04 · 04 · 13

¿How to finance a film through crowdfunding?

Ma. Cristina Alemán, editora web (@mcristina)

Recently, crowdfunding has become a popular option for financing any kind of projects, especially cultural initiatives and, of course, cinema. For those who are not familiar with this tool, here is a brief explanation of crowdfunding, including examples of films that have been financed this way and even some advice to gather funds more effectively.

What is it?

The premise behind crowdfunding is simple: everybody deserves the opportunity of raising money for a project without the need of finding investors or commercializing their idea. Crowdfunding platforms (like Kickstarter, Indiegogo and the Mexican Fondeadora) allow the user to present a project to the general audience and ask for donations in order to carry it out.

The creator decides on a minimum amount of money to raise and a due date. To promote donations, the creator offers rewards that vary depending on the amount donated. For example, if a donator offers more that 10 dollars, he or she could receive a free download of the film and a place in the credits. As the contribution becomes more generous, so do the rewards; they could include signed posters, invitations to premieres and even a dinner date with the director, among other possibilities.

If the project is financed in time, or if the minimum amount is exceeded, the creator receives the funds necessary to accomplish his or her goals and reward those who supported him. In that case, the platforms charge a percentage of the money raised (about 4% or 5%), for their service. But, if the creator does not gather the money in time, there is no obligation to pay anything.

Who has done it?

In recent days, Rob Thomas, creator of the TV series Veronica Mars (2004 -2007) gathered more that five million dollars for the film adaptation of the show. Another example of a big Hollywood name using crowdfunding is Paul Schrader, whose next film The Canyons will be produced free of commercial pressures. The stop-motion animation Anomalisa, written by Charlie Kaufman, will also be posible thanks to the public’s donations.

But crowdfunding does not work exclusively for names that are already recognized in the industry, emerging filmmakers can also finance their opera prima thanks to donations, as long as they present a convincing project. A notable success case for independent films is the short documentary Inocente by Sean Fine and Andrea Nix, the first film financed through crowdfunding to receive an Oscar.

Advice for an effective funding

The Internet is filled with information that helps creators come up with a successful crowdfunding campaign. Here are ten important points:

1. Identify the audience which will find your project attractive and think of the best way of engaging them.
2. Present your project in an interesting and passionate manner, so it is distinguished from other projects.
3. Keep an active campaign all the time, not only at the beginning and at the end.
4. Plan the campaign with anticipation and come up with a social network strategy.
5. Offer rewards you can deliver on time and without problems. Consider the time and money you will need to make all the deliveries.
6. Offer rewards that have a real value for the donator. For example: an original illustration, a signed photograph or even props that were used during production.
7. Make sure the rewards that correspond to small amounts of money (between 10 and 30 dollars) are also attractive.
8. Don’t overcomplicate things. Indiegogo reported that 70% of successful projects only offer between three and eight types of rewards.
9. Describe the rewards as specifically and clearly as possible.
10. Never lose sight of the final goal: filmmaking. Before making any decision, ask yourself, am I getting closer to the making of the movie?

For possible donators

If you have no intentions of making a film, but you would like to collaborate in a Mexican production through crowdfunding, you can explore the cinema and video page of Fondeadora: here.