Begin With the End in Mind
excerpt from MAKE MONEY MAKING INDIE FILMS: An Independent Filmmaker's Guide to Obtaining Worldwide Distribution and Raising Private Capital by Michael Valverde

Though it may seem out of order, I will purposely talk about distribution before fund raising. Why? Because distribution is the single most important factor in the success or failure of a film property, PERIOD. Let me restate that for emphasis: Distribution is the single most important factor in the success of your film! If you do not get your film in front of a paying audience (via TV, Video, DVD, or, by some miracle, in a theater) there is no way to make money for you or your investors. And yes, there is a way to get a distributor involved in your film before you raise the money to make it. In my opinion, having a distributor involved at the script stage is critical to giving your project a fighting chance in a very tough marketplace this Guide will provide some specific ways to accomplish this, so read on.

As a marketing/public relations consultant in my past life I had occasion to work with products and services from many industries. I specialized in new-product release and launch strategies, so I was often involved at the formative stages of a company. It was my job to evaluate a product's market potential and then construct a plan to make the target audience aware of it. The process was purely objective.

Using the tools in this Guide, you can complete the same objective analysis of your film. Your first goal is to understand the value of your product. Once you grasp this, you will have the information you need to acquire appropriate financing and distribution: the key to making your film a success.

Home Depot or Home Shopping Network
If you conceived what you believed to be a revolutionary home improvement product this morning in the shower, what is the first step you would you take in the quest for your billions? Provided you are not best friends with Arthur Blank (founder of Home Depot), you would need to do some serious market research, apply for a patent, investigate manufacturing options, etc. You would need to know about competitive or similar products -- are there any, what are their price points, where are they available, etc? In short you would need to ascertain the relative value of your brainchild in the marketplace. The driving question would be; can you design, develop, manufacture, market and deliver this product for considerably less than you could sell it? If so, you have the makings of a successful product.

Now apply the same thinking to your feature script. What you have is an idea, perhaps a blueprint, but in many cases it's better to think of your screenplay as an idea sketched on a napkin. Like your home-improvement product shower epiphany, the idea will need some shaping before it's ready for primetime. For instance, the materials you choose to construct your product with will vary based on many market conditions: sale price, competitive products, sales channels, target audience, etc.

Home Depot is not the right place for every home-improvement product. You may be able to make more money and have fewer hassles by selling it at smaller mom-and- pop stores or even on The Home Shopping Network.

Set your goals based on what is best for your profits, whether that means foreign television, direct-to-video, HBO or even direct DVD sales. The product must fit the market. You cannot sell caviar at the local burger joint and you cannot sell greasy burgers at a five-star restaurant. Both establishments can be equally profitable, but only by embracing their position in the market.

Key Value Elements
Let's examine the most important value elements in a feature film. I've attempted to list them in order of importance, but this order can vary based on market conditions and other intangibles. It is best to be prepared to address each element in your discussions with potential distribution partners. It is the synergy of these elements that represents each film's relative value in the marketplace.

Genre
It is definitely true that certain genres work better in the low-budget film arena. Since foreign sales are so vital to these films, the most prolific are those that translate well into many languages and cultures, like action/adventure, thriller, erotic, horror, and physical comedy. While drama and other forms of comedy also enjoy success, it is less often because it is more difficult to makethese projects resonate with foreign audiences. In a few cases being different is good, but most of the time distributors do not want to be innovators, they just want to sell something that is easily classified. If your project is not one of the widely accepted genres, you will need to lean more heavily on the other key elements to offset this disadvantage, especially cast.

Cast
Most filmmakers are aware that a name cast has great market value. What they do not understand is how specific cast elements will affect the value of their film. This is where a distributor relationship is critical, as they can guide you in the selection of names that will bring the most return for the least cost. For instance, how many of you realize that casting David Hasselhoff would make your film exponentially more valuable in Germany? Not that Nightrider is right for your project, but knowing who can add value in major foreign territories is very important. Of course, if your picture is a pure genre piece, cast will be far less important.

Script/Story
If your film is based on a successful book, novel or widely read magazine article, this can add value by way of familiarity. If you acquire a script from a screenwriter who also wrote something else that gained exposure, use it.

Director/Producer(s)
In most cases this will have little marketing power, but it definitely helps if the creative minds behind your film have festival awards or other successful films. Distributors and audiences alike want to see the next film from the producer or director of last year's "Audience Award Winner." This whole business thrives on credibility, and anything you can add to your package adds perceived value -- which in this world translates to real value.

Marketing Materials
The design of your DVD or Video cover is crucial, as it will be the first impression you give the industry and ultimately, your audience. Be sure to consult professionals and create compelling graphics. Even though you will update these after you've cast your film, the earlier you can create solid graphics, the better.

Filmmaker Michael Valverde wrote and directed the feature film LOSING GRACE (with Lesley Ann Warren, Ronny Cox, and Ryan Browning)

MAKE MONEY MAKING INDIE FILMS: An Independent Filmmaker's Guide to Obtaining Worldwide Distribution and Raising Private Capital demystifies the two most daunting issues for most indie filmmakers. This Guide, updated in 2004 using the FIRST HAND EXPERIENCES of a REAL INDIE FILMMAKER, will help you navigate the maze of indie film financing and distribution. Comes complete with a working business plan that you can employ today.
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