PRODUCER'S REPS vs. SALES AGENTS???

Your film is finished, now what? Well, in the good old days, you submitted to festivals, got some good press, and hopefully a distributor picked your film up in a bidding war. Unfortunately, those days are long gone, and they really only existed for a select few anyway. Besides, you have to "know" someone to get into Sundance, don't you?

Hopefully by the time you've finished your film, you've been contacted by a producer's rep, or sales agent wanting to take a look. But it's really confusing... what is the difference? And sometimes sales agents are also "distributors," so it makes it even more confusing. So, who are these people?

A producer's rep is like an agent for a filmmaker... they will, supposedly, use their "relationships" with distributors to help sell your film. I talked with dozens of reps, and as one rep I spoke with put it, "our services would include developing and implementing a strategy for film festivals, consulting on your marketing materials (trailer, press kit, etc), cajoling distributors and festivals to watch your film, counseling on the various offers that you receive, and then advising on your agreements."

All for the low, low price of $7,500 plus 10% of all sales. What a bargain... of course that was after his initial offer of $5000. Hmm... I've been in this business for a long time, and I know better than to pay an agent an up front fee to represent me. If they believe in me, 10% commission is enough. This rep did come down to $3750, but still didn't answer any of my questions regarding how many films he actively represented, or any of the minor amendments I wanted to make to our contract. If he signs 10 new filmmakers a month at that fee, that's a pretty good living. Maybe I should become a producer's rep.

All of his emails were cut and paste responses, and I have multiple emails with the same identical phrases pasted in... I don't think he even watched my film, as he only ever discussed it in general terms. And to top it off, he was just going to place it with a sales agent anyway. At this point I already had a dozen sales agents contact me regarding the film. I figure I didn't need the middle man. Though I will say, I talked with several filmmakers who this rep had sold films for, and they were all happy. Just didn't feel right for me...

So, what is a sales agent, you ask? A sales agent represents your film, along with a slate of other films, at the film markets. Their primary goal is foreign sales, although some do have domestic distribution divisions or relationships with domestic distributors.

Sales agents do not charge an upfront fee, but will ask for a hefty commission and a marketing expense. Everything is negotiable. This is where the attorney comes in... you need competent legal advice when negotiating these contracts. Typically they will settle for 25% of sales, plus a recoupable marketing expense that you should cap at no more that $50,000, preferably less. Film markets are expensive, and you need to give them some room to work, but you also need to make sure that the marketing expense you are being charged for was actually spent on your film.

When a sale is made, the sales agent will take their cut plus everything up to the marketing cap... so, say your film sold for $50,000 to Germany - the sales agent would take $12500 (25% commission), plus the marketing expense of $37,500, leaving you with, you guessed it, ZERO. Now, the next sale of $50,000 to the UK, they would take $12,500 (25%), plus the remain allowable marketing expense of $12,500 (for a total marketing expense of $50,000) and you would get $25,000. After that it's a straight 25/75 split. But it may take a year to actually get the money from the foreign country.

BTW, those sales numbers are high... you aren't going to get that amount without a star in your film. I hope you didn't spend a million dollars on your film without a recognizable name. My preference is to do a 30/70 first dollar split with no marketing expense. That way you are getting 70% out of every sale.

I didn't "know" anybody when I made my first film. I submitted to 30 film festivals, all of them turned me down - except for the last one... Slamdance. The first of the alternative Sundance festivals in Park City, Slamdance is now one of the top 5 film festivals in the world. My short "Bad Habits" won the Anarchy Film Showcase, and subsequently got offers from every distributor that had previously turned the film down. Imagine that.

But the work didn't stop once I had a distributor. I kept marketing the film, took it to Cannes, and sold it myself again to the largest distributor of films in the UK, and had them do the deal with my domestic distributor. The distributors made money - I've never seen a dime past my advance.

Lesson learned... I can sell my own movie, and keep more of the profits. It todays market, it is more and more economically viable to self distribute, provided you can stomach the upfront marketing and replication expenses. There are pros and cons to everything, and there are some great producer's reps, and sales agents out there, and it just depends on your film and your goals as to which is the right path for you. Take your time, trust your instincts and read the fine print. Better yet, have your attorney read the fine print.

I will keep you posted on how this little adventure all pans out.

WHAT YOU NEED TO KNOW BEFORE YOU MAKE YOUR MOVIE!

I met a filmmaker last night that had a panicked look on her face... you know the one where you've just committed all of your resources and years of your life to a project, and you've just discovered you didn't get all of the necessary clearances for your film?

She had verbal agreements with several bands that contributed to the soundtrack... but she just realized she can't get E&O insurance, or a distributor, without all the proper clearances. What's "clearance" you ask?

"Clearance" is obtaining the legal right to use other people's name, likeness, or intellectual property in your film. It ranges from talent releases for your actors, to music synchronization rights from a composer or band. Unfortunately, in most cases, verbal agreements don't cut it. The exception to this is if you have a verbal agreement on film, and it can be determined that all the parties have a full understanding of the potential uses and compensation of the intellectual property in question. Though not ideal, that is better than nothing. Now, I'm not an attorney, and this is not legal advice, so, if you plan on making a film that you intend to sell to the public, I highly recommend getting the counsel of an experienced entertainment attorney to help you navigate the often confusing and highly detailed area of "Clearance."

But before you drop $5000 on a retainer fee, you can drop $20 and get a amazing book that will help you familiarize yourself with this tricky area. This book will save you a TON of money and heartache! And it will better prepare you to find the appropriate attorney, and communicate your needs effectively with them, saving you valuable attorney time - (time = money.)

The book is "Clearance & Copyright" by attorney Michael Donaldson. I can't recommend this book highly enough, and not just because my attorney wrote it. Getting all the paperwork sorted out before hand is not exactly fun and creative, but if you intend to be a filmmaker, you also have to be a business person. Don't get stuck with a film that a distributor wants, but can't touch because you didn't get your clearances! Good luck in your projects!

DO YOU NEED AN MPAA RATING?

I'm not gonna tell you what my budget is for Spirit Camp, but I will tell you it's under $5 million. Of course no amount of money is going to get back the blood, sweat and tears... but $5 million is the cutoff for the MPAA in regards to their pricing structure. Seriously, there is a huge gap in their pricing...

I just got off the phone with them, and they are sweet as pie... but I couldn't talk'em down. Anything under $5 million costs $3000 to get rated. Okay, 3 grand isn't much compared to what I spent to get Spirit Camp to the screen, but still... that's the cost of a new Macbook Pro, or a helluva time in strip club.  Add that to my attorney's retainer fee, E&O insurance (if I choose to get it), and national advertising... it adds up!

What's worse... if you didn't have anything to do with the production or financing, it would only be $2500... but because I put my own money up, and directed it, I get hit with an arbitrary extra $500. Makes no sense.

And the kicker... I sure as hell don't want to pay 3K for an NC-17... not that my film's rated NC-17, mind you... it's a hard R. I've got boobs and blood, but nothing excessive. Still, it makes me nervous. Lets face it... there shouldn't be any rating beyond R. NC-17 just puts you in that category of film that papers won't run ads for, and some retailers won't stock. 

I love the MPAA, don't get me wrong... parents should be able to judge the content of films their kids see, but an "R" rating is clear enough that it is for adults - but that it is not porn...

Moving on... I don't think I will rate the film. Lord knows I always opt for the unrated version anyway... bring on the gratuity. It's not like Walmart is going to carry this title anyway...

Make art without compromises! Woohoo!

HOW TO GET DISTRIBUTION FOR YOUR INDIE FILM!

As I lean back in the chair with a high speed drill about to plow into my cavity filled molar, my dentist asks “have you gotten a distributor yet?” He knows the answer before I can mumble it out, hence his little smirk. This is a guy who got burned to the tune of a few million back in the 80s when someone conned him into financing an indie film. Nobody told him that distribution isn’t a sure thing. He knows better now.

In this new economy, (World 2.0 as I like to call it), nothing is guaranteed – except for one thing… a sucker is born every minute. And there is a whole industry that has sprouted over the last decade that prays off the enthusiasm and ambition of filmmakers in a brutal parasitic way.  As a famous modeling agent once said to me “This is a business where many are called and few are chosen – the money to be made is not from the few, but off of the many.”

Magazines, indie film associations, product manufacturers, film festivals, consultant gurus and producer’s reps all help to promote what I call the “myth of filmmaking.” Just pick up a camera and follow your passion – make your movie, your way, right now, and finance it on your credit card if you have to. The digital revolution is here, and it’s more like an annihilation. 

The democratization of film through digital media has made it so everyone can make a film. But it doesn’t mean that everyone should. And as a result there is a glut of product out there dragging prices down faster than the titanic. Combined with the global downturn, and a paradigm shift that could change the way people purchase and view movies, the market for independent films is uncertain. It is both the best of times and worst of times.

The question often asked is “can and independent filmmaker make any money?” Well, it’s always been a gamble, but in the old days, if you had a decent film, you could hope to cover your production costs from the advance your distributor would put up (though the advance was likely the only money you would ever see). Today, advances are disappearing faster than virgins on prom night – and traditional distribution may not be the holy grail that it once was.

Over the next few months I will chronicle “Spirit Camp’s” path to distribution. The good, the bad, and the ugly. I’ll be covering MPAA ratings, E&O insurance, clearance reports, DVD replication and fulfillment, and marketing. Hopefully it will be a useful guide for other filmmakers.  In the mean time, check out Jon Reiss’ article in filmmaker magazine “How To Market Your DVD Online!”

My dentist certainly won’t be making another movie anytime soon, but I sure hope to. As I left his office with half my face numb, the last thing my dentist said to me was “let me know when you get distribution and I’ll buy you a drink.” I wonder if that includes self distribution? 

WATCH THE TRAILER

POST PRODUCTION IS COMPLETE

Read the credits at the end of any film... the number of people who come together to make a film happen is staggering. And the efforts in post production are enormous... Editing, sound design, visual FX, foley, scoring -- all with their own departments and teams of people working each segment.

Over the past few months, I have been doing all of those jobs, working night and day. There are over 250 visual FX shots in the film. The sound design and original score are complete, and mixed for stereo and Dolby Digital 5.1 surround. There are foreign M&E mixes as well. DVD screeners are designed and formatted with trailers and behind the scenes footage. And press kits are designed and printed. I have worked so hard, and to finally be able to hold a finished DVD in my hand is an amazing feeling. Now it's time to start marketing.

There are a number of distribution companies and sales agents interested in the film, and I will formulate my gameplan over the next few weeks.

I'm looking at venues for a premire of sorts, a glorified cast and crew screening. I'll keep you posted...

THAT'S A WRAP!

After a grueling shoot schedule, the production is finally wrapped. I can't begin to describe the feeling. We finished up shooting all the FX shots and green screen stuff, picking up elements to composite in post.

My most sincere thanks to everyone involved with the production! It has been an amazing experience, and I can't wait to get back on set with the next feature!