Financing an independent film can be challenging, but traditional methods such as loans, credit cards, and mortgages are recommended. Other options include using funds earned by other means, finding investors, or getting grants. Digital technology has made it easier to start small, but expenses such as cast, crew, and equipment must still be paid. The internet offers alternative funding models, but success requires talent, business savvy, and luck. Finding a distribution deal can recoup investment costs and potentially earn extra money.
Financing an indie film has historically been one of the most daunting tasks for any indie filmmaker, and some legends of the indie film scene have found success thanks to bold financial schemes that paid off. Most experts, however, recommend traditional methods that offer less personal risk when financing an independent film. Among the many methods of financing an independent film are various types of debt, such as loans, credit cards and mortgages; use funds earned by other means; and getting wealthy individuals or members of the general public to invest or even donate to the film. Digital video and computer technology have made it easy to start small without the big expense of typical 20th century cinema. Online financing and distribution options can also help, but finding funding remains one of cinema’s biggest challenges.
To finance his blockbuster Hollywood Shuffle in 1987, director Robert Townsend “used up” his credit cards, betting his film would be finished and released. A decade later, Kevin Smith sold his prized comic book collection to finance his film Clerks, and director Robert Rodriguez worked as a medical test subject to earn his seed money. Independent filmmakers are often inspired by these stories, but for every high-profile success story, there are many failures. Traditional financing methods can protect a filmmaker if a film project is delayed or cancelled.
Some filmmakers, such as director Penelope Spheeris, recommend finalizing a script and other production details before any attempt to finance an independent film. A short version of the film, even just a mock trailer of upcoming attractions, can be shown at film festivals and convince potential investors of the project’s viability. A school that has a strong video/film department can provide material support, including equipment, stages and facilities. Government and private grants for the arts may also be available. The traditional alternative is to get investors, including wealthy friends and family members, as well as venture capitalists, to finance a project for which no return is guaranteed.
Financing an independent film once meant raising money for film stock, editing rooms and finished prints, as well as other expenses. Affordable alternatives like digital video have reduced these initial costs, but a filmmaker still has to pay for cast members, crew members, equipment, locations, and even meals. Some of these expenses may be deferred or reduced, but others will inevitably come out of the director’s pocket. It’s not advisable, however, to create large debt burdens, such as running out of credit cards or mortgaging a home.
The rise of the internet has offered alternative means of financing an independent film. New funding models like the “commitment threshold system” allow ordinary people to contribute to the work of a filmmaker they admire. Some filmmakers, such as animator Nina Paley, have chosen to publish their films on the Internet, using a business model similar to self-publishing. Even with these options, creating and financing an independent film requires a combination of talent, business savvy, and luck. The director who manages to find a distribution deal can recoup the investment costs and, hopefully, he can even get some extra money.
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