Raising financing for a film has become such a hair-raising
and complex task it's almost as creative and difficult
a process as making the damned film itself. Ultimately
it all depends on your film's budget. Generally, if
it is a very low budget project then financing it
is fairly easy. If it's a medium sized budget it may
actually more difficult to finance than a higher budget
film. Go figure.
Remember if you want to finance anything besides
a very low-low budget film, you will probably need
a detailed business plan. This should include such
things as a break down of the budget, marketing plans,
intended audience, biographies of key people, synopsis,
a cash flow projection as well as (if the budget is
not extremely low) some projection of potential sales
around the world. Sales projections are difficult
to arrange in South Africa because there are no true
film sales agents in the country who can work this
out. If you must, leave this out for now and convince
a potential investor to cough up to have this done
internationally. Below are a number of strategies
to fund your film.
INVESTORS
This covers a wide range of people and organisations.
There are two main types: "Non film Industry
investors" and "film industry investors".
- The Non Film Industry Sources:
This is usually someone with delusions of seeing
their name up in lights. They probably want at the
very least an executive producer credit. They are
wealthy and even though he or she may own a successful
shoe company all they've ever really wanted to be
was an actor. This category also includes your rich
Uncle Rory. The danger here is that the person or
organisation probably knows very little about the
film industry and film production. They may not
understand why certain things are done and may be
very disappointed (and blame you) if the film is
not the next "Titanic". They may also
begin to meddle in the process of production. However
if you've warned the investors/s that films are
not always (in fact rarely) a sure fire hit then
go for it.
- The Film Industry Sources:
This is a person or company that finances films
as part of its usual business. This could include
a wide range of investors, from distributors, to
broadcasters, to studios and individuals who not
only invest their money into projects but also access
money from other similar sources themselves. (See
our Financier's listings on our Organisations Page
for more info)
NON FILM INDUSTRY SOURCES
- A RICH UNCLE
If you have a member of the family that is fairly
wealthy then you may convince them to contribute
towards a low budget film. Only if your uncle is
extremely, extremely wealthy (we're talking Bill
Gates here) will he finance a higher budget film.
Be warned. Your uncle may not get his money back
and this could strain family relations. Don't sucker
your uncle and tell him that it's guaranteed that
your film will make money.
- CREDIT CARDS
Many a confident filmmaker has financed his or her
very low budget picture on their credit cards. The
idea here is to apply for as many credit cards as
possible and then pray like hell that you'll be
able to pay them back. This is very risky and only
applicable to very low budget productions. Use this
option in moderation.
- THE BANK
In South Africa it's almost impossible to convince
a bank to finance a film. Banks don't know anything
about the film industry and feel that it's better
not to meddle in a field that they have no business
expertise in. The business side of filmmaking after
all is much more like gambling than business. The
only way you'll manage to get money from the bank
is if another organisation or investor agrees to
stand surety for the amount if the project does
not succeed financially. Certain banks in the USA
are more open to funding independent films.
- FUNDRAISING
Another option for low budget projects. Throw a
party or a rave and convince people to pay to get
in. Sleep with the owner of a very hot club, throw
a fundraising bash there and keep all the takings
from the door. If you combine these takings with
your rich uncle's gift and a stack of credit cards
you might just have the budget to make a low budget
film. Remember we take no responsibility if you
are declared bankrupt - we're not financial advisors.
FILM INDUSTRY INVESTORS
- STUDIOS
There is a no real studio system in South Africa
at the moment. Studios can get involved in a project
at various stages - from right at the beginning
by commissioning a script or simply buying the finished
product for distribution. Some studios are also
distribution companies.
- BROADCASTERS
In South Africa, broadcasters (specifically the
SABC ) are the largest funders of television films,
series and documentaries. The best way to raise
financing through broadcasters is to send the relevant
commissioning editor a proposal, script and business
plan. (Getting feedback could take a while.) The
broadcaster may also be willing to pre-buy the film
if they believe in it, or they may give you a letter
of intent that they wish to do so when it is completed
(subject to a number of conditions of course). This
letter can also be used to help secure other financing.
If you have some pre-sale before the film is made
investors will more easily hand you money as they
have some guarantee that the project will be sold.
(See our Broadcaster listings on our Organisations
Page for more info)
- DISTRIBUTORS
Most distribution companies do not usually finance
films, but some do. Some may like a project so much
that they may wish to secure the rights to it and
will thus invest in the film before it is made.
Or they may already "sel" the rights to
the film before it is made to broadcasters. This
is known as a pre-sale. If you make a lot of pre-sales
you may be able to secure enough funding to make
your film. Sometimes a distributor may simply write
a letter stating their interest in buying the rights
to the film when it is made. This may help you secure
financing from other sources. If you have some kind
if distribution deal before the film is made investors
will more easily hand you money as they have some
guarantee that the project will be sold. Remember
that it is best that a theatrical distributor first
buys your film because films that are theatrically
released become more valuable when up for sale to
television, satellite and video distributors than
non-theatrically released films. (See our Distributor
listings in our Organisations Page for more info)
- CO-PRODUCTION
If your project has some international appeal you
may be able to secure a co-production agreement.
For example a South African Broadcaster may co-produce
a project together with a British broadcaster, or
Production Company. You should contact other international
sources of funding if you believe you may be able
to secure local funding. Some co-productions are
given government sanction if they take place between
two countries that have signed a co-production agreement.
The agreement between these two countries has benefits
for each country's industry. Currently South Africa
has co-production agreements with Canada and France.
Co-production governments may also assist and facilitate
the funding and production of a project. Remember
however that there must be an element of both countries
in the project for an official co-production to
occur - this may include characters from both countries,
settings, as well as crew or cast from both countries.
Contact the Department of Arts and Culture (see
our Organisation page for contact details), or your
own government arts foundation to find out which
countries your country has signed co-production
agreements with.
OTHER STRATEGIES
- GRANTS
Until recently there were no such things as film
grants in South Africa. Now there is some hope.
While some countries have a large array of grants
from local councils and other public arts funding,
we are less blessed in South Africa. Currently there
are only a few government agencies that do so. The
National Film and Video Foundation grants funding
to a variety of film projects - from shorts to feature
films as well as script development. Filmmakers
are invited to submit proposals annually. You can
also try other government departments if the project
is related to their area of work. You could also
try and convince large companies to sponsor your
project in return for advertising or product placement.
(See our Grants listings on our Organisations Page
for more info)
- DEFERRED PAYMENTS
Cutting costs might not finance your film but may
allow you to lower your budget to be able to get
enough financing to make it. One way to do this
is to defer costs. Usually one pays the crew and
cast during production and at the completion of
the film. If your project is a very low budget film
and won't take too long to make, you may be able
to convince cast and crew to defer their payments.
This means that you do not have to pay them their
agreed salary or parts thereof until such time as
the film begins to make a profit. You may also offer
them percentage points in the film's profit instead
of a salary. This is a clever and fair way of making
your lower budget film a reality. You should put
together a contract which will lay out this agreement
with your cast and crew.
- WORD OF ADVICE
When dealing with investors of any kind, always
get a knowledgeable lawyer to help you out. Film
financing is astoundingly complex and you'll need
someone to look after your interests. To learn more
about your rights when signing a distribution deal
read Mark Litwak's Filmmaker's Bill of Rights.
A CASE STUDY
We at Underdog financed a half-hour short dramatic
film for around R14 000 ($2800,00). It was shot on
16mm, and finished on video. It was screened at various
film festivals and made a small profit when it was
bought by the broadcaster M-Net for screening on Satellite
TV across Africa.
This is how we did it:
- Credit Cards: By using
our credit cards we were able to cover small costs
that we didn't have cash for such as catering -
yes cast and crew takeaways fell under this.
- Family Gift: The producer's
family contributed a small sum of money to the production.
- Fundraising: The film
had a gay theme so we threw a fundraising party
at a gay club and appealed to the gay community
to help in the making of the film. A performance
by a leading drag artist was arranged and a date
with the lead actor was auctioned off to the drooling
crowd. We made very little money (but it's the experience
that will remain in our minds not the profit).
- Cutting Costs: We already
knew and had had worked with a number of people
and companies in the film industry. We convinced
them that they would be helping to make art and
everyone from the lab, to crew, to postproduction
facilities gave us down time and equipment for free
or at a very good rate. We also deferred the payments
for the vast majority of the cast and crew.
Please forward any corrections, suggestions and comments
on this document to
Luiz@underdog.co.za
