Film Finance: The Waterfall.

Today, we discuss the film finance term: The Waterfall. Understanding what The Waterfall means can help you see your film's financial obligations...and opportunities...more clearly.
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Making a movie. Step by step. One archetype at a time.
Series Description:
This series chronicles the creative and logistical process of building an independent film, from start to finish. As we explore each stage in the process, we consider the archetypes within us - and within our team members - that are needed to carry out the complex, wide-ranging tasks associated with filmmaking. You'll need an inner Dreamer or Idea Man to generate ideas. You'll need the kid inside you - an Enthusiast - to stay inspired. You'll need a Fixer to address problems as they come up, an Optimist to keep a bright attitude, with a Mystic or perhaps a Guide to answer the spiritual challenges that the process presents. You'll need a Desk Jockey for all that paperwork as well as a Diplomat, Performer, and perhaps a Jetsetter to get your film to the world. So join us as we build a movie and shine a light on this complicated process so that we can empower others to live out their dreams.
Schedule (adjusted):
First Tuesday of the month at 10 a.m. PST!

[@6stringsling]

Awesome video... just wished either the music played lower or the voice spoke higher... was hard to hear your voice over the music.

[@Fatelink]

Thank you so much for watching the video and for the very fair-minded audio note. I've invested in a better microphone since this was recorded and also am more mindful in the sound editing. I'm not an editor by trade, but doing the best I can on a shoestring and learning as I go. Thanks for watching and hope the recent content is also helpful to you! :)

[@user-ix6oo1qx1v]

Great Video! Most videos, web site, etc, when it comes to film financing, they only say things stay positive, try hard, don't give up, blah, blah, not saying anything about how the system works and who gets what. If you made an even deeper cut of this subject, that would be great!

[@Fatelink]

Thank you so much! I hope to do another on this subject at some point. Thanks for watching and commenting.

[@MJShaar]

Lots of good info here! I had no idea how financing a movie worked, but now I have a much better understanding, so thank you for explaining it so clearly. And I’m a new KZbinr. I thought it required a good bit of investment, planning, and patience to get to the point where you make money on KZbin, but now I see that it’s much harder for a filmmaker!

[@Fatelink]

Glad it was helpful! Thank you so much for checking it out and best of luck with your KZbin channel!

[@nicstarr8147]

Wow… just WOW!!!

[@tigerbunny6778]

Thanks for this info. Id hate to think its not worth it, though.

[@Fatelink]

Hopefully the knowledge of film finance terms will empower you. I have no idea whether any individual project will be, “worth it.” Each film presents unique challenges, risks, and opportunities. Consider consulting consulting an entertainment attorney and have that person review the proposed contract before you commit to any investment.

[@alfredo9445]

The music is totally inappropriate , you either play music or do a presentation on financing . !!!

[@Fatelink]

Interesting comment. Think it says more about your hang-ups and perhaps repression than the use of music in short videos. Why does a little music set you off to this degree? I can understand if you do not like the music but to say it’s “totally inappropriate” as if the music were a moral issue sounds like an OCD reaction on your part. I encourage you to think about why the music bothered you so much and what it symbolizes for you.

[@Fatelink]

@@alfredo9445 ok so that was your goal? To get attention and ruffle feathers? That makes more sense as it would be strange for someone to care about the music in the video as if it were a moral issue - a classic sign of OCD. It’s true that you did receive attention. ❤️

[@alfredo9445]

@@Fatelink Moral issue ? . !!!

[@Fatelink]

@@alfredo9445 re: the language of “totally inappropriate” and all those exclamation points about music in a short video. It just interested me bc I’ve been reading that ocd ppl move through the world interpreting minor preference choices as moral intrusions on their psyche. In any case, hope you have a thoughtful and meaningful day. And thank you for all these comments.

[@alfredo9445]

@Fatelink Are you sure you are in the right field ?. Seams to me, you know little psychology . So what is it ? And does it come from personal experiences ?. Remember to keep your cool, don't overreact, like the first comment I made about your "inappropriate" music . !!!

[@Moses_Kanneh]

Wouldn't 20% of sales be $100,000? (Then 10% commission for one agent would be $10,000. 80% of sales be $400,000. And $40,000 in commissions for the 2nd agent, plus $10,000.) -$10,000(actors, production company, and director all get nothing).

[@Fatelink]

Thanks for your comment! You are ignoring a few crucial things in our example. First of all, in our example of $500,000 in revenue, the distributor takes 25% of the proceeds (equaling $125K) before our sales agents even get a piece of the action, so to speak. Then, the distributor is also charging us $25,000 in expenses which reduces the total amount available for the production company to $350,000. So, in our example, the sales agents are only paid on the production company's portion of the proceeds, not on the full amount received by the distributor. Once you get to that $350,000, then you can get to the commissions of the international sales agent ($7000) and domestic sales agent ($28,000 in sales agent percentage plus $10,000 in expenses equals $38,000). In this example (and in our experience), sales agents aren't paid on the basis of what the distributor earns, but what the production company earns on its revenue after the distributor takes their piece. You were paying the sales agent off the total revenue, not the revenue minus the distributor's share. Hope that helps!

[@bgeardigital]

Great Video! Most videos, web site, etc, when it comes to film financing, they only say things stay positive, try hard, don't give up, blah, blah, not saying anything about how the system works and who gets what. If you made an even deeper cut of this subject, that would be great!

[@Fatelink]

Thank you for watching, Brendan, and for this feedback. Will consider future videos on film financing, although we're also exploring micro-budget solutions for feature films that don't require $$$ from outside sources. Best of luck with your filmmaking career!