TO CROWDFUND OR NOT TO CROWDFUND? IS THAT THE QUESTION? PT 5

money pile

Depending on the type of traditional money raising approach you attempt you may be reaching out to some strangers and qualifying them or  you may be reaching out to qualified investors whom you have a relationship with according to specific guidelines. You may be reaching out to friends and family for dollars.

However you raise money  it is a lot of work and not everyone is interested in getting involved. Whether you choose crowdfunding or raising money by other means you still need to understand your ‘target money’ people’s interests .

You will have to qualify, pitch, and  in some cases negotiate, broker the deal and collect the funds unless you have qualified representative do it for you. In all cases you have a responsibility to your money people (investors, contributors or relatives and friends who loan it to you) and to the government. You must be above board and reliable. Being honest and ethical is important.

I am going to lump two different examples together here to illustrate a point. One example is about investors the other about locations. I discuss filmmakers dealing with investors (and crowdfund contributors) and location owners to make a point.

I put these two together because bad guy movie people have taken advantage of both. Some investors and contributors have been burned just as some cities and set location owners have been burned by filmmakers who make promises  but don’t keep them.

Filmmakers have lost  investor’s money,  gone way over budget or have not completed the film (unless a bonding company steps in) Crowdfunders have not deliver the perks or the goods or finished the films as well.

Filmmakers should leave a location better off not worse than when they found it. They should restore it to the original condition and if possible leave it better than when they found it. Instead, some filmmakers  have left messes or have damaged the location. They make promises but don’t deliver. They pay for damages with bad cheques.

Some people have been burnt badly and think ‘never again’. There are those who don’t ever want to invest and those who run when they see a film crew coming down their street.

Some others, have tried the movie business and simply found it not to their liking for whatever reason.

As a filmmaker, but more importantly, as a person, I think it is important to keep your word and deliver on your promises. The first rule of medicine AND I THINK of business should be to DO NO HARM. We should honor our commitments and strive to leave people in a better condition than when we found them.

IF we can do this, if we can add value or dollars to these people and delight them in some other ways we will have supporters for life OR for at least as long as they are able to invest or let us use their home, or office or store location.

The goal is to leave people and the places we utilize improved, better off, because they did business with us! It is always easier to ask someone to do something who likes doing business with us than to find a new person to have to ask. Keep this in mind and honor those you do business with.

Sadly, those who have burned bridges make it tougher for all others who follow after them. There are filmmakers who have turned off potential investors and contributors for your project and those who might have rented or let you use their facility.

For these reasons perhaps new areas for investing and  Crowdfunding will need to be mined. Filmmakers need to locate new sources of money. We need more avenues for funding because sources are abused, or lose interest and dry up.

The cool thing about Crowdfunding is that it represented an opportunity for some filmmakers to make projects they might never have had the opportunity to make.

For whatever reason some filmmakers choose not to go the traditional route. So it is a good thing crowdfunding has come along especially when quality projects get funded that otherwise might never have been made.

As I have mentioned earlier traditional financing is a lot of work. So is Crowdfunding.  Typically, one is not able to raise as much money through CF as from other means.

The bottom line is to raise money however you are able to legally so you can fund your efforts and pay your cast and crew living wages. That should be the goal.” Rex Sikes

More next time!

*** Please also visit Rex Sikes’ Movie Beat Official Website.

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