In a pre-sale agreement, the distribution rights for a movie in a specific territory are licensed or pre-purchased by a buyer before the film’s production begins. The process typically unfolds as follows: The filmmaker or their sales agent approaches a distributor to negotiate and sign a contract. This contract grants the distributor the rights to distribute the filmmaker’s next movie.

1. Script. Ensure your script is copyrighted, preferably with the U.S. Library of Congress. Visit http://copyright.gov/ for online registration. Having a renowned screenwriter can boost your project’s appeal to financiers. Your script should be exceptional and fit the genre’s requirements. It could be a screenplay written by a novice screenwriter, though.
2. Cover Letter. Obtain an endorsement from a respected script expert in the film industry, confirming your script’s profitability and production viability.
3. Letter of Intent (LOI) from a star actor. LOI is a written document expressing an actor’s intent to be in a specific project, if various conditions are met, without a full contractual commitment or long negotiation. This is a cornerstone of your package. In most cases, it is extremely difficult to secure film financing without star actors attached.
4. Director. A prominent director can enhance your project’s attractiveness. However, you can also take up the directorial role, following in the footsteps of filmmakers like Quentin Tarantino and Darren Aronofsky. About 60 percent of independent film projects with budgets of less than 10 million dollars are directed by first-time directors.
5. Budget. Prepare a detailed budget that follows industry standards. Line producers can assist you with this. If you plan to shoot in different states, consider hiring line producers from each respective state for specialized knowledge and expertise.
6. Marketing Package. A social media package for online marketing typically encompasses developing a tailored strategy for different platforms, creating engaging content like videos and posters, maintaining a regular posting schedule, and managing community interactions. It also involves social media advertising, monitoring performance analytics, collaborating with influencers, participating in cross-promotions, and running hashtag campaigns. Additionally, the package includes distributing press releases, securing articles in reputable magazines, and managing the film’s IMDb listing to enhance overall media presence.
7. Film Website. A website that is effectively promoted and features links to social media, while ensuring it operates smoothly on various devices.
8. Single Property Vehicle (SPV). A Limited Liability Company (LLC) named after your film, including a bank account. This structure protects members from lawsuits and simplifies post-production sales and licensing deals.
9. Production Designer Look-Book. Have an artist draw sketches of your film’s characters, costumes, and settings. Visuals help convey your vision effectively.
10. Entertainment Lawyer. Essential for legal guidance, especially in the unique field of entertainment law. Ensure your lawyer is licensed and experienced in the relevant state’s laws.
11. Certificate of Clearance. Prepared by your lawyer, this document confirms that your script does not infringe on any third-party intellectual property rights, which is a key step in securing financing. For more information, check out my blog post about the role of a certificate of clearance in filmmaking here.
12. Casting Director. An experienced casting director can access and attract star actors through their industry connections.

What is a development money?

When comparing a complete document package to just a script, it’s clear how much more attractive the former is. A good script is undoubtedly a vital first step, but it’s not enough to interest an investor. Unfortunately, many financiers will not talk to you if you don’t have a package with all essential elements.

Development money, refers to the funds specifically allocated for putting together a comprehensive pitch package. This package is essential for presenting the film project to potential financiers, producers, or studios.

Preparing a film package requires substantial effort and funding, often costing between $25,000 and $50,000, sometimes more.

The money filmmakers spend to create a package is called development money.

On average, you need at least $25,000 for a film with a budget of around $500,000. For a budget of $2 million or more, you’ll need about $50,000.

It’s often easier to find funding over $1 million than smaller amounts, partly due to tax incentives available for films with budgets of $1 million and above (in some states, the threshold is $500,000).

A rough breakdown of ‘development money’ might include:

1. $10,000 – an option agreement with a screenwriter, giving you rights to the script for a certain period (e.g., one year).
2. $5,000 – marketing services like a website, promotion, and press releases.
3. $1,500 – company registration and first-year accounting services.
4. $20,000 – entertainment lawyer retainer.

Of course, for films with bigger budget you will need much more development money.