Funding for Independent Filmmakers

The art of making movies is a myriad of images and ideas that have entertained the young and the old for over a hundred years. Financing films is one of the most risky and complex investments anyone can make. Although it's easier for the big names in the industry to receive financing deals, there are still avenues for indie filmmakers to receive financing.

Once you've planned out your project, it's important that you immediately decide on your distribution platform (i.e. Cable, film, or television) as this affects your budget, shooting plans, and equipment list, and is part of your pitch to potential investors. Find out the requirements for obtaining distribution—whether it is through an independent studio, a television station, or major studio. Showing a potential investor a detailed and precise game plan makes them feel more comfortable about the idea of investing in your film.

One form of financing you can obtain is studio financing; however, the road gets a little rocky once a studio becomes involved in the project. You'll have to sign a short contract between you and the studio called the Development Deal Memo. This contract outlines the general agreement, time schedules, salaries, percentage points, and screen credits. Most studios, however, give some of the net profit to unknown talents, giving you a false sense of security while the studio makes as much money as they can. Net profit deals generally do not pay off. Their bookkeeping will also reveal a deficit to remove the studio's chances paying their due to net profit participants. The studio will also make a contingent on a Step Deal, which is an agreement that states that those who are working on the project will be paid in increments throughout its development. On the surface, it might sound like a good thing, but the studio has the right to stop the project's development at any point. The advantage here is that you can use the studio's money and resources, allowing you to create a bigger movie.

You can also get funding through a talent agency, who will package your project with their clients. They do not fund the project right away, though; some talent agencies help arrange financing through resources like international co-production deals, pre-sale arrangements, and foreign government subsidies. The advantage of getting involved with a talent agency is that you have more financial options. It is also easier for you to get actors, a director, and even a distributor.

These are a few ways you can obtain financing for your film using industry resources. These are not the only funding sources however; you can also get grants from foundations if you are producing a documentary or an educational film, individual investors, and often out of your own pockets.