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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Can Independant Filmmakers Survive the Streaming Wars?

It’s no longer a controversial statement that streaming has changed the whole game for independent film distribution.  It hasn’t been controversial for quite a while.  However, it is becoming apparent that not only has streaming changed the game, it might as well have become the game, at least here in the US.  That’s not really a good thing for Indies.  Here’s why.

Streaming has made such a vast library of content available people don’t need to buy movies.

The biggest reason that Subscription Video On Demand streaming has engulfed the entire media landscape is that it’s put a giant library of films at the fingertips of anyone for only around 6-15 bucks a month for most platforms.  It’s putting entire on-demand catalogs that are even more convenient than owning a film on DVD.

It wasn’t so big a threat when there were only a few companies in the space, but once HBO blew the doors open with the launch of HBO NOW the writing was on the wall for those of us paying attention.  We all knew that Disney and Warner would follow.  With Disney+ putting a gigantic pile of legacy content on their platform, it’s going to get harder and harder for independent films to compete.

Physical Media used to be the primary way people could watch films when they felt like it.

It used to be that licensing a film to A TV station was pretty lucrative, and didn’t really affect your physical media sales.  In fact, it often increased them.  People didn’t want to have to wait around for your film to screen if they liked it, so they bought the disk.  Yet SVOD companies license a film, and for the term of the license their subscribers can just watch the film wherever, whenever they want. 

This level of convenience has made it significantly more difficult for filmmakers and distributors to sell content for a transactional fee which has a much higher margin per unit sold.  When Netflix started the game, it was still just one platform, and many people didn’t have the level of internet needed to stream without a significant amount of lag.  This result often ends up that filmmakers and distributors are left with whatever the license fee for each film is, and will see little to no revenue beyond those licenses.

It basically means that not only is streaming taking up a much bigger part of a given film’s revenue mix, it’s also shrinking the pie. 

With so many platforms and so much content, there must be lots of licenses and acquisitions being made though, right?

It depends on how you’re looking at it.  Sure, these platforms are creating massive amounts of content, and acquiring still more.  However, the price they tend to pay for acquisition is lower than you’d think, and some of the terms tend to be a bit unreasonable.  For originals, it’s a long road requiring a strong package that 95% of filmmakers will never reach. 

You might think that many new platforms are going to be looking to make even more original content in order to make sure subscribers keep paying for their content.  There’s some truth to that, but the problem is that there are so few outlets likely to survive the streaming wars that the system of gatekeepers that the streamers were supposed to break may become even fewer than they were before. 

The big problem here is that there are A LOT of these same sorts of platforms seeking the attention of an oversaturated audience and market.  The impact is that there’s a lot less money to go around for indies, and much of the consumer base is just subscribing to a few services, and not buying a lot outside of that.  So unless a filmmaker has a strong engaged audience, they’re not going to be able to compete. 

Essentially, the SVOD wars intensify the problem creators have been facing for several years, and that’s the fact that while anyone can get their film out there, getting anyone to see it is an entirely different matter. ​

It all comes back to audience engagement.

This comes back to one thing. Build and engage with your audience, and create content that speaks to them on a deep level. It needs to evoke an emotion or speak to an experience that no one else can. In order to succeed, we Indies need to defragment our market and find our tiny place in it. We don’t need to be 8 people’s 6/10, we need to be 2 people’s 10/10.

Thanks for reading. This one was more of a think piece than my general practical advice. Let me know what you thought about it in the comments. If you like this and want more, please consider joining my mailing list, you’ll also get a great film business resource pack that includes templates, a free ebook, a whitepaper, and more!

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5 Things to expect from the 2019 American Film Market #AFM2019

AFM this year will be interesting.  Here’s the current state from someone who’s been going for 10 years, and has been a Practicing Producer’s rep for 6 years.  Two quick things before we get started.  

First, You should definitely go to AFM at least once.  It’s eye-opening, and if I hadn’t done it I probably wouldn’t have a career.

Second: These opinions are mine alone, and have not been approved, endorsed, or otherwise condoned by the International Film and Television Alliance (IFTA) owner of the American Film Market.  (AFM is also a Registered Trademark of the IFTA.)

And with that, we’re on to the less optimistic (or legal) parts of the current state of AFM and Film Markets.

Film Markets could be in trouble.

All Film markets might be in trouble.  I’ve spoken with many buyers, and they’re pretty much ready to pack up shop.  There’s nowhere near as much money in it as there used to be, and it’s difficult to contuse to turn a profit in this changing landscape.  They’re not going away in the next year or so, but they are likely to recede over time. 

AFM is Becoming much more filmmaker focused in their marketing, which means less involvement from Buyers and Sales agents.

AFM Themselves have been shifting focus to their filmmaker services and somewhat away from their buyer and exhibitor services.  

That's not necessarily a bad thing in general.  It's what I tend to do with content like this, but I go for a very different customer set than AFM has historically. 
​ 
Buyer numbers have been on the decline for a few years, and if they continue to decline it will be difficult to attract the higher-priced exhibitors, and the culture of AFM and all markets is likely to change.  The Image below should help illustrate my point. 

The current system is prone to collapse in a down economy

2008 was Terrible for AFM.  I’ve been expecting a recession to happen at any point since around this time last year.  While the time that I was expecting it to happen seems to have passed, I’m still convinced of an impending recession, but willing to admit I might have missed the timing and the immediacy. 

In any case, when the recession happened in 2008, the market dried up and it still hasn’t fully recovered.  If we were to see another recession, it might spell the nail in the coffin for AFM and potentially the entire market scene.  What would replace it has yet to be seen, as after Distribber’s recent collapse it will be very interesting to see how filmmakers can get their films out there. 

Buyers have been on the decline for a few years. 

I mentioned this above, but total buyer attendance have been on the decline for the past 2 years.  It’s difficult to tell whether the size and number of deals have been increased, but given that the number of tickets sold on the top 100 box office films have remained largely stationary despite the box office revenue going up as well as a few other metrics and the general sentiment of my contacts on the sales agency side I’d be inclined to doubt it. 

Again, if buyers dry up, sales agents won’t keep coming.  When I’ve talked to sales agents about this over drinks, there’s a feeling of extreme pessimism bordering on depression about the current state. 

AVOD and SVOD buyers likely to be the biggest players this year. 

Given that many believe there’s a looking recession, SVOD and AVOD players are going to be even more sought after than they already are. AVOD is free for all, and SVOD doesn’t require extra payment on the consumer end. Given that the economy is a house of cards, many people who are struggling financially are more likely to cut services and stop buying individual rentals. They might even cancel subscriptions, which is likely to lead to a greater viewership of TubiTv, PlutoTV and other similar services.

Thanks so much for reading. If you want more on AFM, Check out Last Week’s blog, my first appearance on IndieFilm Hustle, or my book. Also, if this all seems a little dauting, consider submitting your film via the link below.

6 Things for Filmmakers to Prepare for the 2019 American Film Market #AFM2019

With AFM 2019 right around the corner, it’s time for filmmakers to prepare for the market and do their best to get a traditional distribution deal.  For those of you who don’t know, AFM is still the best place for American Filmmakers to get traditional, non-DIY distribution.  So, with that in mind, here are the major things you need to prepare. 

Also, For legal reasons, I need to say that the following: The American Film Market® AFM® are registered trademarks of the International Film and Television Alliance® (IFTA®) Any and all Opinions expressed in this video are Not Endorsed by the International Film and Television Alliance® or leadership at the American Film Market.

Just in case you'd rather watch than listen, Here's a Youtube Video on this topic!

Leads Lists

You need to know what sales agents and distributors you want to submit your film to. This starts with research and leads lists.  You need to figure out which sales agents tend to work in your genre and budget level, what similar films they’ve helped sell recently, what their current market lineup is, whether they require recognizable names, and who the name of their acquisitions lead and CEO are. 

To make your job easier, I put a free template in my resources packet which you can get by signing up below. 

Join my mailing list and get the FREE AFM Advance contact tracking template. 

Trailers

You need to get their attention, and a trailer is a great way to do it.  I’ve gotten limited theatrical agreements based on an excellent trailer.  See that trailer here.
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If you don’t have a trailer, you can submit without it.  However, it will be much less likely to achieve the desired results. ​

Pitches

There are elements of an indie film pitch.  I tackle the topic in extreme detail in my book, but here’s an overview of what needs to go into that 10-30 second pitch.

• Title of Film

• Stage of development

• Any attachments

• Genre

• Sub-Genre/Audience

• Budget Range

Check out my book on Amazon for the full chapter

Related: What investors need to know about your movie

Key Art

You’ll need a poster, even if it’s a temp poster that’s eye catching and will convince the sales agent they can move units.  It can be a temp poster, but it needs to invoke the spirit of the film and imbue a sense of intrigue for anyone who looks at it. 

Promotional materials

Once you’ve got the key art, you can use it to create promotional materials.  One of those would be a quarter page flyer, another may be a tri-fold brochure.  I’ve included a pages and word document for use at festivals in the resources packet, but it could be modified for AFM.  If I get a few people tweeting at me or commenting the want it on my youtube videos that they’d like that, I might make it. 
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​Screening links

If your film is done, you need screeners. The distributors will need to see it, and they’ll probably want a Vimeo screener. Youtube unlisted or private won’t due, as the compression on Youtube makes it difficult to see all the technical issues with the film.

If you can get it out in advance of the market, all the better. It normally takes a few markets to start seeing money from your film if you don’t get a minimum guarantee. Getting that started would be in the best interest of all involved.

Thanks so much for reading. If you liked this and want more, come back next week for what you should expect from AFM 2019, as well as where the market seems to be heading. OR, if you can’t wait, you could listen to me on Indie Film Hustle Talking about AFM. 

You could also check out my book!

 It’s the first book on Film Markets, used as a supplemental text in at least 10 film schools, and is still the highest selling book on film markets.  Check it out on Amazon Prime, Kindle, Audiobook on Audible, Online at Barnes and Nobles, Your Local Library, and anywhere books are sold. Also, join my email list to get a great indiefilm resource package totally free!

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One HUGE Don't When Dealing with Film Distributors

As with nearly anything in life, there are dos and don’ts when you; ’re dealing with your independent film distributor.  Also as with most things in life, there is (at least) one thing you can do that will irreparably harm your relationship with that distributor and might even result in legal action taken against you.  What is it? Read on to find out.

DON’T GO AROUND YOUR DISTRIBUTOR OR SALES AGENT TO SELL YOUR FILM

Once you sign with a producer’s rep, sales agent, or Distributor for your project, they have the right to negotiate on your behalf.  Many buyers won’t deal with filmmakers directly, so the point of contact will either be your producer’s rep or Sales agent. 

While most buyers will appreciate the filmmakers helping to push the film, they will not be so grateful for reaching out to the buyer directly about reports, or any other form of unapproved contact. 

This isn’t to say that you shouldn’t help promote your film in ways that it makes sense to do so.  See the blogs below for reasons why. 

Related: WHY you should help your distributor MARKET your MOVIE

Related: HOW to Best COLLABORATE your Distributor MARKET your Movie

The biggest takeaway for how to market your movie that you can take from the blog above is to only post approved links.  If you’re smart, you’ll also include Vimeo on Demand and Vimeo OTT as a holdback for you to sell the film through your own website.  Distributors tend not to utilize that right, so it’s generally something that you’ll be able to negotiate.  It’s included as a holdback in my standard template contracts for the filmmaker’s country of origin.  I do stipulate that it’s generally subject to advisement regarding the timing of the release.  

Another thing that you should be fine “selling” is whatever you need to fulfill any crowdfunding obligations like DVDs, Blu-Rays, and TVOD Screeners.  Although again, you should make sure to negotiate this into your distribution agreement.  That said, it’s never been an issue, although it might be subject to the same sort of advisement on timing as the Vimeo on Demand example above.

If you distributor does not agree to either of the stipulations above, you should consider walking.  Here are some tips on vetting your distributor/Sales agent, and producer’s rep.

Related: How to vet your distributor/Sales Agent

Related: How to Vet Your Producer’s Rep

The biggest thing you need to keep in mind is that no matter how much you disagree with the choices on artwork and marketing made by the distributor, you should not post any unauthorized sales links.  If you do, you could be putting yourself in a pretty massive legal liability. 
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This one came out a little short, but thanks for reading anyway.  If you like it and want to see more content like this, you should join my mailing list.  You’ll get monthly blog digests segmented by topic, it’s like a short e-book in your inbox every month FOR FREE! You’ll also get access to my resources packet, which includes an actual e-book, whitepaper, several templates, and more!

Finally, if you’ve got a project you’d like a guiding hand through this process, I offer individual consultation, as well as consideration for my distribution, marketing, business planning, and financial services packets, use the submit your film button.  Thanks, and see you next week.

Why you NEED to HELP your Distributor Market your Movie (If They'll Let You.)

If you think your work is over when you finish making your film, and someone will just give you a few hundred grand more than it cost to make it so you can make your next one then you’re in for a real wake-up call.  Sadly, there’s no money in making films, only in selling them, and the work of selling them is no longer solely on your distributor.  Or, at least you shouldn’t count on it being that way.  Here’s why.

But before we get started on that, it’s worth a few sentences analyzing the distribution and marketing are related, but NOT the same thing.  So what is the difference between film marketing, film sales, and film distribution?  The simplest way to put it is that Distribution is making your product available for sale, and marketing is convincing end consumers to buy it.  Sales is the process of getting it to the various distributors.  Now that that’s done, on to the topic at hand. 

Also, before we get started it’s important to note that not all distributors will accept your help.  Some control and participation in your home market should be part of your negotiation with your distributor if you’re dealing with them directly or your international sales agent if you’re not. 

1.More sales and more money for everyone!

If you want to make money from your film and have the distributor keep the marketing for the film intact, you’re going to have to give them a reason WHY they should listen to you.  As such, you’ll have to help push the film out there.  Also, after they recoup the money they put in, you will be taking the lion’s share of future sales, so it does have a dramatic impact on not only how much you get paid, but also how soon you get paid. 

Also: most distributors don’t do a lot beyond the initial publicity push.  If you want to continue sales and generate awareness of your movie, you’ll need to keep talking about it.

2. Marketing your work builds your brand

In the words of Alex Ferrari of Indie Film Hustle, "if you don't think you need a brand as a filmmaker, you're wrong.

​Generally, a brand is defined as every interaction you have with customers or potential customers.  So the first step in building your brand is building awareness of your work.  That means marketing your movies. 

Do make sure not to be spammy or a jerk about it though.  No one likes a jerk.  Unless you’re a wholesaler to the jerk store.  #DatedReferences

Related: 5 DOs and DON’Ts for selling your film online.

3. You’ll get a much deeper understanding of the process

If you want to make a career in film, you’ll need at least a cursory understanding of what it takes to sell a film, unfortunately, there’s no money in making films, only in selling them.  Getting a much better idea of how this process works will make it easier for you to make a salable film in the future. 

4. Helping Gives you a better idea of what’s going on with your movie

One of the biggest frustrations faced by many filmmakers is not understanding what’s going on with their films.  One of the best ways to stay in the loop is to help your distributor with marketing.  This can give you a lot more up-to-the-minute data that you can act on to make better marketing decisions and with luck get closer to creating a positive feedback loop of sales.  Admittedly, in the current system that’s A LOT of luck. 

5.  If you’re putting the work in, your distributor will be more likely to take your requests.

If you’ve got more face time, and your film is performing well, your distributor is more likely to make pitches they might not otherwise make. Part of that comes down to perspicacity, and part of it just comes down to numbers.

Thanks for reading! If you liked this post, please share it with your filmmaking community on your social media, or drop a comment down below with your thoughts about what you’d like to know about film distribution, grab my free Indiefilm business resources packet for an e-book, a whitepaper, a bunch of templates, and more.

As you may know, I don’t just talk about distribution, I’ve run companies that do it, and still connect filmmakers to the better players in the game.  If you’d like your film to be considered, use the services button below.  That’s my primary business, in fact.

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How Did Film Distribution Get So Broken?

It’s no secret that many (if not most) filmmakers think film distribution is broken.  While there are many reasons for it, part of it is due to the rapid change in the amount of money flowing to distributors, and what constituted effective marketing.  What works for marketing films now isn't what worked in the past, and the systems distributors built themselves around have fallen apart.  Here's an elaboration.  

First, some history.

​Independent Film Distribution used to be primarily a game of access.  By controlling the access and becoming a gatekeeper, it was easy to make buckets of cash.  If you had a VHS printer and access to a warehouse facility that could help you ship to major retail outlets you could make literal millions off of a crappy horror film.

In those days it was also significantly harder and significantly more expensive to make a film, as you’d need to buy 16mm or 35mm film, get it duplicated, cut it by hand using a viola, and then reassemble it and have prints made.  This was a very expensive process, so the number of independent films that were made was much smaller than it is today. 

Then DVD came along, and around the same time some of the early films from the silent era that actually had followings entered the public domain.  As such, a good amount of companies started printing those to acquire enough capital to buy libraries and eventually build themselves into major studios.  Sure, DVD widened the gate a bit, but it also expanded the market so everyone was happy. 

Around this time, Non-Linear Editors and surprisingly viable digital and tape cameras were coming into prominence.  As a result, it became much more possible to make an independent film than it was before.  Of course, at that time it was still beyond the reach of most people, and since the average amount of content being made went up, the demand was growing enough that there still wasn’t a massive issue with oversaturation.

A similar expansion was expected with Blu-Ray, but at around the same time, alternative services like iTunes were starting to become viable as broadband internet was becoming commonplace.  As such, the demand for physical media started to dwindle, and as a result, the revenue being made dropped.
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At the same time, Full HD cameras were now very affordable, and some even rivaled 35mm film.  So the amount of money being made in the industry went down, and more films were being made than ever before. 

Shortly after that, the ability to disintermediate and cut out the gatekeepers came to be.  As such, the market became flooded with often low-quality films that the challenge was no longer getting your film out there, it was now getting your film noticed.  That’s where we are now, and nobody has fully been able to solve that problem yet. ​

Here’s a summary of how we got there, and how the process of distribution has changed.

Access USED to be enough

It used to be that access was all you needed.  Once you had that, you could make an insane amount of money selling other people’s content.
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Sell it on the box art

The box art being caught was the most important thing.  Stores didn’t let you return movies because you didn’t like them, and other than your own limited circle of friends consumers didn’t have a lot of power to let people know about bad movies, or bad products in general. 

Sell it on the trailer

Even if it was bad, nothing would come of it.  Once you had their money, that was all you needed.  The idea of making your money in the first weekend before bad word of mouth got around was much more viable as people couldn’t just tweet it out or rant about it on Facebook or YouTube.

Let’s contrast that with how things work Now:

Access is easy

Anyone with a few thousand dollars can put their film up on most Transactional platforms on the internet.  You can also put it on Amazon or Vimeo yourself for free.  There are very few in terms of quality controls. 
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the Poster/keyart is still important, but reviews are more important.

Sure, people still get their eyes caught by a poster.  But the reviews matter significantly more in terms of getting them to a purchase decision.  The poster may catch their eye, but the meta score from users on whatever platform you’re watching the film on is important. 

The trailer might still be the deciding factor

Generally, after people see the poster, they’ll read the synopsis, and then they’ll either watch the trailer or read the reviews.  If they watch the trailer, they may have more leniency on reviews.

Also, if the trailer is really good, it can get a bit of viral spread.

If it’s bad, it will become known.

Thanks to social media, if the film is bad it’s not hard to let people know about it. If the film is mismarketed, people will know. As such, authentic marketing to the film is extremely important.

Thanks for reading! If you liked this blog, you’ll probably like the stuff you get on my mailing list. That includes a film marketing & distribution resource packet, as well as monthly digests of blogs just like this one. Or, if you’re researching whether or not you want to self-distribute your independent film, you might want to submit it. I have hybrid models for distribution that help filmmakers build their brands, and get the right amount of visibility for their films so they can rise above the white noise. Check out the buttons below, and see you next week!

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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.
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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.
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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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7 Things to Prep BEFORE STARTING your Festival Run

Far too many people consider the festival circuit as the be-all and end-all of their marketing and distribution plans.  While there are quite a few things wrong with that approach from a distribution standpoint.  (See last week’s blog here for an outline of why) film festivals can be a great way to market your film.  Although getting ready to attend a film festival is generally a bit hectic.  There’s always a lot to do, and it’s easy to forget something.  So with that in mind, I’ve prepared a prioritized list of the top 7 marketing assets you’ll need to prep before going to a film festival.

1. Business Card

​If you bring nothing else, you should bring a business card.  Well, also a set of clothes I suppose, but I digress.  If you want to make lasting connections, you need a way to follow up with people.  If you want people to follow up with you, they’ve got to have a way to reach you. 

Simply saying that you’re easy to find online is not really an acceptable answer at networking events like this.  It’s far too easy to forget that they were going to reach out at professional events like this.

2. All your social media pages Set up and active

As we discussed last week, a big part of the reason to attend film festivals is to build your brand and build awareness of your film.  You want to make sure your film is easy to find online, and that there’s a way you can establish a connection with anyone who might want to buy it in the future as soon as you’ve connected with them at a film festival. 

For more, check out this article I wrote on proper Facebook management.

Related: How to manage your indiefilm facebook page

3. Your Website

Its 2019.  Your film needs a website.  Even if it’s just a splash page going to your social media outlets.  The only reason this is below social media is that if you’re going to drive people to your website when you’re not at a festival, you’re going to need something like social media to do it. 

For more information on what should be on your website, check out the blog below.

Related: 13 things you NEED on your Production Company Website

4. Printed Materials to give away

Even a business card can sometimes be hard to remember, and it’s nowhere near enough to capture the attention of the overworked journalists that may attend this film festival.  That’s why you need larger, harder-to-lose festival printouts.  These can give all the information a time-strapped reporter would need to write a quick blurb about your film, and direct to something like an EPK for more detailed information.  Learn more with the article below.

Related: Printed materials for your festival run

But speaking of EPK…

5. An EPK (Electronic Press Kit)

Every filmmaker will have assets that would be useful to a reporter, but not really something that could be easily handled by a printed brochure.  That’s where an EPK comes in.  The EPK is more detailed information and assets that can be used by a journalist or reviewer.  It should have blurbs, links to your trailer, sizzle reels, and interviews if you have them. 

For more information, click the link below.

Related: Everything you need in your Indiefilm EPK

6. An Email List Capture page

Going back to your website, if it’s anything more than a simple splash page, you need a way to capture the email address of people visiting your site.  With their consent, of course.  This will be much more valuable to you than almost any other social media, as it’s more static and doesn’t change its terms as often as other platforms may.  Although that’s been less true as of late with Gmail’s aggressive filtering systems. 

Related: 5 Steps to Grow your Indiefilm Email List

7. A Giveaway for people joining your list

Finally, if you have an email list set up, you should give something away to entice people to join.  I’ve listed 5 ideas for filmmakers below, as the standard fallbacks of ebooks, and other marketing giveaways aren’t always valid.  Check the article below to see what I mean. 

Related: 5 Giveaways for your IndieFilm Email Marketing

Thanks so much for reading!  If you want more content like this, you should join my mailing list.  Just as it says in #7, I have a few giveaways for you including a monthly blog digest and a FREE Film Marketing Resource package!

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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 Printed Materials you Need for Film Festivals and Markets

Most filmmakers only think about festivals when they’re getting ready to market their film.  There are lots of reasons that this line of thinking is flawed, however, it would take far more than a 600-800 word blog to even begin to touch on them.  However, if you’re going to have ANY level of success from your festival run, you’re going to need some really snazzy printed materials.  This blog outlines a couple of examples I’ve used personally and had success with.

Why you need Good Printed Materials

Just getting into a festival is no guarantee people will see your movie.  Generally, you have to spend a good amount of time and energy driving people to your screening.  One of the most effective ways to do that is by having them a tangible piece of paper that has all the information they’ll need on it. 

Generally, the cheapest thing you can hand them is a postcard, however, for festivals, I strongly prefer a Tri-Fold Brochure.  The Tri-Fold Brochure has more space for everything a reporter or reviewer may need to know about your project, all put into a piece of paper that can be easily turned and segmented to group relevant pieces of information. 

The point of getting into a film festival is less about getting people to see your movie, and more about validating your film and giving it a chance to get meaningful press coverage.  Both of these things are significantly more likely to happen if you can make a reporter’s job easier by giving them all the information they need in one compact piece of paper. 

Postcard Outline

Generally, you’ll want the promotional art for your project to take up the front of your postcard.  If you don’t want it to take up the entire front of your film, you could leave a space for screening times towards the bottom.  If you want to get more use out of these cards, you could also leave a space that can be covered with a return address mailing label on the bottom where you can put the time and locations of screenings at this festival.

On the back, I’d put a synopsis, information about the director, and maybe a little bit about how the film was shot.  You probably won’t have space for much else.

Brochure Outline

I’ve added a template for this in my resources section, but I’ll outline what I mean here.
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On the front panel, you’ll want to put the key art, where the film is screening (The mailing address label works well here too), and maybe your social media links or where they can purchase the film.

When they open the brochure, on one of the two panels you reveal you’ll want to put some stills from the film to add visual interest. On the other panel, they’ll see when they open your brochure, you’ll want to outline your production company, including your creed/mission statement and other projects you’ve made.

Then they open the other panel, you’ll want them to see photos and bios of your key cast and crew.

On the back panel, you’ll want a bit more art, a bit about what you’re working on next, the next steps for the film, and then a press contact and a link to download your EPK. If your film is available for sale anywhere, you’ll also want to include that there.

I actually a template of this format for MSWord and Apple Pages. You can find it in my FREE Resource package alongside other templates.

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When should you Contact a Sales Agent/Producer’s Rep about your Film?

Seeing as how a majority of my business still comes from representing filmmakers to sales agents and distributors, it’s unsurprising that a question I get at my events and in my inbox quite often is when is the best time to approach a producer’s rep, sales agent, or distributor.  Well, as with many things I tend to blog about, there’s a short, true, and mostly unhelpful answer to that question. There’s also a longer, more nuanced, and more correct answer.  This blog attempts to answer both in under 800 words.

The Short Answer: As soon as you realistically can

Marketing a film on a budget isn’t something you can do overnight.  It takes a while to build a social media presence, as well as to build up a base to market your film to.  It’s not something that can be done efficiently overnight, so you’ll want to get some marketing support on your project as soon as possible.  That’s why you hire either a producer’s rep or a Producer of Marketing and Distribution (PMD). 

The Long(er) Answer: When you can afford them, and they’re willing to come on your project.

Most people tend to approach Producer’s Reps and PMDs only when their film is completed, or even after the initial festival run of the film.  This can shut a surprising amount of doors for you. I had one client who submitted to Sundance and was rejected outright.  The next year, after I connected him to US Distribution, the distributor talked to a programmer at Sundance who said that they would have accepted the film and programmed had it been brought to his attention. Unfortunately, they’d given premier status to another, smaller festival so it was too late.

PMDs and Distributors often have connections to help get you past the initial round of screening at major festivals, which can be all you need to actually get into the festival.  99 films out of every 100 submitted to Sundance don’t get in.  90 out of 100 of those are declined by extremely low-paid (or unpaid) staffers who look for any possible reason to decline so that the submission queue is more manageable for the actual festival programmers.  If you have the right rep, PMD, or distributors they can help you bypass that first layer of screening, giving you a huge leg up. ​

How much will this cost you?

Producer’s reps tend to get a bad rap for charging up front.  If all they’re doing is brokering your film to sales agents, and they’re taking a commission, then they really shouldn’t need to.  I don’t.  However, if I’m writing a business plan, deck, pro formas, or developing a financing, festival, marketing, or distribution strategy, I do charge upfront. We all have bills to pay, and just as you should always pay all other members of your crew, you should pay your producers too. My services are packaged based on need, more information on my services page.
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Generally, it’s wise to allot some money for marketing as soon as you create the initial budget for your film.  You should do this even if you plan on raising it at a later date, say after completion of principal photography. It may be wise to keep this budget separate given a distributor will most often foot some of the bill and sometimes it can bump you into a higher guild tier.

Related: The 4 Stages of Film Financing

If you’re raising money for prints and advertising, then you should allocate some of that money to a Producer of Marketing and Distribution (PMD) or Producer’s Rep to help you execute your marketing plans efficiently. 

Essentially, if you’re looking for a rep to do anything other than broker a completed film, you had best expect them to charge you some money upfront.  Unless the Sales agent pays you a minimum guarantee, it’s unlikely that the film or the filmmaker will get paid anything for about a year after the initial signing.  You can’t expect a Service provider to wait even longer than that to make any money, especially when there’s a significant amount of work involved in the creation and execution of the work you’re asking them to do. 

If you want more resources to help you distribute your film, you should grab my free film business resource pack. It’s got an e-book, a whitepaper, a deck template, a film festival promotional brochure template, and a whole bunch of money and time-saving resources. Also, if you need a producer’s rep, check out my services page.

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5 Takeaways from AFM 2018

I’ve been going to the American Film Market® for 9 years now, and I’ve been chronicling what’s going on with the market in many ways from podcasts to blogs and even a book or two.  So given that AFM® 2018 wrapped up yesterday, I thought I would do something of a post-mortem.  While I’ll outline my feelings on the whole thing in this blog, the long and short of it is that the state of the American Film Market is mixed

But before I dive into it too deeply, I’d like to say this.  My vantage point on this is purely my own, and subject to the flaws that one would expect from experiences of someone only attending the market for a few days this year.  I went on an industry badge because I simply needed to take a few meetings to check in on things I’ve already placed with Sales Agents, as well as shop a couple of my newer projects to the people I prefer to do business with.

I considered exhibiting this year but decided against it after hearing how slow Cannes was in May, as well as the massive drop in buyers AFM Experienced last year.  We’ll see how that changes next year.   One last note, I wrote this blog in traffic in LA, while my wife drove.  I normally don't publish first drafts, but it's time-sensitive, so apologies for any typos. 

So without Further Adieu, let’s get into the post-game.

1.  Buyer numbers appear to be up, and they’re buying

Word in the corridors last year was that AFM went from around 1800 buyers in 2017 to around 1200 buyers in 2017.  After talking to a few sales agents who shall remain nameless, it appears that the total buyer count at this year’s AFM is somewhere in the vicinity of 1325.  While walking the corridors I definitely saw a lot more green badges than last year. 
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Not only were there more buyers there.  It appears that they’re actually buying films.  I heard several sales agents remarking that they had closed multiple sales at the market, and the buyers were sticking around much longer than they have in years previous.  Overall, this is good for the market, especially given that for many years almost all of the business was done in follow-up not actually during the market, especially for smaller-budget films. ​​

2.  Exhibitor numbers appeared to be down

In previous years, both the second and third floors of AFM were packed with smaller sales agencies,  This year, only the third floor was booked and even then it seemed as though fewer offices were booked.  Also, it appeared that many of the offices on the 8th floor seemed to be vacant. 
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After talking with a few exhibitors, it appears likely that this trend is going to continue next year.  Several I talked to were unsure of whether or not they would continue to exhibit at AFM.  Although we’ll see if new names come up to take their places.

3. The Entirety of the Loews required a badge to access

This made a lot of headlines prior to the market.  I was hesitant to believe that this would be a good thing for the market, particularly for the high priced film commission exhibitors on the 5th floor.  I only showed up to the market on Saturday, but apparently it was extremely quiet for the days preceding it.  The market seemed somewhat slow to me, but mildly busier than I expected it to be on Saturday, and, but began steadily dropping off on Sunday and Monday, and Tuesday was VERY slow, even by the generally slow standards of what is functionally the last day of the market.  

Word on the street is that many of the regular exhibitors on the 5th floor were not too happy with it, especially for the first few days.  Although I’ll keep my sources on that anonymous.  One notably missing 5th-floor exhibitor was Cinando.  It’s possible they moved, but the spot that they normally occupied was vacant.  This could be due in part to the growing prominence of MyAFM. 

In some ways, it was nice, though.  It was never too hard to find a seat, and once you got into the building there were no additional security checks.  Not sure if that makes up for the drawbacks though. 

4. The Location Expo on the 5th floor was fantastically useful, but under-attended

AFM opened one of the Loews Hotel Ballrooms for use by film commissions and specialty service providers starting on Saturday.  It was really useful to be able to talk to various commissions and compare incentives.  However, there very few times I saw more than a handful of people there, and I dropped by at least 8 or 9 times because of various sorts of business I had to do with some of the vendors in the rooms.  (More soon)
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Overall I hope to see it again, but I can’t help but think it would be more useful to all involved if it were in an area that did not require a badge to check out. 

5. Early Stage Money exists there (For the Right Projects

I was surprised to see how much traction my team got for an early stage project, despite the fact it has a first time feature director.  Admittedly, we came in with a good amount of money already in place, and it’s a good genre for this sort of thing but the fact that there might be a decent amount to come out and report in blogs early next year.
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Thanks so much for reading!  If you haven’t already, check out the first book on film markets, written by yours truly.  Also, join my mailing list for free film market resources so you’re ready for future film markets.

GET THE BOOK ON AMAZON

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All opinions my own. AFM and the American Film Market are registered trademarks of the Independent Film and Television Alliance (IFTA) This article has not in any way beed endorsed by the IFTA, AFM, or any of its affiliates.

How to Write an Independent Film Business Plan - 4/7 Marketing Section

In this installment of my 7 part blog series on business planning, we’re going to take a look at the marketing section of the plan.  This section is likely to be the longest section, as it encompasses an overview of the industry, as well as both marketing and distribution planning.  Generally, this section will encompass 3-5 pages of the plan, all single-spaced.  This is among the most important sections of the plan, as it is a real breakdown of how the money will come back to the film

Industry

In this subsection, you’ll want to define some key metrics of the film industry.  You’ll want to include its size, how much revenue it brings in, and ideally an estimate of how many films are made in a year, as well s the size of the independent part of the film industry vs the overall film industry.  If you want help with some of those figures, you should look at the white paper I did with ProductionNext, IndieWire, Stage32, and Fandor a few years back.  To the best of my knowledge, it’s still among the most reliable data on the film industry.

The fact that the film industry is considered a mature industry that is not growing by significant margins is also something you’ll also want to mention.  You’ll also want to talk about the sectors of growth within the film industry, as well as where the money tends to come from for independent producers, and a whole lot of other data you’re going to have to find and reference.  As mentioned above, the State of the Film Industry book linked in the banner below has much of this information for you.
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Overall, this section should be about a page long.  The best sources for Metrics are the MPA THEME report and the State of The Film Industry Report. You can find links or downloads of both of those in my free resource pack.

Marketing

The marketing subsection of the plan goes into detail about both the target demographics and target market of your film, as well as how you plan on accessing them.  To quote an old friend and long-time silicon valley strategist Sheridan Tatsuno, Finding your target market is like placing the target, and marketing is like shooting an arrow.  For more detail on how to go about finding your target market, I encourage you to check out the blog below, as my word count restrictions will not let me go too deeply into it here

Related: How do I figure out who to sell my movie to?

Figuring out how you’re going to market the film can be a challenge for many filmmakers.  Generally, I’d advise putting something more detailed than “smart social media strategy.”  I tell most of my clients to focus on getting press, appearing on podcasts, and getting reviews.  Marketing stunts can be great, but timing them is difficult to pull off. 
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All of this being said, you’ll need more to your marketing strategy than simply going to festivals to build buzz. The marketing category at the top of this blog, as well as the audience, community, and marketing, tags at the bottom of the page, are a good place to start.

Distribution

This section talks about how you intend to get your film to the end user.  This section should be an actionable plan on how you intend to attract a distributor.  This section should not be “We’ll get into sundance and then have distributors chasing us!” I hate to break it to you, but you’re probably not going to get into Sundance.  Fewer than 1% of submissions do. 
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The biggest thing you need to answer is whether you plan on attaching a distributor/sales agent or whether you intend to self-distribute.  if you’re not sure, this blog might help you decide. There’s lots more to it, I’d recommend checking the distribution category or the international sales tag on this site to learn more of what you need to write this section.

Related: 6 questions to ask yourself BEFORE self distributing your indiefilm

Somewhere between a quarter and a third of all the blogs on this site are devoted to distribution, so there’s lots of stuff here for you to use when developing this plan.  If you want to develop more of a plan than distributing it yourself, it’s also something I’d be happy to talk to you about it.  Check out my services page for more.

If that’s a bit too much for you but you still want more information about the film business, check out my film business resource package. You’ll get a free e-book, monthly digests segmented by topic, and a packet of film market resources including templates and money-saving resources.

This is part of a 7 part series.  I’ll be updating the various sections as they drop.  So check back and if you see a ling below, it will take you to whatever section you most want to read. 
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Executive Summary
The Company
The Projects
Marketing (This post)
Risk Statement/SWOT Analysis
Financials Section (Text)
Pro-forma Financial Statements.

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The 4 Stages of Indiefilm Finance (And Where to Find the Money)

Most of the time filmmakers seek to raise their investment round in one go.  A lot of people think that’s just how it’s done. As such, they ask would they try anything else. If you have a route into old film industry money you can go right ahead and raise money the old way. If you don’t, you might want to consider other options.

Just as filmmakers shouldn’t only look for equity when raising money, Filmmakers should consider the possibility of raising money in stages.  Here are the 4 best stages I’ve seen, and some ideas on where you can get the money for each stage.

1. Development

If you want to raise any significant amount of money, you’re going to need a good package.  But even the act of getting that package together requires some money.  So one solution to getting your film made is to raise a small development round prior to raising a much larger Production round. 

If you want to do this with any degree of success, you’re going to have to incentivize development round investors in some way.  There are many ways you can do it, but they fall well beyond my word count restrictions for these sorts of blogs.  If you’d like, you can use the link at the end of the blog to set up a strategy session so we can talk about your production, and what may or may not be appropriate. 
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Related: 7 Essential Elements of an IndieFilm Package

Most often, your development round will be largely friends and family, skin in the game, equity, or crowdfunding.  Grants also work, but they’re HIGHLY competitive at this stage. 

Books on Indiefilm Business Plans

2. Pre-Production/Production

It generally doesn’t make sense to raise solely for pre-production, so you should raise money for both pre-production and principal photography.  This raise is generally far larger than the others, as it will be paying for about 70-80% of the total fundraising.  It can sometimes be combined with your post-production raise, but in the event there’s a small shortfall you can do a later completion funding raise. 

It’s very important to think about where you get the money for the film.  You shouldn’t be looking solely at Equity for your Raise.  For this round, you should be looking at Tax incentives, equity, Minor Grant funding if applicable, Soft Money, and PreSale Debt if you can get it. 

Related: The 9 Ways to Finance an Independent Film

Post Production/Completion

Some say that post-production is where the film goes to die.  If you don’t plan on an ancillary raise, then too often those people are right.  Generally you’ll need to make sure you have around 20-25% of your total budget for post.  It’s better if you can raise this round concurrently with your round for Pre-Production and Principle Photography

The best places to find completion money are grants, equity, backed debt, and gap debt

4. Distribution Funding/P&A

It’s very surprising to me how difficult it is to raise for this round, as it’s very much the least risky round for an investor, since the film is already done.

Theres a strong chance your distributor will cover most of this, but in the event that they don’t, you’ll need to allocate money for it. Generally, I say that if you’re raising the funds for distribution yourself, you should plan on at least 10% of the total budget of the film being used for distribution.

Generally you’ll find money for this in the following places. Grants, equity, backed debt, and gap debt.

If you like this article but still have questions, you should consider joining my email list.  You’ll get a free e-book, monthly digests of articles just like this, segmented by topic, as well as some great discounts, special offers, and a whole section of my site with FREE Filmmaking resources ONLY open to people on my email list.  Check it out!

6 Questions to Ask yourself BEFORE Self Distributing your Film

In a follow-up to last week’s blog on self-distribution platforms, I thought we would step back for a minute and try to understand what filmmakers should consider before they decide whether or not to self-distribute their movie.  This blog is a list of potential parameters you might want to go by.  It’s not the only things you should take into account, but they are some factors you’ll need to consider

1.  Do you have money for promotion and aggregation?

While you get to keep 100% of the money you make when you use someone like Distribbr, you also have to pay them upfront to get you on those platforms.  If you use traditional distribution, generally the distributor will take on that risk for you.  Also, they’ll generally pay less than distribbr would charge you in aggregation fees, so they can put more money into marketing the film.

NOTE FROM THE FUTURE: If you need aggregation services, use FilmHub or IndieRights. The model is better than pay for placement even if you give up an extra 20%.

Further, with traditional distribution there tend to be some notable economies of scale.  One of these factors is the fact that most good distributors and sales agents will have a publicist on retainer so your film will get better press, and further reach.
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2. How your social media following.

If you don’t have a pretty decent social media following, then you really should consider traditional distribution.  If the equation below works out to more than 1, then perhaps you should consider selling your film yourself, especially since this doesn’t factor for your personal press contacts, etc.  If it doesn’t, then maybe you should look into traditional distribution.

I know I'm asking you to do algebra, but if I get asked in the comments I may create a calculator that runs the math for you.

((TF*0.01+FF*0.05+IF*0.05+OFX*0.03+EL*.1)*(SP-PF))/OLF+5000

TF = Number of Twitter Followers 
FF = Number of Facebook Fans
IF = Number of Instagram followers
OFX=Number of other social media followings(Can repeat multiple times)
EL = Number of people on your relevant email list * 0.2)*
SP = Sales Price
PF=Platform fees
OLF=Outstanding Liabilities of the film (I.E. how much do you need to pay back investment and deferments)

The 5,000 represents money you’ll have to spend to get your film out there between marketing assets like posters and trailers, publicity, and limited social media boosts.

NOTE FROM THE FUTURE: This is a simplification of your marketing reach, and does not account for including how underserved your niche is as well as how much access you have to said niche. Given these calculations really only account for Transactional distribuion, it undercounts potential spread via AVOD and international sales if you seek them. I might remake this algotithm if I get enough requests.

3. What was the Budget of your film?

While I’m a big fan of traditional distribution (I am, after all, a distributor) I will say that in many cases it doesn’t make sense to try to sell a film made for less than 10k unless it came out REALLY well.  Generally, that equation above will also look favorably on you if your budget is that low.  There are, however, cases where this is not true.

4. Do you have press contacts?

Press is the most cost-effective way to market your movie.  If you have a list of close contacts in the press, it can be a huge difference in your effectiveness at selling your film without help from a traditional distributor.  If you don’t have them, the equation above had better result in something closer to 1.5.

5. Do you have the ability to create awesome marketing material?

Can you cut a great trailer?  What about make a great poster?  Your distributor will have contacts for that, but you may not, and that will make a huge difference in whether or not you should self-distribute.

6.  Would you rather market this movie than make the next one?

This point is subjective. If you’d rather continue to market your film than make the next one, then by all means, self-distribute. If you’d rather put your energy into making the next one, then it probably makes more sense to work with some partners like sales agents and distributors. If you’re looking for those partners, I might be able to help. Just click the submit button below.

For more tools and information on film distribution, you should grab my free film resource package. You’ll get a FREE e-book on the business of indiefilm, digests on the film business segmented by topic, as well as free templates to streamline financing, marketing, and distribution. Plus, you’ll get all the latest on Guerrilla Rep Media releases and occasional special offers and discounts.  Check it out below!

9 Things I Learned from my First Theatrical Release

We recently came to the close of the theatrical release of Rockhaven Film’s Goodland.  It played in a total of 7 cities.  This was the first time I’ve been a key part of making a theatrical release work, so I wanted to share some of what I learned along the way.  So here it is 9 things I learned from my first theatrical release.

1. Booking theaters is both expensive and time-consuming

I tried booking a theater here in San Francisco, but in the end, I was unsuccessful.  The only theater that really got back to us would only show the film on a rental, not a revenue share.  We didn’t pay any of the other theaters, and we weren’t going to start in San Francisco. 

If we had paid them, it would have been a bit over 2,000 for 9 showings in a week.  It is possible to get some films in there on revenue share alone, but if you do you often must give up the first 2-3,000 in sales directly to the theater, and generally, that’s about all you’ll make from a screen unless you can really pound the pavement and get press coverage. 

2. Book local theaters, New York, and Los Angeles first. 

This contradicts some of what I just said, but when you’re getting started, the first theaters you need to book are New York, Los Angeles, and perhaps the screen most local to the filmmakers.   New York and LA get you more press coverage and give legitimacy to your theatrical run.  The local screen is generally the easiest to book.

​3. You don’t always need a full week’s run.

We only did 3 screenings in Buffalo, NY, but we still got a decent amount of press and a good amount of social media attention.  Doing 1-3 screenings in a market makes it feel more like an event, and is a great way to build word of mouth about your film.  Even if you can’t book a full week, consider booking a few one-night-only engagements to boost your presence in markets across the country. 

4. ​Often, 1-2 shows a day is easier to sell.

We had 3-5 screenings a day in Kansas City, and it was difficult to drive traffic to any one particular screening.  That includes the screenings we had with Q&As after them.  If you focus on one individual showing a day, it’s easier to focus your marketing efforts, and get those butts in seats for an indie movie.

5. Fewer theaters are independently owned than you think

In attempting to book theaters in San Francisco, I found that only a few local theaters were independently owned.  More theaters than you think are owned by mega chains like AMC, Cinemark, United Artists, and Landmark.  If you’re dealing with these mega-chains, you’re likely going to have to deal with their buyers.  Generally, those buyers will only want to deal with distributors. 
​

6. Once a theater is booked you can still get bumped unless you paid the rental fee.  

We booked a screen in New York for the same day we opened in LA.  Unfortunately, we were bumped because Avengers, Infinity War outperformed expectations.  If possible, don’t try to book your indie in May, June, July, August, November, or December.  That’s when Hollywood will be very likely to bump you.

7. Keep Making Noise to fill seats

Once you get your theaters booked, you’re still going to have to drive local people to theaters.  The most cost-effective ways to do this are via local press coverage and social media.  The two work very well together.  Keep your audience engaged by sharing news on your facebook page, twitter, and Instagram whenever there’s news to be had. ​
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Related: 5 Dos and Don'ts for Marketing your Movie on Social Media

8. Press coverage is key: Local Press can be very cliquey.  

Local Press coverage is among the best ways to drive traffic to your movie.  However, it can be difficult to get. 

It should surprise precisely no-one reading this list that some film scenes are very cliquey, and some of those people from the film scenes end up in positions of power at general press outlets.  They may not cover your movie just because you’re not one of the cool kids.  It sucks, but it is what it is.  It would be difficult to change their mind, so just move on to other outlets if that’s what you’re running up against. 

9. In the end, if you've made ANY money you've done well. 

Finally, there’s not really a lot of money in theatrical runs themselves.  There is a lot of additional money to be had in having had a theatrical release.  If you end up getting beyond your distributor’s recoupable expenses, you’ve done VERY well.  The additional money you’ve gotten from these outlets is likely to have a marked impact on your TVOD sales and your SVOD sales price.  I might be making some announcements about how that worked for Goodland on our Facebook page, soon.

I hope this was helpful to building your indie film career. If you’re embarking on your own journey through distribution, you should make sure to grab my FREE indie film resource package. It’s got lots of templates to help you talk to distributors, tools to help you raise funding and even exclusive money-saving resources.

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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. 
​​

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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5 Reasons Traditional Film Distribution Still Matters to Indie Filmmakers

When you look at most of the other bloggers and podcasters talking about indie film distribution, a lot of them are very convinced that aggregators like Distribbr are the only solution that a Filmmaker needs.  As a Producer’s Rep, I disagree.  A good sales agent, distributor, or producer’s rep may each take a piece of the pie, but if they do their job well they’ll also make the pie significantly bigger, increasing the payout for all involved.

Here are 5 reasons why a traditional distributor or sales agent is still a necessary partner.

1. Distribution and Marketing are their own Skillsets

Unless you happen to have a background in marketing or a huge social media following, it’s not likely you’ll even make back the money you put into the aggregation fees.  It’s a surprising amount of work to get the amount of money you need to pay back fees upwards of a thousand dollars to put the film on iTunes. 

Distributors also help market the film.  It’s all they do, so they’re generally pretty good at it.  (At least, if you get the right ones) In addition to cutting the costs of aggregation and paying them out of a recoupable expense, Sales agencies and distributors will also often put money into a publicist, social media ads, and other marketing expenditures that will help your film make more money for all involved. ​

2. It's generally No/Less Money Up Front

If you use an aggregator or even a company like FilmHub or IndieRights, all marketing expenditures are on you. This includes posters, trailers, publicity, social media ads, and more. If it were me, I’d much rather give up a piece of the action to have someone else cover some of these costs up-front. ​

3. Not Every Avenue is Truly Open Without a Local Distributor

No matter what people tell you, not every avenue is completely open to self-distribution.  Theatrical is rare for most indie films, but unless you want to give up 90+% of the take, or pay a few thousand dollars per screen per week. pay a large amount of money to a platform or directly to theaters, you’re not getting into theaters.  If you work with the right distributor, they MIGHT be able to book you some screens. 

I’ve helped in organizing several theatrical releases of up to 50 screens per film. The way we did it avoided paying up front. Filmmakers generally don’t have the specialized knowledge or relationships to make that happen.

Further, other outlets most often won’t get you into Cable VOD, or SVOD other than Amazon rentals, even though they may claim they have the ability to. ​

4. Local Distributors Control Specialized Knowledge

Do you have any idea how to localize a film for South Korea?  What about Germany, Italy, or Mongolia?  I’m a Producer’s rep, and while I might have an idea of who would buy any given film on a territory-by-territory basis, I couldn’t tell you how best to market a film in every country across the globe.   That said, I do know people who do, and I know lots of people who can get it to the territories I can’t and I also know what they tend to pay for that content.  Successfully selling a film internationally involves a lot of highly specialized skills most filmmakers simply do not possess.  They’re the sort of skills that take decades to perfect.  So if you want your film to be truly exportable, then you should consider working with some partners to help you capture the foreign market.
​

5. Marketing is Much More Effective with Multiple Partners.

Multiple voices pushing your film will do a lot more than yours alone.  Working with Producer’s Reps, International Sales Agents, and distributors will amplify your voice and help it rise above the white noise to really take your project to the next level.   Without multiple experienced partners helping spread the word about your film, it can cost significantly more to raise awareness of your film.

I get this is a lot. If you want to learn more about it, you should check out my FREE Indiefilm Resource Package. It includes an E-book, lots of form letters, tracking templates, and other templates to help you get in touch with traditional distributors, and a monthly blog digest that will help you better understand the industry and improve your knowledge base in a sustainable way.

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How to Vet your Sales Agent or Distributor

Every filmmaker has heard horror stories of distribution deals gone wrong.  Sometimes this is due to something completely unpredictable like a change in the demands of buyers or distributors, or a freak occurrence that makes the movie unpalatable.   More often than not, however, this is due to a poorly negotiated deal with a less-than-reputable sales agent.  So with that in mind, it’s incredibly important that you vet your sales agent.  Here are a few ways to do just that.

1. Get Professional Help

Distribution deals are complicated things.  It’s easy for one clause that seems innocuous to strip thousands of dollars out of your pocket.   Get yourself an entertainment attorney or producer’s rep to help you through the process.  Entertainment attorneys are generally expensive but can save you money in the long term.  Producer’s reps SHOULD work on a commission for brokerage tasks, but may or may not be able to negotiate as well as they claim. ​ Often, it’s wise to have both a rep and an attorney, as reps focus on general salability whereas

Related: What does a Producer's Rep DO Anyway?

If you can’t afford an attorney and are wary of hiring a producer’s rep then take extra time on the next several steps. ​

2. Carefully Review their base distribution agreement

There’s always some room for negotiation in these agreements, but it the arrangement is too far off of what you’re hoping for from a starting point, then the deal is unlikely to be any good.  Good places to look are at the recoupable expenses and the sales agency commission.  If the sales agent’s commission is higher than 30%, proceed with extreme caution.  If it’s higher than 35%, you probably don’t want to deal with that sales agent.

Related: The 7 Main IndieFilm Distribution Deal Points

Similarly, is the recoupable are higher than about 25,000-30,000, you should be VERY careful on dealing with them if you have a lower budget film.  If they’re at this level, you’ll want them to attend at least 5-7 markets.  That segues nicely to.

3. Ask the Sales Agent Which Markets They Attend

Traditional Film Sales and Distribution still happens primarily through face-to-face meetings at markets.  Establishing good relationships with buyers takes several touchpoints a year.  In order to really trust a sales agent with your film, you need them to attend both Cannes and AFM at a minimum.  Ideally, you want them attending EFM as well, but that market is slightly more arthouse so it can be given a miss if you’ve made a genre picture. If they don’t attend EFM, they should attend Hong Kong FilmMart.
​

Read More: What is a Film Market and How Do They Work?

4. Look the Sales Agent Up on IMDb

You need to verify some of the films that the sales agent has helped distribute recently.  Looking them up on IMDb is a great way to get started.  You’ll want to look for films that are similar in genre and feel to yours, and you’ll want them to have represented quite a few films in the last 3-5 years. You should be able to find a lot of information on the company they’re working with if you have IMDb Pro, but sometimes sales companies change their names without much notice. That’s a red flag if it happens, but it’s not necessarily a dealbreaker. If it does happen, just use IMDb to look up the acquisition agent you’re dealing with.

If you have access to it, you should also look them up on Cinando. It’s worth noting that many sales companies do not keep their Cinando Profiles as up-to-date as they should.

5. Visit the Sales Agent Website

The Website of the sales agent will help you understand what they’re currently promoting.  It will also have some things that IMDb won’t.  These are things like recent press coverage, and links to their other social media profiles.  You want the sales agent to have gotten your films a good amount of press.

6. Call Filmmakers they've worked with in the past. 

If you take only one thing away from this article, let it be this.  ALWAYS call filmmakers the Sales agency has worked with in the past prior to doing a deal with them.  Filmmakers they’ve worked with in the past are the best way to get an unbiased account of whether the sales agent lives up to expectations laid out in their contract.  While other sales agents will give you opinions on that front, the sales agency game is quite competitive, so they might overstate the issues with their competition to gain a competitive edge.

Thanks for reading! If you like this, and decided you need professional help when dealing with sales agents, check out the Guerrilla rep media services page. We know the players in the game and can help you get to your goal faster. If you just want to learn more, check out the free indie film business resource pack for a free ebook, templates to help you track contact with sales agents, and even form letters to get you started on reaching out to them. These won’t substitute for professional help, but they’re a good place to start.

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