Professional Documents
Culture Documents
TOM MALLOY
CONTENTS
Acknowledgments Introduction Update from Indiewood Part I Getting Started Chapter 1: Welcome to Indiewood Chapter 2: Why You Need This Book Chapter 3: What No One Else Can Do Part II Prepping the Project Chapter 4: Selling Yourself on the Project Chapter 5: Creating the Business Plans Chapter 6: Practicing the Pitch Chapter 7: Summing Up The Five Steps Part III Funding Your Film Chapter 8: Finding the Money Chapter 9: Starting the Train viii ix xvi 1 3 33 39 47 49 59 83 95 97 99 109 119 125 131 135 145 153 163 169 175
Chapter 10: The Ten-Arm Approach Chapter 11: The Vested Interest Approach Chapter 12: The Networking Approach Chapter 13: The Finders Fee Approach Chapter 14: The Distributor Approach Chapter 15: The Attachment Approach Chapter 16: The Dangerous Approach Chapter 17: The Structured Approach Chapter 18: The Law of Attraction
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Chapter 19: Getting It Done Chapter 20: Closing Chapter 21: The Special Tips Chapter 23: Taking Action!
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And why is that? Well, besides the foreign sales market being reduced not to half, but maybe to 1/5th or 1/8th of what it used to be, the DVD market is just as bad! Whos buying DVDs? Think about it, and think about the future. Most people will have set-top boxes in their houses and will be able to stream instantly whatever movie they want to watch at any time. Why purchase DVDs? Why rent? Blockbuster has filed for bankruptcy, and Netflix streaming is the way of the future (for now). Theaters are hanging onto the one little advantage they can muster against home viewing, which is 3D. Go to any movie and youll see 90% of the previews for upcoming films are for 3D films. I love when I see a trailer for a 3D movie that has no business being 3D! Trust me, I get it for Green Lantern or The Avengers, but when the new Diane Lane romantic comedy comes out and its 3D, somethings wrong! I speak about film financing around the country and around the world. When I start my seminars with this information, it triggers a general malaise in the audience. I truly wish I had the guts (or lack of ethics) to make everything sound bright and sunny, but I cant. We (the independent film community) are all hoping it turns around, but the hard truth is that some things will never be the same. Y et, theres a golden opportunity here that I want to make sure you dont miss. Movies can be made now for close to nothing. A-list and B-list stars who may have made $500,000 to $1 million a picture are now making $50,000 to $60,000. Thats an opportunity for you! I look at the films I have made in the past and I know I could make them now for perhaps a quarter or even a fifth or sixth of their original budgets. If I made a $1 million film five years ago, it might look like a glorified student film. It would have some C- or D-list stars, and be filmed with a mostly inexperienced crew. Today, that $1 million budget can get you what $5 or $6 million could have gotten you five years ago. For simple evidence of this, look to television. Major film stars are now doing TV . Why? Because thats the only place where they still get a salary. The industry gulped when Scarlett Johanssen was offered $250,000 for Iron Man 2 (I believe her agents negotiated her up to $400,000). That would have been $8 million a mere five years ago. Its
as if studios got smart. Actors and crew were being overpaid, and that bubble has burst. Will salaries go up again? Perhaps. But most likely they will be smaller than they once were. So thats a golden opportunity for you as a filmmaker. Y may ou be able to get a fantastic director and stars that you never thought were possible if you can just close the financing. For me, thats the monster bonus that this change in the industry created. Find money, and you have a real project. A real project today is rare and amazing and will attract so much more value (i.e., talent and crew) than in previous times. Unfortunately, not everyone has seen the light. Many filmmakers, actors, and crew are still living in 2005. Everything Ive said so far in this update can be backed up with hard evidence. Y et, many still think that they can command the same salaries and fees they received back when things were rocking and rolling. Its not only ridiculous, its dangerous. Lets say that you were able to raise $2 million, and you cast a film with some C-list star and a no-name director. That $2 million film will most likely make about $100,000 from foreign sales and domestic DVD. Is that what you want to have to explain to your investors? Recently, I was hired to do a rewrite on a $500,000 flick. By this point, Id started to see the light that $500,000 is a respectable number and a great film can be made at that price if the script is killer. Unfortunately, the producers hired a former studio director who was still living in 2005. He and I had a phone conversation about what he was doing with the film, and he complained that $500,000 was way too little to spend on a feature. He was planning to hire interns and student filmmakers to be involved with the production, because he didnt realize that, in todays world, he could be hiring legitimate, experienced talent on a $500,00 budget. I really wanted to phone the investors and warn them that this director would be flushing their money down the toilet, but it wasnt my place. It wasnt my project, and people are going to make mistakes with their money.
I conveyed all this in a seminar I recently led, and someone raised his hand and asked, Is there any good from this? I want to hang myself! My response to him was that there is so much good from this if you look in the right place. If I made a $3 million film and it turned a $1 million profit, that would be a incredible failure. Y et, if I made that same film for $500,000, that movie would have doubled its investment. Heres what Im telling you: It can be done! Im gonna advise you right now. If you are working with any actor, producer, director, line producer, or any other crew whos living in 2005 and thinks his/her salary should be the equivalent of what it was back then, drop that person immediately. That person is going to steer you down a road to ruin. Two friends made films right around the time the profits fell off a cliff. Both had teeny little stars, and both didnt even make $200,000 from sales. Each film was budgeted at almost $4 million. Thats scary. So take this opportunity and lower your budget! Find a line producer who knows the State of the Union. Make a film for under $1 million and make it look like a $5 million film. Those are films that I want to make!
Beware of Microbudgets!
Everyone wants to make the next Paranormal Activity. Sounds great, right? A $15,000 film that makes $100 million? Understand, however, that those films are winning lottery tickets. Filmmakers, however, dont get that. They immediately try to make similar movies and hope for the best. Im not saying I wouldnt make a film like that as an experiment (and Im not talking about $15,000 more like $100,000), but thats what it would have to be. Why not make a film where budget isnt the main selling point? Instead of Do you know how small the budget was on this film? get people to say, Did you see how great this film was? Thats the kind of film I want to make, and thats the kind of film you should make. Use this State of the Union and make a movie for a price thats reasonable. Then, if your $600,000 film looks like a $5 million film, you have a chance to knock one out of the park.
Chapter Two
I kept searching, hoping one of these books would reveal the true secret as to where to get the money and whom to get it from. So many of the books, including one whose entire focus is to show the reader how to write a perfect business plan, consigned the most important elements the how and the where to the filmmaker. I was dumbfounded. I had my perfect business plan, so now what? I had stories of how Kevin Smith got his film made (by maxing out his credit cards), so now what? Is that what you want me to do? Is that the only way to make a film? I attribute this lack of knowledge to two potential problems: = ost of the people writing the other books have never M funded a film. They were perhaps lawyers involved with drafting the documents for funding, or they schooled themselves in every aspect of how films are funded traditionally, but they themselves never went out and raised money for a film. Or = hey didnt want to truly give their secrets away. Let me T explain:
People in the film business consider money a commodity. If Im telling you that, at the end of the day, money is all that matters to a film, do you think that a person who knows where cash can be found will just give away that source? Hell no! People with HNIs end up protecting them like a mother lion would protect her cubs. Im guilty of it as well, and I make no excuses for it. Ive gotten into screaming matches with people who tried to contact my HNIs behind my back. Ive caught people trying to steal my investors red-handed. The HNI funds the projects that feed my wife and kids and pay for my house. Why wouldnt I want to protect that person? Ive already mentioned non-circumvent agreements and high-level relationships. Producers cling to their money people just like successful salesmen cling to their top clients. What amazes me is that, in other businesses, if you stole someones client, youd be thought of as a horrible person. If you steal someones client or money
person in the film business, youd be considered nothing short of normal. It happens all the time. My producer friend Isen relayed a great joke about the film business: Q: How do you tell the difference between your friends and enemies in the film business? A: Y our friends stab you in the front.
Dancing. As I was discussing what we needed budgetwise, I noticed he was half-listening. I threw out the name of an actress we were considering for the lead role. Im not going to say who it was exactly, but lets pick a famous movie star: Charlize Theron. I said we were considering making an offer to Charlize, and his eyes lit up. Suddenly he had come to life! He turned to me and said, Hey, I have a project thats perfect for her do you think you can get her the script? In that one second, I realized that this guy, even if he had money connections, would always put our film in second position. He was going to worry about his films first. Ive heard it happen dozens of times. Another financier friend of mine conveyed a story about meeting with some Wall Street investor types to pitch a slate of projects. In the middle of the meeting, the Wall Streeters asked him, Well, what if we had our own scripts? Do you have ways to finance those? Here was my friend, in a meeting with people he thought were investors, and they were picking his brain about how he operated, and eventually were asking him for financing! Another friend (and this is one of my all-time favorite funding stories) had, on his own, raised $500,000 for a $1 million film. He started going out to potential financiers in the film business to see if he could raise the other 50%. His pitch was that he had the film half-financed, and he only needed the remainder. Well, he started putting out calls, and the people he called put out calls, and so on, until a few calls came back in. One investor claimed he could put up 50%. My friend thought that was great, until he realized the so-called investor was talking about the 50% that my friend had already brought to the table. He was pitching my friend with his own money! People in Hollywood are only concerned with their own careers, and I dont blame them. The film business is incredibly tough. If successful people in the industry dont want to help you, its not necessarily because theyre bad. They are more than likely just trying to help themselves. About ten years ago, a friend of the family won the Academy Award for Best Original Screenplay. He was the hot writer at the
time (and still is), and he wanted to take a shot at directing. So the studios gave him a low-budget (by studio standards) film to direct, that came in at about $15 million. The film, unfortunately, bombed. I was actually a big fan of his directing effort, so, after a few years, I approached him to helm The Alphabet Killer. He emailed me explaining that he couldnt get a job directing in this town if he tried and that he would only be an albatross and an obstacle if I attached him to my script. My friend had won an Oscar! He was on top of the world, right? Wrong. His Oscar and $1.95 could buy him a cup of coffee at the local deli, as far as directing goes. (Writingwise, though, he makes millions, so dont feel too bad for him.) Thats how quickly this business forgets you, writes you off, or tosses you to the side. Now, knowing that, cant you see why people only want to help themselves? They have to pay mortgages, rent, and buy food for their kids! Even if you were to offer them generous finders fees, its not going to help their careers. So using someone in the industry to try to fund your film is a mistake. Y ou must remember that, whoever your industry friends are, they are looking out for themselves first and foremost.
Keep in mind that by pitching a person outside the industry, you are offering him or her a way in. I make sure my film investors get what they want. All five of the people I just mentioned are now producing multiple projects. And all four have movie stars cell numbers programmed into their phones, due to my letting them in.
This Book
This book will tell you how to take that idea thats festering in your head and turn your dream into a reality. It is my intention to take you through the steps that are the most important to getting your film financed. I will not keep any secrets. I will divulge all I know about where, when, and how to find the money. If you follow the steps, I know you will be successful.
Chapter Three
The Attics Elisabeth Moss, Catherine Mary Stewart, and me in a calm scene before the storm.
After I made The Attic come to fruition, I was allowed into an exclusive club called The Circuit, a group of the most successful people working in independent film in New Y ork City. The Circuit consisted of producers, writers, and directors. Actors and actresses were banned (I guess no one wanted them showing up asking for jobs).
It was a really good idea thought up by a great guy named Mark Grande, who was, at the time, the head of Howard Sterns production company. The Circuits goal was for members to meet once a month and network with other successful people in Indiewood. I was so excited at first to be meeting all these people. Some were directors who had done multiple projects. Some were producers who had over a dozen films under their belts. I soon found out, though, that all of them had one thing in common: They all wanted money. I also discovered something else: None of them had any idea how to get it. Now, please dont take this the wrong way; I still think The Circuit was (and is) a great way to network, and if you have enough credits and clout to get in, go for it. (Ive included their information at the end of the book.) Also, I havent been to a meeting in years because I moved to Los Angeles, so I cannot attest to who attends nowadays. I just want to note that when I was going to meetings, I spoke with successful Indiewood people, and they still were all searching for the gold. Even the top people cant find it! At the time, I had only raised financing for one feature film, The Attic, but there were still people in The Circuit very much interested in me because I had done What No One Else Can Do. My producer friend Isen Robbins put it this way: Tom, youve become the pretty girl who everyone wants to take to the prom! This is how valuable and important being able to finance films is in Indiewood. Another story: I had written an action script that was passed on through some connections to a pair of very experienced producers. When I say very experienced, I mean that they had both produced some of the most successful films of all time. They read my actioner, and they called me in for a meeting. Turns out that my violent action thriller (the first one I had written) didnt meet their criteria. In fact, the thriller was so violent and quirky, that it may never get made, but it has helped me immensely because the writing is some of the best Ive ever done.
These two producers told me how much they admired my writing skill and would love to find a way to work together. I would have been elated, except for the fact that the company they worked for, one of the monster mini-majors, had recently closed up shop. They couldnt pay me anything, but they did tell me that they were looking to put together $100 million for a film fund and might have it completed by the end of the year. Then, following a little awkward pause, they turned to me and asked, So, Tom, how did you finance all of your films? I was flabbergasted. These gigantic producers were asking little ol me for advice. Trust me, if I gave you the list of credits between these two, your jaw would hit the floor. The problem was, they were always used to having studio money at their disposal, and now, facing the independent route, they were searching for any advice they could find. Amazing. I still have the utmost respect for them and am still hoping they can get their financing so we can work together. Again, it just goes to show you that if you can get the gold, you become a rare and invaluable commodity.
side at parties, was talking to a casually dressed man wearing penny loafers. My wife tugged at my arm, Tom, you should meet this guy. He finances films. It was the holiday season, I was having fun, and the last thing I wanted to do was talk business. On top of that, my celebrity friend had more celebrity friends coming over and I was excited to meet them. Also, I was just so sick of people telling me they finance films that I simply didnt feel like taking the proper steps. So, to make a long story short, I blew the guy off. Im sure you can see where this is going. He turned out to be one of the people on the Forbes 400 list. He also founded one of the biggest Internet companies in the world (I wont mention the name, but lets just say its part of all of our vocabularies now), and he had funded about ten films, three of which were nominated for Academy Awards. Ughh. That little lesson served as a reminder to me to follow up with everyone! So Im starting this part of the chapter with a warning: Always take the steps. If the person turns out to be a fake, call it practice for you and your pitch.
Never put all your eggs in one basket (see Chapter 10: The Ten-Arm Approach). Have They Invested in the Past? The first thing to ask a potential investor is what his or her story is. Its a great way to start a pitch, too, because people really like to hear themselves talk. They also like to tell you their stories its cathartic, in a way. Now, if this investor has never financed a film before, things could turn out fine, but maybe a mini red flag should go up and you should store this information in your mind. If this investor has never invested in anything before, a monster red flag should go up! Neither means that he or she is a dead end, but the second question is probably the most important thing I can offer you: Has this person ever invested in anything? If investments have been made in the past, has it been in films? Which ones have the investor been involved with? So many have been burned investing in independent film, its actually easier to close someone who hasnt financed one in the past. But the key is, they have to have invested in something. Y ou want the people who have money to get rid of and are hungry for a piece of the film business. Side Note | Theres a horrible joke associated with independent lm. It goes: Q: How do you make a small fortune in independent lm? A: Invest a large fortune. I say this joke is horrible because if you share it with an investor, youre probably dead in the water. The truth is, most independent films are made as labors of love, without any ideas on marketing or selling the film in the long run. If you make a film about two gay college roommates in Oklahoma, it might be personal to you, but wheres it going to play? Japan? France? Germany? Hell, it probably wont even play in Oklahoma! Ill get more into marketing later (see Chapter 4: Selling Y ourself on the Project), but understand that the stigma associated with independent films is that they dont make money, and that stigma exists for a good reason. Y ou need to be able to change that.
car. Im not really a car guy, so I kept driving my Chrysler Sebring because it was reliable and worked for me. What happened? Well, when I showed up at events, no one thought I was important. (Y oud have to pull up in a BMW , Audi, Mercedes, Bentley, Aston Martin, Ferrari, or Maserati for that.) But, when people visited my house, they thought I was rolling in it. Truthfully, I fit somewhere in between my car and my house. If someone was qualifying me and he came to my house, he would think I was a millionaire! If someone was qualifying me and I showed up at a Starbucks with my 2004 Sebring, he would think I was full of it. Either way hed be wrong. That old convertible is long gone. Ive upgraded my car to a highend Audi, and now people think differently. More often than not, your initial assumptions are true. If someone has to work another job outside the film business and considers himself or herself in the Industry, he or she is wrong. The only people who truly retain this status are those working in it full time. Theres no middle ground for film. Actors and writers can get away with working in restaurants or bars, but producers have to be 100% committed. And the real actors and writers are working as actors and writers.
In the above-mentioned story, I ended up giving this group $60,000, and they did nothing for my film. We eventually dissolved the LLC, picked ourselves up, and started from the beginning. It was a horrible loss of financing. This company knew that we had so little money with which to sue them (remember the lesson about suing big companies), and since the legal process takes so much time, that we would just walk away. Which is exactly what we did. Lesson learned the hard way. Never pay any upfront fees! Y want a consultant? This book is ou your consultant. Y ouve paid a lot less than $60,000 for some hardwon advice. Look, Ive been hired as a consultant at times. Some prominent entertainment attorneys consult. So Im not against consulting in general. But please note that none of us charge anywhere near those exorbitant fees and are usually just a few hundred bucks an hour for valuable info. Any lump sum enormous advisory fee (just writing those words makes me cringe) is bad news. Remember, qualify your HNI, and make sure he or she is real. Then move forward with all the techniques in this book. If and when you get a film financed successfully, youll have separated yourself from the pack already by being able to achieve what no one else can.