Film Financing 101

So here's how financing for independent films works:

The preferred method would be to pre-sell domestic and foreign territories (BEFORE your company makes the film), and borrow bank money against it. But that's VERY hard in this day and age, (even with name talent attached) as the" democratization of film" has created a glut of product. The more common way to finance an indie (under $5M) is to sell shares to high net worth individuals, and fill in the rest with gap financing (bank money) and production incentives (shooting in a state that offers rebates). High risk/high reward. In both scenarios casting stars is key, as they will mitigate the risk.

But I'm not a traditional person. I truly enjoy finding new ways to do things. As I've mentioned previously in this blog, I believe the way of the future is tied to product integration, viral marketing, and audience participation/interactivity. Well, that last part is a new thought. I can feel the wheels turning now. Remember, my word for the year is "innovative"!