Financing / Crowdfunding

This Private Equity, Debt, Bridge & Gap Financing class will help students understand the different types of financial instruments that exist within the independent film landscape. This class will elaborate on the various types of financing available, what differentiates them, and how they can all b...

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This is the biggest “chicken or the egg” issue indie producers face. Investors requiring talent attached. However, in order to get talent attached, you need $ for a pay for play offer. But you can’t get that $ from the investor until you have them attached. And so on.

So what do you do?

For this exa...

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So what do you do?

For this example a $3 million budget & a talent fee of $300k is used with A, B, or C List talent.

I recently posted about pay for play offers (see Tip for the Day #50). When a talent accepts an offer, they are normally removed from the Agent’s roster for the duration of the negotiated time that the pay for play covers (no, it’s not unending time). This is the main reason agents don’t let their clients “attach” themselves to projects without a pay for play offer.

LOI’s don’t count as “attachments”. The talent being your buddy or someone you worked with that likes the project & says “I’ll do it, just check with my agent first” also doesn’t work as that agent will require the pay for play offer.

With a pay for play, if the offer is accepted, a minimum of 10% is required normally within 48 hours. Whether you get funding or not, you’re required to pay the remaining 90% or you’ll get sued. The payment of the remainder is negotiated. So basically, you need the full $300k as the agent will check proof of funds prior to entertaining the offer.

To many of you, $300k might as well be a gazillion dollars. However, there is a potential solution that is becoming more popular with some producers.

Many producers are approaching investors initially with just the amount needed to extend an offer to a particular talent that the investor likes. Using the above example, only $300k is requested, not the full $3 million. The concept is that the investor puts $300k in their own escrow account, which the producers don’t have access to, & it sits there. If the offer is refused, the investor’s $ is not touched. If the talent accepts, $ is available.

But that’s only a small portion of the budget, you still need the remainder. In most cases that the investor funds a pay for play offer, if accepted, the investor sees the value of the talent & will fund the remainder of the project.

While it’s still hard to raise the initial $300k, many producers are finding more & more investors are attracted to this concept. None of their money goes to the budget unless bankable talent is attached.

This also allows presales to kick in (bankable talent attached is required for presales, not LOI’s) in which you can raise the remainder of the budget, thus, only having to pay back the initial investor the $300k plus any negotiated terms. This gets you into profit participation much faster.

I post this as an option to consider. There’s many details but this is the main concept. In all cases, research is required.

Good Luck

Pamela Jaye Smith

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1 person likes this
- Maurice Vaughan
2 days ago

About time!

Willem Elzenga

2 days ago

I can't believe Hollywood needs tax credit to come back if you see what corporations, artists and money is already active in the area.

Geoffroy Faugerolas

Thank you for sharing, Pat Alexander

Pat Alexander

Deadline revealed Monday that more than 100,000 letters were sent to Sacramento urging the passage of this bill and another CA film tax incentive bill in tandem, while many influential industry leader...

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Tommy Luca

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- Maurice Vaughan
4 days ago

That's called "mutual respect" in terms of helping one another out or collaboration teamwork.

Mike Boas

I’ve certainly heard about marketing people who sell their services as crowdfunding gurus.

The more honest way to go is to build an audience gradually, find your niche and communicate with them. Then...

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1 person likes this
- Maurice Vaughan
3 days ago

Hey Mike, yes those are the people I'm referring to.

Well? In business is there really an honest way that you've seen or heard of? Besides, I've been trying that route diligently to the point of exhaus...

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2 people like this
- Maurice Vaughan
- Tommy Luca
3 days ago

Perhaps honest wasn't the right word. I just think it takes hard work to do it right, and there aren't a lot of shortcuts.

That said, a marketing person who knows their stuff would be worth paying for...

Not most of the time, no. You are right, Mike, it does, and no there aren't.

Once again Mike, you hit the nail on the head.

Vicky Zhuang Yi-Yin

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1 person likes this
- Maurice Vaughan
3 weeks ago

Aw man, this is for US and Canada only.

Mark Deuce

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- Jack Binder
- Maurice Vaughan
3 weeks ago

Thanks for sharing Jack Binder

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- Mark Deuce
- Maurice Vaughan
3 weeks ago

Hey Jack? Would this picture have a shot there? It's a short film proof of concept fantasy/comedy https://facebook.com/lunchthemovie/

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2 people like this
- Maurice Vaughan
- Mark Deuce
6 days ago

Submitted today! Anyone else get in before the deadline?

Here's my HAUNTED CIRCUITS script and proposal if anyone is interested. https://maddogmovies.com/2025/04/21/haunted-circuits-short-film-proposal/...

Jack Binder

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2 people like this
- Ashley Renee Smith
- Maurice Vaughan
1 week ago

Very interesting film finance development Amanda Toney!

Ashley Renee Smith

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1 person likes this
- Maurice Vaughan
6 days ago

Amanda Toney this is such exciting news for indie filmmakers working across borders. Initiatives like this can really open the door for more diverse financing opportunities and creative partnerships!...

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2 people like this
- Jack Binder
- Maurice Vaughan
6 days ago

Thanks for sharing this, Jack Binder! Such a valuable resource for filmmakers exploring UK production opportunities. This kind of insight is essential not just for accessing the tax credit but for pla...

Sydney S

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- Maurice Vaughan
1 week ago

Going to be a great lab, Jeanette is wonderful!!

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- Sydney S
- Maurice Vaughan
1 week ago

Bravo! This will be super informative!!

I couldn't agree more jack!

Eryn Rea

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3 people like this
2 weeks ago

Congrats Alice Baker !

Alice that is so huge!!! Congrats on your New York Times feature for The Last Movie Ever Made :)

How's class going everyone? I will be sending out a handout from Viv later on this afternoon!

Hey everyone, sorry for my delay, I just got the handout sent out from edu@stage32.com and uploaded to your my library!

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2 people like this
- Eryn Rea
- Maurice Vaughan
1 week ago

Critical information for understanding how film finance works, and what are the various forms of funding available. Very important to understand in building a finance plan and positioning a film for finance and distribution!

Michael Fitzer

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3 people like this
1 week ago

Solid advice and direction. To be fair, LOIs are great in some instances, especially if you're generating buzz, knocking on doors (figuratively) to sell shares, and of course, disclosing that the LOI...

Vic Alexander

Excellent advice, Patrick McIntire. I learned many things I did not know.

Christopher Maes

The only concern I would raise with this financing model is that it's the way 90% of filmmakers try to get projects off the ground. Which means you are running with a large herd and it's potentially h...

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4 people like this
1 week ago

I went to see Norman Mailer's TOUGH MEN DON'T DANCE in the Cannes Film Festival. Afterwards I told him that I liked the movie he had written and directed. He lost a lot of money on that film. So, if s...

Pat Savage

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2 people like this
- Geoff Hall
- Maurice Vaughan
1 week ago

Great information!. Thanks Patrick McIntire

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