Best ways to obtain ancillary funding

[Matthew W. Phillips]

I am currently in pre-production of a feature film and I have procured most of the needed financing from friends/family and my own funds. I could attempt to swing a feature with the money available but it would be uncomfortably tight. Therefore, I am looking for ways to bring in subordinate investors who can help fill in the gaps to make things a bit more comfortable. What avenues should I take to achieve this? I realize many people ask for movie funding but the difference is that we already have most of the skin in the game and arent asking for someone to entirely bankroll production.

 

I would especially like to hear Richard's thoughts if he is around since this is his area. No sarcasm though Richard ;)

 

Anyone else with ideas, please chime in.

[Nick Kornev]

Maybe start shooting with the money you already have and then use some shot footage to make people believe that you're working on a really quality stuff? It really helps - becomes much easier to convince the kickstarter crowd that they are making an interesting investment.

[Matthew W. Phillips]

Nick, that method has a few problems. One is that you dont generally want to "wing it" while in production. Another is because talent is difficult to procure as it is for a feature but to have an open ended project lowers morale and you are unlikely to hold on to flighty actors and certain crew who grow weary of a "vaporware" type project.

[Gregg MacPherson]

Hey Matthew, fancy bumping into you again....

 

What about shooting a very short persuasive piece that sells the film idea. You, key people, crew, actors all identified with that achievable goal. Could be usefull in lots of ways. But I don't know if you have some practical difficulty with that. For example, being forced to spend large on sets or something you would rather spend on later.

Edited December 6, 2012 by Gregg MacPherson

[Matthew W. Phillips]

Gregg, I originally just wanted to make a well done short and do the fest route, etc,etc. But Ive been there, done that. I have pitched and what I generally get these days is "features are better to market for non-proven filmmakers." Therefore, I have been told that I would do better in "Getting the deal" if I had a finished product that they can purchase. I see why and it makes perfect sense. Why trust an untested with a budget just because he made a short when you can make them take all the risk by funding their own film and then just offer to buy out the film after its a reality. A much lower risk of failure.

 

Therefore, I can go the fancy short route but Im not sure it will help much. I could do a feature quite easily if I shot on that horrid "dword" but I would rather not. Good Lord, how Id rather not.

[Gregg MacPherson]

Gregg, I originally just wanted to make a well done short and do the fest route, etc,etc. But Ive been there, done that. I have pitched and what I generally get these days is "features are better to market for non-proven filmmakers."......

 

I meant a very short promotional piece that sold the film, a trailer basically for selling the idea and you. For meetings or intimate screenings with the people that may help with finance, or help make the film.

 

Cheers, Gregg

[Matthew W. Phillips]

I may consider that Gregg. However, it would have to be on the understanding that none of the cast and/or crew are guaranteed to be part of the final production.

[Gregg MacPherson]

It's hard to know what to think or say without knowing much about the film. But I was going to say before that it could be a useful shakedown or test for the cast or crew. Thats me guessing that you are taking some risks there due to money.

[Guest]

I would especially like to hear Richard's thoughts if he is around since this is his area. No sarcasm though Richard ;)

 

You should know by now it's all I have to offer ;)

 

How much cashola are we talking about here anyway? 50K? 100K? 1 million?

 

If you have equity now, the easiest next source of revenue is the government. Shoot in a state that has a tax credit program, if yours does not. Then have the bank interim finance the estimated tax credits, there are several banks in LA that do this. When the tax credits come in, the bank loan is paid off. An entertainment lawyer would structure and close the deal as you could never do this on your own.

 

It would depend on what the overall budget is and how much you want to borrow. Many states require that the budget be at least 1M total. But not all.

 

R,

[James Steven Beverly]

You may try some minor product placement. I've seen smaller concerns pay small amounts to have their product placed in No-Budget films and I personally was able to make a deal with a large air conditioning manufacturer to place their product in a film I was planning to make. (I canceled the deal before they wrote the check because our primary financing fell through and I didn't want any backlash or burnt bridges). Sometimes you can get products and services for film credits which, though you don't get up front cash, ends up saving the production cash that would have had to be allocated elsewhere thereby effectively increasing your budget. I got a VERY NICE restaurant in downtown El Paso to agree to cater the entire shoot I just mentioned for the duration of filming at no charge again I cancelled the deal with my apologies after primary funding fell through. There was a boot outlet that agreed to provide boots, clothing stores who agreed to provide clothing and a few other businesses that agreed to provide services and products for advertizing in the form of film credits. Then there was lighting and grip people who agreed to work for deferred pay because they had developed a trust with me. A few friends who lent us stuff, equipment and props. All this essentially free and deferred up front cost saving measures added about 30% "income" to the budget, which on a No-Budget film is a lot. On the picture we're putting together now, I plan to see if some smaller companies that usually don't have an opportunity to participate in product placement, might be interested in a less expensive for them chance to have their products placed in a lower end film. All they can say is no and on a small budget picture where every penny counts, it's worth a few phone calls even if the funds garnered are also relatively small. B)