Now, i know many filmmakers have done this before, but i couldn't find much information online on the success rate. The plan is, for my next film, to write a smashingly good script (horror/exploitation) and shoot a kickass high production value trailer, and set up great, professional looking website. And use this as a tool to attract financiers. For a film which i would like to budget at around AUS$60-80,000. How often does this work? you hear the big success stories... El Mariachi, Saw etc. I'm more curious about the other films, the one's that aren't smash hits, do you think many smaller films raise financing in this fashion?
Attracting Financial Backing using a Trailer
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I believe the guys that made SAW used this technique, they shot an entire scene and got financing in place. The best thing to do with a pre-sales trailer is to get pre-sales from buyers and skip investors all together. If you can get 2-3 pre-sales this may be enough to finance the entire movie. You take the pre-sales contracts to a bank that does film deals and have them advance you the amount of the contracts in the form of a production loan. You use the loan to make the movie and pay your self a salary. When the movie is done, you ship it, and the the distributors pay off the bank loan.
I can tell you that dozens of movies are made this way, however most of these deals are made by experienced producers with a proven track record with the bank and the buyers. The bank will want to make sure that the buyers are 100% rock solid companies. For instance a contract from an obscure distributor in the UK won't be worth any thing to a bank, but a contract from the BBC will be quite solid in the eyes of the bank.
Also if you live in a state that has a tax credit program like Michigan or New Mexico you can also get the bank to advance you your tax credit refund based on your budget, for instance if you are getting a tax credit refund of 200K, the bank may advance you 175K against this amount. Again you need to find the right bank, most banks run away in horror when you say the word "film."
If you can get 2-3 solid pre-sales contracts and a solid tax credit estimate, you can bank roll the entire movie and be working with a much bigger budget than you had anticipated. Many filmmakers are better off raising up their budget and attaching a known lead actor in order to secure the pre-sales. This will also trigger a higher tax credit.
All of this can be combined into the films production account at the bank and you are ready to roll.
This may sound tough, and it is, but the fact is many movies are made under this scenario. The other problem is that most filmmakers are more interested in the creation of the movie and less interested in the hard core business skills needed to pull off a deal under this structure. This is where it can be a good idea to bring in a producer who has experience in this area so you can concentrate on the creative aspects of the film.
R,
I can tell you that dozens of movies are made this way, however most of these deals are made by experienced producers with a proven track record with the bank and the buyers. The bank will want to make sure that the buyers are 100% rock solid companies. For instance a contract from an obscure distributor in the UK won't be worth any thing to a bank, but a contract from the BBC will be quite solid in the eyes of the bank.
Also if you live in a state that has a tax credit program like Michigan or New Mexico you can also get the bank to advance you your tax credit refund based on your budget, for instance if you are getting a tax credit refund of 200K, the bank may advance you 175K against this amount. Again you need to find the right bank, most banks run away in horror when you say the word "film."
If you can get 2-3 solid pre-sales contracts and a solid tax credit estimate, you can bank roll the entire movie and be working with a much bigger budget than you had anticipated. Many filmmakers are better off raising up their budget and attaching a known lead actor in order to secure the pre-sales. This will also trigger a higher tax credit.
All of this can be combined into the films production account at the bank and you are ready to roll.
This may sound tough, and it is, but the fact is many movies are made under this scenario. The other problem is that most filmmakers are more interested in the creation of the movie and less interested in the hard core business skills needed to pull off a deal under this structure. This is where it can be a good idea to bring in a producer who has experience in this area so you can concentrate on the creative aspects of the film.
R,
Great trailer agcamerasound. really cool to see you working with a similar idea. keep me posted on your progress as i'd be really interested to hear a close account of your experiences with this method.
have you though about the title? i mean, The Killing Fields is already the title of quite a well known film, do you think something like this could impede your chances of getting this financed?
have you though about the title? i mean, The Killing Fields is already the title of quite a well known film, do you think something like this could impede your chances of getting this financed?
Thanks for the kind words. I'll try to keep everyone in the indieTalk group up to date.
Yes the 'Killing Fields' is a working title which was there when I became involved (my DP/Gaffer friend wrote the screenplay and shot the trailer I came on board when it was time to produce the film). I had someone who has made and sold several indie films tell me not to get hung on the title because more than likely the distributor would change it anyway. So the title will change before you see the final product. The first Killing Fields was a movie from 1984 about Cambodia.
Up date:
We lost our old farm house location (the owners attorney got a hold of her and advised her that films are big trouble) owner now wants $50 grand for use of location. Now we are working with the San Antonio Film Commission to find another location. We have several options if we don't find a perfect location (2 story old farm house on acreage close to San Antonio). We may have to settle with a single story farm house and do some tweaking on the script or shoot an interior location separate from exterior. we're hoping to resolve it soon or push back our July 6 start date.
We'll keep ya'll posted.
Dude, that is SO lame. I hate when that happens. Little businesses or individuals get wind of what Hollywood movies pay-out to locations, and they think indie films can fly that high...it's just plain ignorant and selfish. 'Oh, oh...Brotherhood came to my restaurant and gave us 5K a day...so, I guess that's what I'll charge everyone...'
Pashaw.
Even if I had the money, I wouldn't do it on principle...unless of course I had angry investors breathing down my neck.
We just finished our trailer and plan to use it for fundraising. We actually got lucky and have a line on a few people before we finished the trailer but the fact we made it was definitely huge in opening some doors!
http://vimeo.com/9186724
http://vimeo.com/9186724
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Some people shot a trailer for a zombie western at the same place where I shot Gun Town. They did it to attract investors, but yeah, don't spend a ton on it.
"Our last feature was under 8K..." Congrats. I shot GT on 8K and paid everyone...except myself, lol.
"Our last feature was under 8K..." Congrats. I shot GT on 8K and paid everyone...except myself, lol.
You paid everyone on an 8K budget? Wow, that's generous. Very generous.
yeah, but it wasn't much, lol.