What Filmmakers NEED to Know BEFORE Submitting to Distributors

I get a lot of submissions to my portal in the upper right of my website.  In fact, it’s how I get most if not all of the films I distribute.  As such, I’ve noticed some trends filmmakers tend to have.  So as with most recurring things that happen to me in the business, I decided to write a blog about it.

1. Yes, we do need a screener and the password.

If we’re going to distribute a film, we need to watch it.  Generally, that’s the first step, not the second or the third.  We’ll probably want to talk to you before we sign you, but the first step is to see if the product is any good.  It’s easiest for us to be impartial about the market potential of your film if we watch it cold first.  I always get back to people who submit, and I do a strategy call before I sign them, 

We understand that you’re sensitive about your intellectual property and that your film is your baby.  The good ones among us also expect that you’ll do some legwork and diligence on use before you submit.  Don’t make us email you for a password.  I use google forms to manage my submissions portal, and only I have access to it.  The only reason I didn’t create more of a custom solution is that the security protocols for G Suite apps are better than most anything else that would be cost-effective to use or create. ​

2. Get a Vimeo Subscription

While I like Youtube for a lot of reasons, reviewing films is not one of them.  Vimeo’s player is higher quality than youtube’s, and when I’m reviewing a film one of the things I’m looking for is if there are likely to be any expensive quality control problems.  Youtube makes that very difficult to gauge, due to the compression of the files that go up on the site.

Also, it looks cheap to send an unlisted youtube link.  Vimeo isn’t expensive, and there will be costs associated with distribution that get passed on to the filmmaker at least in part.  If you can’t pay for a Vimeo subscription, we worry about the viability of your business. 

3. We generally only watch a film once, if we watch the whole thing at all.

I get a fair amount of submissions to my portal, most of which I decline to represent.  A lot of the films I decline are ones I stopped watching after 20 minutes.  I give every film 20 minutes, but if it doesn’t grab me in that time I don’t continue to watch it, and if I don’t continue to watch it it’s an automatic decline. 

Most of the time, if I watch a film all the way through, I’m going to represent it.  There have been exceptions due to some self-imposed content restrictions. 

That being said, we have to watch A LOT of movies.  We almost never watch them twice.  So don’t keep submitting with minor changes.  If it’s a decline, it’s a decline.  Also, don’t submit it until it’s where you need it to be. 

As an aside: If you’re going to make changes to the film after we’ve made an offer, we’ll probably rescind the offer unless you talk to us about it.  We made an offer to the film we saw.  If you make substantive changes, it’s not going to endear you to us.

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4. Festivals provide some level of validation but are far from the be-all and end-all of the film.

Similar to how festivals aren’t likely to get you distribution (discussed in this blog, right here.) they’re far from the only thing that matters to distributing the film.  The laurels mean less than you probably think they do to the sales of a film.  Unless it got into one of the top festivals, it’s not going to help you as much as you may think.  For more, read the link below.
​

Related: Why you won’t get Distribution from your film festival

5. Yes, we do need to know about your social media, but not why you think.

Yes, I ask about your social media. Sure, it has a bit to do with assessing your total reach, but it has more to do with your engagement in your community. Distribution on a budget requires working together with filmmakers.

Also, it helps us know your voice is authentic. We, distributors, do tend to have favored niches, but we also want to make sure that the films we’re distributing are authentic. Your being heavily involved in relevant online communities is a great indicator of that authenticity.

I think I might write more on why distributors care about social media, but I definitely will if someone tweets to me about it or comments below.

Anyway, thanks so much for reading this blog! If you learned something, but still want more, you should grab my FREE Indiefilm resource Package. It’s got an e-book on the film biz, a whitepaper on the industry, templates to help you track your contact with distributors, plus a while lot more! Check it out via the button below!

Understanding the difference between an LOI and a Pre-Sale

A few weeks back I did a post on how to get a Letter of Intent from a Sales Agent.  You can read that post here.  However, I realized it might not be a bad idea to step back and examine the differences between a Letter of intent and a Pre-Sale.  While I touch on it in the Rules for Getting a Letter of Intent blog, It seemed like the topic was worth a little bit more explanation.

At its core, the primary difference between the two is that a pre-sale is a document that has a tangible value, and an LOI does not.  It’s a document that says once you deliver the completed film to the sales agent/distributor you will receive a check for an agreed-upon amount.  Generally, they’ll come coupled with a completion bond.  If you get a presale from the right sales agent/distributor, then this document is serious enough that you could take it to an entertainment bank and take out a loan against it. 

A letter of intent is a much less serious document.  It essentially guarantees that a sales agent will review a film once it’s completed and if it passes quality concerns, they’ll make an offer to represent the film at that point in time.  This document has no monetary value but proves to investors that you have access to distribution.

RELATED: 5 RULES FOR AN LOI FROM A SALES AGENT

The reality is that while pre-sales still happen, the likelihood of getting one isn’t very high for the vast majority of filmmakers. 

In an ideal world, every filmmaker would be able to get presales and fund most if not all of their movie on them.  Unfortunately, we do not live in an ideal world.  With the glut of content currently being produced, most filmmakers should consider themselves lucky to get a Letter of Intent. 

The reason a Sales Agent or a Distributor would pre-buy a movie is so they know they’ll be able to fill the programming slots when the time comes.  It used to be that if they pre-bought content, they could get it at a lower cost than when they bought it after it was completed. 

Unfortunately, due to a glut of equity financing in the market that is no longer the case.  With how many films are being made every year, the likelihood of them being unable to find suitable content is slim.  That’s why the only people still buying content require reputable directors and recognizable name talent. 

Now as then, the only reason to pre-buy is so you can get the films you need when you need them.  Given the glut of content filling the marketplace at the lower levels, the only films worth pre-buying have to be very high quality, with very high-quality assets.

​In order to get a presale, you need 3 things:

• The director must have a proven track record of 3+ films in a similar genre to the movie you’re producing now

• some level of recognizable name talent,

• The film must not be execution dependent.

All of this really boils down to distributors wanting to know that the movie they’re buying before it’s made will meet the needs of the outlets the distributor intends to release the film on.

That’s why the director’s track record is so important, and the notoriety of the cast is also a huge selling point.  It’s also where the idea of execution dependence comes in.  By Execution dependent, I mean that the film must not rely on the intricacies of good execution to be profitable.  Something like Moonlight is very execution dependent, whereas The Expendibles 4 is not.

Pre-selling your film is also if the film is based on well-known existing source material.  This could be a long-running series of books that might have flown under the radar of other movie producers, a recognizable web series, or even a video game.  Uwe Boll made his career by pre-selling terrible movies based on video games.  Of course, he also had the help of some very lenient German Tax incentives.

Letters of intent are much easier to get, as they’re a much less severe document.  If you have a strong relationship with a filmmaker, it’s very possible you could get a letter of intent. It’s also possible that if you or your producer’s rep know what they’re doing, they can work with the right sales agents to escalate the document into a pre-sale once the package comes together.

Thank you very much for reading. As always, there’s a lot more to this than I could explain in a 600-word article. If you want to get more support in getting an LOI, you should go ahead and grab my free film business resource pack. It’s got a free e-book, lots of templates, money and time-saving resources, and even a monthly digest of content segmented by topic to help you continue to grow your career on a manageable schedule. Get it via the button below.

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The Two Main types of Financial Projections for an IndieFilm

As a key part of writing a business plan for independent film, a filmmaker must figure out how much the film is likely to make back.  This involves developing or obtaining revenue projections. 

There are generally two ways to do this, each with its own advantages and disadvantages.  The first way is to do a comparative analysis.  This means taking similar films from the last 5 years and plugging them into a comparative model to generate revenue estimates.  The second way is to get a letter of intent from a sales agent and get them to estimate what they could sell this for in various territories across the globe. 

This blog will compare and contrast these two methods (Both of which I do regularly for clients) in an effort to help you better understand which way you want to go when writing the business plan for your independent film.

Would you Rather Watch/Listen to this than read it? Here’s a corresponding video on my YouTube Channel!

Comparative Analysis - Overview

A comparative analysis is when you comb IMDb Pro and The-Numbers.com to come up with a set number of comparable films to yours.  These are films that have a similar genre, similar budgets, similar assets, are based on similar intellectual property, and are generally within the last 5 years.  If you can match story elements that are a plus, but there are only so many films with the necessary data to compare. 

When I do it, I compare 20 films, average their ROIs from theatrical, pull numbers from home video wherever I can (Usually the-numbers.com), and then run them through a model I’ve developed to come up with revenue estimates.   Honestly, I don’t do a lot of this work.  Most of the time I refer it to my friends at Nash Info Services since they run The-Numbers.com and the brand behind these estimates means a lot to potential investors. 

I will do it when a client asks though, generally as a part of a larger business plan/packaging service plan.  

Sales Agency Estimates - Overview

Sales Agency Estimates are when you get a letter of intent from a sales agent, and as part of that deal the sales agent prepares estimates on what they think they can sell the film for on a territory-by-territory basis.  Generally, they work from what buyers they know they have in these territories, whether or not they buy content like this, and what they normally pay for content like yours. 

These estimates are heavily dependent on the state of your package, who’s directing your film, and who’s slated to star in it.  If you don’t have much of a package and a first-time director, then you’re not going to get very promising numbers.  ​

Comparative Analysis - Benefits

Generally, anyone can get these estimates.  Some people figure out the formula and do it themselves, others pay someone like me or Bruce Nash to do it for them.  There’s either a not insubstantial fee involved or a lot of time involved in getting them. They’ll generally satisfy an investor, especially if Bruce does it. 

Sales Agency Estimates - Benefit

The biggest benefit to a sales agency approach is that if they’re doing estimates for you, they’re probably going to distribute your film.  Also, these estimates have the potential to be more accurate, because they’re based on non-public numbers on what buyers are paying in current market conditions.  Finally, if a sales agent has given you an LOI, these estimates are generally free.

Comparative Analysis - Drawbacks

The first drawback is likely that they’re either very time intensive or somewhat costly to produce.  Also, because VOD Sales data is kept under lock and key, it’s very difficult to estimate total revenue from VOD using this method.  Given how important VOD is, that’s a somewhat substantial drawback.

Further, these estimates are greatly helped by the name value of who made them.  Likely, if the filmmaker makes them themselves, then they’re not as viable as if someone like Bruce or Me does them.  This is not only because we both have a track record in them, (Bruce much Moreso) but also because we’re mostly impartial third parties. 

These revenue estimates can be very flawed if a filmmaker makes them because many filmmakers have a tendency to only pick winners, not the films that lost money.  In business, we call this painting too blue a sky, as it makes everything look sunny with no chance of rain.  In film, there’s always a substantial chance of rain. ​

Sales Agency Estimates - Drawbacks

The biggest drawback to these estimates is that not everyone can get these estimates.  You have to have a relationship with the sales agency for them to consider giving them to you.  Generally, you’ll need to have convinced them to give you an LOI first.  That’s not always the case though. 

If you have a producer’s rep, they can sometimes get you through the relationship barrier, but they’ll often charge for doing so when we’re talking about a film that’s still in development. 

Also, Sales agencies can sometimes inflate their numbers to keep filmmakers happy and convince them to sign.  This does not look good to investors if that money never comes in

Conclusion

Overall, which method you use to estimate revenue depends entirely on what situation you find yourself in.  If you have the ability to get the sales agency estimates, they can be VERY strong, if you don’t, the comparative estimates are reliable enough to do what you need them to do.  That being said, I wouldn’t advise taking a comparative analysis to a sales agency. 

Thanks for Reading! Creating revenue estimates is only part of raising money for your film. There’s a lot more you’ll need to know if you want to succeed. That’s a large part of why I created my indie film resource package, to help filmmakers get the knowledge and resources they need to grow their careers. It’s totally free and has things like a deck template, free e-book, and even specialized blog digests sent out on a monthly basis to help you understand how to answer the questions your investors will almost certainly have. Check it out at the button below.

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5 Rules for Getting a Letter of Intent (LOI) From a Sales Agent for Your Film.

In order to properly package a movie, you need three things.  Recognizable Name Talent, First Money in, and at least a letter of intent from a distributor.  I’ve covered steps for preparing for calling agents in the Entrepreneurial Producer, (Free E-Book Here.) I’ve covered some of the ways you can get first money in this blog.  So now, I’ll cover some rules for approaching sales agencies in the blog you’re about to read

The reason you need an LOI is that the cause of films not recouping their investor’s money is that they can’t secure profitable distribution.  Your investors want to know you have a place to take the film once it’s done, so they can begin to get their money back.  Before you start thinking that you’ll just try to start a bidding war after the film is done, you should be aware that generally doesn’t happen. 

Before we begin, This Packaging concepts blog series was recommended by my friend Brittany, in the Producer Foundry group on facebook.  I occasionally look to answer questions people have there, so if you want me to answer something join the group.  Or, if you want definitely want to get some questions answered, you should join my Patreon.  I’m very active in the comments. ​

1. This document isn’t a Pre-Sale.

It’s important to note that there’s a big difference between a Pre-Sale and a Letter of Intent.  A Pre-Sale is something that you may well be able to take to the bank to take out a loan against.  That is, if you’ve got a presale agreement from a reputable distributor or sales agency.  If you’re working on making your first film, that’s probably not going to happen though. 

To get a Pre-sale, you need to have a known director with a proven track record, a film that’s not Execution Dependent, and likely some noteworthy cast.  Even then, the Pre-Sale often only covers the cast.

An LOI is a much less serious document.  It’s essentially a letter guaranteeing that a sales agent will review the film on completion, and if it fits their business needs they will represent the film.  Generally, the producer will give the sales agency an exclusive first look for the privilege of using their name to help package and finance the film.  Sales Agencies can’t just give these to everyone, as it waters down their brand.  You’ve got to compensate them in some way for taking a risk on you. 

This is not the final document, you’ll negotiate a distribution agreement once the film is done.  Don’t try to negotiate one at this point, since you’ll be in an inferior negotiation position. ​

2. Make sure there’s a time window on the sales agent’s first look

If you fail to put a time window on the sales agent's first look, you can lock yourself up and potentially lose the first window on the film.  Generally, I’ll say something like 14 or 30 days from initial submission on completion of the film.  This gives the sales agency time for review but doesn’t hurt the filmmaker’s options if they take too long.  This also prevents them from tying you into a contract. ​

3. Only approach agencies that sell films like the one you want to make.

This may sound obvious, but if you’re looking for an LOI for a horror film, don’t approach sales agencies that deal primarily in family films.  If all goes according to plan, this sales agency will be distributing your film when it’s done.  You want to make sure they’re well-suited to sell your film when the time comes. ​

4. Look at the track record of the agency you want to work with

You need to look into what films the sales agent has made in the past, and how widely those films have been distributed. At this stage, doing this isn’t as important as when you negotiate the final distribution deal, but it is something you should know when going after a letter of intent. 
​
Also, the track record of the sales agency or distributor has a direct impact on how valuable the LOI is.  An LOI from Lionsgate means a lot more than an LOI from someone on the third floor at AFM this year.  Looking at the track record can help you more accurately assess the value of the document you hold, so you can better present that information to potential investors. ​

5. Getting an LOI is Heavily Dependent on the Relationship with the Sales Agency.

If you walk in cold and start asking for an LOI on the first meeting, you’re not likely to be successful.  It takes time and a fair amount of correspondence to get to the point where a sales agency is willing to take a risk on you. ​

​If you don’t want to spend the time and money to establish these relationships by going to markets and having calls and emails with the sales agency, you may want to consider a Producer’s Rep. 

Most producer’s rep will require some level of upfront payment for this sort of work.  I charge a relatively small amount upfront and a larger amount on success for this sort of work.  That said, I’m relatively selective about what I take on.  If you’d like to find out more click the links below to submit your project, or book a call with me on Clarity to pick my brain about the next steps.  Alternatively, you can sign up for a free strategy session and talk about what the best next steps for you would be.  I also offer educational programs that will teach you how to get these for yourself.  Those start with a one-hour strategy session.  In this one-hour strategy session, I'll help you figure out where you are, what the next steps for you are, and what the best course of action for helping you get there would be.  

Thanks so much for reading! This is only a primer, and in order to succeed you’ll need a lot more information on the business of indie film. If you want help getting that, you should check out Guerrilla Rep Media’s independent film business resource package. You’ll get a free-ebook, lots of templates, money-saving resources, and even a monthly content digest delivered to your inbox to help you grow your indie film company and premier. It’s completely free and linked in the button below.

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