The Business of film financing and movie distribution contracts can make or break a producer. They are a constant part of the business for producers, especially at the independent level where two or three guaranteed picture deals rarely exist. In my experience as an indie producer each film financing and movie distribution contract is different. I communicate with many producers through social networks to share and receive information on what is happening on the business end of making movies.
Finding film financing to produce a movie can take you many different directions and put you in contact with people out to screw you. That is the nature of the beast in any business. There are also reputable and honest people that provide fair film financing deals to producers with projects they believe will make money for all involved from the screenwriter to the movie investor.
Being able to separate the greedy sharks from legit film financiers comes from experience and networking with other producers. One thing that will throw up a red flag is dealing with film financing brokers that charge upfront fees and make a lot of promises to find movie investors. In reality 9 out 10 of this type of film financing deals don’t work.
Scam is a harsh word to use, but social networking with filmmakers that have gone that direction has exposed that none of their deals happened. They paid upfront costs for access to money sources that never materialized. It is pretty easy to tell a producer that every film backer they had passed on investing capital into their project. The honest film funding brokers with real connections never represent a project that has no chance of finding funding. These brokers often only get paid after they secure funding. It reminds me of how actors express you should never have to pay upfront for representation. Great advice!
Movie distribution contracts are another part of the film business that can be tricky. Not every producer is in the position to have a film sales representative or entertainment attorney negotiate their distribution agreement. That is completely fine as long as you have information from other filmmakers that have gone down the road before you. It is covered in detail in the filmmaking resource the first movie is the toughest.
One thing I suggest to indie filmmakers looking at their first movie distribution agreement is to look at marketing fees. This is where a deal can make or break you from seeing any money from your movie.