Crowdfunding Your Film

Recently Lights Film School was lucky enough to discuss the relatively new film funding phenomenon known as “crowdfunding” with the co-founder of RocketHub.

RocketHub allows filmmakers and other creatives to finance their films without having to hand over ownership to anyone. Our interview with RocketHUb co-founder Brian Meece, as well as a short video introduction, can be found below. Enjoy!

Question 1: For those that don’t know already could you please outline the concept of crowdfunding?

Crowdfunding is a pretty new idea – you may also see it called “fan-funding” – it’s the idea of leveraging multiple people for “smaller” amounts of financing. There are many more creative people in the world than there are wealthy patrons of creativity. Most Creatives lack the financial independence to fund their own creative endeavors,
and finding a willing producer can be a challenge. How many people do you know who are ready, willing and able to contribute $50,000 to back a creative project? Probably not so many… But how many people do you know who could contribute $10, $50 or $100 toward the same project? Probably a lot more – especially if rewards are offered in exchange for contributions. That is the power of the crowd. Often times, all the financial backing Creatives could ever need is already available to them, if they know how to leverage it.

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Question 2: There are other crowd funding sites online. How does RocketHub differentiate itself?

Intangible Differences:

Out core mission is to liberate creativity. That might sound a little twinkly but it leads to a wider belief and structure that supports all Creatives. We are not curators but instead aim to be a global platform for creative crowdfunding. We define creativity widely – to include the obvious (music, film, television, photography, writing, etc.) but also broader creativity (entrepreneurship, innovation, science, philanthropy, etc.)

We are a platform developed for Creatives by Creatives. The founding team consists of filmmakers, musicians, actors, writers, and producers. We utilize our first-hand experiences to build a Creative-centric crowdfunding community. The old model of tastemakers is dying – we are building a new model where the crowd both funds but also, maybe more importantly, validates creativity.We aim to have an educational/inspirational component. Since we cater to Creatives – educating, inspiring, and supporting all Creatives is vital. Our blog is chalked full of tips and tricks, as well as
successful projects others can model and emulate.

Tangible Differences:
RocketHub is an open platform. This speaks to our core mission of capturing the long-tail of creative crowdfunding.
RocketHub is international. We can accept international contributions and projects – something many other sites can’t do at the moment.We have a virtual currency foundation. We have built a system based on our virtual currency (RocketFuel) – which makes for a “touch of fun” element.

We incorporate gaming/social status elements. This is visible in the preliminary roll-out of our badge system, our own vernacular, and an overall lighter approach to crowdfunding.

Questions 3: Is it possible to use more than one crowd sourcing site to fund a film project?

It’s possible but we don’t recommend it.Since the idea to have an “event” online revolving around your film or project, the returns are diminished significantly when multiple platforms have the same project. We advise that you pick one platform – make it your landing page for the duration of your crowdfunding campaign, and build the conversation around one site.

Question 4: Can you give more detail on what types of people help fund projects. What is their motivation for getting “stuff”. What is the motivation of the funders decision to help?

Funders usual have some type of connection to the Creative running the project – either directly or indirectly. The motivation is often having an impact and getting something tangible in return.

In a nutshell – this is what makes for a great crowdfunding project.

OUTSTANDING PROJECT – that engages on a highly emotional level that is spearheaded by someone who has passion and is able to express their passion.

plus

WELL ENERGIZED NETWORK – that’s large, well connected within the hive, and ready to evangalize outside the hive – this includes family, friends, fans, colleagues, etc.

plus

GREAT REWARDS – that are juicy, unique, and give an attachment to the project and/or the Creatives involved

equals

HIGH PROBABILITY OF FUNDING…

We call this “The Holy Grail of Crowdfunding.”

Question 5: I know it would vary on a case by case basis, but what % (or % range) of a project’s funding comes from people outside the filmmakers direct circle of friends, family and acquaintances?

For most of the funding for most projects, 75-85% comes from the Creative’s own networks – however, when a project “catches fire” and becomes popular, those numbers can invert.

This was the case for filmmaker Darko Lungulov – who won Best NY Narrative at Tribeca last year- his project jumped out of his direct network and went viral.

http://www.rockethub.com/projects/21-bring-here-and-there-to-american-art-house-theaters

Question 6: What is the most common misconception from filmmakers looking to fund a project through your site?

Some folks still think the projects are “going to fund themselves”.

To successfully crowdfund $500 or $2,500 or $25,000 real resources are needed. The project itself must be carefully and thoughtfully prepared – especially in regards to the rewards. Multimedia – music, photos, and videos – gives Creatives a much greater chance for success.

Posting a project is just the beginning of the journey. A RocketHub project is a campaign. It requires active involvement, engagement, and promotion.

It requires time and effort. It requires work.

Question 7: How does the RocketHub business model work so it’s sustainable? Do you take a percentage?

Our goals are fully aligned with our Creatives – i.e. we make money when Creatives get funded.

If a project fully Fuels (raises the goal dollar amount or more, within the selected timeframe), the accumulated funds are transferred to the Creative, minus 8% of the total. 4.5% goes to Fuel RocketHub, and 3.5% is applied to cover PayPal’s transaction fees.If a project does not fully Fuel, all contributions are transferred back to the individual Fuelers accounts in the form of RocketFuel. The Fuelers can then either Fuel another project or cash out.

Question 8: How have you found balancing new projects vs. new funders. They have very different interests. Have you found that your new project sign ups outnumber your new funder sign ups? Will this be of growing concern in the future?

Most of the funders come from an aggregate network from the Creatives promoting their projects. We are seeing a nice cross-pollination of fuelers going to different projects. There are on average 10 funders for every project – but it’s more like 50 funders for every successful project.

Question 9: How do you find new funders to get involved in projects?

We attract them in aggregate – usually funders come in from promotion of a specific project, then “cross pollinate” to other projects.

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