OK everyone, Quiet on set! and...Reality Check!
Unfortunately, no matter how lofty the dreams the stark reality is that most productions will never even earn their way into IMDB, let alone a major film festival. In fact, lots of them will run out of cash before they even get onto the editing suite. The “above the line” costs such as salaries for writers, directors, producers and talent, along with “below the line” costs including the crew and post production staff add up quickly. Before you realize it, your money is all gone, your family and friends won’t take your calls and your credit card companies won’t stop calling you. The key is to make certain that you have sufficient funding in place before you even storyboard your first scene. The challenge is that with credit being tighter than it has been in most people’s adult life, securing cash for one of the highest risk investments out there is no easy task.
Finding a film funding pro
Enter Kevin Weedmark, the CEO and COO of Greenlight Film Funding . With a background in helping developers to find cash for real estate projects, Kevin knows where the money is. It is his job to uncover the film projects with the most merit and assemble them into packages which will turn a positive return on investment (ROI) for his investors. Much as with a company stock or a mutual fund, the capital comes from individuals, companies and even pension funds located in the US and abroad. Unlike most filmmaker types who are willing to lay it all on the line to bring their vision to life, film financiers are pretty much just interested in making money. Now, that is not to say that they don’t possess extensive knowledge, interest and even passion around the art of making films, they definitely do. But at the end of the day, they are investors not charities. This is a simple concept that many young directors may not fully understand. Movies are a business and if you have any hope of attracting investors, you’d better plan them that way. For this, Weedmark offers some key insight on the factors which are important if you want to acquire outside funding.
Near the top on the consideration list is location, location, location. To give you a hint on what that means, Greenlight Film Funding’s offices are located in Michigan. Just in case you are not aware, that’s the state which pays upwards of 42% to producers in tax incentives to make their movie there. As an investor, the idea of getting almost half of your money back into your pocket soon after the production wraps is a no brainer. This accounted for 32 productions shooting there in the first 9 months of the program. As a direct result, the state has seen hundreds of millions of dollars invested into production infrastructure. Large, soundproofed theatrical stages complete with mill rooms, 40 foot ceilings and state of the art post production facilities. So, be prepared for the first question to be, “are you willing to shoot in Michigan?”.
What's in a name? Lots.
The next consideration in getting your funding is that you need to have names attached. That includes the director, producers and actors. Although it is not a science, you will need to balance the entire package to be most favorable. So if your director has just a couple films under their belt, then you better have one of the top 200 hottest actors committed. If you have a director with a solid track record, but you haven’t secured any A-list actors, then bring in a whole bunch from the B-list to make up for it. Even if you think you have the best (no-name) actors on board to carry your script, keep in mind that it is the box office draw and the opportunity to secure worldwide distribution that drives the ROI equation, not only a great script. Kevin is quick to point out that this is a difficult “chicken and egg” challenge for new movie makers. The top actors in the business like Robert Dinero for instance, won’t even take your call unless your funding is 100% locked up. And don’t even think about lying about who you’ve signed either, because in a business as incestuous as this one, you will get called out. You should also be prepared for the realization that the requirement to have these known entities as part of your project will naturally drive your budget needs higher than you may be comfortable with.
Greenlight’s recipients are mostly independent studios as the big boys tend to tap their own cash networks needed to fund their $100 million blockbusters. For Kevin, the budget sweet spot for films he will consider falls between $5 million and $20 million, but don’t expect to get the whole nut from outsiders. Investors like to know that the producers also have some skin in the game, possibly as much as 50% of the budget. If not, you’d better have one hell of a script chock full of superstar talent and the understanding that your investors will be pulling out their profits long before you even see a nickel. Further, revenue sources don’t only include box office tallies and DVD sales. In order to sweeten the deal, get creative in presenting your investors with the entire income package including revenue from product placement and aftermarket merchandising.
Find cash for films
The reality in finding film cash
Some advice from this movie funding maven to up and coming filmmakers, Weedmark says to start small. Don’t be afraid to be that filmmaker running around with their handheld camera and their best pro bono buddies. Trade your time for film credit as a PA or associate producer on a larger set and make connections with producers who have been there and done that. This is a business where time really is money, so make your mistakes when there is very little of both at stake. The experience built will go a long way when it comes time for you to ask a complete stranger to place their bets on your ability to make them money. Too often Kevin sees first time directors come to him with no cash of their own, a $10 million budget and zero names attached. They seem to have delusions of grandeur of making it into Sundance and walking away a distribution deal and a signing bonus for their next 3 films. Simple statistics prove that for the vast majority of us, this just won't happen.
What about the Texas scene?
The good news for filmmakers here in Texas is that factors including our low production costs, the depth of the talent pool, the production infrastructure, the no hassle permit process and the diversity of year round shooting locales weighs into the equation as well. Pulling in over 30% in incentives from a given state loses its sparkle factor if it costs 50% more to shoot there and you are limited to shooting during good weather months only. Let’s hope that in their next session in 2010, legislators in Michigan come to the realization that 40% tax incentive rewards are a bit too rich for the state’s coffers in these tough times. In the meantime, be sure to sell Texas to every producer and film financier out there as the best possible spot to make a great film, with great talent that won’t bust the budget.
Bad films need money too
As a postscript I had to present Kevin with a grudge after having seen both “The Goods: Live Hard, Sell Hard” and “All About Steve”. The prior having checked off the obligatory “named talent” boxes with Jeremy Piven, James Brolin and even cameos from Will Ferrell and Alan Thicke. This film is just plain unmemorable with barely a few funny scenes. The latter film featuring Sandra Bullock and Bradley Cooper was again trying to put butts in seats with some top names on screen but fell way short with critics and moviegoers alike. During this deep recession, with money and credit harder to come by than ever, how can multi million dollar films like this even get made? Did the script miss the mark or was the shortcoming in the execution? Weedmark points out that most people simply do not understand how many moving parts go into producing a film. Admittedly he says that it is unfortunate that many films are made entirely on the backs of the cast. Quite often producers are emotionally tied into one aspect of a movie and they end up being greenlighted without looking at all of the components as a whole. For Kevin, the Director and Line Producer are a couple of the most important players in the entire deal. They are the ones who bring together all of the moving parts and assemble them into a living and breathing organism. Greenlight also employs a script coverage service in an effort to help bring to light any shortcomings in the screenplay before they lay their cash on the line. Good to see that at least one film backer hasn't lost sight of the value of a great story amongst the thick layer of Hollywood hype.
Steve Muccini is a producer and writer living in Austin, Texas. He is President of SpotEdge Media and HomeSaleVideo.com and affiliated with Melton Media. You may contact Steve here.
