A producer recently inquired as to how much she should allocate to the producer of marketing and distribution (PMD), in her film's budget.Seriously? Another producer title?!While initially dismissive of that concept, I've actually come to terms with the viability and necessity of such a role, given the inability of most independent films to acquire distribution in the United States, which is mostly due to:
Indie producers are on a relentless quest to find the elusive "final 20%" of their budgets. They've raised the equity, made the presales, maxed the gap, and still they come up 20% short. Even with a whopping 40% cash rebate! So why then are they still stumbling around trying to fill that final 20% of their budgets?! Because producers can't get out of their own way.
The 3rd Annual Film Finance Forum concluded this week and has become the preeminent financial gathering of its kind. One thing that sets this forum apart is...
A finance plan is the best indicator of a producer’s financial I.Q. -- it helps you see the forest through the trees. If you're financing your project with something other than friends' and family's money, or for less than a million bucks, then you can probably go without one. For anything beyond that, you're going to need one, and if it doesn't look like this......then you don't have a finance plan.