Financing / Crowdfunding : Ask Me Anything (AMA) Wednesday 1/15 to Thursday 1/16- Understanding Collection Account Management by David Zannoni

Hi, David Zannoni. I hope your year's off to a great start! Thanks for having this AMA! Who creates the Waterfall (Recoupment Schedule)? And do all Waterfalls have the same amount of time to recoup the funds?

Awesome of you to do this AMA, David Zannoni. I've heard you speak on this subject and there is nobody better. Flagging this for my network so they can take advantage of your wisdom. Thank you!

I was just going to repost this very informative opportunity to the finance lounge but I see it is already there! Don't miss this chance to ask questions of someone who truly knows the world of distribution recoupment collection accounts (how investors revenue is returned.) Look forward to this David Zannoni.

Hello! Can we go over an advisable timeline for contracting the CAM, and in your experience do you prefer to set it up in advance of partnering with a Sales Agent or is it better to make these moves with the SA on board? Please and thank you.

Hello David Zannoni - always good to see you on here. Thanks for having this AMA and spending your day with us. Question: How is transparency managed in the collection of revenues - is the investor able to see where things stand? Thanks in advance.

David Zannoni Hi David. Thanks for your time. I'm looking to either do a short or a feature in 2026 and would like to learn all aspects of filmmaking and film financial activities. So, what can a filmmaker do to make your life easy in CAM?

We will be shooting a film where the investors will hopefully have their money back plus a profit even before the film is released. If the film turns a profit; it will only be icing on the cake. Interested in how the CAM can help us spread the icing evenly over the entire cake?

Hi Maurice Vaughan! Each recoupment schedule is different and unique. it is a reflection of all the single deal terms agreed between producers and parties, about repayment of loans and investments, payment of deferred fees, sales commissions and expenses, back end, etc. How fees beneficiaries recoup depend on their position in the waterfall, and on how fast and how much money the project generates.

Thanks Sam Sokolow for the nice words!

Hi Eryn Rea, thanks for this great question! Timing on when to set up the CAM depends on several factors, like financing model, sales and guild requirements. Having said that, the ultimate moment is when a sales agent is engaged and sales start, as you will want to have a safe place - the collection account - where revenues can be paid to. Setting up the CAM before you engage a sales agent is sometimes also needed, either because a (domestic) distribution deal is closed without a sales agent, or because the guild requieres at least a draft of the CAM Agreement, or because investors or external financiers require a CAM Agreement at an early stage as a matter of guarantee or comfort.

Hi Leonardo Ramirez, creating transparency for investors and other stakeholders is, in fact, one of the key features and benefits of a collection account. All information collected and issued by the CAM is accessible to all parties that sign the CAM Agreement. The statements issued by the CAM contain info on all revenues received and how these are allocated and disbursed. All that info, including copies of distribution agreements and gross receipts reports with breakdown of revenues received per territory and per distributor, is also 24/7 available online, accessible only for the CAMA signatories.

Hi Anthony McBride that is a generous question! My first response would be to not worry about that, as it is up to us to make YOUR life as a filmmaker easier, at least a little bit :). Jokes aside, for the CAM it is important to receive the info as detailed as possible. Who are the parties that will sign the CAMA? Which 3rd party beneficiaries are also entitled to receive money from the revenues? Are there guild obligations and which guilds are involved? What is the budget of the project and are there sales estimates from a sales agent? And of course, we’d like to receive a complete waterfall.

Hi Eugene Mandelcorn this is a great example where a CAM can be helpful to all involved. The CAM can handle allocation and disbursement to your investors, for recoupment of their investments, premium as well as back end participation. With a CAM, you guarantee your investors that they receive their share of the revenues as it is handled by a trusted neutral third party. And for you, it means peace of mind as you cover both liability as well as administrative work, that the CAM does for you.

Thanks for the answer, David Zannoni! Your answers for Eryn and Leonardo show up in the Stage 32 phone app but not the web browser. I'm guessing you wrote your comments in the app, so you might need to edit them in a web browser.

Thanks David sounds like it will not only cover the icing but the cherry on top, as well.

Thanks so much David Zannoni! Hope you have an amazing and blessed 2025!

Thanks Maurice Vaughan, for flagging. I see the comments both in the app as well as on the web browser.

Thanks Eugene. Yes, to stay in the same terminology, with a CAM it can be a rather exquisite dining experience for everyone, covering the whole meal, from appetizer to dessert ;)

Also thanks to you, Jack, for the kind words. Good to see you here!

You're welcome, David Zannoni. I see your comments in the app and web browser now.

David. Thanks for sharing your time and insights with everyone today. I look forward to reading the Q&A and will certainly ask a few questions of mine own. CHEERS!

Thanks for hosting this great AMA, David Zannoni! How is a CAM beneficial for independent productions compared to larger studio projects? And what key information should filmmakers and producers provide when setting up the CAM?

Hi Ryan Little, thanks for joining and please, shoot your questions!

Hey Ashley Renee Smith! They essential differene between an independent production and a studio production, is that the studio production is typically fully done within the studios own ecosystem - which includes financing, production and distribution / streaming. There is no back-end or investors recouping from revenues. An independent production on the other hand, is financed through multiple sources whereby the financiers are entitled to recoup their loans and invesments, and may have an equity stake in the project, that comes with a profit participation as well. And then there are all sorts of other commitments that the producers will need to pay from revenues. That means that a studio project does not need a CAM - as there is no revenue sharing - and an independent project does, as there is revenue sharing amongst multiple stakeholders and beneficiaries.

Hey David Zannoni , Would you suggest filmmakers forego paying for an attorney and just download templates from the internet for agreements, and then pray they hold up in court (for a win, in all manner and matters) in the case of a dispute? Or, would you advise all filmmakers to always consult an attorney for any transaction in the entertainment business?

Hi Jack Binder, I most definitely recommend filmmakers to ALWAYS involve an attorney. It may be an expense but it is more than worth and it certainly pays back, as an attorney saves you a lot of headache (and money!) afterwards. Having an entertainment lawyer working on the CAM Agreement on your behalf, and in a broader sense, helping you properly structure the whole legal framework of your project, is in my view, essential.

What if you are working on an extremely low budget project. Are there any recommendations for legal without the expense of an attorney? I have found out in the past that finding the right attorney is like a marriage, the wrong one, and it can cause more problems than you already had.

That is a very good point, Eugene Mandelcorn. There may be lawyers whose format is better adapted for smaller budget projects in the way they work and charge. Furthermore, on a lower budget film, the involvement of a lawyer may be more topic or issue-specific, rather than a full engagement from A to Z. However, from the perspective of the CAM, what I have seen through years of experience, is that even on smaller projects, it generally does pay out to have an experienced entertainment lawyer involved in some sort of capacity.