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Inside-Out, Outside-In

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Inside-Out, Outside-In

Tag Archives: kickstarter

Crowdfunding: Prep and Execution

22 Thursday Jan 2015

Posted by hunterlh in Financing

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crowd funding, crowdfunding, Guys Reading Poems, how do i run a crowdfunding campaign, hunter lee hughes, indiegogo, inside-out, insideout, kickstarter, leah cevoli, online fundraising, outside-in, raising money online

Probably the most common question I receive from fellow independent filmmakers is, ‘How do we make crowdfunding work for our project?’

I had the same question for my first feature film, Guys Reading Poems, and – luckily – I was able to ask Leah Cevoli, an expert in the field. She helped us navigate strategy and effective execution within the crowdfunding space and gave practical pointers to maximize our chances. Ultimately, we were successful in our raise, which has made all the difference in the life of our film. So since so many folks have questions about crowdfunding for their films, I thought I’d return to Ms. Cevoli and see what she had to say!

Leah Cevoli

Leah Cevoli

Hunter: So Leah, I consulted with you on Guys Reading Poems Kickstarter crowdfunding campaign. I can honestly say that without your help, we would have died on the vine. So thank you for that. Crowdfunding is probably the number one topic that filmmakers bring up when they speak to me. They recognize its potential value to their lives, but are sometimes a little lost and overwhelmed with it. And sometimes I see that look in their eyes that says – FREE MONEY!!!! – and I worry. What would you say is the biggest misperception people have about crowdfunding for webseries, short films and feature films?

Leah: You’re welcome.  I was truly impressed with how you absorbed all of the information I gave you AND put it into action for such a strong finish! Congrats!

The biggest misperception is that most filmmakers, inventors, etc think that if you have a great concept, you can put it up on a crowdfunding platform and it will get funded.  The second biggest misperception is that if you have a great concept, cool rewards, and a great video you can place it on a crowdfunding platform and people will just find it and fund it.

Hunter: You mention inventors. Some people have expressed that – going forward – crowdfunding will be more effective for new consumer products and apps rather than filmed entertainment. I guess the theory is that people are essentially pre-buying items they can use rather than sort of angel gifting for an artist. Do you agree with this theory? How can films continue to expand in the crowdfunding space?

Leah: I do think that we will see more and more products, inventions if you will. Crowdfunding gives so many people that otherwise wouldn’t have had a chance to fund the next chia pet, snuggies, or pet rock a platform to get their idea out there.   However, I don’t see it dying down for filmed entertainment either.  If anything, it gives the consumer a better and more varied option of the entertainment choices they can view.  And in effect, it’s a pre-buy for the film’s dvd, poster etc.  Speaking of pre-buys, I believe if musicians paid more attention to crowdfunding, they could take much of the power back into their hands that was lost with the breakdown of record labels and online file sharing.

Hunter: That makes sense. And musicians have tour tickets to offer as well! If you had to narrow it down to a couple variables, what are the biggest differences between a campaign that is successful and a campaign that is unsuccessful?

Leah: Preparation, outreach to their personal friends and family, backer communications, and non-stop social media content.

Hunter: Very true. In our campaign, although it may’ve seemed like it was taking place ‘online’ I was making lots of personal phone calls to colleagues, friends and family members, lobbying them to back us. We held Kickstarter fundraisers – large and small. We arranged for potential substantial backers to tour our office and view some of our creative work. Online crowdfunding doesn’t take away your responsibility as a filmmaker to ask people for money in person or on the phone. You have to do it, in my opinion. So knowing that crowdfunding campaigns are sometimes more than meets the eye…what kind of prep time do you suggest for campaigns? Does that change depending on the amount of money being raised?

Leah: It depends on the team.  Not so much the goal amount, but more so the size of their social networks, and the number of team members that are fully vested. It also depends on the skill-sets of the team; do they need to hire a video editor, a graphics person, a social media assistant? On average, I would say at least a month prep time, but in reality it’s probably more like three months.

Hunter: Where do you lean – Kickstarter or IndieGogo or another option?
Leah: I prefer Kickstarter for a number of reasons; the urgency of all or nothing is appealing to me and to most others, and the back-end is much more user friendly when communicating with backers. I do like IndieGogo, and have coached a dozen or so campaigns over there, but I prefer Kickstarter.

Hunter: What has been your happiest moment on a crowdfunding campaign?

Leah: Aw man, this is a tough one.  I’ve had ecstatic moments on so many campaigns. I’ve appeared on the 11:00 news with the team of the feature film Blood Kiss. I’ve pulled all-nighters with clients. I’ve had major A-list celebs and magazines mention clients.  There are a lot of happy moments. In a nutshell, every win has been a happy moment.

Hunter: Finally, you are a woman of many talents, including acting. How is your acting going? Does your expertise in crowdfunding help you in your acting or does it cause others to think you are “less serious” as an actress? Many of our readers have more than one talent and sometimes one is related to “business” and the other to “creative.” How do you balance the two in terms of your life and how you present yourself to others?

Leah: Thank you!  I’ve got some really great projects coming out this year.  I recently voiced two characters for the feature film The Grid Zombie: Outlet Maul, shot a lead role in the horror flick Killcast, and will soon be voicing a character in The Sultana Documentary, executive produced by Jim Michaels and Sean Astin. I’m also attached in various acting and producing capacities to quite a few projects who are scheduled to shoot in 2015.

I’ve been a member of SAG (now SAG-AFTRA) since 2005.  I launched my crowdfunding business in 2013.  I’ve been acting a lot longer, and have built up a name for myself, with some really great credits on my resume, yet I absolutely have struggled with the fear of not being seen as an actor if people see me as a crowdfunding manager. As artists, we never want people to associate us with anything but our artistic career, no one ever wants to talk about their waitress job, for fear of not seeming like a talented actor.  For most of this time, crowdfunding has been my “waitress” job, and I didn’t really want to talk about. My clients have all been word of mouth, referrals and I’ve been happy with that.  This year, 2015, I’m structuring it more like a business, speaking at more events and workshops, and boldly talking about my business outside of acting. I’m making it work for me, and to be honest, the majority of projects I’ve been cast in this year have been in some way related to crowdfunding. I’m leveraging my skills at raising funds, to align with better projects and teams. I think it’s becoming much more acceptable and frankly necessary, to have multiple streams of income based on your skillsets. Yes, I’m a damn good actress, but I’m also a wiz at crowdfunding and I’m embracing that, as should anyone else who’s reading this and concerned that one of their skills may diminish another.  It’s just not true anymore.

Hunter: Agree with you 100%. Becoming a more savvy businessperson does not mean you are less of an artist. In fact, it’s empowering and that can help bring additional solidity to the creative side that’s then more free to experiment and take risks. Thank you for taking time out of your busy schedule to talk with us, Leah! And thanks for helping us with Guys Reading Poems. If we decide to crowdfund for Inside-Out, Outside-In, you’ll be hearing from me again…

For those of you interested in working with Leah, she has generously offered a 10% discount to readers of this blog. Let her know that you’re from InsideOut film blog and she will apply the discount!

Crowdfunding Contact Info:
www.leahcevoli.com/crowdfunding-packages

Leah Cevoli

Leah Cevoli

Also, you may be able to glean more gratis info from Leah on crowdfunding by connecting to her social media networks…

Social Media Info:                               www.twitter.com/Leah_Cevoli            www.facebook.com/LeahCevoli                    www.imdb.me/LeahCevoli

 

Hunter Lee Hughes is a filmmaker and actor living and working in Los Angeles and the founder of Fatelink. His current feature film Guys Reading Poems is touring film festivals and this blog is dedicated to the process of making his second feature film, “Inside-Out, Outside-In.” If you enjoy the blog, please support our team by following us on Facebook, Twitter (@Fatelink) or Instagram (@Fatelink).

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Financing your indie feature – options

14 Friday Nov 2014

Posted by hunterlh in Budgeting, Pre-Production

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Tags

crowdfunding, fundraising, grant money for film, how do i finance a feature film, how to raise money for a movie, how to win a grant, indiegogo, kickstarter, making a movie, pre-sales for film, private equity investors, slated

When people find out that I recently directed a feature film, my L.A. acquaintances are quick to offer congratulations. Once those niceties are behind us, the curious hipster oftentimes takes a breath and asks (or wants to ask), “How did you pay for it?”

In the case of “Guys Reading Poems” we used a combination of private investors and crowdfunding to raise the funds needed to make the film.

But now that I’m back in the saddle to produce “Inside-Out, Outside-In,” I face the same question: How will we pay for it?

The way I see it, there are eight options for raising money for feature films. I’m sure there are more. But this is a start.

1. Private Equity Investors – Private equity investors are people who provide capital for a film in exchange for a percentage of ownership of the film or its profits.

Upside – Private investors are great because oftentimes you get more than just the capital. Because they’re motivated for you to win back a return on their investment, they often open up their rolodex and make introductions on your behalf that might be uber helpful to the film. This can lead to even more private investors or other relevant industry contacts. A lot of investors have tremendous business savvy to have achieved the sort of wealth needed for film investment and some of that business savvy might rub off on you.

Downside – It can take time to raise money from private individuals. It can be difficult to find the first investor to take the plunge as it is generally less risky to invest in a film the closer it is to being finished. Unlike crowdfunding, you are obligated to share the success of the film in a significant way with your investors (but hey, it’s only fair…).

2. Crowdfunding – Filmmakers use Kickstarter or IndieGogo or another site to pitch the projects to family, friends and fans, hoping for financial pledges in exchange for rewards related to the film or filmmakers.Kickstarter Congrats

Upside – With crowdfunding, you are not only winning backers, but rallying the front line of your fan base for your film. Although you must provide the rewards promised to your backers, the pledge amount is not money that will need to be paid back once the film starts generating income, a big advantage for your bottom line.

Downside – Take it from me, crowdfunding is a FULL-TIME job. For the weeks of your campaign, you will need to spend at least 40 hours a week working solely on the crowdfunding. Also, if you are too shy to ask people for money DIRECTLY (and yes, I mean making phone calls – personal emails don’t cut it much less just sharing on social media), it will be very difficult for you to crowdfund effectively. Filmmakers are now also facing crowdfunding fatigue as social media is flush with opportunities to back creative projects. You also need to budget to make sure you deliver the rewards promised.

More on the opportunities and challenges of crowdfunding in a future post…

3. Slated – Full disclosure, I have never used Slated.com to finance a film. BUT it’s the most interesting option emerging for the upcoming “Inside-Out, Outside-In.” So if I get any of the particulars wrong, forgive me and go check out their site yourselves. Basically, Slated is a curated community of investors, filmmakers and film professionals that facilitates introductions between parties. You build a portfolio showcasing your project and they go out and verify that you’re telling the truth! This is awesome because it prevents shady people claiming that Jodie Foster is attached to their film, when she’s not. They also ask questions about who has put together your proposal and their level of experience in the business. Then, based on all the information available, they assign you a risk rating in terms of investment potential and you are tasked with building a network, including investors, as you improve your project’s prospects with new attachments and more capital raised.

Upside – Slated is a reputable site where qualified investors and filmmakers intersect. Both parties WANT to be there, unlike those Kickstarter and IndieGogo posts which can become tiresome in your feed. Also, as investors, these people will be rewarded if the movie is a success and can open up not just wallets, but doors, if they choose. All the benefits of the private equity investor apply here as Slated investors often fit that mold – you are just reaching them in an innovative way.

Downside – You don’t personally pick and choose every single person that has access to your ideas and pre-production details. Filmmakers can be guarded about the concept of a film or potential key art. When you are raising money through private investors, it’s always YOUR CHOICE whether you get a good vibe to pitch to any one individual and want to show them your one-sheet or share your data and materials. With Slated, investors have more liberty to view your materials, which might influence their own projects.

4. Find a Studio or production company to back you – Maybe a senior VP will fall in love with your project and the rest is history (it happens!).

Upside – You don’t have to raise the money to pay for it. You may get additional resources and more experienced hands on deck to help complete your film.

Downside – You also may get pressure to step aside in favor of a more experienced director who’s made a film for studios before. There’s also the problem of limited access. A lot of filmmakers would love a studio to back their film, but a lot fewer have the access and connections to make that happen. Even if you get your foot in the door, you may have to make artistic compromises that dilute your vision and don’t serve your long-term career goals. It can take years and years to get the fabled “green light” to move a project forward so patience is needed. You also will likely not share in as many of the profits if your project turns into a studio project (although you will likely be paid more upfront).

5. Grants – This is money given by organizations to artists and filmmakers who embody their taste and values.

My favorite grant program so far is Creative Capital. I’ve attended their application information session and they seem legit.

Upside – The money is free – sort of (your project will have to adhere to the grant’s mission in some way or another). Also, the process of winning a grant includes networking with some very smart people that may help your project in all sorts of other ways.

Downside – Getting a grant is a labor-intensive process that can take a long time. Also, even if you are successful in winning a grant, it might not be enough to complete your whole project. It is more difficult to win a grant for a project that is for-profit than non-profit. Documentarians raising funds for a not-for-profit film probably have a much better chance here than narrative feature filmmakers, in my opinion.

6. Loans – I have personally never worked on a project where bank loans or loans from institutions were used to finance a film (maybe there was a time when I borrowed ten bucks from my cousin for lemonade for our crew but that’s another story….). However, from my limited understanding, loans are the best option if you’ve almost completed a film that needs a little more capital to reach the marketplace and that film has a demonstrable value. I don’t think independent filmmakers can get a loan to make a movie from scratch but maybe some project out there will prove me wrong.

Upside – Hey, you have money that you need to finish your film. And if the film is incredibly successful, you are only obligated to pay back the loan with interest, not a percentage of the film in perpetuity.

Downside – Investors may be resentful if your loan arrangement requires that the loan is paid back before the investors start being repaid. Specific deals with investors may prevent such an arrangement.

7. Pre-Sales – Truthfully, this is not an area of independent film with which I’m terribly familiar. We did receive one offer for a pre-sales for one territory for “Guys Reading Poems” about five weeks before we went into production, but our producer thought the amount was too low and we declined the offer.

Upside – You are getting money in advance of the film being made where you might get none at all. If the movie comes out, there is no guarantee anyone will buy it.

Downside – Our situation is not unique. The people buying your film upfront will want to pay less if they are giving you money before the film is complete because there is a lot more risk for them. What if the film turns out differently than what they were expecting? That could mean gaining in the short term but losing in the long term.

8. Self-finance – It goes without saying that if you have enough cash in the bank, you can finance your own film. Technically, this is actually an outgrowth of option one. It’s just that now, you are your own private equity investor.

Upside – The upside of this arrangement is that if you have the money in the bank, it’s easy to get the capital and you have control of it.

Downside – It seemed like a good idea until you have no more money to live and pay rent. Also, if you’re not careful, using your own money can get messy. An attitude of “it’s my money and I’ll spend it how I want” might lead to sloppy record-keeping (there’s no motivation to keep great books like an outside investor that forces you to justify costs). You as a private equity investor deserve that same clarity and spending control just as if it were another investor’s money. This can often put you-as-investor in conflict with you-as-filmmaker, a weird psychic conflict. Plus, you still have obligations to keep track of what is spent and earned for taxes, etc., even if you’re the only investor.

Some filmmakers may be in that frame of mind where they say, “Screw this!” and decide to charge the entire film to their credit card or multiple credit cards. I can say – with some inside scoop – that some quality directors made their first film that way and succeeded. So I do not judge anyone who decides on that path. However, I do think that you owe it to yourself to try some of these other methods of fundraising for at least six months to a year before you take the plastic plunge, as unsecured debt is almost universally despised as a terrible move financially.

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Hunter Lee Hughes is a filmmaker and actor living and working in Los Angeles and the founder of Fatelink. His current feature film Guys Reading Poems is touring film festivals and this blog is dedicated to the process of making his second feature film, “Inside-Out, Outside-In.” If you enjoy the blog, please support our team by following us on Facebook, Twitter (@Fatelink) or Instagram (@Fatelink).

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