Common Payroll Mistakes

Thought I would share this email I received a couple of days ago. Has some great information in here about the business part of show business. Too often, like I said in a previous blog post, we forget that this fun and exhausting business is indeed a business.

3 Common Film Payroll Mistakes

If you're a newcomer to the business side of filmmaking, investing a little time upfront with a payroll professional can save you big bucks during, and after, production. At PayReel, we've worked with a lot of independent filmmakers and have seen pretty much every mistake in the book. Here's our list of the three avoidable mistakes we see most often:

Mistake #1 — Not Reading Your Union Contract
Meal penalties, forced calls, per diems, oh my! Labor unions exert jurisdiction over a wide variety of job functions and geographies in the entertainment industry. You may not even be aware of which unions will expect to be involved with your project. This lack of knowledge often results in production delays and unexpected expenses.

Mistake #2 — Inadequate Payroll Budgeting
We've seen "surprise" labor costs cause many productions to simply run out of money. This happens because the true cost of employing workers was not fully understood. "Overhead" expenses can easily add 35% - 50% to your payroll budget. And because these amounts vary by location, it's a good idea to work with someone knowledgeable about where you plan to be shooting.

Mistake #3 — Misclassifying Workers
If you don't already know what this means, we really need to talk because a state or federal audit can be a very expensive and scary thing.
What happens if you get audited and it's discovered that you've misclassified workers? We'll begin by calculating back taxes, then add penalties, and then throw in any back overtime wages. Can your production afford this?

This was sent to me by Moviemaker Magazine advertising a service called PayReel. I've heard of them before and they are worth checking out to avoid payroll mistakes. They have not contacted me for any endorsements, and I am mentioning them from word-of-mouth, so please do your own research and find the company that is right for you.

Happy Filmmaking!

Do I Smell a SCAM???: Working for Free

Kudos for LA Times and the Hollywood Reporter for shedding some light on this subject. Very few industries can get away with the whole "privilege-of-working-with-us-is-enough-compensation" as much as Entertainment Industries. These industries thrive on enthusiastic wannabe players who will do next to anything for that one lucky shot. Unfortunately, these prospective players drive down the market for others, as well as shoot themselves in the foot.

I'm all for volunteering and collaborating. It's a great way to network. But there is a very thin line between volunteering to help out and being used as free labor. It's so commonplace, many now-professionals even stress going the extra mile on these "free" positions in order to keep your foot in the door. As the practice spreads in other industries due to the economy, unemployed workers and the government are starting to question the legality of the so-called "adult internship."

Just as both articles point out, working for free for the direct financial benefit of a company is illegal. The "non-college intern" PA position on professional shoots has to stop. If the film cannot budget some type of compensation for you, then it probably will not help you advance your career. Be friendly and open to assignments, but be mindful.

Happy Filmmaking.

The Marketability of Independent Film

Exactly how marketable is independent film? All through college I was told that indie films are really not that marketable. And it seems my professors and industry insiders were right. However, Cinderella stories such as District 9 and Paranormal Activity are hard to ignore. And Precious, a film endorsed by Oprah and Tyler Perry may not be far behind.

So was I lied to? Were millions of film students lied to? Not really, but I believe the tides have turned. Nowadays, it is far easier to self-produce and fund independent films. Give me $10,000 or even $5,000, and I can probably make something watchable. With such a small budget, turning a profit on my film may not be as hard as people make it.

But will it sell? Ahh. There's the rub. One has to be completely original, yet remain within the framework of some familiarity. Such as District 9. At first, it sounds like a typical alien invasion story, but the twist reveals that these aliens live in the ghetto. And humans have put them there. And the movie takes place in Africa. The familiarity of the alien invasion story draws us in, while ghetto aliens in bras and panties who abuse cat food like crack keeps us there.

The genre rules are the same though. You still have the bankable horror film, crime drama, romantic comedy, or sci-fi adventure. Indies can play around with genre constructs, especially to drive up originality factor, but too weird and you might be another Ed Wood (one can argue Plan 9 was a genre experiment).

As much as we would hate to admit, the Industry is a business. You gotta play to the masses if you want to stay on top. Of course, the most bankable thing you can do is to bring "a name" to your project. Names come at prices, but sometimes the names alone sell. For example, Tyler Perry can take a crap on a piece of paper, call it Madea Goes to the Bathroom, and will still turn a profit because of the marketability of his name. Hell, may even be #2 at the box office, right after the Halle Berry/Angelina Jolie lesbian film, also co-starring Beyoncé as the jilted lover.

Are there some films that prove marketable even while failing at these "rules"? Sure, but for most of us, we might as well throw that $5,000 off a cliff because no one will see our films. Alternatively, you could shoot the money floating gracefully towards the bottom of the abyss and call it a social commentary about the American banking loan system. Then post it on YouTube. Take that, Keyboard Cat!

Happy Filmmaking!

Holding out for a hero: Pulling the Plug on Recession Filmmaking

Is it really smart to invest in independent filmmaking during a recession? Sure, the Indie industry is always risky (everything from risky investors to one-hit wonders), but how smart is it to actually shoot and produce a film in times like these?

I personally am taking the time to venture very carefully. Just as in the Writer's Strike, I am concentrating on planning and writing. Besides, both of those activities require virtually no money. Also, now is a great time to check out how well your competition is doing. That is the studios.

Recession is very vulnerable to indies because of the niche audiences. Even studios are cutting back on production. Production is not where it is at!!! But I know the time will come when the demand will rise again.

Post, on the other hand, is something worth investing. You should finish any cuts started since an unfinished film is more money down the drain. Your editor (or just you) should be mindful of wasteful cuts, while keeping the "when in doubt, cut it out" rule.

Be prepared by prepping your film package and laying out the groundwork for your production company. You know what they say: failure to plan is planning to fail. Investors are getting harder and harder to entice, so make the package as concise as possible during this time. And maybe one day, the money will flow freely once more.

Happy Filmmaking!

The Science of Filmmaking

I came across an interesting article in the LA-based free street periodical Brand X today. Under the title “Quantum Filmmaking,” there was a woman filmmaker named Valerie Weiss. Weiss transitioned from a biophysicist with a Harvard PhD to a filmmaker, currently in pre-production for her first film.

Many filmmakers have a “day job,” but this article demonstrates how one can use aspects and experiences in that day job in order to shape their creative streak. Weiss explains how scientists use creativity in order to form theories and hypotheses and take risks. She believes science and filmmaking should coincide, based on their career similarities. In that sense, Weiss used her background to her advantage.

When it comes to science, however, most filmmakers wing it. There are plenty of websites dedicated to so-called “movie physics.” Everything from warp speed, to flashing bullets, to window glass that shatters on impact, to mid-90s era Macbooks taking down alien motherships, to living blobs with a taste for human flesh. Even recently, Cracked readers played homage to film science. One cannot really blame filmmakers for the misconception since most audience members will suspend their disbelief for a good story.

Because of the overwhelming stereotypes of science and scientists in cinema, many foundations issue grants and awards to filmmakers who portray the field in a positive and groundbreaking light. The two career fields benefit from such a marriage because the filmmaker will receive the support needed for a project, and the scientific industry will receive a renewed interest from aspiring scholars. The Alfred P. Sloan Foundation Grant, for example, grants current film students production and screenwriting funds in exchange for a non-stereotypical depiction of a scientist or engineer:

The one condition of all submissions is that they portray science and/or scientists in realistic, non-stereotypical ways. They do not necessarily have to be sympathetic characters, and the story does not have to be strictly about science. Sloan is interested in reading about scientists as human beings whether they’re fallible or heroic. The stories can be totally fiction or based on an actual event or person.

For accuracy, the scripts have to be approved by an actual scientist, such as a faculty member of the awarding university. Weiss joined a program called the Catalyst Workshop, sponsored by AFI. The program only takes professional scientists interested in filmmaking and is partially funded by the US Department of Defense.

One thing is for certain, real or not, you can always count on cinema to make science cool. Think about all the times CSI must have blown your mind.

Happy Filmmaking!

What would you do for $1.5 million???

1.5M for Filmmakers? Cinereach and Sundance Unveil Three-Year Grant Program - indieWIRE

If not inspired by nothing else, Cinereach and the Sundance Institute decide to support small feature projects (both documentary and narrative) in order to discover new talent. The three-year program is a fellowship program that will allow filmmaker fellows access to immense industry resources.

The money is not much, considering the average American film is around $15-40 million. However, one can make a perfectly decent movie for, say, $100,000. You are only limited to your imagination. In the end, the budget is the budget. The importance is receiving more bang for your buck.

"Because we can":a filmmaking contest

Over at filmmaking.net, Kyle Pretorius wrote an article laying out the general idea for a film contest titled "Because We Can." A Vodka company from New Zealand will grant some lucky filmmakers a chance of exposure and $4200 in exchange for a unique concept incorporating the contest's motto.

The contest ends 31 December 2008. Get crackin'!

The contest's site is here.

Happy Filmmaking!

Finding your rich uncle

The hardest thing about making a movie is finding the money and resources to do it. Film finance is an artform in itself that should be taken very seriously. It can be done, however. Just remember these helpful tips to make the daunting task easier:

• Write a business plan. Would you give your money to a stranger or not-so-close acquittance who didn't do his homework? Have something to present to your potential donor.
• Be organized in your business plan. Present a set budget. Know why you need money and how much.
• Don't ask for $50,000 from one person. Ask for $500-1000 dollars from 50 people. Donors are more likely to give in smaller amounts.
• Set up a website where people can look at your teaser trailer. On that website set up a donations box through Paypal. If your stuff is good, strangers would love to see the rest.
• Look for and research film grants. State film commissions, non-profits, and patrons of the arts have plenty of film grants out there for the struggling filmmaker. Most are for making a documentary, but some out there do exist for narratives.
• Look for local and state tax-incentives. Tennessee just announced great tax-incentives and resources for people who make a film in their state.
• Consider in-kind donations. In-kind donations would be free food, free shooting location, free costumes, free props, anything of that sort. These are usually in exchange for promoting the service or product shown in the film. In-kind donations can cut your cost tremendously.
• Consider product placement. Don't go overboard like I Robot or Minority Report, but you could present your script to companies and marketing houses for ideas on where to put certain products. For example, Forrest Gump drinks gallons of Dr. Pepper throughout the film.
• Consider selling distribution rights in exchange for finishing funds. Hopefully, your main goal for your film is to get as many people to see it as possible. Selling distribution rights to the right company or studio grants two of your wishes.

Happy Filmmaking!