Selling your film - Best practices

Let's talk about how to best sell your film (or another product for that matter). Before we begin, I recommend everyone to have some idea of where your product will end up before you go into production. You can find an extensive article with the basics around how you can sell your film or why not join me on youtube for future talks about the entertainment industry, tips and ideas.

introduction

Investors, banks and film distribution companies that could potentially be investing in/or distribute your film are best approached when you have an understanding of the fundamentals around investing but also quality and may I say, longelivity of your project.

Understanding that whoever invest, buy or distribute your film makes their choice depending on IF they feel it is a good deal or IF they like you and trust you. This is fundamental in all business decisions and probably the most important fact you need to surrender to, fast.

I don't know how many times I've had to explain why I'm not interested in a project. Every time this happens I shut it down completely, it is extremely annoying. I will come back to this a few times in this post; You will get rejected but you can choose how and if you will have a second shot or not.

Another very important thing to understand is to keep quality in everything official you send out to a third party. Make sure you present a high quality proposal to the intended viewer. By making sure you present something you're proud of, you don't have to go back and rework the material or explain yourself. If something needs rework after you’re proud and sure of what you send out, I'm sure it’s not going to be anything time consuming.

Have a strategy

Have a plan. Do everything well and seriously, have a long term strategy.

One of the most common things I see when receiving a proposal or treatment is that there is not much done in terms of planning. It happens that I see strategic partnerships and other great things in the proposal, however those proposals are far and few between. The number of quality proposals are few and if you do the extra work, it will be valuable and maybe even a nice surprise for anyone reading it.

Most films are not being made and the reason is quite simple. There is probably no strategy in place and no plan and definitely no quality behind the script or idea. Usually, the team expects everyone to love the project and that is mostly not the case. Always go in open-minded and never love your project to much. I’m going to touch on that a few times in this post.

Another reason films are not being made is when someone comes with an idea or a script with no substance like LOI's or again, a plan. That makes it so much more time-consuming for anyone involved and that means, most of the time, no film or series will be made. You see, if you put some effort into a project you’ll be able to show that to potential investors or partners, that’s when magic happens.

As with all businesses, you have to get out and get your hands dirty. Show how you work and get people interested by actually doing yourself. By doing, people will have a clear picture and goal of where you want to go or at least feel confident you actually believe in the project. Assure your potential investors or partners that you are experienced and have done more than they expect. Get out and make something with your project before you ask someone for help or interest. If this is hard, because it can be, ask a colleague or friend in the industry to help you out.

Do your homework and plan ahead

Do some research, get your hands on information, most of it is public and free for everyone so it shouldn’t be too hard. Or use Google, you’ve heard that enough times to know what it is, especially if you read this.

By homework, I mean, understand the industry and get some knowledge of the different areas, you don’t want to give people the wrong impression. Start by finding out who you have in your circle that could potentially introduce you or to be frank, partner up with you. If you can find people working with distribution, purchasing or licensing you’ll have a head start. You can ask them if they know someone looking for the kind of content you are attempting to produce but please do not sell before you actually have something.

Let’s say you want to work with a studio, a well known one of course but you’re making a $250k feature - chances are quite high, they aren’t the right fit for you. Going to the bigger ones would be a mistake. However, it’s important to get in front of the gate keepers and early on without asking for their interest but instead interest from someone in their connections or company. It is not necessary to get a green light, the value is in getting a professional opinion on your project or early work. Do not ask for a favour before you’ve actually done something or have something tangible, source future contacts.

What you really should be doing is planning for the future. Find out who is the players and who has the ability to green light projects or make major decisions. Know who they are and talk to them before you ask for a favour or want to partner up with them. This can also be smaller production companies and distributors that are on the rise or are about to release several films during a year. These people and companies can be extremely valuble, not only do they have answers to most of your questions but they can also be easier to run down ideas with. The same goes with sales agents, talk to them don’t be lazy.

Do not wait

All to often filmmakers stand by until a film is wrapped before talking with buyers and distribution companies, while this can work in rare or some cases, this is usually a big mistake for a few reasons. When a film is done shooting it’s “best before date” is starting to count down. Sure, not every movie has a best before date but for a distribution company or sales agent, this makes their job much more difficult. They want to be involved in the process and production as early as possible to be able to market and plan for the release of the movie. This is not the case for the $250k feature we took as an example above.

A way of getting around this little obstacle with finshed films is to bundle them up with new productions or movies not yet produced in order to get a reasonable price for the “old“ one and be able to finance the new ones. This is not always possible but can be a viable option if you don’t have any other ways to go about selling the film.

Another important part of selling your movie is to start early with the key players. Make sure to have a solid PR strategy ready and put effort and resources into this. Don’t be cheap, this will prove to be your greatest asset in the end.

If you can show people (specifically those who drive returns) and make them excited about your production before you head in to principal photography, this will help you in the long run and this can be done with good PR. Selling your film doesn’t have to be hard.

conclusion

As with most things in life, planning makes things easier, not easy but easier. Since the process of how you sell your film is so critical to your production and to be frank, your future career, I thought it might be good to write a more basic version as well. So as soon as possible, I’ll start with that one and post the link here when it is done.

I hope you learned something new and got a few ideas after reading this. If you want to know more, feel free to join me on youtube where I’ll bring you with me on meetings and talk about the entertainment industry.

Thanks for visiting!

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How not to approach investors

Good day!

In this post I will show you some examples of how not to approach investors. I will come back to several things in this post. Please try to remember this post because it can or probably will help you and save a lot of time for the one receiving your proposal.

I receive a lot of messages and e-mails with different proposals. Some are good, few are great and many, way too many are just plain bad. Bad grammar, ideas and some just don’t put effort into the e-mail or proposal. These examples are unfortunately very common. Because of these messages I thought I’ll write about what to do and not to do when approaching an investors. It doesn’t really matter what industry or area this person is active in. These rules or pointers are universal but for now I’ll use the film industry as an example.

Skip comparables

Don't use comparables or comps as a way of showing potential earnings because they are simply not true, instead use comparables as a way of explaining how you will try to recoup the investment. Maybe a film used guerilla marketing in a successful way or maybe they had a great distribution or marketing strategy, use this instead of how other (comparable) films made in terms of money.

For anyone somewhat knowledgeable, comparables are an insecure way of luring in partners. If you use comparables, use them as a way of showing the type of movie you want to make, show or explain the demographic or number of screenings, viewers and so on. Do not try to show the potential financial upside your movie will have because of other movies that are somewhat similar, that is not right and will not interest serious entities.

Know who you talk to

It goes without saying but I’ll say it anyways, connections is everything in this industry and the next. If it isn’t everything it surely is a lot. If you talk to people you know, the changes are they want to help you. If you don’t know the people you talk to, then it is not so sure then want to help or put some time of effort into what put infront of them.

The thing is, you can do well without connections but with connections it will be much easier and this is the truth. If you don’t know who you talk to or approach, then at least do your homework. Know who the person is, when he or she likes or what the do. See if they are open to talk or if they are even interested in what you offer. If not, don’t even ask. I don’t know how many people write to me with the same questions without them looking at my first line on my LinkedIn profile: “Hi, please do not send any unsolicited material, ideas or scripts.”.

This week I’ve received three or four proposals where they assumed I wanted to read their script or pitch. Don’t do this, this is an easy way to get to a full stop with me and problably most other people in the same situation. Instead, send a quick message, explain the situation or idea and ask if I would be open to take a look. Simple, fast and with respect. I would probably take a look simply because someone took their time to explain and see if I would be interested. It doesn’t have to more complicated then that.

Deal with rejection

All too often people take things personal especially in film making or any other creative projects for that matter. Realize that I or the person you approach did not ask for you to write the script. I know it sounds harsh but that is the reality. Please understand that most people you approach get a lot of scripts and ideas in front of them. Why should they read yours or even invest? I want you to seriously think about this.

Also, if you decide to send something to someone and they reject the idea or whatever you send. I’m sure you’ll feel unrewarded or unnoticed or if you receive unwanted critics of your work, you might even get angry and upset. This is a sign to step back and to seriously consider if you are a good fit for the creative industry.

The other day I gave someone a few pointers, feedback and yes, critic on their screenplay. I could see their faces, disappointed and destroyed and that the single point where I lost interest. If you ask for my opinion, take it and understand that not everything you make is good or something everyone will like. Today, I didn’t like your screenplay, well, fix it and be happy that someone told you. Not everything people say will be good or bad for that matter but if you want to work with people, accept their opinions and go with it.

The truth is, everyone in the film industry or any other business is busy, especially is they are somewhat in the loop. The key is to establish yourself in the minds and memories is how you deal with rejection.

One big mistake people make is that they neglect to stay updated and interested in their project. I’m not saying people purposefully let their projects go down the drain but as soon as something bad happens they get uninterested in the project or dissuaded. Rejection is one of those things that usually test a project and its team.

Rejection is inevitable in this business and any other business for that matter, however, because people take this extremely personal, rejection can be devastating. Rejection can also be the lack of response and most people think that a lack of response means a no and that is not always the case. People are busy and your email is probably not a priority, maybe your email is in “the interesting list” and they just wait until things are calmer to get back to you. Sit tight and wait until getting worked up.

Be ready to follow up

If you haven’t heard back from someone, then contact them. Taking things personally will only lead to unwelcome feelings and bad results. Take any rejection AND positive news with a nice calm. This is an overcrowded industry with heavy workload, deal with rejection like a professional. Do your part and the rest will follow.

If or I mean when your pitch or idea gets rejected be mature enough to ask serious questions as to why the recipient didn’t like the project or whatever you did pitch. Rejections are common and nothing bad, unless you burn the bridge by leaving angry without asking the right questions.

Sometimes people does like your work but they might feel they are not the right fit or maybe they even feel they can’t help you or offer what you need. If you do follow up a rejection or an unanswered e-mail, maybe you’ll learn something.

By being respectful, understanding and by seeing things from other peoples point of view you’ll have the tools to ask the right questions and follow up with value. I can’t believe I have to write this post to be honest but there are so many people out there not having the slightest idea how to act and just leave after a rejection or even after sending an email. Not many are actually following up, me included. It is easy to forget.

Be patient, be present and be consistent in your check-ins, this is rare and hard but people will take notice and remember your efforts. Also, you will be on top of your projects if you do follow up. Use whatever tools necessary to keep yourself in the loop and a head.

Thanks for taking your time reading this piece.

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Tax financing in film

Today I’m going to explain how tax incentives are used in film productions. I’ll keep it short otherwise it might be too much to handle.

introduction

When you hear about film investments you probably think about someone putting in a huge sum of money into a production. What you think about is most definitely equity financing and while equity is used in film finance, something else is equally common and that is tax financing or using tax incentives, another word for it can be tax subsidies.

Above is an old picture from the production of Transformers 3, Dark of the moon

What doesn’t work

So, let’s go through the basics of using tax subsidies to help finance a film and more importantly, what you should not do. First of all, tax shelters does not work the way you think. You can sell the rights back and forth through a leaseback model but in the end that might give you about eight to ten percent of your budget and it is a lot of work getting this to work. So, this is not recommended and it will probably just take time and not much of an upside.

Another thing that is cute but does not work like you might think is section 181 in the U.S. Section 181 is a deduction that let’s film productions deduct the first fifteen million dollars of the cost of making a film if it’s produced in the U.S. This sounds great, I know but it does not work since it is only a deduction. So if someone mentions section 181 as a way to finance a film or part of a film, know it is only a deduction, not a credit.

What actually works

What works is state tax credits in the United States or tax incentives in other countries. Unfortunately, we don’t have any tax incentives in Sweden so I can’t help you there but there are many other countries who understand the value of having film productions in their respective countries.

The film industry thrives on tax credits because states and countries are competing with each other to see how much they can give a production to use their services and areas.

Two types of tax incentives

You can say there are two different models of tax credits. One is assignable where you get your tax credit based on producing in the local jurisdiction and how your budget looks like. You go and sell that credit to some buyer who's a taxpayer in that jurisdiction and you both go home happy.

The other one is the one where you get a refundable tax rebate or credit. This can be as much as 30% of your total spending in that country or state. So quite a lot for any project. This helps you borrow against the tax credit and in turn be able to raise money for your production. Today, country and or state tax credits are easily the best and most viable form of film financing. More and more countries see the value and more countries are willing and competing with each other to give the best tax incentives to productions. More now than ever before so this is highly recommended and you should use this advantage for your film.

conclusion

While tax financing can be difficult to get your head around it is actually a very viable option and not that hard once you start to understand. It is worth noting that some countries and areas have complicated structures. However, all areas have experts ready to help you.

I hope you learned something new about tax incentives and I want to thank you for visiting.

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The Swedish Film Industry

Swedish Film abroad

The impact of Swedish films abroad are often overestimated. If you are Swedish and don’t agree, hear me out. Locally, Sweden see an upside, however, outside of our borders, you clearly see the limitations of Swedish film. Unless there is a unique story, english (great) speaking cast and international people or experienced film workers in key positions throughout the production, the movie won’t come far.

The problems are first of all the Swedish language and second, the small market opportunity outside of Sweden. The Swedish film industry is not at all close to Hollywood and Bollywood in terms of marketsize. The way people make film in Sweden is very different from how we work internationally. One could argue that we should be closer by now and the industry be more mainstream, sadly this is not the case.

Different reasons

The main reason to why Swedish film makers leave Sweden to work elsewhere is simply because of the market size and the fundamental differences in how we think. I take the opportunity to promote an interview about Hollywood/Swedish adaptations. The reason to why I work with foreign markets is because of the incredible value, cultural and financial. Swedish film as an industry should think seriously about it’s next step.

The Swedish film industry makes us think Swedish film is a success abroad and rightfully so but that is not completely true. We are far from bad at what we do. However, we have never seen a financial success abroad, or at least that's not what we see or hear about. Great foreign box office numbers could be a reality, if film makers changed focus to a more financial strategy and market strategy. That includes script and production value.

The problem is, no one is watching Swedish movies, or not as much as people may believe. Most of the viewers are hard core and are watching movies from European countries, in the same way we watch french movies in Sweden. The largest markets are based in both the U.S. and China and of course India but both the Indian and Chinese market are not a viable option for Swedish films for a few reasons.

The movie, Let the right one in had a very limited window in the U.S. It had some distribution in smaller "European cinemas". The film was not a financial success, It could've been though. The idea was bought buy an American production company and had an English adaptation, the reason is simply the increased audience and market size. Don’t get me wrong, the movie was a nice addition to Swedish Film.

Above is a picture from A man called Ove, a movie that will have a future american adaptation.

Swedish Film in Sweden

The movie, A man called Ove was partially funded by The Swedish Film Institute. SFI was founded in 1963 to support and develop the Swedish film industry. It supports Swedish film making and allocates grants and funds for production, distribution and public showing of Swedish films in Sweden. It also promotes Swedish cinema internationally. The Institute also organizes the annual Guldbagge Awards.

Through the Swedish Film Agreement, between the Sweden and the film and media industry, the Government of Sweden, the TV companies which are party to the agreement, and Sweden's cinema owners jointly fund the Film Institute and thus, indirectly, Swedish film making.

At a rate of, currently, 20 films a year the Swedish film industry is on par with other comparable North European countries.

In Trollhättan Municipality there is a film production facility known as Trollywood; movies shot there include Show Me Love, Dancer in the Dark and Dogville. The movie studio Film i Väst centered here produces about half of Sweden's full-length films.

I will write an update the Swedish film industry later on but for now, this is what we have to work with.

As usual, thank you for reading and be sure to visit me on youtube or Instagram if you want to continue the conversation.

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The launch of Spacex - Falcon Heavy

So the Falcon Heavy launch was a success today and with that a commercially viable system for space exploration has been launched as well. This is a great feat and a big step towards a more economic space launch system than before. In the long run, this will make space exploration  a bit more environmentally friendly and that is a nice addition as well.

The reason to why this is a such a big step forward towards space tourism and potential colonization of the moon and maybe Mars is because of the many applications a system like this will have. The main reason is because it has the potential to be cheaper for the customer to use but it is also an investment with a potentially huge payback for Spacex. Imagine having to buy a new car after each costumer as an Uber driver, even if you got enough money per trip to sustain that business it would not be a viable option for your clients (or you). The only reason to why space tourism and satellite launches are so expensive is simply because there has not been any way to re-use a rocket (except for the Space Shuttle that was decommissioned in July 21, 2011) and this has now changed. You can read more about the possibilities this gives space exploration on Spacex.com.

When Falcon Heavy lifted off, it became the most powerful operational rocket in the world by a factor of two. With the ability to lift into orbit nearly 64 m...

I wrote a post about Spacex in 2017 about the potential they have and how they work with re-usability. One thing I would love to see in the future is to have people not usually interested in space exploration or space in general to acknowledge and getting more interested in the incredible work behind these rockets. We might not see this now but this launch is one small but important step for future science in medicine, environment, economy and overall stability in the world.

Thanks for your time.

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