For the type of film he is going to make and him being a new director, there is very little chance for pre-sale financing…. which is of course OK but requires a unique approach.
When raising money for your film, if you’re not ‘baking’ distribution into the equation with pre-sales, then you should be making the film for as little as possible or using as little private equity as possible as to protect your investors.
Just one look at the sales numbers that completed films are making in the marketplace should change your mind on using private equity to fund a big budget indie! (luckily this particular film isn’t big budget..)
So what are the options then for finding investors then if you don’t have the type of film that is pre-salable?
One way to go about it is to look for investors who have a vested interest in your film or in the subject matter of your film.
For example, if you have a film like FS member Samantha Lavin’s 7on10 where one of the themes is recovery from addiction, you could seek out investors who are recovering addicts themselves and who are passionate about spreading that message.
I’m not saying finding investors is easy by any stretch, but if you have that all-important target audience built in to your project (like I teach in Filmmakers Enterprise), it gives you a direction to start searching for investor prospects.
Along the way, you might find one of those investors who is passionate enough about the story you’re trying to tell that they want to finance your film and have that as part of their legacy.
In short, if you’re making a film that isn’t going to have pre-sales baked into the financing equation, then you need to…
1. Bring that budget down as much as possible since the prices you can pull from the market once the film is completed is lower than you think….
2. Seek out investors who aren’t necessarily motived by profit (since it is highly unlikely they’ll profit from a film based on pure equity financing anyway) but who are passionate about the message of your film and are more interested in supporting your cause and/or leaving a legacy.
So I’m curious, how is your film finance plan shaping up and what’s your plan for approaching investors? Let me know in the comments section below….
Thinking Of Launching Your Project At AFM?
If you are thinking of launching your completed (or almost completed) film at upcoming AFM market and need help finding a reputable sales agent, negotiating a fair agreement, and carving up your rights – take a look at my bespoke Film Market Consulting program where we’re in the home stretch now.
Sales agents are filling up their slates for the market so time is of the essence….
If you have a project at the script stage, let me know where you’re at with it and I’ll see if I can help….