Fight for your right, TO BE PAID!

 Yes I have worked for free, yes I donate my time to passion projects. Yes I donate resources and cash to passion projects. That does not mean that I owe ANYONE those things. Especially multi-million dollar productions that I have personally raised thousands of dollars for. 

My entire career I have heard about producers making legit money. How this is the level at which everyone gets paid. Yet here I am airing out the frustration at the obvious. You still gotta fight to get the basics. People are still trying to get me to do a lot and give me less. People are still trying to put out how much they are sacrificing how much they are the victim of the film "system" and how much I should really donate my time, Rolodex and skill set. Trying to use the guilt lever that EVERY SINGLE INDIE film I have every worked on uses. Also yes, I have used this myself in trying to get things donated....when my budget was $500.00.  When the budget is closer to $5 Million then this is a ridiculous notion. Especially when specific promises have been made. 

So why do I still feel like somebody is gonna say that I am a bad _______ for fighting to get paid? Because it's probably happening. For sure the comment is being framed as being "hard to work with". The problem with this is....this time I represent the money. But mostly, after 15 years of donating work, and "falling in love" with projects only to get stiffed in the end...I don't want to make the same mistake again. This time, it's Covid-19 and I have a family. This time the whole thing falls apart if the people I represent don't get what they are supposed too. I am very grateful that none of this is coming to that. That none of what is happening is sinister, that it's just hard. The people I am negotiating with are good people and we are going to get paid. It's not malicious it's just how it goes sometimes. I have been on the other side of this fence many many times. The one thing I always note to myself when paying someone out after a difficult negotiation is that I need to remember the tenacity of how those people fought to get paid. That I should do the same for myself and more often. 

Every Film Maker, Investor, Grip, PA, Accountant, Executive Producer, Background actor should get paid for contributing, every single time. 

When it doesn't happen it's unfortunate, often tragic. It's also not always the fault of the Director/film maker. Usually it is a situation out of their hands. Which is why you never should feel bad about fighting to get paid, you might not get it, but you should always fight for it. Really, the producers and especially the film makers WANT to pay people. Films are expensive, the industry is top heavy, and this whole process is difficult. Patience and a firm resolve are necessary on both ends of this process. This post is gonna be short but it's a necessary conversation about how this negotiation isn't just for the Indie Art Directors and Sound Designers....Producers at the multi-million dollar level are still dealing with the same stuff. Work those negotiating muscles early and often, your gonna need them later. Believe, everyone else at the high levels are doing the exact same negotiations that are happening on $500.00 music video's it's just more money. 

Stay frosty. 

Building a Slate of Films

 So here is the post I eluded too in my last post. 

I had a conversation with a potential investor/connector and I was told that the "ask" was too small. "Ask" is just a short hand term for "the amount of money you are asking for".  He basically told me that the investors that he represented would not see a significant enough return on investment to have this investment be worth the time it would take to set the deal in motion. It makes sense if your used to moving around large chunks of millions of dollars. If you think about it, you or I wouldn't do it either. 

The long and the short of it is a slate of films packaged in the millions of dollars was ultimately discussed and I have begun to put this together. This was suggested too me. Which has never been offered or suggested before. Naturally we started with a slate 3 years ago when this project first came across my desk. Nobody then was interested. It was "too much money". 

So now, I am definitely taking projects...packaged projects only. I will break down what that means and why. This is real and happening right now, the funny thing is. Not many people read this blog so I don't expect to get a single submission. If you have a packaged film send it here.                                              [ steelphoenixchicago@gmail.com ] This is a specific email for this. I will see it and begin the VETT. Must include contact info. No contact info it gets deleted. Put "Film Slate Consideration" in the subject line. 

 

A packaged project: This is a project that has a good script (not necessarily a great script), that has people attached. So that means, at least one producer that has produced more than one feature length film from beginning to end. This producer should be contractually attached and ideally someone who has worked with $500k budget or more. The higher the budgets they have worked on the better. The writer can be first time but it is better if they have credits under there name. THE DIRECTOR MUST HAVE DIRECTED AT LEAST ONE FILM OF FEATURE LENGTH THAT GOT DISTRIBUTED. You must also have at least one actor signed on that is some sort of name. 

The variations to this are if you bring in one or more people that are a strong name. So if Aaron Sorkin writes the script and Johnny Depp wants to play the lead you don't need anybody else. If the director won at Sundance or another major festival it can help with the producer not having as much experience. But in that situation you would want at least a B-named actor attached. 

What will not be considered. 1 sheet ideas, 1st draft scripts, pitch decks with only no names attached in the above the line section. I can't even submit these things for myself. Keep in mind, anytime your submitting to a producer who is also a film maker that your ideas and projects are actually competing with that producers ideas. (I started doing this to make my ideas, just like you). You cannot expect studios or major production companies to look at your "great idea" when they are full of people that already work at those places who are trying to get there own ideas made. You MUST BRING SOMETHING TO THE TABLE THAT THEY DON'T ALREADY HAVE.

It took me forever to understand this, I really had to see it for it too click. If you don't have this yet, go work indie films. Start with what ever will take you, and work your way up in terms of budgets. $50K shorts that need a locations person. Then jump on $110K short as a Associate Producer, or whatever you can get in the producer world. This also works if you want to be a director but really if that's what you want you need to be directing as much as possible. 

Ok that's basically it. You guys have a good day out there and don't ever give up. If everybody knew what we knew about film they would all be trying to do it! Stay in love with the process and keep growing. 

The Final Round of Financing and Distribution Model Changes.

 The Final Round of Financing

and Distribution Model Changes

Usually what happens is you get most of the challenges in your capital raise for a film in the first round of equity investment or whatever financing structure your using at the beginning of the fund raising journey. Let's be clear, this project had that, it took three years in fact to get it where it is now. Not actually that unusual. Right now at this moment we have literally millions of dollars in the bank, name actors signed and a major relationship with a Digital distributor. So no, before you ask we did not get cough in the pre-sale theatrical window nightmare that most of the rest of the indie and blockbusters this summer got stuck in. #Covid-19 new normal 2020. We actually have been able to raise over $1million in equity during quarantine. 

This was so impressive to one investor that they offered me money to do something else, that I will put in my next post. 

The issues with this final round are unique because of covid, and the shake up in film/financial markets. It has both good and bad aspects too it. People are worried so they are hesitant to invest, BUT people are also looking for new ways to diversify and our model has very low risk. 

We (the team following our lead producer/director) came up with a distribution model that makes more sense and ... I can't talk about it. I know I know, what's the point of reading the blog if I can't talk about it. 

What I can tell you is where the industry seems to be going from my perspective. We have $1 million left to raise in one month and I think it will happen. What I am seeing is new business models in which the waterfall of film financing is getting rid of major sections of the in between people that eat into profits, dilute the process, and very very expensive. 

Part of this comes with the Studios finally giving in during covid and saying "Ok we get it, we live in a digital world".  Which means digital content which means the 100 year old contracts with the movie theaters and distributors is changing. It means that all the people in the middle of getting a project into 20 different kinds of producers whom the question "What exactly do you do again?" could be applied aptly. They don't raise money, they are not the studio, they don't run production, or post production and have no part in distribution except when the box office comes in. 

At Sundance in 2015 we took meeting after meeting met with this person and that person who had no interest in actually helping us with our project. But they could connect us with important people that could. It was bull, all of it. NOT ONE SINGLE LEAD FROM SUNDANCE in 2015 worked out the way that it was presented to the team I was working with at the time. What did happen however is I met a whole bunch of people that are not financing, distributing, or making films. Many of them have huge mansions in Park City, some have mini-festivals associated with Sundance, some have great parties, some have great resume's and are looking for a job. Nobody that I saw was a way to finance, cast, make and distribute a film. Now that said, if we had a packaged film, with a NAME or TWO attached and our little $50K first in then maybe it would have meant more. Maybe we could have gotten somewhere. But we went with two no name directors, very little money, and two films with zero actors attached. We...well in the end "I" got crucified. One of those films turned into another film and has been in post for two or three years now. The other got made with name actors and real money....and has not been released and its been two or three years now(I think it might have gotten stuck in the covid theater trap I mentioned before). The point is, even when everything comes together it was still "a tough row to hoe". 

What I see know, what I am even honored to be apart of now, is a different process. One in which much of the "middle man" issues are streamlined. The process is not only a lot more painless but it actually makes a ton more sense. Trying to explain the 50/50 traditional split, and how it actually works to investors was complicated and frankly embarrassing most of my equity network in Chicago is made up of high finance, or business professionals and it sounds like a bad deal every time I said it. Its a really really shitty business model, especially for film makers and investors. And yes it is absolutely the Distributor/Theater relationship that is to blame. 

Did you guys read the trades this month? Not sure how many articles talked about the new business model in Hollywood but it is great great news. Tried to link it but this computer having Technical issues. Look at the Hollywood Reporter and Variety. It should be out there, sorry for tech issues. Will post it when I can. 

OK, so now that your all up to speed lets look at the financing we need to get. Lets say for instance we need to cover some additional costs caused by Covid and flesh out our budget for some possible added shoot days. Just giving the creative folks some more space to do what they need to do. Maybe we through in a drone unit, just for some coverage. 

Lets say we have $3 million in the bank (No these are not real numbers, I literally am never going to tell you the real numbers of a project I am working on. Yes, it's in the millions of dollars on this one.) 

We need a final million. We get $300,000.00 from people that are already invested and a little bit from a new party. Now we are at $700k. But all our usual folks are tapped, our Roladex(list of people who have money) is either already in this or has already passed. We have gone back a re-approached the people who have passed and they passed again. 

The film has everything, in place, and is going to shoot and be distributed. That part is pretty well in hand, and the tax credits and everything else is buttoned up. We are fill swing into production in less than 30 days. 

Armed with all of this, we, have to open new fresh leads. Raw completely blind leads. It's good for two reasons. 

1. It's new leads, which expand our investor base and help diversify the investor pool  

And my personal favorite ...

2. It's uncomfortable. That's right, going after new money is uncomfortable. It's tough, you have to find people who have money and are willing to talk to YOU (in this case me). Not in person,(remember it's covid, and in the US a bunch of civil unrest. Everyone is freaking out about politics also) so the old tricks of going golfing and going to a country club, or associating where rich people are might now be enough. More than they normally are not enough, lol. This probably has to be done entirely digitally. 

I have a plan and when it's done I will definitely share if it was successful or not. The methodology may kinds become trademark so well see in the process. I wish all of you well, don't forget to be kind to yourself and trust the process. You can do this, until next time. 

Break a Leg!