FINANCING
Financing for independent movies is an extremely tricky
subject. As a film maker you're better off financing your own movie. If
you're making your first picture, and most people don't survive their
first, to make their second, and since this book is directed primarily
at first time film makers in the hope of giving them the chance to go
on and build up a career, I advise you in all earnestness: don't go
over $100,000!
With proper financial discipline, you can accumulate that
kind of money if you live in a home well below your income, drive one,
very economical automobile purchased from auctions for under a thousand
dollars, prepare your food at home and stay single for as long as you
can.
This last one I can be a little flexible about. I understand that for
some people that will be a very difficult choice. However, I advise you
very firmly: don't let the euphoria of film production soften your
brain and possibly make it swell. When the picture is finished, you
will still be you. Don't get mad, but try falling in love before or
after you finished working on a movie. When you're working on a movie,
you're in fantasy land!
That's not the time to develop a life-long relationship. Sorry to
digress like that. I won't let it happen again!
Financing a movie between $100,000 and $200,000 means that
you must have at least one partner. If you can, find just one partner.
Someone who complements your skills. If you're the creative type, find
a producer type and vice versa. Avoid teaming up with actors for this
purpose. Behind the camera and before the camera people don't mix.
Trust me on this one! I could write a whole book on this one. This book
can't handle that subject too. Let me give you one hint. As a film
maker you must never let actors see your rushes or allow them to see
the film during the editing process. It's all over if you do. ... Do
you understand why you can't have an actor as a partner in production?
Good, if you do.
With one partner, or two at the most, you can still work as
a film maker. There will be a sense of coherence to the work and you'll
be able to pull it off. Of course it's harder than if you were on your
own, but not impossible, especially if you're the co-operative type,
not too high-strung or, heaven forbid, a perfectionist!
Financing the $250,000 to $500,000 movie requires a whole
other set of skills and experience. You need to have your distribution
deal in place. Which means the distributor must be involved on paper.
Try to get a negative-pick-up of some kind. You deliver the movie to
the distributor and you get the cost of the negative up front. Or try
for an advance, if the distributor doesn't have financial credibility
with any entertainment banks. But, whatever you do, don't let the
distributor tell you that he'll put up the marketing and advertising
costs or any other such talk. Forget it. Walk out and never look back.
At this budget range you're gambling with your talent
anyway. You can make a terrific picture though. If somehow you end up
getting this kind of financing through a distributor, you must be a
pretty good film maker already! Run a tight ship. Work hard. Cast good
actors. In fact spend most of your money on actors, as much as you can.
You have a shot at creating a film with a breakaway potential for
making money. You have a shot at theatrical release and your video deal
can be substantial. Just don't sell it short.
If you fail at making a terrific film with this kind of
money, cut your losses short and save whatever you can. If you suspect
during production that you're not getting what you want, pull the plug
immediately no matter how hard it is. You might be able to save 75% of
your budget. Even if you can save 50%, it's okay, do it! Otherwise,
you'll lose everything and you may never make another picture, no
matter how talented you are.
The $500,000 to $1000,000 picture is the most dangerous
budget of them all. You have to be a veteran film maker to have a
prayer of a chance at pulling off this kind of picture. The majors
won't pick up this kind of picture just from anybody, too. It's too
small! The independent distributors can't make that kind of money back
95% of the time in less than three years of distribution! Will your
investors wait that long? The foreign market and the video market can't
be counted on to generate this kind of money fast. Take my advice: stay
away from it.
There are a couple of exceptions. If you're a highly skilled
film maker, you can shoot an "A-film" with this kind of money abroad,
say in Mexico, Canada or Europe. You can get first rate actors, and
with a strong script, you can make a terrific movie that can get
international theatrical distribution. Later, you can get a limited US
theatrical deal and pretty good video distribution world-wide.
Co-production is the other possibility. If you can get
matching funds, then you're essentially making a $2,000,000 picture, in
which case you're chances are tremendously improved! But co-production
is a whole other discussion, mostly outside the focus of this book.
And finally we come to the "A-Film." The $1,000,000 to
$5,000,000 budget range is a wide one; however, it all depends on the
genre and the script. The budget has to be extremely well calculated.
Okay, you've earned the respect of the industry and you got
a studio of sorts to put up that kind of opportunity in your path. In
fact, you've made it! You've achieved the ultimate goal that this book
hopes to prepare you for.
So what do you have to do now. Very well, I'll tell you. First, take a
hard look at yourself in the mirror. You've come a long way, baby! You
don't have to blow it now! If you succeed with this picture, you'll
most likely get a multiple picture deal from a major studio. So proceed
in very well measured steps.
Hire the right people! Every position is important.
Collaboration is the key skill you bring to this type of picture.
You're no longer a kid on a beach with a beautiful actress and a
hand-held camera! You can do an all-union picture now. Make sure you
choose your crew just as carefully as before. They'll be more
experienced, but they have to be compatible with you!
Your cast should be first rate, also, and dedicated -- no prima donnas!
And read the rest of this book very carefully when you get to this
level of budget.
This kind of financing comes from an independent distributor with whom
you've had a successful relationship. It comes as a negative-pick-up or
a guarantee of the entertainment bank that you both deal with or have a
contract with.
Public offerings and Limited Partner-ships are also sources of funds
for this kind of budget.