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Crowdfunding – an opportunity for Africa

Thu, 22 Sep 2011 11:46

The fast-emerging trend in film financing known as crowdfunding is part of what US distribution expert Peter Broderick calls a distribution revolution.

Crowdfunding can be defined as a form of financing where supporters of a project, like a film, contribute small amounts of money through film websites or Internet platforms like Kickstarter and IndieGoGo. The contributions are pooled together to fund production, post-production or distribution, and in return supporters get benefits such as movie merchandise or end credits.

“When I first did a presentation on crowdfunding in June 2010, few people had done it. Now everyone has either done it, is doing it or is seriously thinking about it. The speed at which it is growing is significant,” said Peter Broderick at the recent Durban FilmMart Producer’s Forum. Broderick is president of Paradigm Consulting, a company that helps filmmakers design and implement distribution strategy.

“Crowdfunding is a way of creating awareness for your film early on in the process, building a strong support base and getting some money,” he explained.

Patrons, not consumers

However, to do this, filmmakers have to start thinking about audiences in a different way, and change from ‘old world’ to ‘new world’ mind-sets.

In the ‘old world’, the audience is anonymous and unreachable, categorised according to quadrants and demographics and filmmakers use advertising and formulaic campaigns to communicate with them. ‘New world’ filmmakers have direct access to their audience, and that audience is identifiable and reachable through customised strategies that use websites, organisations and social media.

“These two worlds co-exist,” explained Broderick. “The old world is the big Hollywood tent pole movies; the new world is full of potential for independent movies.”

When the audience is placed first, said Broderick, they change from passive consumers to active supporters and patrons of the filmmaker as an artist. “From my experience people who have contributed to a crowdfunding project and saw it made found it really satisfying and meaningful, and will be more likely to contribute to future projects,” he noted.

According to Broderick most US crowdfunding ventures were raising between $10 000 and $15 000 a year ago. Now more films are collecting much larger amounts more often. For example, supporters of the Steve Taylor film Blue Like Jazz started the ‘Save Blue Like Jazz’ campaign in September 2010 that aimed to collect $125 000 (R897 500), which was needed to go into production. The campaign collected more than $300 000 (R2.154m) in 30 days.

Hard work

The filmmakers of India’s first crowdfunded film, I Am, were in the Durban FilmMart audience. They raised $250 000 (R1.795m) in about three months to get their film made. “Our crowdfunding was born out of the desire not to deal with big studios,” explained producer Sanjay Suri.

However, Broderick warned that not every filmmaker will see that kind of success: “Crowdfunding is a lot of work. If you’re not ready to put in the work, don’t attempt it because you won’t reach your goal.”

Suri agreed that in their experience you have to put in a lot of hours to reach your goal, and be very transparent. “My wife became a computer widow,” said Suri.

Broderick also gave examples of filmmakers who successfully used ‘crowdsourcing’, where people are invited to contribute to a project creatively rather than financially. One such example is Star Wreck, a Star Trek parody made by five Finnish nerds with no filmmaking experience who sourced the help of over 300 extras, assistants and supporters.

“The best way to really get people involved in a project is for them to contribute creatively,” said Broderick.

“It’s early days for crowdsourcing, but I think more and more people will use it in some form.”

However, in some cases contributions aren’t financial or creative. The UK documentary / drama / animation hybrid The Age of Stupid raised $1.6m through donations. In addition, some supporters lent the filmmaker smart clothes for an important interview with the CEO of BP, while someone else made a cottage in the countryside available to use as a writer’s retreat.

Web strategy

An important requirement for crowdfunding success is to reach the potential supporters of the project who might be scattered across the world. According to Broderick filmmakers need to put a lot of time and effort into an effective web strategy.

“If your film website is no more than an online press kit, why would anyone go back to it? The website has to be fun for you, not simply number 26 on your to-do list. That way it will be fun for everyone who visits it,” said Broderick.

He advised filmmakers to create dynamic content that changes over time. “Your goal is to have a website that takes on a life of its own, and then it’s always going to create awareness for your film. Harness user content and find out ways that supporters can contribute.

“Websites are personal. I want the users to get a sense of who you are so that they can get a sense of the passion you have for the film. Write in first person and have a vision for the website that’s bigger than the film,” advised Broderick.

The two most effective crowdfunding platforms at the moment are www.IndieGoGo.com and www.Kickstarter.com, which is the bigger site.

Broderick noted that on Kickstarter you don’t get any money unless you reach your goal. “The psychology of not getting anything until you reach your goal is really powerful, but at the moment Kickstarter is only available to filmmakers with a US bank account,” he explained.

He calculated that most filmmakers end up with about 85% of the contributions made through crowdfunding, after the platform has taken its cut and admin and processing fees have been subtracted.

“I don’t think you should rely on crowdfunding for your whole budget,” he warned, also noting that unique films that appeal to niche audiences and specific communities or interest groups have a better chance at succeeding than films that are formulaic.

He believes that crowdfunding offers a significant opportunity for African filmmakers. “It’s a way to create awareness for your film globally. I’m not saying it’s easy or uncomplicated, but I think right now the opportunities are better than they’ve ever been,” he concluded.

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