Financing / Crowdfunding : Ask Me Anything (AMA) 7/11 to 7/12- How To Attract Financing by Michelle Alexandria

Thanks for having another AMA, Michelle Alexandria. If someone's producing a micro-budget feature script, do you think it's better to find an investor or crowdfund the project?

Are there elements in a budget that investors are seeing as "riskier" than others that would make a film too expensive to make that would be a good idea to avoid in the first concept brainstorming?

Hi Michelle - thank you so much for doing this AMA today. My question is about the importance of having some sort of distribution deal in place before raising money for an independent film. How important is it to have that prior to approaching investors and, if it is a key, do you have any tips on how filmmakers can go about seeking some sort of distribution agreement prior to raising their money. Thanks, again!

Thanks for doing this Michelle! Love that you're brining your expertise here to the lounge. I know you have raised a ton of financing for films. In your experience, what should be in your feature film pitch deck that you provide an investor?

Thank you, Michelle! I'd love to know if there's a difference between seeking an investment for a series versus a feature, and what are the common mistakes that we should avoid? :) Thank you again for all of your support!

Dalene Stuteville Hi Dalene, this is a really really good question. Yes, I do find often budgets are made where there is so much money put on certain lines such as a producing fee, script or option fee, or even a directing fee. Filmmakers who are fairly new to the industry, be careful how much you pay yourselves. If you are new and up-and-coming with only a few films to your credit be modest on how much you pay yourself. Have your budget done by a line producer who has experience in the state you plan to shoot. Producers, if you are also fairly new pay yourself accordingly and not a huge fee so investors don't feel they are just boosting your career. Distribution is an obstacle in itself so you want to make a goal to obtain the investment back and pay back your investors. They will likely invest again.

Thanks Michelle Alexandria for your AMA availability — do you know of any folks who’ve financed their films almost exclusively with product or brand integration? How would you recommend someone approach financing leveraging this model?

Amanda Toney Hi Amanda, so happy to be here with your team. This is a great question. You know I love Pitch Decks and I personally tailor my Pitch Decks strictly for investors. Filmmakers, please make sure to have in your pitch deck your asking amount. I often see these beautiful pitch decks with cast photos, biographies, comparable films, and more, but I often don’t know how much the Filmmaker is asking for. What is the full budget? And how much of that budget are you seeking? Make sure to have a page dedicated to what amount you are seeking to obtain. This is often forgotten believe it or not!

Michelle Alexandria, thank you for taking the time to answer!

Hi Michelle Alexandria! I hope this finds you in a state of joy! My question to you would be: who/where would you advise as to be the best investors to seek out, who would be interested in funding a Sitcom's Pilot and potentially the rest of a season? And then for the steps afterwards, such as distribution? Thank you! :)

Hi, thank you so much for doing this Michelle Alexandria. I am getting ready to direct my first short from a script I wrote. There is a social impact component to it (it's about the opioid epidemic). I realize there is no ROI for short films so I plan to crowdfund. In your experience do you ever find professional producers that come aboard a project solely for the themes or social impact? (I am realizing that I need a producer sooner than later.) If so, any tips on where I can find this magical person? Thanks!

Hi Michelle Alexandria, thank you so much for making yourself available today! What are the more common misconceptions that you find people have about the financing process?

What are three things someone should have in place before seeking out investors (asides from pitch deck, and polished script)? Do any of the films you seek out financing for make a profitable ROI? What budget range do you work with?

Maurice Vaughan Hi Maurice, great question. To be honest with you I am still fairly new to crowdfunding. I have never utilized this opportunity, however I have distributed many films that have been funded via crowdfunding. When producing a micro budget feature, equity finance is the most likely route of getting your film made. Let's say are you are looking to make your film for $50,000 – $100,000. Crowdfunding would be a great start, maybe here you can create your development funds of $10,000 or more and then build your film package to attract the rest of the financing. You may even be able to attract all of your financing on crowdfunding. Wefunder is one I am familiar with and have worked with filmmakers who find this successful IF you have a good networking circle.

So yes, seek investors as well as use crowdfunding. There are also grants depending on which state you are in as well as incentives in some states that don't require a minimum budget.

Sam Sokolow Hi Sam, yes this is an important question. On independent films it is not always easy for filmmakers to get a distribution deal or even a commitment before making their movie. Primarily because the independent filmmaker may not have huge credibility behind them that gives the distributor security to make that financial commitment. (Yes, it does cost distributors to take on your movie). However it is not impossible to make relationships with distributors and or sales agents getting at least a letter of interest. That letter of interest can go a long way when presenting your project to a potential investor. Investors want to see that you have a strategy and plan of recouping their budget. Showing that you are already talking about distribution before even making your movie shows you to be very responsible on your filmmaking process. My suggestion, attend film markets, make relationships, present your project and ask if they can review your project and provide an LOI. This alone is very helpful. Some companies may charge a minimal fee for their time to do so, but it is worth it. Most filmmakers have just their script. You having your script, an LOI from a distributor, and other key elements puts your project in a better position to obtain equity. Also some states ask for this to apply for grants. If you can't attend markets, go online, look up the distributors of films similar to yours. See who the companies are distributing and contact them. You may have to reach out to a handful before getting a response, but tenacity is a major plus in this field and everyone on here has it!

Raven Riley

Hi PK, thank you for your question. I have primarily made feature films and only a few series, but the difference I have experienced is how much of a budget you have per episode on a series. However the way distribution works today I advise strongly to film the whole series which, in a way, it's like filming a longer movie. Then when seeking distribution you are selling the whole season. Many filmmakers have come to me in the past seeking huge amounts of money just to shoot the pilot alone. I think that is a big risk. If a filmmaker is able to get a million dollars, which I find as the common amount, I then I would shoot the whole series for that million, 10 episodes at $100,000 each. If you only have a small amount of money, let's say $50,000 then rather than shoot a pilot I would shoot a feature film so you can treat it as a pilot, but then still at least distribute the movie itself and open doors for your series. Series do very well so definitely make that series!

@Fran Hi Fran, thank you for your question. There is a movie I love that was primarily financed through the brand. In the end it's one big commercial, isn't it. I am referring to the movie GOAL! It's a soccer movie, I believe 2005, where Adidas put in about $50 million. Pretty much, the whole budget and marketing. But rightfully so because the whole movie was about a soccer player trying to be on a FIFA soccer team. This example may be the extreme version of your question, my point being that yes brands do participate in funding movies. It really depends on what your movie is about how a brand can benefit from your movie. Is your budget big, small? Will there be well known cast? I just watched The Terminator 2 again, (love that movie) and I see Arnold Schwarzenegger walking to meet the T1000. You see the big Pepsi machine behind him. Superman 2, Superman throws General Sod into the big BIG Coca Cola sign! Great marketing for Coke. So those brand benefits from these moments and I'm sure they pay a nice amount to the production to have their product in the movie. My advice, if you are doing an indie film without heavy marketing then try to find brands that can benefit from your film even on a smaller scale. If you are getting bigger films then GOAL is a perfect example to follow. Another point on brands, many brands like waters, chips, a new energy drink etc will contribute to a film production by giving large amounts so the cast and crew can enjoy the product throughout the shoot. Believe me, those come in handy. When seeking financing, this addition can be huge in itself so if you are making a movie and you can have a brand utilized in your story then approaching with those scenes in your script can help you significantly.

Michelle Alexandria thank yewwww! I’ll

Check out goal. I’m doing a slate of sports movies and I love the idea of possibly getting 1-2 big brands to be unapologetically splashed all over it - this demographic won’t mind at all!

@Fran Harris, That is a fantastic idea if you are doing sports movies. I love it. Can't wait to see your movie!

@Alexandria Isola Hi Alexandria, you are talking to a sitcom lover. I think if I had my dream career it would be to produce Friends! Lol Sitcoms used to be very much a network thing, but now we can all make our series in the world of indie filmmaking. Where to go for investors? My response is anyone and everyone. If you were already in a position where you could be selective of where your money comes from then I would have different advice. However if you are still building your career then my suggestion is to build your film/series package and approach your network. If you do not have a big network then approach who you know and try to put yourself in the right place at the right time. What do I mean by that? Film festivals, film markets, even online markets. Get the word out there that you are making a series. Try to get involved working on other productions that are making sitcoms. Then talk about your project, even give yourself a hypothetical start date of filming a year from now so people know this series is going to be made where others may come on board and help you by means of financing or other ways of financing. You might get someone who will give you a location that may be worth more than half your budget. That alone may be very helpful to you. You can always start distribution early. Distributors do love a good completed season so you will have leverage with your completed series.

Hi Michelle Alexandria! Thanks for doing this AMA! Curious when you're reading a script, how much are you thinking about the budget? Any tips on easy ways to bring the budget down in a script (like with the number or kids of set pieces or characters) so it will be more attractive to financing?

@Kelly Stanphill Absolutely Kelly. You can always find someone. My advice is to go to IMDbPro, or mandy.com or any other job posting site where you can lay out what you are looking for. For example Seeking Producer for a short film. Compensation may becredit only. And thats okay. List out the duties that you need to be accomplished. Post that and if you give a timeframe so the person knows an approximate start and finish date. You'll be surprised how many people will be interested in coming on board just to gain the experience. Especially if you put the social component to it you might get some special people on board who might be affiliated with some entity that could be helpful. This is a great way to pursue your script. Make your short!

Awesome advice, Michelle Alexandria. It all makes sense and the idea of finding comps online and reaching out to those companies is really helpful and something that anyone can do from home. Great intel. Really appreciate it!!

Incredible answer, Michelle Alexandria! Thanks for all the answers, and thanks for the Wefunder recommendation. I haven't heard of that crowdfunding platform.

Hello Michelle, I have a feature film script with an LA Director and Producer attached, Development completed and now ready to do crowdfunding to raise 50K for pre production costs for location scouting, attaching talent etc. I f we can raise this amount before we approach investors for major $, what would you advise me to do next, any advice is appreciated. Our budget is ideally 3Million but could do it for 2 if we had to . It just won’t be the same type of film with our first choice cast wish list . I appreciate any advice you can offer. Thanks, Alice

@Ashley Renee Smith Hi Ashley, good to see you here. I often hear a common misconception when filmmakers are speaking to potential investors. The filmmaker is pitching so hard on the script and the story verses the structure of the deal. People who put money in are more often interested in how they would get their money back, to know if this is an opportunity for them to be part of a movie, and what else they can receive in return. If you pitch a romantic comedy for $500,000 and you have $100,000 already committed, you have two recognizable actors interested to play the lead, you have a tax incentive from the state you plan on filming in, chances are your potential investor would be more interested in this versus a script that "has a more intriguing story", but nothing included, just the script alone.

Something I like often is, "Present an opportunity!" Don't get so caught up in the storyline and then try to ask someone to boost your career.

Present an opportunity! Then you get their attention!

Sam Sokolow Yes Sam, there are many simple easy and free ways to connect the dots and connect to companies. Distributers want movies! Chances are, if you are putting together a good project, they WILL want to talk to you.

@Alice Manica Hi Alice, this is great, it looks like you really have it coming together. As for "it won't be the same type of film", I cannot tell you how often I hear this statement. Filmmakers tell me their budget and then are concerned how different the film will be if they receive less of their budget. I reply with, You can make Titanic in the man-made lake like Cameron had built, you can make Titanic in a lake, or Titanic in a swimming pool. You can even make it in a bathtub! All of them are Titanic, but very different movies with pretty much the same story. If you obtain $2 million you will still be able to make a beautiful film. That is a significant amount for an indie film today. As for your development funds this would be fantastic and this is, in my opinion the smartest way to pursue a film. Seek development funds, but don't abuse it, I also see that happen often, miscellaneous flights and restaurants etc. If you obtain development funds through crowdfunding, my first steps would be the following: hire a strong line producer who can do your budget and schedule and line produce your movie. Hire a good Casting Director paying them a retainer fee so you can get your name talent, put a deposit towards some cast, be careful if in case it might be a pay or play deal, hire an entertainment attorney which I would highly recommend on this type of budget. And if there is enough room pay yourself for your time and work. Just know this money does need to be paid back. This usually does not go in as an investment. But sometimes it can. This is how I usually pursue my films and it works well for me. It sounds like you are on the right track Alice!

Welcome, Michelle Alexandria , and thank you for taking the time to answer so many questions! In the vein of "What do I show potential investors?" and knowing that I come from a production background (production management and producing, but now more on the creative side as a writer/producer/director):

When breaking down a script to establish a budget range, my research can include locations, cast and crew recommendations, even a travel budget based on who may need to be flown in and put up in a hotel, plus post-production considerations, etc. My questions are:

1) Do investors want a range, or do they just want the ideal amount? And...

2) Do investors want that level of detail in the budget breakdown? Or would a presentation as an overview be better so they know the research has been done and they can reference the line item budget, but can initially work with the broad strokes?

Thanks so much!

K. Ross

PS - As a producer/distributor, how do you find it best to work with collaborators as a producer, and then switch into your other role with minimal confusion? Or do you keep those relationships separate?

@Stephen Folker Hi Stephen, I don't know if I specifically narrow it down to three things as I'd like to include as much as possible, but in truth, you can really start seeking out investors even with just an idea. You may not even need a script. I am doing that currently. I have an idea, a concept, I believe it will sell with my knowledge and distribution therefore I am having short synopsis and various treatments written before I commission our writer to write the screenplay. I definitely love a pitch deck as I am a big fan of looking at a 10 to 15 page pitchdeck versus reading a 100+ page script only to learn I may not like that genre or story. But definitely having a good script, maybe a mock poster, a pitch deck, and especially a budget are key elements to have. Having a budget and approximate schedule will really give you confidence to have a good conversation with a potential investor. As for my films, yes I have films that have made a profit and I have films still on route to recouping the budget. I have projects in various stages of success

Thanks so much for your encouragement and advice Michelle. Fortunately we have secured a line producer who has come up with a budget and shooting schedule as well as a casting director who we’ve consulted with. We have a 7 page Pitch Deck done. (Actually it’s based on your webinar I watched over a year ago and the deck looks good) I feel fairly sure we can raise 150K (from family and friends, some is even family investment) before we even approach investors. We also plan to go after Tax incentives depending on what state we shoot in. Another question… should we try to get distribution deal before filming and also how important is it to be fully funded before filming? Or is that a deal breaker if we’re not? Thanks for your input. You have been very encouraging and I appreciate your expertise.

Michelle as an added thought to my last comment, I would be happy to show you my Pitch Deck to give you a sense of what we already have done and the quality of it. Thanks, Alice

Thank you so much for answering my question Michelle Alexandria ! Good luck on your project as well!

Hi Michelle Alexandria - I've learned so much from this AMA so thank you for taking the time. I have two questions if that's ok. Question (1): How long does it typically take an investor to recoup their investment and what is their typical expectation of recouping said investment? Question (2): This one is bouncing off of Kay's questions - what would be the methodology for obtaining an accurate budget, if necessary, that includes line by line items especially in a scifi or fantasy project? Hire a line producer? Thanks so much.

Thank you very much for all your advice and comments. If I’ve absorbed right you think make either your own whole series the sell it thinking of it as one long movie or maybe a feature film as a pilot which may be successful, which in turn will attract investors to fund the remaining episodes or series? Then investors are more interested in the opportunity ie when and how they will get their money back at what ROI than the nitty gritty of the story. I also want to add please in my humble opinion that investors often invest in you! You as as a passionate, committed film maker above story and script. Passion and energy in your pitch. Also you have to present yourself nicely, clean, smart clothes, hair cut, groomed. You may laugh but I heard of a woman to whom an investor was considering to give her a million and as she left he turned to another colleague and said she’s not really the sort of person I think I could give my money to, she can’t look after herself so why will she look after my money? (Scruffy hoody and jeans, birds nest hair) That may be unfair but it’s a psychological perception….do you agree with looking smart when you ask for money?

Some incredible responses here, Michelle Alexandria. Always grateful to you, your friendship and all you bring to this community.

Thank you so much Michelle Alexandria! I truly appreciate it! Funny you mentioned Friends because that is one of the three shows I say my Sitcom is like the perfect blend of! Wishing you the best! :)

Great advice Michelle! Very insightful feedback for everyone!!