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Comments: Peace of Mind for the Film Investor…
A post on the business side of things. The above words are not exactly familiar to too many Film Investors. However, as Independent Filmmakers we are of the opinion we should go as far as we possibly can to provide as much of this to our Investment Group as possible. What we have is – in a word – revolutionary and thanks go to Executive Producer Bill Rebane. Bill is a veritable encyclopedia of knowledge (don’t miss his Wikipedia page) learned through experience when it comes to making money via Independent Film. He wrote the book – literally. Let’s be honest – making money via motion pictures is a risky business. Always has been. Always will be. There’s no getting around that. Any type of venture capital enterprise contains certain inherent risks. Investors know this. The best thing we on the creative side can do for them is to minimize the risk as much as possible. As a new company, naturally we’re looking to establish both a track record and long term relationships with Investors and assuage their fears and risk as much as possible. Call it the “Rebane Formula” , in his words:
Available at Amazon.com
If you have a burning desire to make movies, you will need a competitive edge to turn investors’ heads. This formula treats investors like grownups and makes them willing partners in the film production. At the same time, it creates reasonable boundaries between the talent and the money.
The brilliance of this approach is that it leaves the Investor in charge of their investment and gives them a voice in the distributive (getting the film released to theatres/VOD/On Demand,etc) process.
For interested parties, we can delve into this deeper but here are some illustrative bullet points:
♣ Create an Investor Board of Trustees within the Joint Venture Agreement.
♠ Clearly Define the Responsibilities of Investors & the Producers.
♦ Have the Joint Venture Agreement call for Accountant or Accounting Firm chosen by the Investors to control the Investor’s Principal.
♠ Always sell territory by territory, market by market, medium by medium, i.e. no “blanket deals”.
♣ Insist that the Investor & Board of Trustees always maintain equal control over distribution with the Producer(s).
♠ All income from a distribution source goes directly to the Accountant/Accounting Firm appointed by the Investors.
♦ Investors are paid back 120% off the top BEFORE there is a division of profits between the Investors & the Producers.
♣ The film budget – once acknowledged & approved by the Investors – is the ONLY formula for $$ disbursement and that disbursement is accomplished by an Accountant/Accounting Firm appointed & accepted by the Investors.
Peace of Mind for the Film Investor…
What does the above accomplish? For starters, it inhibits the shady “Hollywood accounting” formula that the industry has used for years. With the Rebane Formula, there’s more sun & less shade. And – if you didn’t already know one of the best disinfectants is sunlight. We encourage you to get a copy of Bill’s book – it’s new – and invaluable to the Independent Filmmaker who’s interested in looking out for – and protecting – his Investors. 
Important developments on SCORCHED EARTH:The Other Side of World War II ; stay tuned & some new developments on THE MARSCHER LORDS: Brotherhood or Death may be in the offing…
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