Filmmaking Fans

            There are a lot of people I know that complain about the films that are coming out of Hollywood, and yet when I ask them what is the last independent film they went and saw to support they cannot name even one. But when asked what studio film they saw last, they rattle off films even from the past opening weekend.

            If you are a true fan of something, the worst thing you can do is be passive. There is so much white noise out there with all of the distractions it’s a wonder that anything without a major budget makes it at all. If you enjoy fantasy films, get out there and enjoy them, enjoying them equals supporting them!

            I have some good friends that love to listen to audio books. And when they find a good one, they let all of their friends borrow their CD. That is the worst thing a true fan can do. Think of it this way – your money is your “vote” to keep whatever you love going. Be it a film, book, or band. Independents do not have deep pockets and the only way they’ll survive is if you get out and vote for them. Let others know about it and then encourage them to buy a copy of their own.

            Fan engagement is down so much that in order to get just a few fans into action – indie filmmakers must spend a ton of resources to spur them into action and even then if you get 20% you are doing great. It’s a good time for indie filmmakers and yet a hard time. Good in the sense that the price of equipment has dropped significantly, the digital age of acceptance is upon us and the distribution platform is ever expanding. It’s a hard time for us as there is so much content out there all competing for the elusive fan.

           

            I believe there are 3 types of “fans”. The first is just someone who is passively interested in your film (The Looker). The 2^nd will like your fan page and may buy your DVD, but not much more than that (The Seeker). The 3^rd is the most important, but is so hardest to achieve, and that is an ambassador of the film (The Doer). Ambassadors will like your page buy your DVD and most importantly they will share your film with their friends and actually engage you when you post things or ask questions, and will be a voice for the film. They are the life-blood of indie filmmakers.

So should you find yourself enjoying an indie film/book/band/game – get out there and help spread the word and vote with your dollar!

           For without you we are nothing. 

Be slow to be a Critic

            Have you noticed that people have become very comfortable with being critical? We all love the brutal honesty of Simon Cowell on American Idol – he brutally crushes people. It makes for good ratings. But is that what we all need – another critic? I have found that most times, artist really are not looking for feedback, but are really looking to say, “Hey, look at what I did…” Most times, by the time the artist shows their work; it’s well beyond the notes/feedback portion. People generally have no idea what it would take to incorporate some of those notes. And how much blood, sweat and tears went into it. A minor “just FYI, thought” would take huge effort to make it happen. I have a film that is complete and on DVD and yet from time to time I still get “notes” (suggestions) on editing it. It goes something like, “You know, I really would have…” Well, that ain’t gonna happen.

            I noticed that people are ready to be critical in doing my documentary (www.USA30Days.com). People were willing to talk right off the street and no matter the subject, people were very opinionated as though they were a subject matter expert. They were quick to give harsh feedback and ready to disagree. Being critical I’m afraid is starting to be in our DNA.

            I would say that we live in a very critical age. As an independent filmmaker, I’m not too excited about this. There is no apple to apples comparison. My film will be compared to Spielberg’s. On one hand, I get it – I need to find a way for my film to be excellent – but on another note, what might I do with a huge studio level budget?

            Now, sometimes artist are looking for honest feedback and should you be one of the lucky ones that get to offer feedback or notes; I have one thought for you – go easy. Artists pour their souls out and art is subjective in nature. The “hardest” artist – has feelings. Recognize this can be subjective and allow the artist the freedom to take your feedback or not. Also, don’t just give the negative. Use the sandwich approach – say something positive, something constructive, and end with something positive.

            If you feel you must be that critic – I encourage you to pump the brakes and sometimes its best just not to say anything at all. Nod and just appreciate their effort.

It is not the critic who counts,
or how the strongman stumbled and fell,
or where the doer of deeds
could have done better.

The credit belongs to the man
who is actually in the arena,
who knows the great enthusiasms,
the great devotion,
and who spends himself
in a worthy cause.

If he fails,
at least he fails while daring greatly,
so that he may never be
one of those cold and timid souls,
who know neither victory nor defeat.

- Theodore Roosevelt

Squirrelly – be who you were born to be.

Good ole Squirrelly played by Jayme Bell is one of the funniest characters we have for The Fellows Hip. Not only was it well written by Scott and Christopher, but was well executed by Jayme. When Jayme auditioned, we knew pretty quickly we had our man. Jayme was one of the first people we ensured we got locked down to take on the roll. Jayme had us cracking up, right from the start. However he’s just not all about laughs. Just like all of our characters, Squirrelly goes on a journey of his own to find out who he is.

                *Spoilers* Starting out, Squirrelly thinks he’s the every man (much like the characters from the hit show “Big Bang Theory”). He believes he is a lady’s man, a great leader with superb marksmanship skills and a guy who knows how to rough it. What he finds, much like Nate, is who he was born to be. He is the opposite of the fake persona he wants everyone to think that he is. But through this journey/this test – he reaches deep within himself to find out the truth. And in this, he begins to embrace what he originally believes are weaknesses. He finds that these are who he really is, and can now be used as strengths.

                Once he’s able to do this, he finds out that he can now embrace who he was born to be. And, if you stayed through the end, you find out how he’s rewarded…

                If you have a geek in your life, like my wife does, than just like Squirrelly – encourage them to embrace who they are and you’ll help them find that there’s a little bit of geek and hero in all of us.

How to find out who’s really in charge of a film?

Filmmaking is a team sport, but who’s in charge? Well, there are many people who make it happen, but at the core are the producers. The producer is the one who shepherds the production from start to finish. And there are many variations of producers: executive producer, producer, co-producer and associate producer.

An “executive producer” is usually someone who secures at least 25 percent of the film’s budget. He or she rarely has any creative control over the project or much involvement beyond funding. An executive producer also can be involved in several projects at one time.

A “co-executive producer” generally applies to a studio exec or distributor who has financing involved as well. 

A “co-producer” works under the producer and helps with casting, financing and post-production.

A “line producer” is the person on set who primarily supervises the budget and business issues, generally staying clear of the creative aspects.

An “associate producer” is given usually as a position of reward or favor for a job well done. The title can be offered for many reasons from funding to incentives on set or during production.

The “producer” is the one who brings on a writer and assists with developing an idea, buys a script or secures rights. He or she often hires the director, supervises casting, and assembles a crew. The producer oversees the budget and then coordinates the post-production work—everything from editing, to hiring a person to score the film, to encouraging the talent to promote the movie however they can.

In the independent world, the producer is the one who finds the money and makes it all happen. There’s a new rising responsibility to the producer role for indies, however. A producer also should be someone who can keep his or her eye on the prize by helping develop an audience for the film early on in the process. He or she bangs the drum and lets the world know the film is out there.

The only thing from preventing you from making your project happen might be finding the right producer.

TFH: At Look into the character Nate Bingley – Fearful to Fearless

**Spoilers**

Now that I (Ron) have had some time to reflect on our film, “The Fellows Hip: Rise of the Gamers,” I find that one of the characters I really have enjoyed has been Nate Bingley, played by Cole Matson. For a film, a character changes at least three times. That’s once when you write him, once when the actor owns him and once then in the editing room by how the editor (Brian) portrays him.

Who is Nate? Nate is a scaredy-cat; one who is a momma’s boy and never wants to leave home. He’s happy where he finds himself. He’s not the adventurer… or so he thinks.

But it’s through the love of his friends and his loyalty that he is called out of his comfort zone. He must leave his safe haven to right a wrong. When he is thrown into the adventure, he is at first excited and ready for the challenge. But at the onset of his first test, he almost falls apart. With each step doubt creeps in. That is until he is introduced to the life of a hippie. There he begins to see who Nate is all about. He shows through his monologue that he has come to realize that life is meant to be lived, and he’s going to “suck the nectar out of life and drink down every last drop.”

Nate “gets it” and knows this could be the adventure of a lifetime. He who was fearful has become fearless. He begins to embrace his destiny and become the man he’s always meant to be. He puts aside the fearful gamer and begins to embrace the fearless explorer.

Isn’t that who we should strive to be like?

Earn the Title. Stay Motivated. Be Responsible.

Through the years of being a filmmaker, I’ve met several self-proclaimed filmmakers. Upon further investigation, I find out they actually have never made a film, but really want to. Well, I hate to disappoint, but in my book that’s not a filmmaker; it’s more of a film enthusiasts. You have to earn the title by doing a film. It’s hard work, and it’s better not to take that title for granted. Filmmakers give up so much to make a film. They struggled, worked hard and power through to make a film. I’m convinced that unlike the “one ring” in “Lord of the Rings” “wants to be found,” as Gandalf describes, a film is just the opposite. A film doesn’t want to be made; it fights you at every step of the way. Only the few complete a true full-length feature film (narrative or documentary). Those few know what I’m talking about. It’s not for the faint of heart, nor is it a simple title given away and used lightly; it’s one that is earned.

And, being a filmmaker is like working out at the gym. I was looking around this weekend at all the many other people in the gym with me. They weren’t the elite bodybuilders. Most of them were out of shape, but there they were going for it right along with me. No matter how out of shape they were, it was their effort that motivated me. I actually had a better work-out because of their exerted effort. Surround yourself with motivated individuals, and you will find yourself rising to new heights. Filmmaking is tough, so it’s critical that you stay motivated. You got to go for it, but in the right way. Wildly going for it is a crazy persons’ game and for the young.

I’m not 21 anymore. When it comes to working out, I have to ease in, not just jump in all crazy like. I have to go into working out, and filmmaking, with responsibility. Lately, I’ve talked to filmmakers that are willing to go “all in” on their first shot. They are willing to give up everything and risk their family’s welfare along with it. This is just rash, and even false bravado. I fully understand the urge and desire to prove you have what it takes, but, keep in mind, most films will never return a profit to their investors. I know we think we have “the one” idea that will change the way film is done, but in case you don’t, there is nothing showing a little responsibility when you make a film.

If you do these things, it still won’t be easy, but before you know it you might just have a film and be a filmmaker.

What do I need to do to get (re-)started in filmmaking?

A friend of mine recently reached out to me and asked, “Help, I don’t know how to get back involved with filmmaking!” She is a great writer, but due to life’s circumstances, she has not written anything for a long time. She is now married with two small children that demand her attention. She had given up her writing to pursue her dreams of becoming a wife and a mother – very noble things. But, the passion in her heart for filmmaking never ceased. She was able to keep it at bay for awhile, but recently it’s called her gently out of her Hobbit hole. She does not share this same calling with her family, so it takes being around other creative people to help foster this longing.

I can totally relate, but for people like us we can never leave filmmaking on the altar for long. It’s more of a calling than a desire to just do film. Our goal is not a hobby, but a profession. But, she had been out of it for so long, she no longer knew where to look. Here’s what I offered her, which can be for a writer, actor, or filmmaker:

1. Find the local 48 Hour Film Project in your area. http://www.48hourfilm.com/ - they have them all over the world. People take them very seriously and really give it their all. I was very impressed about the team I found myself on. Or there are others, like the 168: http://www.168project.com/

The point here is really to surround yourself with filmmakers – reach out and make connections. Plus, you get to say you actually completed a project – how many writers/actors/filmmakers can say that?

2. I was a little skeptical about this next idea, but when I attended one – I found 25 other local filmmakers just like me. Check out the MeetUps in your area: http://www.meetup.com/.

The group had gear and desire – they are still meeting today making projects.

3. Just about every college out there has some type of film program. Look within their communications department. You can either a) take a class, or b) volunteer for student projects. Just reach out to them, let them know what you can do, and be a contributor when you get a chance.

4. Use social media to find filmmakers – from YahooGroups, to Google+, to Facebook (of course). Filmmakers know other filmmakers.

I have found most people out there have a desire to make things as professional as they can and they are willing to sacrifice for it. If you can't find a group in your area, I encourage you to step up and start a group then (be a producer). You never know, you might find yourself taking 30 days off work and doing a feature!

Here’s to making next year about doing projects!

What other advice would you have offered? Leave a Comment and share! 

Stay connected with us!

We are all over - how about you?

http://www.TheFellowsHipMovie.com http://www.OAPFilms.com http://pinterest.com/ronnukem/the-fellows-hip/ http://www.flickr.com/photos/40256188@N08/ https://twitter.com/OpeningActProd http://www.youtube.com/oapfilm http://thefellowshipmovie.blogspot.com/ http://www.imdb.com/title/tt1669814/ http://thefellowshipmovie.com/film.html http://ronnukem.tumblr.com/

We have representation

The Highland Film Group has joined the team as our sales agent. We reviewed offers from several distributors and sales agents, but HFG was a cut above the rest. We’re excited about this partnership and looking forward to good things to come. Fellows Hip distribution is now in full swing!

Keep the buzz going! Encourage everyone to visit our IMDB page and YouTube trailer. Invite them to join our Facebook fan page too and follow us on Twitter.

Thanks for being with us on the journey, and be on the lookout for the latest distribution news!

What is a fan film?

http://fancinematoday.wordpress.com/

Fan Films are films that work off someone else's created content. I would suggest a true fan film, is one that does not spoof or act as a parody, but rather is a love of the content, and the film is an extension of that. It uses the same world and perhaps the same characters, but it’s not a remake.

They are generally not full length in time or scope as well - as they are not meant to be viewed as a feature, but more of a "side story"; with the goal of being a homage to the creator of the original content. 

A parody is generally something that runs along the same story, but creates a funny take on it. These are expected to be cheesy and pokes fun at the content directly.

Why make a fan film?

There are many reasons to make a fan film. If you are an aspiring filmmaker, but do not have much of a story yourself – it’s a great way to dive into an all ready known world, like Middle Earth, which helps you establish certain rules. It is also very easy to garner a strong fan base for the content, as someone has all ready done that for you. You just need to tap into them. Many times, if they are well done, they will really make the rounds.

The main reason I like this, as indie filmmakers struggle with building a fan base. This allows you to do that.

A big note. You must proceed with caution in developing a fan film. As this is not yours! You might make an original story off of something established, but you are riding on the success of the film (or comic, or book) you love, such as from Tolkien. And in doing this, those people that do have the legal rights to create the content, could, and sometimes do, take issue with you making a fan film. If it’s just a few friends in your back yard, it’s probably not that big of a deal, but the more professional it becomes the more it will get on their RADAR. Regardless – there are legal issues with fan films.

It does not matter if you do not plan on showing this to make money. This does not negate your responsibility to seek permission for what you are doing. Many times, they won’t mind you doing a fan film, but will simply give you a few things you will have to agree to.

What makes a good fan film?

Exactly what makes a great film! The story, the production value, and then how close can you get to the original content. So your props/wardrobe needs to be superb. Then your acting will speak volumes.

Some great Lord of the Rings fan films are: Halifirien, The Peril to the Shire, TheHunt for Gollum, and Born of Hope.

Our film however, “The Fellows Hip: Rise of the Gamers”, is for fans, but not a fan film. It's commercial in nature with the goal being an ROI.

You can find some other great fan films at: http://www.fanfilms.net/

(another good resource: http://en.wikipedia.org/wiki/Fan_film)

What’s a great one you’ve seen? Post below.

Is piracy really a big deal?

http://my.spill.com/photo/movie-piracy

We've had people tell us to offer our movie for free and then ask for people to give (financially) as they see fit... really, that's a business model? It might be, but not one where you could stay in business for long or make more films. It might work once as a stunt, but it’s no way to do business. Part of the thinking was that people will pirate your film anyway, so give them the content so you can have some form of control over it. But is that really control? It’s seems like letting the pirates take over your ship. You’re still captain, but you’re locked in the brig.

I believe piracy is a huge deal and greatly impacts the film industry, especially the indies. I know the numbers are hard to find for an exact amount (financially) of the impact. Piracy isn’t good for anyone, but larger film companies can rebound from piracy and have more recourse and resources to fight piracy than small indie companies fighting to survive.

There are entire countries that do nothing to control entertainment piracy. You can walk the streets and order pirated movies, knowing they are pirated, and no one cares--it’s a way of life--and that’s a problem. Just talk to any deployed vet, or anyone that has visited China, Russia, Korea, Indonesia or heck even New York City. Just ask your friends. I would guess 3 out of 5 of my friends have pirated a movie, or supported pirating in some way, most innocently. They've downloaded a film at some point for "free." Or they've made copies for their friends after they themselves have paid for the film. All of this is “illegal,” really, and not good. 

If people say indies must compete with the studios, but then take away our chance for profit, how can we compete? With such a high risk investment already and a business model that offers your film for free and hopes for donations, as suggested, investors will flee in mass. Investors are hard enough to find in the first place, and almost every one I've spoken with has brought up piracy. So, I'm not concerned about piracy because of being stingy; it’s a concern of being able do business in the right way. My investors trust me and I need to do all I can to see they are protected.  No doubt the landscape is changing, and we have to adjust. But, chalking piracy up to "not that big of a deal" and giving up the ship to the pirates is not the way we should choose.

Now, what can be done? I'm not too sure. I know the studios are the driving force in this effort to combat piracy. I also know that local police departments and federal agencies are not going to do much unless it's so obvious and easy for them to handle. But the bottom line is still that it’s illegal. It may be a more socially acceptable crime, but it is more than civil. I don't think we lock someone up and throw away the key; that would be cruel. But giving them a fine and putting them on probation would be appropriate; and, more importantly, brining down the larger illegal entities that are the real pirates behind piracy. Shutting down the piracy sites. Put pressure on countries politically. It's a global issue with no easy resolution.

Piracy is a big problem, especially the more time goes by without anything being done about it, the more it's going to be acceptable and the more it will hurt us all. I'm in the filmmaking business, not some fashionable hobby. I also believe piracy is criminal and needs to be dealt with. This is not a victimless crime--filmmakers, film investors, and ultimately, film viewers are affected. See an indie film you like; it could be the last film by that indie company because of piracy.

More education on piracy is needed to help those who are innocently participating in it. But, to the ones who are sustaining it, shut them down.

If you enjoy a film, the worse thing you can do is not support it--or ask the filmmakers to put it out for free. I could be the end of the indie filmmaker.

This is just my two cents. What do you think?

  

Looking for some anti-piracy assistance? http://www.muso.com/home/

Copyright: http://www.copyright.gov/circs/circ40.pdf

Report piracy: http://www.ic3.gov/default.aspx  and http://www.iprcenter.gov/

Film Distribution - Times are a Changing

http://entertainment.howstuffworks.com/movie-distribution.htm 

In the film industry, the world of the free internet is causing some challenges for filmmakers. I had someone tell me an option to get our film out there was to post it for
free online and then ask for donations. They shared an example of how one film did this and had over 1 million views and raised $10,000. Now that is a lot of money, unless the film cost you much more than that! How is this success? You spend $100,000 to make a film, but it’s all right to only get a $10,000 return? In any other business, including studio-made films, that would be failure!


As consumers we want what we want, when we want it and how we want it. But, filmmaking is a business first. If filmmakers cannot get a return on their film to go back to their investors, it will be a short-lived career. High-quality films are just too expensive to make and involve the livelihood of too many people to be able to sustain doing them at a loss. If you love a product, the worst thing you can do is get it for free. You should support your favorite film, by supporting it with your purchase of a ticket, DVD or a paid
download. It’s your “vote” of confidence that you’d like to see other films like it or by this filmmaker.

The market is now flooded with free content, and most of it looks free. This muddies the water for people trying to make it as a filmmaker, even an indie one. Indie doesn’t mean free, and we should protect it from that.

I actually had a filmmaker tell me I should be willing to sleep in my car, go to the bathroom in a bag and eat what I can just to get my film out there. I have no issue with hard work and sacrifice—and our team has put in its fair share—but it has to be balanced with sanity. What other industry would encourage that as a true, viable business or career option?

But, things are changing. No longer does the filmmaker have to take a deal where they never see a dime from some unknown “distributor.” We’ve been exploring many options, and here are some of the ones we are considering that actually pass some revenue on to you:

www.ATOM.com
www.BABELGUM.com
www.CREATESPACE.com
www.FILMANNEX.com
www.JOINFILMBABY.com
www.HUNGRYFLIX.com
www.INDIEFLIX.com
www.JAMAN.com
www.NETFLIX.com/SUBMITFILM
www.SNAGFILMS.com

Before you go free, check them out. You owe it to yourself, the people who supported you financially and to the indie film industry.

Let us know what others you are aware of. And, for everyone else, get out there and support indie filmmakers!

Express Your Indie ~

Money for Films: Should I Try Crowd Funding?

Crowd funding is defined as “the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.”

This new funding source has created some businesses to try and help you meet that goal. The two most popular are: 1) IndieGoGo and 2) Kickstarter.

They both will charge a fee for doing this. IndieGoGo will allow you to be funded regardless of whether you hit your goal or not in the allotted time. If you do not make your goal, you simply pay a higher premium. With Kickstarter, it’s an all or nothing deal. If you don’t make your goal, you simply do not get funded.

For the indie filmmaker, many see this as a great way to get started. I have a few thoughts on the issue, having gone through this ourselves recently. We chose to go with IndieGoGo

1. You need to recognize you are simply going to be tapping your own personal resources. There are not thousands of people waiting in the wings to find your project and fund it. You will find a few new people, but the majority of funds will come from your own personal network of family and friends. And if they've all ready been tapped for resources, it’s somewhat hard to ask them to dig deep again.

2. Filmmakers need to STOP asking for the entire budget. I've seen one guy asking for $90,000 on Kickstarter. This is a crazy amount of money to be asking for through crowd funding. I don’t believe you’re likely going to raise these funds this way. Money at that level would have to come from a true angel investment campaign, which is very different. Crowd funders are not investors! They are giving you the money for whatever little incentives you might offer. Generally, true investors who invest significant money will want some agreed upon investment return and time-frame for the risk they are taking. Depending on the level of an “investors” investment, you also may possibly violate some SEC regulations. Now, someone will always have some exception to the rule—I get it. But, you need to stop and set realistic and obtainable expectations. You need to ask yourself, what it might mean if we don’t raise the funds. It’s great when you do, but it broadcast “failure” if you don’t. (FYI, the filmmaker only had $10 donated of the $90,000. I was not inclined to give, as I knew there was no way he was going to meet his goal through crowd funding).

Now, maybe that’s the point: as with Kickstarter, your go/no go is based upon you reaching a hard to obtain goal. But, you need to be ready for what failure might mean.

What crowd funding can be good for is a specific piece of the puzzle, such as seed money or having it go towards a specific budget item. Our crowd funding was for a campaign to help us market our film, www.TheFellowsHipMovie.com, properly. We were successful. We couldn't, and did not, raise the entire budget through crowd funding.

3. Don’t expect help from the service to advertise for you. They have so many projects that they only assist in advertising a select few. And, from our experience, I’m not sure the method to their madness. From time to time, an idea is so good it starts to catch on like a brushfire and gets well over funded. That’s what we all would like, but it’s the exception to the rule, not the norm.

Crowd funding has its place, but keep your goals realistic and achievable—and fair to you and your funders.

Now go and Express your Indie!

Filmmaking Crews are a TEAM sport!

Filmmaking is one of the few industries where the professional knows they need a fleet behind them, but the independents believe they can do it all on their own.

I’m not saying that one person cannot do a lot in the independent filmmaking world, but why would you? You cannot be an expert at everything. It’s true that very technical people can carry a lot of the load, but trying to carry the full load can drag you, and your project, under.

Right where you are, there are tons of people who are waiting for someone to step up and get something going. Just run an ad in CraigsList, and see the response you get.

Here’s my two cents. Get a team behind you. At minimum you are going to need:

1. Writer – If you are technical, usually you are not the best person to come up with the storyline. Don’t take this negatively; think of it as streamlining your craft. It’s better to be great at a few things than good at a lot.

2. Producer – This person has to be great with people. News flash – without the producer, there will be no filmmaking. Many filmmakers try and be it all. A producer can bring in funds, make introductions, recruit a great team, and then help manage that team. This person also needs to keep his eye on marketing, and how you plan on getting your film out there. If you make a great film but no one knows about it, who cares?

3. Technical – I would say this is about 90% of indie filmmakers out there today. They are the crew for production, usually as the Director/DP, and then they take on the entire post-production process as well. Meaning they film the movie, then they edit it, they do the VFX, sound design, etc. While you need others production and post-production, you should consider the following:

o Sound – Get someone to take great production sound, and to assist you with post-production sound design.

o VFX – The better your visuals, the higher the production value.

o Gaffer – Find that right person to make sure your lighting is correct. Outdoors they are not crucial, but indoors they are invaluable.

4. Score – There are way too many great musicians out there, not to be taking full advantage of what value they add to your team.

5. Actors – The world is full of wanna-be actors waiting for their chance. Give it to them!

Filmmaking is a team effort. And there are many people out there who want to say they worked on a film at least once in their lifetime. The more professional you treat your project, the more others will respond in kind.

Best of luck and keep us posted how your filmmaking adventures go! Until then – Express Your Indie!!

Help on a film: the Intern

Oh the infamous intern/free labor…or is it? Most don’t even know that if you are a for profit company, then a true intern must be paid or you are in violation of the Labor Laws. Ouch. Trust me I know. This is not 100% true, but in most cases it is.
I know if you are doing a feature and using the latest RED camera, who wouldn’t want to jump in and help. I mean look at all the new graduates coming in to the workforce with no true skills. Plus, it’s FREE labor to you. But, that is actually not the case, and the Labor Department is starting to crack down, so be forewarned. And if you do want to use unpaid interns, you have to check off these six items: http://wdr.doleta.gov/directives/attach/TEGL/TEGL12-09acc.pdf
Just a few to highlight: the intern must be given adequate training to equal that of a school; the intern can not just take over someone else’s job who would be paid to do it; and you can’t take advantage of them, meaning you truly want to help the young intern get some real experience so he can eventually get paid for this type of work.
So, imagine, you can’t just have an intern as your boom op, because he would have to not be replacing someone who would/could get paid for that role. So you have to have a boom op. If you want the intern to get some experience, then the paid boom op must stand aside-still getting paid himself-and help the intern learn the ropes. You can’t just send the intern for coffee or errands, because that would be a PA job, not getting experience as a boom op. They must be “learning the trade.” It does actually make sense, if you stop and think about it.
Having interns can be a great opportunity for you and them. But, I think, sometimes what we’re truly looking for is a “volunteer.” We had several volunteers on our film.

Another really good article:
http://laborlaw.typepad.com/labor_and_employment_law_/2007/11/unpaid-internsh.html.

How to find investors with money the right way for movies.

Of course I have to qualify that I’m not a CPA or an attorney. Laws change all the time, so please do your own due diligence and ensure what I’m saying is accurate and correct, or better yet hire an attorney to do so. This is just a fellow filmmaker trying to help.

I’ve seen a lot of misinformation going out about investors. In fact many people are down right breaking some federal laws. I’m sure its innocent, but breaking them never the less.

Investments are generally dealt at the individual level, but once you cross over to soliciting for investors, the SEC comes in. I’m assuming this is just an LLC, and thus it is considered a “private” investment.

Here at some highlighted points to note (if not filed with the SEC):
1. An investor must be a “substantial and a pre-existing relationship”.
To be "pre-existing," a relationship should be “known” before the terms are developed and the investment begins. You have to know them before you start asking for the money.
The internet is new and still being defined as it relates to investors, but what I am sure of is you cannot blast a simple email out to others asking for money – as you are not allowed to advertise for investors and this has been deemed advertising. Just like you are not allowed to take an ad out in your local paper.

Is this how you think you are going to find your money anyways – through an email blast? Finding investors is hard work, you’re not going to find a legit investor with a sympathy email blast.

2. You are only allowed 35 non-accredited investors.
If they do not meet the qualifiers below – they are non-accredited. So, if your budget is $200k – and all you have access to are family and friends (most are probably non-accredited); a general rule of thumb: divide that by 35 and that’s the minimum amount you can accept for an investment.

An accredited investor is defined by Rule 501 of Regulation D of the Securities Act of 1933, and must abide by the registration requirements of the U.S. Securities and Exchange Commission (SEC). These investors must meet certain criteria.

The federal securities laws define the term accredited investor in Rule 501 of Regulation D as: (refer to http://www.sec.gov/answers/accred.htm for more information)
1. a bank, insurance company, registered investment company, business development company, or small business investment company;
2. an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
3. a charitable organization, corporation, or partnership with assets exceeding $5 million;
4. a director, executive officer, or general partner of the company selling the securities;
5. a business in which all the equity owners are accredited investors;
6. a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;
7. a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
8. a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

Money is out there. Is it easy – no? But doing it the right, and legal way, is always the best way.

Some other great articles are:
http://startuplawyer.com/preferred-stock/life-is-too-short-to-deal-with-non-accredited-investors

http://allaboutindiefilmmaking.blogspot.com/2009/05/how-not-to-use-internet-to-find.html

How to use the internet with investors:
http://firemark.com/2009/05/13/how-not-to-use-the-internet-to-find-investors-for-your-film-or-theatre-project

Film Funding: How to use Section 181

I know there's been much talk on Section 181, but I wanted to chime in and give my two cents, as I fear not all of the information may be accurate.

Being a former cop, I know there is the "spirit" of the law vs. the "letter" of the law. I know what we all want Section 181 to be, but alas I'm afraid it has not been interpreted that way by the most important entity - the IRS. I know the legislation was written in such a way as to help investors feel better about investing with film in the US, to offer them an immediate tax break.

However, regardless of how we might interpret this, the important interpretation is how the IRS has defined it. Not an attorney or a CPA, just ask Mr. Wesley Snipes.

This is taken directly from the IRS:
Here is the link that explains the IRS regs that are in place for the statute section 181.
http://www.irs.gov/irb/2007-12_IRB/ar10.html

It is clear that there are a few major items that qualify for the deduction,
  -member of the production company
  -ACTIVE producer in the production
  -invested capital in the production

This allows for the amount of capital investment to be deducted from taxes in the year the expenses occured vs having to wait for income from the production before being able to take the deductions. It all evens out in the end.

It still has a cap of $15 million in total deductions, and has been retroactively extended till the end of 2011.

I do know that they are trying to amend the legislation to reflect the spirit of the law, and I know the IRS is trying to be very liberal; but for now - you better be very careful in how you "advise" others on Section 181.

Out of all of our current investors, myself and the two other owners of our company were the only ones able to take advantage of 181.

This is not official advice, just some thoughts - do with it as you may.

The Fellows Hip Hits the Press!

Hey – wanted to update you about our film, “The Fellows Hip”. We recently made the front cover of the Alexandria Gazette http://files.connectionnewspapers.com/PDF/current/Alexandria.pdf,
and are on page 10 on the Reston Connection.

Casting is underway and going well. We are seeing a ton of people respond and though it’s a ton of work – it definitely doesn’t feel like it. I mean – we are making a movie people! This is exciting stuff.

We are excited that you are on this journey with us, and know many of you have taken an opportunity to get involved in one way or another. We are setting ourselves up for a great turn-out!

Looking forward to working with so many of you!

The OAP Team

Updating the Buzz

The Fellows Hip: Rise of the Gamers Movie Supporters-We're glad you're on the journey with us!
It's with an excited hand that I type this update. We have a lot to be thankful for and the road ahead of us is a promising one. Buzz is in the air as we have received some local interest with a media source. Though it's in the early stages of what may be done-they are eager and hopeful for our success and desire to assist us with some PR.
We still are in some positive and encouraging talks with a very large online gaming company. Indications are that we are moving forward to form a partnership that would be fantastic for our marketing efforts. We've had some fun and innovative conversations with them about how this would all tie in, and I can ensure you that getting them onboard will be just as valuable as having "Frodo" attached to our film, though we are still in negotiations with some A-list actors to do a cameo.
We are currently completing our crew and are very pleased with their expertise, talent and passion. Everyday more people are joining us to help ensure this film meets its goals and is a success!
The last update would be that we have some overseas interest in the film, which does include a probable financial investment. We have also reached out to many of our contacts in the industry about where they may be able to assist us, as our motto is "people helping people."
We look forward to future updates, with even more positive news, as we press on!
Ron, Scott, and Shane
http://www.openingactproductions.com/
http://www.thefellowshipmovie.com/

When to Make a Good Film

Like many of you independent film nuts out there, we’re working on raising money to make our film. Some people say this isn’t the time—the economy sucks, investors are jittery and distributors of independent film have contracted. (Though a new independent distributor, Anchor Bay, bucked the trend recently and came on the scene for theatrical distribution. I wish them well.) But maybe that’s the point.

Anytime is a good time for a good film, but maybe now when people need a lift is even better. So far this year, the box office seems to be saying so. As of the end of March, movie revenues were $2.38 billion, up 12 percent from 2008, according to Media By Numbers. Even with higher ticket prices, movie attendance also was up 10.4 percent. Not bad. I’m sure auto dealers and other struggling businesses would welcome that trend right now. Some of us would like to see that for our stock portfolios, that’s for sure.

When times are bad, people won’t—and can’t—buy a new car, but they will welcome a new movie. During the Great Depression (that name was appropriate in so many ways), people would scrape up the 30 cents or so to see a movie. Sitting in the theater may not have helped them pay the mortgage, but it did do them some good. One book describes it like this

“Outside those sacred doors crouched the pale gray wolf of Reality and the Depression. On the skyline the dark, sullen hulk of the steel mills lay silent and smokeless, like some ancient volcano that had burnt itself out, while the natives roamed the empty streets and told wondrous tales of the time when the skies were lit by the fires of the steel crucibles. And there was something that occupied them all, called Work. Even the word “Work” itself had an almost religious, mythological tone.”

That could describe a lot of places today—Michigan or Pittsburgh or Northern Indiana, where this story is set. The quote is from In God We Trust: All Others Pay Cash by Jean Shepherd. It’s the book from which that holiday classic and TBS marathoner, A Christmas Story, is adapted.

If you like the movie, you really should read the book. You will see that the screenplay is a skillful adaptation. There’s probably enough left though that they didn’t use for another movie. Was anyone else sad when Darren McGavin died a few years ago? The casting was pitch perfect.

One thing left out was the great chapter on the Orpheum Theater and its showman-owner Leopold Doppler. You get the impression that, at least in Hohman, Indiana, the movie theater was the heart and soul of the town, a place of wonder and relief, during the Depression. Shepherd writes,

“Mr. Doppler operated the Orpheum Theater, a tiny bastion of dreams and fantasies, a fragile light of human aspiration in the howling darkness of the great American Midwest where I festered and grew as a youth. Even now the word “Orpheum” sends tiny shivers of anticipation and excitement up the ventilation pipes of my soul. And Mr. Doppler, like some mythical God, reigned over his magnetic palace of dreams, fighting the good fight alone and uncheered.”

Of a typical moviegoer he writes,

“He scrabbled and scraped week after week to scratch up the price of a ticket…”

I know times are different (someone pointed that out recently when discussing this subject) and movies have a lot more competition with the Internet, videogames and other stuff, but movies seem to be holding their own. And while they have more options, people haven’t changed that much deep down since the Depression. Movies still have their own type of catharsis that people need. Some call it escape, but I don’t think it is. I’ve walked out of the doors of a theater encouraged to handle a few things, or at least in a better state of mind to face them.

So it may be a bit more difficult, but I think there’s no better time to make a film. The risks are great (Haven’t they always been for independent film?), but so are the rewards for you—and your audience. Now, if we can just get those investors onboard.

Enjoy! Scott