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

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

Not Fully Appreciating Exclusivity

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

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

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

Sending Screeners too early

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

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

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

Dropping promotional assets too early.

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

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

Making the wrong Genre

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

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

Pulling their film without a plan.

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

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

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

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The 3 Main Independent Distribution Models

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

High Touch / Prestige Releasing

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

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

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

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

Hybrid Releasing / Producer Boosting

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

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

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

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

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

Shlock-Gunning / Aggregation++

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

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

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

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

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

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3 Things Every New Film Investor NEEDS to know

I write a lot about the film business with filmmakers as a target audience.  However, in my non-educational content job, I have to interface with film investors on a fairly regular basis.  This blog is adapted from one such situation where a first-time film investor had a lot of impulses that might actually hurt their film.  The response got rather lengthy, so I asked my client if he minded if I adapt it into a blog.  The client didn’t mind at all, so now I can share the insights with him with significantly more people.

With that in mind, here are 3 things that every new film investor should know. 

1. Films are not evergreen.

Once a film is more than a year past its initial release, it loses a significant portion of its perceived market value.   Buyers just won’t touch it.  You released the film this year, so you have a bit of time, but that time is not infinite.  This means that negotiations around a minimum amount of money over time is not always productive, as it will likely be out of the highest actual period no matter what happens.  Often, even if you get the rights back, the film will have been so heavily shopped no one will take a look at it anyway.

This is a mistake that a lot of filmmakers make.  Unfortunately, you do not have all the time in the world to shop for your film.  Eventually, you’ll want to make sure you get it out there, even if it’s at something of a loss.  If you want longer, it’s unlikely that your prospects will get better.  

Of course, I want to be clear that you shouldn’t take any old deal as soon as it’s offered.  It’s just important to remember that barring some incredibly specific extenuating circumstances,  your film won’t be worth as much next year as it is now.  Your Also, if the distributor or sales agent is in clear breach, you should still try to get your rights back. 

2. Generally, films take a few markets to make a cash upfront sale, and the pay chain is absurd.  

It often takes a few in-person touchpoints before the sale is finalized.  While I’m going to be pushing for a quick sale, sometimes it takes a while for the money to come through.   

Further, you should remember that a lot of time it will take a while for those payments to trickle through to the producer.  I’ve outlined the issue in detail in the blog below, but to give you an idea, an MG-oriented sale will likely have something like 10% due on signing, 40% due within 30-90 days from notice of delivery, and the remaining 50% due prior to release or within 30 days of release.  Also, most SVOD sales in the US pay out a set amount of time after the beginning of the license period.  

Related:The problems with the indie film distribution payment system.

3.  No one likes dealing with inexperienced people with huge egos.

If you’re an accredited investor, you’ve probably dealt with this issue on the other end.  You likely have money due to your own entrepreneurial endeavors, a high-paying position that likely required you to employ other people, an expansive portfolio of investments that may have required you to interface directly with other entrepreneurs, or some combination of the above.  

While the primary goal of any film production should be to get all of your money back, the industry is incredibly specialized.  Nobody likes being told how to run their business by someone without much experience in the driver’s seat of this highly specialized industry.

It’s important to remember that once you get to dealing with more powerful members of the industry, trying to throw your weight around to get a better deal isn’t likely to break in your favor.  Unfortunately, most good sales agents or distributors will just decline to take out your film, and the less-than-good ones who remain will find legal ways to avoid paying out as long as possible if they pay out at all.   

This industry may be in a period of upheaval, but currently, sales agents and distributors still hold a lot of power.   So if you want to make a profitable film, or a widely distributed one, you’re going to have to take some time to understand the common industry practices.

It’s incredibly difficult to negotiate with someone when you’re at a massive informational disadvantage, and more than likely you will be at an informational disadvantage purely by the nature of the specialization of the film sales and distribution industry. 

If you want to lessen your informational disadvantage, you should sign up for my mailing list to get monthly blog digests segmented by topic, you’ll also get a free film business resource pack that includes an ebook, whitepaper on the macroeconomics of the film industry, an investment deck template, and a whole lot more!  Click the button below to grab it.  

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The Basics of Financing your Independent Film with Tax Incentives

Most filmmakers simply chase equity in order to finance their films.  However, most investors don’t want to shoulder the financial risk involved in a film alone.  That’s where tax incentives for independent film can come in and help to close the gap.  But proper use of tax incentives for independent film financing is somewhat complicated.  Here’s a primer to get you started.  

Cities, States, Regions, and countries can have tax incentives

First of all, it’s important to understand that most forms of government can issue a tax incentive.  In the US, the biggest and best incentives generally (but not always) come from states, however many cities, counties, and regions may supplement those incentives with smaller Internationally, many countries also provide some level of subsidy.  

Europe Tends to provide better tax incentives than the US.

From the standpoint of the federal government, most European countries are much better about independent film subsidies than the US.  Most of the time, these incentives take the form of co-production funding, but it’s relatively common for film commissions to provide grants to help promote the arts among their citizens.  

This is particularly notable given that citizens of EU Member States can strategically stack incentives in a way that the majority of your film is financed via government subsidies.  If, like me, you are based out of the United States, that’s just not possible due to the structure of most tax incentives.

There’s normally a minimum spend. 

Especially in the US, there’s generally a fairly hefty minimum spend to qualify for a tax incentive.  In some states that spending can start around 1 million dollars for out-of-state productions.  Some states offer a lower cap for productions helmed by residents of the state.  

There’s generally a minimum percentage of the total film budget needing to be shot there.

Most of the time you’ll only be eligible for a tax incentive if you shoot a certain percentage of your film or spend a certain percentage of your budget in a given territory.  These can vary widely from territory to territory so look at the first place. 

It’s normally not cash upfront

Unless you’re getting a grant from whatever film commission you’re shooting in, you’re probably just going to get a piece of paper that will state that you will be audited after the production and paid out according to the results of the audit.  There are generally a few different ways that a tax incentive can be structured, but we’ll touch on those next week.

You need to plan for monetizing it.

In general, you’ll either end up selling the tax incentive for a percentage of its total value to a company with a high tax liability in your state, or you’ll have to take out a loan against your tax incentive in order to get the money you need to make the film.  Both of these incur some level of cost which is different depending on which state you’re shooting in.  

For example, Georgia and Nevada both have transferrable tax credits.  Due to the large amount of productions going on in Georgia on a pretty much constant basis, the transferrable tax credit often monetizes at around 60% of face value.  Nevada on the other hand has relatively few productions and many casinos that have very high tax burdens.  As a result, the tax incentive in Nevada tends to monetize at around 90%.  That said, there is presumably a more tested, experienced crew in Georgia than in certain parts of Nevada, of course, the film commission will tell you differently. 

Not everything is covered

Not every expense for your film is covered.  Exactly what is covered can vary widely from state to state, but in general only expenses that directly benefit the economy of the state are covered.  There are often exceptions.  One common exception is some mechanism to allow recognizable name talent to either be included in a covered expenditure or at least exempted from minimum thresholds of state expenditures.  

Most of the time, high pay for above-the-line positions such as out-of-state recognizable name talent or directors are not covered covered by tax incentives.  However, there are a few states that allow it.  I talk a lot about it in this Movie Moolah Podcast with Jesus Sifuentes, linked below. 

Related Podcast: MMP:003 Non-Traditional Investors & Maximizing Tax Incentives W/ Jesus Sifuentes

Not every program is adequately funded

Many film programs have a “cap” If that cap is too low, the money can be gone before the demand for the money is.  Some states have the opposite problem.

Communicating with the film commission pays dividends long term

In general, the film commissions I’ve talked to are extremely friendly and easy to talk to. However, many times these commissions lose touch with the filmmakers they’re supporting shortly after they shoot.  This isn’t necessarily a good thing, as most film commissions have significant reach into the greater film community and other aspects of local government.  If you make sure they stay up to date as to what’s going on with your project you may find yourself getting help from unexpected places.

Also, if this is all a bit complicated, you should check out this new mentorship program I’ve started to help self-motivated filmmakers get additional resources as well as get their questions answered by someone working in the field.  It’s more affordable than you may think.  Check out my services page for more information.

If you’re not there yet, grab my free film Business Resource package.  It’s got a lot of goodies ranging from a free e-book, free white paper, an investment deck template, and more.  Grab it at the button below.

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How to Finance your Documentary

It’s hard to find reliable information on film financing.  I’ve written a fair amount about independent film financing for narrative projects.  Since writing those blogs and doing numerous presentations on the topic, I’ve gotten a lot of questions on how to finance documentaries.  Since I haven’t seen a good guide, I thought I’d write one.  Here’s a step by step guide on financing documentaries.

1. Establish a deep connection with the audience that cares DEEPLY about your message.

Authenticity has been become incredibly important in all aspects of making your living as a filmmaker, journalist, or content creator of any kind.  As documentaries are primarily message films, authenticity and accuracy are even more important than they would be in your standard genre picture.  A deep understanding of the subject matter you’re tackling is absolutely vital for documentaries, as documentaries tend to rely much more heavily on word of mouth and community involvement than traditional narrative films.  

The primary goal you should have when establishing yourself within this community is to speak authentically about the community in your film. By doing this, you will most likely also establish credibility with the audience that is most likely to shout about your film when it comes out.  As a bonus, through the process of establishing a deep connection with the subject matter, you are likely to find good subjects to interview for your documentary.   

2. Get a fiscal sponsor

A fiscal sponsor is a non-profit organization that can extend its non-profit status to your simple for-profit entity allowing you to take tax-deductible donations, which can greatly help you raise donations from friends, family, and even certain crowdfunding platforms.  They’ll normally take a fee of between 4% and 9%, but they’ll increase your close rate dramatically.  Additionally, unless you are a non-profit, you’ll most likely need a fiscal sponsor in order to apply for grants.  

3. Apply for relevant grants

Next, you should start applying for grants.  You don’t need to limit yourself to filmmaking grants, you can also apply to grantors that tackle the subject matter you’re planning on documenting.  So long as those foundations and grantors back projects to build awareness there’s a good chance you’ll be eligible for those grants.  I wrote another blog with the help of one of the fundraisers for Slamdance a while back, you’ll find it below.

You should start applying for grants once a month as soon as you can.

Related: 5 Rules for Grantwriting.

4.  Confirm one high-profile expert in your field to give yourself legitimacy

Now it’s time to start shooting your film.  Confirm an interview with an expert, possibly using the connections you’ve developed back in step one.  Otherwise, reaching out to universities that have programs related to your subject matter is a generally good bet.  Most of the time, you shouldn’t need to pay the academics or many of the other experts who might be interviewed for the documentary. For them, it’s good press to build their legitimacy and public profile.

5.  Prepare a crowdfunding campaign

This is another reason Step 1 is to ingratiate yourself in a community.  If you’re a known entity in that community, your chances of success are much better and the amount you’ll be able to raise is much higher.  While this is harder than it once was, it’s nearly impossible if you’re not an established part of the community.

Here’s a blog on a crowdfunding timeline.  

Related: Crowdfunding Timeline for Filmmakers

6. Get a few more experts in your network to give interviews

Ramp up your production and get a decent portion of the film shot and start to find the narrative throughline for the finished piece.  You will want to start charting this path as you shoot, as it can help guide you through future interviews or even re-interviews if you can.  

7. Launch your crowdfunding campaign. 

You do that after the first expert as if you’re doing it properly, you should be able to use a portion of the interview as an immediate delivery once the campaign closes.  If you have multiple experts at this point, you’ll have some degree of legitimacy that you could turn into a short as one of the major funding levels.

Even after you raise the money you need for your main round, you should continue to apply for grants on a monthly basis.  The reason n why will become clear later. 

Here’s a blog on the dos and don’ts for pushing your movie on social media.  I wrote it after a few too many people sent me auto DMs.

Related: 5 Dos and Don’ts for Selling Your Film Online.

8. Get a few higher profile influencers in the documentary.

If you get a few subjects in the documentary with some degree of a following, it will likely help boost the visibility of the documentary once it’s getting ready to come out.

9. Release regular updates on social media

If you make sure to release updates and engage with your following on the goings on of the documentary you’ll be much better able to keep in the consciousness of your community which will make a rather large difference when it comes time to distribute your project.

10. Make sure you keep your backers informed.

Take what you’re doing on social media, and give more depth and detail as to the goings on of the project, as well s content to the people who have supported you financially. There are a couple of ways you can do this, the simplest is to continually communicate through whatever platform you originally crowdfunded through.

11. Keep applying for Grants, but now focus on finishing funds.

Applying for grants isn’t something you should have stopped doing, but at this point in the cycle, you should be applying for grants to finish your movie rather than develop or shoot it.  If you’ve consistently been applying all this time, you’re more likely to succeed at this point as you may well be starting to re-apply for the same grants you didn’t get last time.  

12. Launch a secondary crowdfunding campaign for finishing funds

This is part of why you’ve continued to stay in touch with the people who backed your first campaign, as it’s much more likely they’ll come back for your next round if they’re happy with your communication skills as well as the progress you’ve made.  

13. Ramp up the content you’re releasing

Before you may have released photos from interviews on social media, and teasers to your backers.  Now you may want to release teasers on social media and short interview clips to your backers.  You don’t want to release anything that will give too much away, but you want to build buzz and have a deep engagement with your backers.  You want them to feel like they made your movie possible.  In a very real way, they did, and they may have gotten you to the finishing line. 

14. Apply for impact grants

Impact grants focus on getting the film out and into the world.  They cover things like festival submission, travel, and other costs related to marketing and distribution.  You should start applying for these grants when you hit picture lock.  

NOW THAT YOU’VE FINISHED MAKING THE FILM…

15.  Hire a publicist (If you can)

Publicity isn’t cheap, but it is one of the best ways to build both the profile of your film and of you as a filmmaker.  Getting press early on will help you in the next parts of your process.

16. Apply to festivals

Now that the film is done, you should start applying to relevant festivals.  If you’ve already gotten some press coverage, you’re more likely to get in, however, the time your publicist will be of the most use is during your festival rune.

17. Get a Lawyer, and get them to do an E&O Coverage letter.

If you didn’t already have a lawyer, get one now.  A lot of lawyers will do some pro-bono work for documentary filmmakers as a public service, so don’t hesitate to ask.  Along with being a steadfast advisor, they’ll also have the ability to write a fair use clearance letter which will enable you to buy E&O Coverage if and when you need it.  Also, you should really have a lawyer on call when you move on to step 18. 

18. Get a producers rep, or sales agent and distributor

Finally, you should make sure to start reaching out to producers reps sales agents, and distributors as soon as you can after submitting to festivals.  Some of us can help make sure you get into bigger and better festivals, but any reputable person with these titles has a much better chance of getting you a profitable distribution deal on platforms 

After the success I’ve seen from one film I both repped and distributed film Queen of the Capital, I’ve recently started putting a greater emphasis on documentaries, since my direct contacts in that area have grown significantly.  You can learn more about Guerrilla Rep Media Services film below.

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What you CAN and CAN’T negotiate in an Indiefilm Distribution Deal

A HUGE part of my job as a producer’s rep has been to negotiate with sales agents and distributors on a filmmaker’s behalf.  While I happen to think my contracts are exceptionally fair, most filmmakers tend to do some level of negotiation.  However, others can overplay their hands and lose interest.  I’ve checked up on some of the ones that did, and they didn’t make it anywhere.  So, no matter who you intend to negotiate with here’s a list of what tends to be possible to negotiate.  

One thing to keep in mind is your position as a filmmaker.  Distributors tend to have more power in this negotiation.  Filmmakers do still have power, as you own your film, but it’s important to keep in mind that in many circumstances, they’ll have significantly more options than you will. 

It’s also important to note that these contracts are only as good as the people and companies you’re dealing with.  So vetting them is important.  The link below has more information on that.  

Related: How to vet your sales agent distributor.

There are of course exceptions to these rules, but you knowing the general rules will help. Those exceptions are directly tied to the quality and marketability of your film.  

What you CAN negotiate

These are things you CAN negotiate, within reason.

Exclusions

Distribution deals are all about rights transfers and sales.   In general, you can negotiate a few exclusions to keep back and sell yourself.  It’s important to note that you shouldn’t try for too many of these though, as the distributor needs to be able to recoup what they put into your film.  Here are some of the common ones

• Crowdfunding fulfillment

• Website sales

• Tertiary regions the film was shot in.  

In general, all rights are given exclusively, but crowdfunding fulfillment might need to be carved out so you can fulfill your obligations to your backers.  I’ve never had trouble with this one.  

Generally, it’s wise to retain the right to sell your film transactionally through your own website using a platform like Vimeo OnDemand or Vimeo OTT.  Distributors tend not to utilize these platforms, so they generally won’t have an issue with it so long as they get advisement on release timing AND it’s only available on said platform transactionally.  That is to say, people must pay to purchase or rent the film.

If the film was shot in a very minor territory like the Caribbean, Paraguay, parts of Africa, or maybe parts of the Philippines, it might be possible for you to retain those territories and sell the film yourself.  Be careful with how many of those you do.  

Marketing Oversight (Home Territory)

Pretty much no matter what territory you’re from, you have some pretty meaningful ability to negotiate additional marketing oversight.  This is not an unlimited right, however, and it’s common that final say will remain with the sales agent or distributor.  It’s important to do your diligence on how they’ve used that oversight in the past.  

Term (To an extent)

If a Distributor or sales agent brings you an agreement with a 25-year term and no MG, walk away.  If a Distributor tries to get a 12-15 year term, try to get them down to 10.  That’s the industry standard for what we work on. 

Exit Conditions (to Some Extent)

You need to make sure that you have aa route out if things go sideways.  In general, you need a bankruptcy exit, and I would push for an option to exit on acquisition of the distributor, or if a key person leaves.  

What you CAN’T GENERALLY negotiate
(but should probably look out for)

Here’s what you generally can’t negotiate.  There are exceptions to how much you can negotiate this, but no matter what these are things you need to fully understand.  

The Payment Waterfall

I wrote about the waterfall fairly extensively in the related blog linked below.  The biggest issue is that most distributors start taking their commissions BEFORE they recoup their expenses.  I understand how and why they do it, but it’s generally not the best.  

The biggest negotiation you MIGHT be able to get is what’s known as a producer’s corridor, which effectively helps you get a small amount of money from the first sale.  Generally you’ll be placed (essentially) in line with the distributor or sales agent, which means it will take significantly longer for them to recoup their expenses.  That said, any way you slice those numbers, you still get paid more.  

Related: Indiefilm Distribution Payment Waterfalls 101

Related: The Problem with the Film Distribution Payments  

Recoupable Expenses

Recoupable expenses are money a distributor or sales agent invest into the marketing of your film.  They generally have to get this back before paying you.  The exception above is notable.  Generally, there is little ability to negotiate this but you should make sure you get the right to audit at least once per year.

Related: What is a Recoupable Expense in Indiefilm Distribution

Payment Schedule

The payment schedule is how often you receive Both a report and a check.  In general, they start out quarterly and move to semi-annually over 2 years.  There are exceptions, some of my buyers report monthly.  However, in general, after 2 years most of the revenue has been made, and the reports will continue to get smaller and smaller. 

DON’T EVEN BRING THESE ONES UP

These are issues you just can’t bring up.  The distributor might walk away if you do.  

Their Commission

Don’t bring up the sales agent’s commission.  You probably don’t have the negotiating power to alter it beyond the corridor I mentioned above.

EXCLUSIVITY

I wrote a whole blog about this linked below, but the basics of it are that we’re essentially dealing with the rights to infinitely replicate media broken up by territory and media right type.  The addition of exclusivity is the only way to limit the supply, which is the only reason the rights to the content have any value at all.  

DIRECT ACCESS TO THEIR CONTACTS.  

These contacts are generally very expensive to acquire, and the entire business model of the sales agent or distributor relies on maintaining good relationships with them. No distributor is ever going to give this to you. They’ll get very annoyed about you even asking.   

Thanks so much for reading!  If you think that this all sounds like a bit much, and would rather have help negotiating, check out Guerrilla Rep Media’s services which include producer’s representation.   your film using the button below. If you need more convincing, join my email list for free educational and news digests and resources on the entertainment business which include an investment deck template, a contact tracking template to help you keep track of the distributors you’re talking to, and a whole lot more.  

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7 Things I Learned as CEO of a US Film Distributor

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

(Almost) Nobody pays on time.

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

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

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

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

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

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

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

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

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

You have to pitch earlier than you think.

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

Payouts take longer than you think.

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

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

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

The industry still operates on a tentpole model.  

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

Producers get in their own way a lot.

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

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

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

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

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

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Filmmakers Glossary of Film Investment Terminology

Last week I laid out a glossary of general-use film business terms, but the blog ended up a bit too long and dense to be a single post.  So, I broke it into two.  Last week was the basics of business terms, this week is the next level, and focuses entirely on investment terms.  Some of these may seem tangential and unnecessary, however if your goal is to close an investor, you’ll need to thoroughly speak their language.  If there’s something you don’t see here, check out last week’s blog here. I’m not a lawyer, this isn’t legal advice, and you should have a solid attorney on your team before trying to close an investment round. With that out of the way, let’s get started.

Capital

While many types exist, The term most commonly refers to money. 

Liquid Capital

Money that can be spent immediately, or near immediately.  Non-liquid capital would be considered something like real estate holdings which would first need to be liquidated in order to sell. 

Principle

In finance: it’s general the initial capital investment or the remaining balance on a debt. 

Interest

A percentage fee is added on to the principle of a loan or line of credit.

Compound interest

Interest on the principle of the loan and interest.

Simply: interest on interest.

High-Risk Investment

An investment where an investor may lose most or all of the money they put in. Independent Films are always high-risk investments

Securities and Exchanges Commission (SEC)

The main financial regulatory agency in the United States.  It oversees most forms of investment.

Accredited Investor

A person of means who is generally considered to have enough business know-how to appraise an investment, pay someone to appraise it for them, or who wouldn’t be completely destitute from taking a high risk-gamble.  As of the date of this publishing, according to the SEC the investor must meet either (NOT both of) the income or net worth requirement in order to be considered an accredited investor.
​
Income Requirements
1.If filing individually, a person must have made 200,000 USD a year for the past 2 years, and be likely to do the same this year. 
2.If filing Jointly, a household must have made 300,000 USD a year for the past 2 years, and be likely to do the same this year. 

Net Worth.

The investor or household must have 1 million dollars in net worth OUTSIDE of their primary residence. ​

High Net Worth Individual (HNWI)

Outside the obvious, this term is generally a financial industry term for accredited investor

Edgar Database

A database of high-risk investments maintained by the SEC that is only accessible to Accredited investors and licensed brokerage or investment firms.

Financing Round

A round of financing or funding that is large enough to take an organization or project to the next major milestone.  For how this works in film, check out the youtube video I’ve linked below, and the blog linked below that.

Related Video: The 4 Stages of Indiefilm Financing

Related Blog: The 4 Stages of Indiefilm Financing

Business Plan

A document written by an entrepreneur or filmmaker outlining their investment.  In the film industry, this document will also often educate the investor on how the industry functions as a whole.  This document is also known as a prospectus, but that term is not as commonly used as it once was. 

Private Placement Memorandum (PPM)

A document that’s filed with the SEC for investors to consider investing in your project.  Frequently an attorney will base this document off of the filmmaker or entrepreneur’s business plan.  In most cases, a PPM will be registered with the aforementioned Edgar database for a modest filing fee. 

Pro-Forma Financial Statements

Financial documents consisting of an expected income breakdown, cash-flow statement, and top sheet budget to be invaded in the business plan and function as the basis for many of the financial sections of other documents

The Three points above are heavily outlined in my business planning blog series.

Related: How to write an independent Film Business Plan (1/7)

Backed Debt

A secured loan backed by something like a tax incentive or pre-sale agreement.

Unbacked Debt

An unsecured loan, or debt without backing.  Generally very high interest.

Financial Gap

The space between what you are able to raise and the amount you need to finish your project.

Financial Markets

A market where stocks, bonds, derivatives, or other securities are bought and sold. Common examples in the US would be the DOW and the NASDAQ.

Film Market

A convention where films are bought and sold primarily by sales agents and distributors.  For more, check out the link below.

Related: What is a film market and how does it work?

Gross Domestic Product (GDP)

The total value of all newly finished goods in a given country during a set timespan.  Most commonly calculated on an annual basis.

Recession

A macroeconomic term signifying a period of a significant decline in economic activity.  It’s generally only recognized after two consecutive quarters of down financial markets. 

Depression

A severe recession that lasts longer than 3 years and corresponds with a drop in GDP of at least 10%

Bull Market

A market that’s strong and growing. It’s called a bull market as the upward trending graph looks like a bull nodding its head according to some people on Wall Street.

Bear Market

Yes, I spelled that right.  It’s a financial market that’s going down, or staying stagnant.  The name comes from a bear swiping its claws down.  Probably the same wall street guy came up with it. 

Thanks so much for reading! If you liked this, please make sure to check out last week’s general financing glossary, as well as my glossary of distribution terms. Also, please share. It helps A LOT.

Filmmakers Glossary of Business Terms

Additionally, make sure you grab my free Film Business Resource Package to get a print ready PDF version of all 3 glossaries.

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How to Raise Development Funds for your Feature Film.

Pretty much every filmmaker wants to find money to make their movie.  Unfortunately, many don’t quite realize that in order to raise the kind of money you need to make anything above a micro-budget movie, you’ll generally need a lot already in place.  It’s something of a catch-22.  Investors need name talent to market the film, and distribution to make it available.  Distributors need name talent and a tested team to give any meaningful commitments, and name taken need to know they’ll be paid.  There are ways around all of this, but generally, they require money upfront.  This blog is about how you raise it.

​Unfortunately, there isn’t a magic bullet on any level of film funding.  The best I can do is offer you tools and tactics to use to increase your chances of success.  You will probably need more than one of these tools to get the job done.
​

Don't want to read? Check out the video on this topic below

​Crowdfunding

Let’s get this one out of the way fast.  Crowdfunding CAN be great for filmmakers not only as a way to raise partial funding, but also to engage yourself with your audience and provide market validation for both investors and distributors/sales agents.  That said, it’s not without its drawbacks.  Using crowdfunding as an early-stage race tool can cause your donors to question whether or not you’ll be able to get the whole film done.  If you can’t, it can lead to problems.  (Extra special shoutout to my patrons here, since we’re talking about crowdfunding.)

Friends and Family

I know, I know.  This is the oldest piece of advice in the book.  But, there’s a reason it’s still around.  Your friends and family are (hopefully) among the people who are most likely to back and support you in this endeavor.  If they’re like mine were when I was starting out, while they may be willing to help and actively want you to succeed, they’ll still need some proof it’s possible.  However, the proof they’re like to need will probably be something easier to get than an investor would need. These 

Equity

But Ben, didn’t you just say that you need more in place to get an investor?  Yes and no.  In order to raise a large round, you’ll need a lot in place, but if you’re only focusing on a smaller round you can get by with less.  It is important to properly structure this investment though.  You’ll either need to offer a more substantial stake in the company for the bigger risk taken for investing earlier, or you’ll need to do some other investment vehicle like Convertible debt.

Even at this stage, if you want to raise money from investors you’re going to need to create an independent film investment deck. You can learn more about it in this blog, or you can grab a template for free in my film business resource package in the button below.

Grants

Grants are great in that they don’t require you to pay back the money so long as you only use it for its intended purpose.  They’re not so great in that they generally take a long time to be approved for the money, and you’re generally facing significant competition particularly for development stage grants. 

Soft Costs and Deferrals

This essentially means calling in every favor you have to make sure that you have the best chance possible to succeed in developing a package for your film.  This isn’t going to carry you the whole way though.  Most people who do this for a living don’t work purely on a deferral or commission basis.  I’m including myself in this, although I do defer a large portion of my fees and take on as much as I can on commission. 

That said, while the higher-level connectors, Producers, Executive Producers, and the like are generally unwilling to work on a purely deferral or commission basis, the friends you need to make a great crowdfunding video, concept trailer, or something similar might not be.  Getting their buy-in might help you make it to the next level.
​

Skin in the Game

Finally, we come down to the ever-present fallback of funding the development round yourself.  This is generally the fasted way to complete the round, but it has the obvious drawback of needing deep enough pockets to just shell out and pay the money you need to get it done. 

I know all of this is really hard to grasp, and quite frankly it’s a lot.  While I do consult on this sort of stuff, I’m not cheap. (with good reason.) I try to make a lot of information available through my site, but there are times that you just kind of need someone to answer your questions and re-orient you.  As such, I’ve decided to start a special mentorship group. 

This special training group gets you access to additional content, an exclusive discussion group, and most importantly weekly group video calls where I’ll answer your questions personally, and occasionally bring on people who would also be of benefit to the group’s needs.  Click the button below to go to a form and express interest in this group.  Spots are limited.

Also, don’t forget about the Free indiefilm business resource package to get your free Investment deck template, e-book, white-paper, and more. .

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What Screenplays are Studios ACTUALLY Buying?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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18 Steps to GROW your Filmmaking from Shorts to Features

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

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

1. WATCH A LOT OF MOVIES.

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

2. MAKE SHORTS AS QUICKLY AND CHEAPLY AS YOU CAN

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

3. GET CRITIQUE ON YOUR WORK.

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

4. SCALE UP FOR A BIG SHORT.

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

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

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

RELATED - 6 Rules for contacting Press 

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

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

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

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

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

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

9. CROWDFUND YOUR NEXT BIG THING.

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

10. SHOOT AND EDIT A FEATURE FILM

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

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

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

12. GET DISTRIBUTION FOR YOUR FEATURE OR WEBSERIES

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

13. MARKET YOUR WORK

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

14. REPEAT STEPS 9-13

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

15. MAKE A BRAND FOR YOUR COMPANY

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

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

16. HELP OTHERS MAKE THEIR FIRST FEATURE

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

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

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

18.  RINSE AND REPEAT STARTING WITH STEP 9. 

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

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

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

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

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

1. ACCEPT YOU HAVE A SMALL BUSINESS

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

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

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

2. BUILD & ENGAGE WITH YOUR AUDIENCE

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

3. INCORPORATE AUDIENCE FEEDBACK INTO YOUR WORK

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

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

4. GROW YOUR SUPPLIERS AND WHO SELLS YOUR PRODUCTS

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

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

5. DON’T FORGET WHERE YOU GOT STARTED

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

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

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The 4 Types of Media Entrepreneurship

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

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

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

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

Small Business Entrepreneurship Exemplified by Truly Indie Filmmakers.

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

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

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

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

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

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

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

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

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

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

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

Social Entrepreneurship: best Exemplified by Documentary Filmmakers.

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

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

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

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

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

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How Independent Filmmakers can THRIVE in the current distribution Marketplace.

To cap off my first-ever distribution month, I thought I’d talk a little bit about where Independent Film Distribution is heading.  Markets are going to be a big center of commerce for the film industry for a few years, but they’re going to continue to wane for the truly independent filmmakers, which means one of the biggest areas for entry for filmmakers is likely to go away.  With the fall of Distribber, and how Amazon looks like it’s going to scale back its filmmaker direct distribution programs there’s only one real path left for filmmakers.  That path is to build an audience that’s highly engaged with your content and distribute not only your film to them but other products related to your Intellectual property (IP.)

BUILD AN ENGAGED AUDIENCE

The first step in this (as I’ve brought up in at least half of the blogs this month…) is to build a highly engaged audience and following.  This is something that Youtubers have become fantastic about.  You have to have lots of touch points with your audience and provide them a perspective that they emote with but can’t find anywhere else.  By that I mean…

Create Niche Content that speaks to an underserved audience

With a massive glut of generalized content, You have to identify an underserved niche and start to make authentic, high-quality content that speaks specifically to a small niche of people.  This turns the old TV model on its head, instead of being a 6/10 for 10 people, you need to be a 10/10 for 2 people, and budget your film in such a way that you can keep your business afloat on the revenue from that much smaller audience.  Luckily, when you do this you’ll be able to successfully sell the film, as you won’t be competing as directly with outlets with huge, bland libraries. 

Think less about the format

Movies don’t just have to be 90-minute feature films any more.  If you can establish a following, keep content coming in the form of shorts, webseries, and features.  Don’t spend more time on them than you have to, but make sure that you continue to release new content to engage with your audience. 

Sell Merchandise

Once you have a dedicated following, think about ancillary ways you can monetize your brand and your content.  Bands sell T-Shirts at their shows as their primary source of revenue, and film trends tend to follow about 5-10 years behind the music industry.  You have to start building ways to monetize your Intellectual Property and your Brand beyond simply selling your movie at 3.99 a pop. 

Community Screenings

Theatrical releases are not cost-effective for many filmmakers.  Instead, you can focus on building community screenings that give your core audience a place to congregate, and if you organize them well they can also be a great place to sell merch. It’s also a great place for you as the filmmaker to Skype in and answer questions directly. 

Create Custom Experiences around your IP

Mark Cuban (former owner of Landmark Theaters and Shark on Shark Tank) is fairly well known for saying this is the future of entertainment.  It’s not always easy for Indies to commute in this space, but if you’re releasing a horror film you might consider a themed haunted house as part of a release or as part of a community screening.  There are other ways to make this work in conjunction with your core IP, but it’s difficult to scale and tends to be a custom solution for each film.

​​Thanks so much for reading!  This blog is something of a mix between a distribution blog and something to make you think a little bit more like an entrepreneur.  If you like this sort of content, make sure you come back in February for Entrepreneurship Month.  If you don’t want to miss it, make sure you subscribe to my mailing list or check out my Youtube Channel.  If you want to be extra awesome, throw me a few bucks on Patreon. Links below.

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22 Indiefilm Distribution Definitions Filmmakers NEED to know

If you’re going to read and understand your distribution agreement, then there’s some terminology you have to grasp first.  So with that in mind, here’s a breakdown of some key terminology you ABSOLUTELY need to know if you’re going to get traditional distribution for your film.

This is one of those blogs I should probably start out by saying that I’m not a lawyer.  Always talk to a lawyer when looking at a film or media distribution contract.  With that out of the way, I’d recommend we get started. 

1. License

At its core, a license for an independent film or media project is the right to exploit the content for financial gain.  Every other piece of a license agreement is clarifying the limitations of that license. 

2. Licensor

A licensor is a person or entity that is licensing a piece of media to another entity to either distribute or sub-distribute its content.  In general, this is the filmmaker when the filmmaker is dealing with a sales agent or producer’s rep, or the sales agent or producer’s rep when they’re dealing with distributors. 

3. Licensee

The License is the entity that is acquiring the content to distribute it and exploit it for financial gain.  In the instance of filmmakers and sales agents, it would be the sales agent, in the instance of sales agents and distributors, it would be the distributor. 

4.  Producer’s Representative (Producer’s Rep)

An agent who acts on behalf of a filmmaker or film to get the best possible sales and distribution deals. 

Related: What does a Producer’s Rep Actually do, anyway?

5.   Sales Agent

A Company that licenses films from sales agents or Producer’s Reps in order to sub-license the film to territorial distributors around the world.

6. Distributor

A company that directly exploits a film in a given territory on agreed upon media right types.

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

7. ​MG (Minimum Guarantee)

This is a huge one.  It’s the amount of money you get up front from a sales agent, or a sales agent receives from a distributor.  The biggest difference between this and a license fee is that at least in theory an MG has the potential to receive more in residual payments beyond the additional payment.  In practice, this is less common. 

8. License Fee

A license fee is a set amount of money paid by a distributor to exploit media in a defined territory and set of media rights.  Unlike a minimum guarantee, a License fee is the total amount of payment the licensor will receive over the course of the license, regardless of the financial success the film goes on to achieve.  License fees can be paid in one lump sum, or over the course of the license. 

9. ​Revenue Share

​Revenue share is the other most common way films can receive payment.  Revenue share essentially means that the licensee will split the revenue with the licensor according to an agreed-upon commission generally after they recoup their expenses. 

10. ​Producer’s Corridor

A producer’s corridor is an alternate payment waterfall of money a filmmaker is paid prior to the licensee recouping their expenses.  This generally means that the producer is paid from dollar one. 

11. Term

Term is the length of time a contract is in place.  For most independent film sales agency contracts, the term is generally 5-7 years. 

12. ​Region

The instances that generally apply to traditional distribution in the modern-day region refer to a set of territories in which a film can be distributed in. While they vary slightly from sales agency to sales agency, they are generally English Speaking, Europe, Latin America, Asia/Far East, and others.

13. ​Territory

When it comes to film distribution and international sales. territories are areas within a region that add greater specificity to where a sales agent can parse rights.  Latin America is both a region and a territory.

14. Media Rights

The sorts of media that a distributor has to exploit in a given territory or set of territories. 

Related: Indiefilm Media Right types

15. Benelux

A territory consisting of Belgium, the Netherlands, and Luxembourg. 

16. Four-Wall

The act of renting theaters in order to screen your film in them.  It generally involves a not insignificant upfront fee, and as a result, all money returns to the licensor. 

17. Community Screening

An alternative to a theatrical run for films with a strong niche or cause.  See below for more information. 

Related: How Community Screenings can replace a Theatrical Run

Related: 9 Essential Elements of Independent Film Community Screening Package

18. Payment Waterfall

When it comes to independent film distribution agreements, a payment waterfall is contractual representation How many flows from stakeholder to stakeholder?  If there is a producer’s corridor or some other non-standard modifications of a license agreement, there may be more than one waterfall in said contract. 

Related: IndieFilm Distribution Payment Waterfalls 101

19. Collection Account

​​A collection account is an account that a sales agent pays into which pays out all other stakeholders according to a pre-defined set of parameters.

20. ​Reports

In the context of independent film distribution and international sales agreements, a report is a statement made monthly, quarterly, bi-annually, or annually that states all incomes and expenses for a film.  Generally, this is accompanied by a check one is due.

21. Payment Threshold

When it comes to film and media distribution, a payment threshold is a minimum payment owed by a licensee in order to issue a payment to a licensee.  This payment amount is generally dependent on what payment method is being utilized.  For instance, the minimum is for a wire transfer is generally higher than a check which in turn is generally higher than for a direct deposit. 

22. Recoupable Expense

A recoupable expense is an investment made into marketing or distribution-related expenses by a licensee.  This investment will need to be paid back before the licensee pays the licensor, with the notable exception of the producer’s corridor.  Generally, these investments will fall into one of 3 categories of capped, uncapped, and uncovered expenses.   For more information, please check out the blog below. 

Related: What are recoupable expenses?

BONUS! - Expense Cap

An expense cap is a cap on the total amount of expenses that a licensee is able to take out before paying the licensor. There are exceptions, see the related link above for more information.

Thank you so much for reading the glossary! I hope it’s Helpful. If this is all intimidating and you need a little help, consider hiring a professional to assist you in the process.  So you could consider checking out Guerrilla Rep Media’s services. These blogs Blogs are largely a public service and marketing tool for me, most of my business is from representing and consulting with filmmakers just like you.  You can learn more and submit your film via the link below.  Or, if you're not ready for that, but want to support more content like this, join my email list to stay up to date on new offerings and get an awesome film business resource package while you’re there.

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Can You Get Your Movie on Netflix or Disney+ By Yourself?

At least until recently, a lot of filmmakers assumed that they could get on any platform they needed to be on just by calling up Distribber or another aggregator like Quiver.  With the fallout of the fall of Distribber, many filmmakers are wondering what they can do for distribution.  So, I thought I’d share some knowledge as to what platforms a filmmaker can still get on themselves using aggregators like Quiver, and what platforms you’ll need an accomplished sales distributor, or producer’s rep to get on.

I’m going to break this into general media right types.  If you’re not sure what that means, learn more by clicking through to the related blog below. 

Related: Independent Film Media Right types.

Also, this analysis is based on the US Market

Theatrical

Most distributors just won’t do this for most films, however, the ones that can do it tend to either rent the theaters outright or be extremely skilled salespeople with deep connections to the booking agents for theaters who will book the films on a revenue share basis.  It's just too much work for buyers to work directly with Filmmakers in this fashion.

For filmmakers, the most economical solutions tend to be either paying to rent a theater for a few screens or using a service like Tugg, to have a screening demanded if the film has enough of a following to make it work.  I have my issues with their model, but that’s a topic for a future blog/video. 

Physical Media:

Distributors have a lot more options for physical media than filmmakers tend to.  Some distributors still replicate DVDs on a massive scale, which gives them the ability to get higher quality disks and get them into brick-and-mortar stores like Walmart, Target, Family Video, or kiosks like Redbox.  Many distribution companies also have access to libraries.  Also, Blu-Ray in general is only really available on a wide scale through a distributor.

Even if they use a Manufacture on Demand (MOD) service, they tend to have access to companies who will put them out on the online storefronts of pretty much anywhere that sells DVDs and Blu-Rays.  This is largely due to the fact that those companies tend to only publish catalogs. 

If you’re a filmmaker, you’ll generally be limited to either buying a few thousand DVDs with no guaranteed warehouse solution or distribution network, or you’ll be limited to using something similar to Createspace to put them up on Amazon. While this tends to have the highest margins, it doesn’t tend to move a lot of products, and the quality of the product is generally pretty low. 

Broadcast, PayTV, and Ancillary (Generally Airline)

To get on any network or PayTv channel, you’ll need the help of a distribution company.  Same for airlines.  These entire right types are not generally available to you as a filmmaker. 

Video On Demand (VOD)

For ease, I’m going to break this into a few categories that are generally accepted within the industry.  Those categories are Transactional VOD (TVOD) Subscription VOD (SVOD) and (AVOD)

Transactional Video On Demand (TVOD)

In General, TVOD is pretty accessible to filmmakers on their own.  Filmmakers can pay an aggregator to get you on most platforms for a fee. These platforms include iTunes, Google Play/YouTube, Fandango Now, and many others.  Also, Filmmakers have been able to put their own work up on Amazon Instant video largely for free until recently, although it seems those winds may be changing.  Either way, filmmakers can use Vimeo OTT or Vimeo On Demand to sell the film directly through their website.

There are, however, more than a Few TVOD platforms that only a distributor can access.  These include a subset of TVOD called Electronic Sell Through VOD (ESTVOD) that’s primarily used for paid on-demand offerings of cable and satellite providers, as well as the occasional hotel chain.  The hotel chains VOD offerings have greatly declined in recent years as free WiFi has become commonplace.  Additionally, there’s a service that enables your content to be rented through library systems that are only accessible to distributors with decently sized catalogs. 

Subscription Video on Demand (SVOD)

In order to get on any platform like Netflix, Hulu, Disney+, HBO NOW, HBO MAX, or any other major streaming platform, you need the help of a distributor.  Distribber SAID they could pitch you, but that turned out to not be as true as you might hope, and their pitch fee was the size of most commissions a sales agent would take.  Also, their success rate was abysmal for someone charging up front.  This was primarily due to them pitching dozens of films a month, and as such them not getting much attention.

If you want to utilize your SVOD rights as a filmmaker, you pretty much have three options.  Put it on Amazon Prime, (at least for now.) You can start your own subscription service using Vimeo OTT, or try to sell it to people who started their own subscription services that you’ve found.  I doubt those last people will have much money though. 

Advertising Supported Video On Demand (AVOD)

Finally, we come to Advertising Supported Video on Demand or AVOD.  This is an exciting space that’s only recently emerged.  The two biggest players that do it profitably are TubiTV and PlutoTV.  Both of which only deal with filmmakers and sales agents with large catalogs of high-quality, distributable films.  This means they generally only deal with distributors or sales agents.

If you’re a filmmaker, you can put your movie on YouTube in the normal way for AVOD dollars, but it’s generally inadvisable for feature film content.  It’s good for vlogs about film distribution though..,

Thanks so much for reading! 

Educational content isn’t my primary business, the reason I know this stuff is I work in the field. If you’d like to work with me, submit your project idea via the link below. Distribution and brokerage tasks are on commission, earlier stage projects involve some reasonable fees. Also, If you like content like this, you should join my mailing list. It will get you lots of great blog digests of content just like this, as well as notices of major releases from Guerrilla Rep Media.

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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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The 6 Steps to Negotiating an Indiefilm Distribution Deal

Much of my job as a producer’s rep is negotiating deals on behalf of filmmakers.  However, now that I’m doing more direct distribution, I’m realizing there are several things about this process that most filmmakers don’t understand.  As I tend to write a blog whenever I run into a question enough that I feel my time is better spent writing my full answer instead of explaining it again, here’s a top-level guide on the process of negotiating an independent film distribution deal.

Submission

Ashley P.
Judah J.

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Generally, the first stage of the independent distribution process is submitting the film to the distributor.  There are a few ways this can happen.  Some distributors have forms on their website (mine is here) Others will reach out to films their interested in directly.  Some will have emails you can send your submissions to.  There are a few things to keep in mind here, but in the interest of brevity, just check out the blog I’ve linked to below.  There’s a lot of useful information in that blog, but I will say that YES, THE DISTRIBUTOR NEEDS A SCREENER IF THEY’RE ASKING FOR ONE.

Related: What you NEED to know BEFORE submitting to film distributors

Initial Talk​

Generally, the next step is for the distributor to watch the film.  I have a 20-minute rule, and that’s pretty common.  Generally, if I make it through the entire film, I’ll make an offer.  If I don’t, I won’t ever make an offer.  If I’m requesting a call, I’m normally doing so to size up the filmmaker and see if they’re going to be a problem to work with. 

This is not an uncommon move for distributors that actually talk to filmmakers and sales agents.  Generally, we want to discuss the film as well as size up the filmmaker before we send them a template contract. 

Template Contract

Generally, when we send over the template contract, it will be watermarked and a PDF so that the filmmaker can understand our general terms.  This also won’t have any identifying information for the film on there.  We’ll also attach it. Few appendices to the contract can change more quickly than the contract itself.  My deliverables contract is pretty comprehensive as of right now, but honestly, I think I’ll pare it down soon as I haven’t had to use much of what’s in there yet. 

Red-Lining

The next major step in the process of the distribution deal is going through and inserting modifications and comments using the relevant function on your preferred word processor.  Most of the time they’ll send it in MSWord, but you can open Word with pretty much any word processor and this is unlikely to be too affected by the formatting changes that happen as a result of putting the document into pages or open office.  That said, version errors around tracking changes do happen, and if you find yourself in that situation comment on everything.

What you should go through and do is make sure track changes are turned on, and then comment on anything you have a question about and cross out anything that simply won’t work for you.

NOTE FROM THE FUTURE: Since someone commented on this at a workshop, I’m aware that Redlining has another historical context in the US, but it is the common parlance for this form of contract markup as well. I’m in favor of negotiating distribution deals, and not in favor of racist housing policies.

Counter-Offers

Generally, distributors and sales agents will review your changes, accept the ones they can, reject the ones they can’t, and offer compromises on others.  While there are some exceptions to this framework, after the first round of negotiations, it’s often a take-it-or-leave-it arrangement.  If it’s good enough, sign it and you’re in business.  If not, walk away.

Quality control

Most sales agents and distributors will have you send the film to a lab to make sure the film passes stringent technical standards. If you have technically adept editor friends, you’ll want them to do a pass first, as each time you go through QC it will cost you between 800 & 1500 bucks. You will need to use their lab, but it’s best for everyone if it passes the first time.

​If you need help negotiating with sales agents or just need distribution in general, that’s what I do for a living. Check out my services using the button below.  If you want more content like this, sign up for my email list so you can get content digests by topic in your inbox once a month, plus some great film business and film marketing resources including templates, ebooks, and money-saving resources.

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How and Why to Test Screen Your Indiefilm

If you’re a filmmaker who’s got a film that’s nearing completion, you’re probably going to want to get some opinions on it before you think you’re ready.  This involves test screenings.  Given that I’ve hosted a few in the past, I’ve learned a few things that work and others that don’t. 

1. Invite people who aren’t filmmakers

While the very first people you’ll want to get feedback on your cut from probably ARE filmmakers, they won’t be the only people you want to talk to about your project.  Filmmakers tend to understand the process a bit better than a standard viewer and are going to be more able to look past a lack of color correction and audio that still needs work.

However, filmmakers have their own set of biases when it comes to low-budget independent work.  The easiest way past that is to do test screenings for the people you expect to WATCH your movie as opposed to those that helped you make it.  It’s best to wait until the film is nearly done before doing this, as these screenings tend to be labor-intensive and can be expensive.  Also, if you show the film too early, it can negatively impact the press for the film. ​  ​

Generally, I think the time you want to start showing people in the industry is around picture lock.  The test screenings should be done closer to the completion of the film when you think you stand a chance at getting into major festivals.

2. Give out PRINTED comment cards/Sheets at the close of the event.

I’ve done enough events to know that if you give out PAPER sheets for people to fill out anonymously at the event, you’ll probably get around 80-90% of your audience willing to fill them out.  However, if you send a follow-up survey in email, that number is around 10-20%, even if you incentivize them. 

As such, you should make sure you have a single-sided sheet ready for people to fill out at the event.  Don’t make people give you their names, but do ask about their age range and potential ethnicity.  If there are other demographics you plan on targeting, you should also add questions asking people if they identify with any of those groups. 

I’ve added a few templates to my resources section below.

Get the FREE template in my resources section!

3. Ask the viewers to RATE the film on IMDb & give them the ability to AT THE SCREENING

IMDb is one of the earliest places you can start asking consumers to rate your film.  In general, it’s best if you ask them to rate the film at the test screening.  You can set up a subdomain on your site that automatically redirects to the IMDb page.  Then you can use a QR code generator to make sure people have access to it.  Give them time to fill out the form and rate the film between the film finishing up and a Q&A.  The whole process (for both) should take 10 minutes or less, meaning a 15-minute break will also allow people to use the bathroom. 

I believe your film needs to be marked as completed to capture this rating. ​

4. Capture emails to let the beta viewers know when the film comes out.

If you’re a filmmaker, you need to build your email list. (More on that in the related blog below.) You should create a custom tag for people who attend the screening of your film.  If you capture RSVPs of people through Eventbrite, then you can just add that tag when you import them to mail chimp or whatever other mailing management program you want to use. 

Related: Why every filmmaker needs an email list.

5. Consider inviting local press

If your film is gearing up for release, offering press passes to local print outlets, prominent bloggers talking about movies, or other digital creators will probably serve you well.  It may or may not get them to actually come out, but the benefits of them coming.  Just make sure you’re not spammy about it.

Related: 6 Rules for contacting press.

Thanks so much for reading! If this all seems like a bit much, I do it for some of the films I represent or distribute. If you’d like me to consider yours, check out my services page. If you like this content, you should check out my new youtube channel. Also, don’t forget about the templates, ebook, and way more in my resources packet.

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How Filmmakers Can Use Community Screenings to Maximize Impact and Profits

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

1. Identify your Target Audience

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

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

2. Figure out a communal gathering place for them

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

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

3. Research those community leads lists

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

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

4. Create a screening package

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

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

5. Generate marketing materials

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

6. Sell the community Screening package to them.

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

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

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