is a bit redundant.  However, the idea of you your brand, is essentially the personification of your company.  Having this personified image of your company makes it much easier for your clientele to establish a relationship with your company.

2. It helps people better identify with the creators behind the content.

At least when a brand is starting out in the film industry, the brand will be heavily associated with the filmmakers themselves.  As such, for the first couple of films your company makes, the brand you’re developing will also be furthering the personal brands of the key crew.  If your key crew tends to put out similar films time and time again under your production company’s brand, then eventually the brand itself will develop a following of its own.  After a time, it creates a feedback loop.

3. It gives your audience something to you and your work with beyond a single film.

​If you develop your brand correctly, then consumers will come to know what films you make that they like.  Giving your customers a brand to rally behind can really help them to develop a relationship with the creators.  Instead of being able to say I really Liked Paranormal Activity, customers can say I really like the movies Blumhouse puts out.

4. It helps you develop a community around yourself.

People can have a really deep association with brands.  Look at what happened when Coca-Cola Released New Coke.  Even though taste test after taste test proved that consumers strongly preferred New Coke to Coca-Cola, the brand eventually experienced a tsunami of customer complaints for getting rid of the old flavor of Coca-Cola.  Essentially, the brand had built such a large community that were so attached to their original product, when they took it away a small but extremely vocal part of their community couldn’t handle it. Even though many of those parts of the community were shown they liked New Coke Better in blind taste tests. 

Branding and Community building can be so powerful that even when a customer prefers an alternative product, they’ll keep coming back to yours for that warm fuzzy feeling they get when they use your product. Don’t forget, that can be a double-edged sword if you ever want to pivot to somehting new.

5. It turns you from a person to an icon.

Most of the people reading this already know that JJ Abrams is the head of Bad Robot Productions. However, there are a lot more people involved in Bad Robot than just JJ Abrams. The bumper of the robot running through the field gives sets the scene for an exciting time at the movies since you associate it with other times you saw great movies that were preceded by that bad robot bumper. You remember that bumper, it’s iconic. Such associations are how JJ has become an icon that will likely outlast him.

If you want help building your brand, you should check out my FREE indiefilm business resource package. It’s got an e-book, a whitepaper, lots of templates, and a monthly blog digest to help you grow your knowledge base so you can build a filmmaking career.

Check out the tags below for related content

7 Reasons Courting an Investor is Like Dating

There’s an old adage that Investing is like Dating.  In fact, I’ve talked about the similarities both on meetings with investors, and dates with people who are qualified to be investors.  So as something of a tongue-in-cheek yet still (Mostly) safe-for-work post, here are 7 ways courting an investor is like dating. ​

​1. Your goal is to see how compatible you are with the other person.

Most of the time, if you want to get into bed with someone, you want to be compatible with them first.  Getting money from an investor isn’t like a one-night stand.  You don’t just get the check and then never hear from them again.  Getting into bed with an investor is a long-term deal, so making sure you two work well together is simply a must.  Otherwise, the break-up may not be pretty. 

2. If you come off as Asking for too much the first time out, you probably won't get a second.  

The first time you go out with an investor is kind of like that first coffee date.  you’re both sizing each other up, and you want to see how you click.  If you went on a first date trying to make out and take the partner back to your place, it’s probably not going to end well for you.  Similarly, if you start asking an investor to whip out their checkbook on the first meeting, then you’re not likely to get a call back for a second. 

In summation, the goal of your first date should always be to get a second.  If you’re out with an investor, then the second meeting is the sole goal of the first meeting. 

3. It Generally takes at least 3-5 meetings to jump into bed together.  

As with dating, it generally takes 3-5 meetings to decide to get into bed together.  Often, the longer it takes the more likely it is that the relationship will be fruitful down the line.  At least to a point.  If it takes more than 7 meetings to get a check, the investor (or your romantic partner) might just want to be friends. 

4. Both Parties have something to gain, but generally speaking one has significantly more options than the other.  

Just like women are generally more sought after than men in the dating scene, Investors are generally more sought after than entrepreneurs. This may sound crass, but the only pretty girl in the room is going to get a lot more offers than the 10 guys pursuing her.  The ratio is similar for investors. 

So sure, while everybody is looking for a mate, and every investor needs deal flow, generally one side has more options than the other.  It’s important to remember that when attempting to court an investor.

5. They're Probably going to Google You.

Everybody does diligence in this day and age.  If you didn’t think your date was going to check out your online presence, you should probably think again.  Investors are going to look into your past history, and maybe even check your credit before they invest in you.  Dates will do as much as they can on a similar level, but probably not check your credit.

Related: 5 Steps for Vetting Your Investors

6. If you jump into bed on the first date, you're in for a wild ride.  a

One-night stands can be fun and all, but if you jump into bed with the wrong person right after meeting them it can be a real nightmare.  (Or so I’ve been told…) If you don’t take the time to get to know somebody before you get into a serious relationship with the, you’re going to be in for a nasty surprise.  All investment deals are serious relationships.  Don’t let anyone tell you otherwise. 

7. When you seal the deal, you might be stuck with that person for YEARS.

If you take money from someone you’ll be dealing with them until all investors somehow exit the company.  This can be many years.  The Series A Investors at Twitter didn’t exit until their IPO Years later, and a film generally takes 3-5 years to pay back their investors, if they ever do.

If you do get into bed with an angel investor to finance your feature film or web series, they’re going to be a part of your business for a long time.  It’s not just about finding independent film angel investors, it’s also about courting them and making sure you’ve found the right investor, not just the first investor who makes you an offer.

If you want some help with this courting process, my free resource package is a great place to start. It’s got a free e-book that might answer some questions your investor may have. It’s also got a deck template you can use in your first meeting. Get it for FREE below.

Check out related content using the tags below.

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.

Check out the Tags below for more related content

4 Reasons Niche Marketing is VITAL to your indiefilm’s Succes

Most people don’t plan to fail, they simply fail to plan.  Similarly, most filmmakers don’t think about anything other than getting the film made until the film is completed.  This is a prime example of failure to plan resulting in a failed project.  In reality, you should be thinking about your target market as early as when you write your script.  If this is your first film, you should be targeting a well defined niche.  Here are 4 reasons why.

Would you Rather Watch than Read?  Here's a video on the same general topic from my YouTube Channel.

Niche Marketing Gives you an audience for your film

I’m sorry to be the one to tell you this, but your film is unlikely to appeal to everyone everywhere.  You’re much better off figuring out what parts of your story will resonate with various groups, and focusing your early marketing efforts on them.  It will put your film in front of the people who it will resonate most strongly with, and it will help you rise about the white noise that every content creator must face, especially when starting out. 

It’s also important to keep in mind that just because your film starts in a niche doesn’t mean that the niche is where it will always live.  If you properly utilize niche marketing, it can actually help you break out of the niche and into the more generalized marketplace. 

Niche Marketing Cuts down on your marketing cost

If you do think that you can target everyone, because your film is just that universally appealing then your marketing expenditures are going to be astronomical.  Also, you’ll be competing directly with movies like Star Wars, The Avengers, and whatever the next Pixar movie is.  Unless you’re a studio head, then you can’t afford to win that competition. 

Utilizing proper niche marketing efforts will dramatically cut down on your marketing expenditure since you’ll know exactly who you want to get your project in front of.  Thanks to social media platforms, you’ll be able to target those people directly using smart advertising buys and strong community engagement from an early stage.

Further, if you do break out of your niche, you’ll already have more noise being made about your project so the costs to market it will be much smaller.

Niche Marketing Can help you fund your film

If you start to get involved in niche communities well before you make your film, then you’ll have a community that you can mobilize to help you raise a portion of your funding through donation-based crowdfunding.  To be clear, if you simply post your campaign over and over to the various communities you want to support your campaign.  You’ll have to ingratiate yourself into them well before starting a campaign.

​The Reason that these people may well be willing to support your campaign is that many niche communities are underserved, and want to have their story shared. 

 They want to see more media made about their interests and themselves as a community.  They want their story told.  Many of them, are willing and eager to make it happen.  This brings us to our final point.

Niche Marketing Gives you advocates for your film

No Films can market themselves completely on their own. They need to get a core group of people to help spread the word. Niche marketing can be a huge help for getting the people who are most likely to be your strongest advocates onboard early. As mentioned above, they’re the people who care the most about your subject matter. They’re the people who will seek out your content and show it to your friends because they identify with it so much.

No one can create advocates, you must find them. The most likely place to find them is within the various underserved niches that have plenty of stories that need to be told. 

Thanks so much for Reading. If you like this and want more, check out my FREE Film Business Resource Pack! You’ll get a free e-book on the business of entertainment, a set of highly useful templates, and a whole lot more. Check it out below.

Can a Film Slate Make More than a Tech Portfolio?

Edit from the future: Maybe, but probably not, and don’t count on it.

In a quote often attributed to Albert Einstein, “The most powerful force in the universe is compound interest.” He also called it “The 8th wonder of the world, he who understands it, earns it.  He who doesn’t pays it.”  In this post, we’re going to be examining how we can use the notion of compound interest in comparison to tech and film investments.  

In the previous installment, we looked at the average ROI of a film slate vs. an early stage tech portfolio.   Here’s what we came up with before.  For the full tables and Metrology, check out last week’s post.

Unfortunately, the numbers don’t look good for film.  By the math above, we can see that tech portfolios make on average of 7.5X what a film slate would over their lifespans.

But, film does have one advantage over tech.  The amount of time that it takes for a film to recoup [if it’s going to] is much shorter than what it would take for a tech exit would be.  

For instance, the average time from when an Angel becomes involved in a project to when they see their money back is around 12 years.  For a film to at least start recouping investment, that time period is around 2-3 years, if it’s done well and distribution is planned from the beginning.

Why is that?  Generally, for a tech investor to get their money back, the company they invested in has to either be acquired by a larger company or make an initial public offering [IPO] and be listed on a stock exchange.  Sometimes an investor will be able to list their stock on a secondary exchange, but that’s a little beyond the scope of this article.  Acquisitions tend to happen more quickly than IPOs, but there’s generally less money and less prestige. 

​Given that the size of venture capital [as opposed to angel investment] rounds have ballooned in the last decade, many venture capital firms are pushing their companies to IPO instead of be acquired.  This may make the time from an early round angel investment to exit take even longer than the 12 years mentioned above.

Films, on the other hand, start getting some of their money back shortly after they start distributing the film.  If the filmmakers get a minimum guarantee [MG] they may get a decent check up front.  If they don’t, they may not, and it may take an additional year or so to start getting their money back.  I should note MGs are more the exception than the rule. 

So for this exercise, we’re going to look at the APR of both a technology investment portfolio and a film slate.  We’re going to make the assumption that both investments are early stage, since the angel round for a technology company is very early in the investment process, generally directly after the friends and family round.  Later rounds are generally dominated by institutional investment firms.  A similar scenario can be said about film.  Most angels from other industries get involved very early, since they don’t have contacts with completed projects.  

Since revenue from a film tends to come in over time, we’ll count the lifespan of a film investment to be 3-5 years as opposed to the 2-3 years mentioned above.  3-5 years should be enough time for 60-80% of a films total revenue to come in on average. As such, since this series is largely a thought experiment we’re going to think the general earnings of a film to come in overt that shortened timeframe. Tech exits on the other hand generally come with a large lump sum for the investor after a quite a long time that may be getting longer, we’re going to do the math based on 12-14 years to exit for a tech company. Some do come in much faster, but some films also get bought out for millions after 18 months. They’re outliers and not generally worth accounting for when planning to pitch an investor.

Tech portfolio APR

When we compare APRs, this is starting to look a little more reasonable, but still not great.   When we compare the APR of a film as opposed to a technology company, we’re only looking at around a 1.5X to 3X instead of a 7.5X differential.  Unfortunately, looking at things through this lens raises other issues, in that the average mutual fund pays out around 5-7% APR, depending on the health of the entire economy.  

Could a savvy investor do any better?  Perhaps.  ​

Everything we’ve been looking at so far has assumed that all of these investments were early stage.  If it were a tech investment, we’d say Seed or Series A, in film, we’ve been assuming these investments take us out of development and into preproduction.  But what if we were to include completion funding and distribution funding in the portfolio?  I would do a similar analysis for technology companies, however, given that the VCs and hedge funds dominate that world due to the amount of capital needed. In days and years past, these stages would be overwhelmingly covered by distributors, but that’s nowhere near as true as it used to be. This leaves a hole for an investor to come in and increase their potential returns while lowering their risk exposure.

The assumptions I’ve made on the chart above are that the slate would be made up of half of finishing/distribution funds, and half of the early-stage investments.  As such, the risks are far lower, and since much of the later stage debt may be done in the form of debt as opposed to equity, we can assume not a huge amount of loss on those investments.  Also, since the film needs to be finished and not made from the start, the time for the recoupment of these funds is greatly lessened.  With that in mind, we'll assume that the bulk of these returns come in from 3-4 years instead of 3-5.  

I'd like to take this opportunity to remind you that none of this is meant to be scientifically accurate, but rather a very good estimate and approximation of what these slates could look like given the right set of circumstances.  Take these numbers with a grain of salt, just as you should any revenue projections from a pre-seed stage startup or revenue projections from a filmmaker.  This also should not be considered financial advice, nor a solicitation for sort of funding.

Admittedly, these numbers are highly speculative, [See disclaimer on part 1] but the right team backing up the right filmmakers may make it possible.  Given I work with investors, I should state these do not constitute any legal documentation, it’s really just a theoretical exercise to help compare two asset classes. Again, not a solicitation.

By creating a slate investment that includes completion funding as part of the investment mix, we lessen the risk and decrease the time to getting the money back.   How does that affect the APR?

With the inclusion of completion funding in a portfolio, the APR of a film slate is looking relatively competitive.  If you’re an investor, you may be asking yourself, “Well if it makes that big a difference why not focus only on completion funding?”  It’s a great question, there are many funds that do.  So many in fact, that the playing field is getting fairly crowded.  Especially when you compare it to the other funds that focus on development throughout the film industry.

If a fund only offers completion funding, It would be difficult to establish the long-term relationships with the emerging talent necessary to make an organization like this work.   It would also be harder to attract high-end prospects for bigger films with more recognizable names.   If a fund does a mixture of the two, it can be a very good way to find new filmmakers and help them pass the goalpost on their first film.  Once they’ve done that, you can start to work with them on future projects at an earlier stage.  By doing this, the fund creates a better vetting process and attracts higher-end talent. 

With that in mind, a mix of investments seems to further the goals of the organization and the industry in a much more cohesive manner.   It also starts to sound a lot like Staged Investments, like Seed Stage, Series A, B, C, and the like.  Don’t worry, we’ll have a much more in-depth conversation about this later in the series, as well as a couple of other blogs on the site tagged “Staged Financing”

But first, We’re going to talk about some of the excitement associated with both of these types of investment.  The Decacorns and Breakouts. That blog can be found below. Again, for legal reasons I need to state that none of this should be considered financial or legal advice, as I am not a lawyer nor a financial advisor. Further, this is not a solicitation for funding or investment.

The only thing I will solicit you to do before finishing up this beast is a blog is to join my mailing list so you can grab my free film business resource package. (segues, eh?) It includes a FREE Deck template to help you talk to the investors you’re probably considering approaching if you’re reading this. It’s also got a free e-book, and other money and time-saving resources. Check it out below.

7 Ways to become a leader in your Filmmaking (or Any) community

In any community, there are members who get more done than others. Some people rise to the top of the pile, while others tread water and don’t move their projects forward. Some people are only tolerated in their community, while others become leaders. It’s not random, the people who become community leaders do certain things to set themselves apart from the pack.

Successful entrepreneurs and filmmakers have a way of becoming leaders in their communities. The qualities required for both are remarkably similar. What are those qualities you ask? Fear, not my intrepid reader, what follows is a list of the 7 ways to become a leader in your filmmaking (or any) community.

1. Show up.

The old adage of half the battle is showing up is very true. If you always show up, then the community will begin to know you. After a while, you’ll become a face. You’ll get to know the other members of the community. If you’re always there then the organizers will eventually trust you with more responsibility. As you become more ingrained in the community, you will naturally figure out how the community functions. Once you know how the community functions, you can begin to become a leader within it.

2. Learn People’s Names

I’ll admit that I’m kind of bad at this one, but it really does make a difference. When you can greet a person by their name, then you’re going to forge a much better connection and business relationship with them. It can be hard to remember everyone’s names when you meet a lot of people at a networking event, but it really is worth the time and mental energy.

3. Actively participate

If you want to become a leader, you need to be noticed. It’s been said that only about 1 in 10 members of a community actively create content for it. If you sit in a corner and mess around on your phone, no one is going to notice you. If you ask intelligent questions, you become a part of the conversation. Take the time to actively participate, and you’ll be amazed at what it will do for your career.

4. Connect Both Online and Offline

If you only see members of your community once a month at whatever event you all frequent, your ties to them won’t be that strong. Assuming we’re talking about a professional community, connecting on LinkedIn will be the best place to do this. Google Plus and Twitter can also be good. Once you’ve known someone for a while, Facebook might not be a bad idea but you might want to add them to different lists in order to keep your personal and professional lives separate.

5. Don’t make it all about you.

The essence of community is being a part of something larger than yourself. Unfortunately, many people only take part in communities because they feel like they can get something out of it for their own personal projects. If you focus not only on your needs, but the needs of others, then you’re going to be able to get a lot farther in your community. Successful people never forget the ones who helped them get there. Not everyone you help will be successful, but if you help enough people then some of them will.

6. Help others before you ask for help.

If you have the resources and ability to help someone, you should. Time is one of those resources, so I’m not saying let your own projects or health fall by the wayside. However, helping people is key to building social capital.

7. Celebrate the successes of your community

If something good happens to someone in your community, celebrate it. Be happy for your community members who find success. Being envious of people for their achievements will prevent you from furthering your own goals. Negativity only creates more negativity. Luckily, the same can be said for positivity. If something big happens within the community, then share it. Revel in it. Take pride that you’re part of a community that is making things happen.

People remember how others respond to their success. Having found some level of success myself, I can tell you far too many respond with envy. They respond by tearing you down because they feel threatened by your success. Those people are toxic, and you need to associate yourself with people who will celebrate your successes. The only way to surround yourself with those types of people is to be one yourself.

Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.

Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.

Thanks for reading! This blog is one of 21 articles included in The Entrepreneurial Producer. As part of the celebration of the relaunch of my website, I’m giving that Ebook away FOR FREE as part of my film business resource package. In addition to that FREE e-book, you’ll also get some other templates, form letters, as well as money and time-saving resources. You’ll even get monthly digests covering industry topics you’ll need to know to be a successful producer.

Check out the tags for more related content