It’s no secret that movies are expensive to make. Today’s blockbuster hits routinely exceed the $100 million mark. If you’re an independent filmmaker, your spending plan is likely far from that.
Indie filmmakers need to get creative and be resourceful with their financing. Every dollar matters when creating the next “Blair Witch Project” or “Paranormal Activity.”
Use these six ways to fund your next indie film successfully.
1. Investors
The first way to find funding for an independent film is to search for private investors. This method is complex because they consider movies to be high-risk. In their minds, the odds are low for profit-making. It’s critical to create a compelling and worthwhile script so people have a reason to believe in you and your production.
Exhaust every option possible for funding when searching for investors. In the best-case scenario, filmmakers find people passionate about movies who want to see newcomers succeed in the industry. Other stakeholders may use your film as a way to diversify their portfolio. Think about any relatives or connections you have who can finance your film dreams.
2. Grants
Another strategy to secure financing is to look for grants. These funds are ideal because filmmakers can accept them without the burden of paying somebody back. It’s best to think about grants like a donation. They are an excellent way to start your production but may require you to fulfill particular criteria.
One resource you can use is Film Independent. This nonprofit organization awards nearly $1 million in grants annually for filmmakers to advance their projects. Film Independent has various fellowships funded by donors who award money based on certain requirements. For example, the Alfred P. Sloan Foundation awards filmmakers who create real stories about science and technology. The Cayton-Goldrich Family Foundation Fellowship donates funds to Jewish filmmakers.
3. Tax Credits
The next approach for funding an indie film is to research tax credits. Filmmakers in the United States, Canada and other nations can take advantage of incentives for filming in particular locations. These tax breaks aim to stimulate economies and boost tourism in various places, especially during the offseason when there are fewer tourists.
Most states have a tax incentive program for filmmakers, but it’s essential to research the requirements before beginning production. There may be a minimum threshold to qualify. For example, an independent film in California has to spend at least $1 million to receive the transferable tax credit. Neighboring Arizona has no minimum spending requirement.
4. Personal Finance
You may need to resort to a personal loan if a gap in funding exists. This option is tricky because you’ll risk your money and credit. However, it’ll be worth it if your production is as successful as you plan. You could also use money from your pocket to get the show started. Financing the film by yourself is risky but has its advantages. You’ll start the project sooner and worry less about outside forces influencing your movie.
There are a few things to consider if you elect to take out a loan. First, filmmakers should assess their current debts and pay off some of them before taking on more. Start by paying off high-interest loans, such as a car note. Absolving yourself from this debt can raise your credit score and improve your standing with the banks.
Paying off the high-interest loan first falls under the debt avalanche strategy. Followers of this method organize a list of their debts and make minimum monthly payments for each. Then they allocate extra funds to pay them off by interest rate. The avalanche continues until all the debt is gone.
5. Crowdfunding
Another option for funding an independent film is crowdfunding. This method is commonplace among filmmakers who need financial assistance for their movies. Modern crowdfunding apps like GoFundMe, Patreon and Indiegogo make it much easier to source funds for any projects in media. Donors may only contribute a few dollars at a time, but these donations add up quickly.
Filmmakers should heavily utilize social media like Twitter, Tik Tok, Reddit and more to share their crowdfunding links. Going on YouTube can help you reach a broad audience. A smartly targeted campaign can make a crowdfunding link go viral with a plethora of donors. One way to incentivize small donors is by giving them a cut of profits, making them small investors. However, filmmakers should be wary if they’re on a tight budget.
6. Product Placement
Product placement is a creative way to garner funds for an indie film. These subtle advertisements are widespread in the industry, and filmmakers can use them to accrue money without interfering too much with production. Some product placements are more evident than others and lead to an association between them and the movie. For example, seeing an Aston Martin makes many people think about the James Bond films.
Sometimes, movies center on a particular product and feel like a two-hour advertisement. For example, the Lego and Transformer films are ads for their respective toys. However, some product placements like the DeLorean in “Back to the Future” don’t turn out well for different reasons.
Financing the Next Breakout Indie Film
Up-and-coming filmmakers are critical for the movie industry. They provide fresh ideas and can produce some of the best productions on the lowest budgets. They’re rare, but some films like “Tarnation” or “Paranormal Activity” have meager budgets but garner exceptional box office revenue.
If you want to create the next big hit, you’ll need funds. Use these six ways to secure financing for your production.
