Hi, everyone - Planet DMA is back after spending the last half of 2007 creating our unbelievable new production software, Show Starter™ Scheduling & Budgeting Plus. Imagine creating a production calendar and completing your budget and cash flow at the same time. As one Emmy® -award winner put it: “This is a game changer!”

Okay, on to today’s question, one I receive regularly in various forms. Most people want to know how they can raise their own money for a film or show so they can retain their rights and keep all or a good chunk of the back-end profit. To quote Chris Rock, “um…slow down.”

In this post, I am going to speak to the television business model. For filmmakers, just know you can replace “networks” with “studio distribution arm” and “advertisers” with “financiers,” and you will have pretty much the same answer.

Whoever distributes your project to its audience is going to want rights to that project so they can make money from that project. Distribution is the space the broadcast and cable networks occupy for TV, and they are not interested in sharing the profit from that when they are the ones doing the distributing that garners the audience that attracts the advertisers who pay the money.

Even if you funded your project entirely, if you want a network to distribute it, they are going to want all of the distrib rights, including syndication, foreign sales, etc.

How do you get around this? Distribute it yourself.

Hard to do for a television project, right? Of course! That is why the nets make a nice dollar - they control most of the means of distribution. Or, at least, they did until new media. That is the core of this WGA stand-off, the upfront craziness the past two years and many more battles to come. (Clearly, we learned nothing from
Napster. Okay, Steve Jobs did. But seriously, no one else in the industry seems to have caught that clue.)

With new media, a producer can bypass the network middlemen and distribute straight to your audience. From there, you can take those hard-won audience stats to advertisers and keep all the ad money for yourself.

But wait! you say. I don’t have the money or knowledge to build a Web site! I’m a producer, not a marketer. I don’t know how to find my audience, convince them to come to my site - and how would I pay for all of that site promotion? Plus, I don’t have the personal contacts, staff or infrastructure to go solicit advertising and track the numbers and report to my clients. I just want my show to be seen!

That is the network’s argument EXACTLY. If they are going to establish and utilize the distribution infrastructure, deliver their core audience and pay to build a bigger one, throw a marketing team behind it, build an ad sales team to bring in the ad dollars, draw on their Madison Ave. relationships to get it paid for, manage the numbers and reporting, stand behind those numbers if they fall short and make it up to the advertisers…then they should be the ones making ALL OF THE MONEY for those necessary efforts.

In short, the nets don’t demand all of the profits from your show because of what it cost to PRODUCE it (that is part of the equation, but not the biggest). They expect that money because of what it takes to DISTRIBUTE it. And they are pretty much the only distribution game in town.

There are some ways to get around this, all of which require a SUBSTANTIAL CASH OUTLAY on your part. But you would not expect great reward without great risk and great investment because…well, you have read all the posts on this blog and my books. So on to the real question underneath today’s topic:

HOW DO I KEEP EVEN A SMALL PIECE OF MY PROJECT?

1) ATTACH STAR TALENT (small piece). If you know Barack Obama, and have something on him that forces him to agree to doing a behind-doors reality show about his campaign, then get a firm deal memo with Mr. Obama and start shopping. When you two demand a piece of your show, you will get it. Not ALL OF THE BACK END, mind you…not 50% of the back end…not even 25% of it probably, because someone else is paying for distribution.

Your Costs: Extraordinary legal fees plus production fees for a sizzle reel to prove the level of access you are claiming and show how it is different from the 24/7 Obama-rama we all can access on his site, You-Tube, our cell phones, etc.

2) SELL DIRECTLY INTO SYNDICATION (big piece). Hey, NATPE is every year in Vegas (Google “NATPE” if that’s new to you, everyone). So go ahead and shoot your series and take it straight to the buyers on the floor of the convention center. It’s a tough road, but it’s an independent one! Why isn’t it the whole piece, you ask? Because you will still need a distributor to deliver your product to the station groups around the country (Oprah works with King World, for example).

Your Costs: Full production costs of multiple episodes, legal fees, booth and promo at NATPE (that is in the 10s of thousands alone).

3) GO STRAIGHT TO THE ‘NET OR MOBILE (whole pie). The money you spend trying to circumvent network ownership, I strongly assert, is far better spent building a new media presence for your project. Bring that audience into a room to pitch it AFTER you’ve built it, and you are having a different discussion entirely.

Your Costs: Building a company, including Web developer(s), production team, ad sales, marketing & PR, support staff, etc. With the right hires, that’s only a handful of very savvy, very driven people. Hint: Look for network escapees/burnouts.

Final thought. Definitely read my books on how to sell reality shows (or screenplays), and read EVERY POST IN my blog (it’s free!). Get comfortable with the fact that you are not going to print up an enormous profit on one foray into the biz, especially your first. As I once told a horrified producers’ roundtable, “Hollywood is not the lottery with pretty canyons.” Reality TV, in particular, is a long-term, quantity-driven business model - that people oddly/incorrectly/insanely believe is the easiest way to get rich quick in the biz.

Instead, jump into the industry at whatever level you are qualified to participate (remember, selling your own project is the TOP OF THE GAME). Give yourself time to get established, learn the profession, make relationships, learn every angle of making television (each genre is a wildly different beast), then try to inch towards profit. You will see results from that effort.

My good friend JM says, “Why is everyone in Hollywood so busy trying to be the exception when there is so much money to be made just following the rules?” I wrote my books so people could learn the rules and get busy playing by them so they can begin their entertainment careers.

Go get ‘em!

One of my most popular posts to date has been “#16: Do I need to read the trades?” In that post, I outlined the minimum types of information you should scan the trades for and also suggested key trades to read. Thanks to the strong response I received, in this post, I’m going to follow up with specific examples of what you might find in the trades – and how you can translate that information into selling your own projects.

Whether you work in film or TV, you can put these tips to use, even if the specific example is not from your industry.

Let me start by recommending you immediately ditch any hard copies you receive of the trades and sign up for the electronic versions instead. That way, you can easily copy and paste information straight into your databases or share it with partners and reps. Remember, always show copyright love whenever it bears stating!

Now, here are six ways to “trade up” your daily reading into a focused, project-selling process:

Trade-Up Tip #1: Track the Trends
As you prepare to pitch various projects, the trades tell you what’s hot and what’s not. Guess which trend you want to be riding? For example, for reality TV professionals, over the past two weeks, we’ve learned that:

• My Network TV is about to replace 33% of its programming with reality TV AND 180 from telenovelas to targeting male viewers (reality producers, take note);
• Court TV’s first scripted project is a hit with viewers (fiction producers, here’s a new potential buyer!);
• NBC, the CW and Bochco himself all are about to launch original Web-based programs (everyone, are you still ignoring new media?); and
• Networks in general are looking for cheap ratings bonanzas in brand-friendly game shows (got a talent option you don’t know yet how to capitalize on?)

All of that info ought to help show creators decide which ideas they are going to prioritize developing to maximize sales possibilities. Database these updates in a simple table or spreadsheet, and you’ll always be timely in your pitch meetings. And remember, the execs you’re pitching expect you to know this info if it was in the trades!

ACTION PLAN: In Word or Excel, build a simple table with columns for network/studio name, programming announcement(s) and announcement date(s). If you’re a member of the Show Starter Online Group, we’ve started you off with a file of over a dozen network programming announcements from this year’s upfronts! If you’re not a group member yet, be sure to sign up when you buy the book (or join if you already have the book) by clicking here. Group membership is for book purchasers only.

BONUS ROUND: If you don’t have any pitches that ride the trends, rework existing projects to stay current. Is there a cooking pitch you love that also might make a terrific game show? For helpful process tips, read “Show Starter, Vol. 1,” pp 25-27.

Trade-Up Tip #2: Run “Comps” on Projects that are Similar to Yours
TV producers, before any pitch meeting you ever take, be absolutely sure to check the overnight ratings for the current shows at that network AND any shows anywhere else that are similar to yours. Filmmakers, regularly track the weekend box office for any studios or companies you hope to meet with or any films in your genre.

Now for the example: remember the hot new – and now former – ABC show “The Great American Dream”? At the end of March ’07, if you were about to pitch any dream fulfillment shows anywhere, or any show AT ALL to ABC, a quick glance at one day’s trades would have shown that “Dream” utterly tanked episode one (ratings report - 3/28/07)…and was cancelled after episode two (cancellation article - 3/29/07 - as in the NEXT DAY’s trades).

Translation: this might be a pretty bad time to pitch a new dreams-come-true project anywhere, and ABC execs might be particularly cautious about new genre projects in general. Isn’t that something you’d like to know before entering the room? You BET. At least so you can explain why your project isn’t vulnerable to the same ratings risks? And don’t be blinded even if you see high ratings. Just because the trades report “Fox Picks Up 13 More Episodes of 5th Grader,” it might mean Fox wants to do another deal with Mark Burnett rather than buy your equally biting game show.

ACTION PLAN: Do a quick ratings review in the daily trades to compare your pitch list to current shows. Push danger zone shows to the bottom of your list, if you pitch them at all over the next few weeks. Then shift at least one brand-appropriate trend-winner into your top three opening pitches.

BONUS ROUND: Brainstorm alternative versions of your danger zone pitches (Show Starter, Vol. 1, pp 25-27) so they no longer heavily rely on now-risky elements. Then if an exec challenges them, you can come right back with a well-thought-out twist on your pitch.

Trade-Up Tip #3: Dissect Deal Points
If you’re not sure what to expect and request in your own deals, read the trades to keep up with what everyone else is offering or receiving! For example, for all you filmmakers who are fighting mainly to get a piece of DVD rentals in your deals, shouldn’t you know that the “Netflix Founder Predicts End Of DVD Rental Business” and now is investing millions in digital film downloading? Meanwhile, reality newcomers and pitch partners can set some basic contract expectations by reading news like “Hedda Muskat has been named Consulting Producer on WE’s new show, ‘Wife, Mom, Bounty Hunter’ debuting on April 20. Hedda brought the show to World of Wonder who sold it to WE.” (© 2007 Cynopsis).

ACTION PLAN: Scan for any deal discussions regarding professional peers or potential buyers. The Cynopsis example above lets you know right away what you might expect to be offered by WE and/or World of Wonder as a new show creator.

BONUS ROUND: Oh, you know what I’m going to say: add this info to a database – and review it before you actually pitch any partners!

Trade-Up Tip #4: Improve Your Project Development Process
Seeking “the right” talent to attach to a project? You can test the industry’s temperature for star “heat” by reading that “Kid, Not Play, May Get Talk Show.” Or get a great lesson in built-in conflict for reality pitches when you read that “Season three of Run’s House on MTV begins April 9 at 10p. Rev. Run and the Simmons family return to face new crisis and growth situations such as the two oldest daughters, Angela and Vanessa living on their own in Manhattan.” (© 2007 Cynopsis). Whenever you read about greenlit projects in your industry, consider it powerful development guidance for your own projects.

ACTION PLAN: Scan the trades for talent and story success stories and see what equally compelling “headlines” you could write to promote your own projects. Do you have more work to do to develop the project?

BONUS ROUND: Write the headlines – and send them to your focus group to see if they want to see that show!

Trade-Up Tip #5: Gather Insider Information
I call this “Room Wisdom.” These are articles that give you explanations of how our business works that help you get inside the minds of the studio, network and production execs you are pitching. For example, the Hollywood Reporter recently ran an article called “Ad Ratings To Gain At Upfront,” explaining that advertisers increasingly want to base the ad dollars they commit to a network on ratings for the actual commercials that run during programs, rather than ratings for the shows themselves. Is that a big shift? Of course! Is that something you can talk about intelligently in the room when possible ratings enter the discussion? Sure – if you’ve read the article.

ACTION PLAN: Read insider information articles and make sure you can summarize the general idea into a straightforward sentence (like I just did above).

BONUS ROUND: Learn the article’s new buzzwords and do additional research on them. For my example article, you would research “ad ratings” (aka “commercial ratings”) and the new Nielsen measurements they represent.

Trade-Up Tip #6: Scan for Who | What | Where
I’ll say it again – success in isn’t just about know-how; it’s about know-WHO. You absolutely must know who the players are that can buy your projects or otherwise assist their sale. All the trades announce executive hiring, firings and job-swappings. Many also feature producers who have just sold new projects. You must know these names to learn whom you already know and whom you need to meet with – not just in the room, but also at panels, seminars and conferences you see advertised.

For example: got contacts at “The Amazing Race”? Guess what? Now you might have contacts at Oprah’s new wish fulfillment show – the trades just announced “‘Race’ duo to oversee Harpo reality series.” But before you send an e-mail blast to everyone you know who works anywhere, please read Post #12: Do you know anyone who’s hiring?” Please don’t ever let the first thing you say to someone – a stranger OR a friend – be “What can you do for me?” Make sure your energy in this industry is balanced between advancing your own dreams and sincerely investing in your core circle’s dreams at the same time. Those contacts are the ones who’ll call YOU to yell, “Hey, I just got the new Oprah show – send me your rez!”

ACTION PLAN: Database the names of studio execs, network execs, production execs, financiers and show runners and keep it updated through your daily trade reads. Start with the network and prod co dbs we give you at our online group (book purchasers, click here to join!), and keep it up-to-date. Those names are the key to your selling a project.

BONUS ROUND: Today, right now, send an e-mail to the five people who have helped you most in your career. Offer something specific to help them back – even if its updating one of THEIR databases. Get balance back in your professional relationships – and watch the immediate shift in your professional progress.

BONUS, BONUS ROUND – Stop typing your latest email blast asking people you otherwise never check in on to find you work. Now re-read “Bonus Round” and give that approach a try instead. Please trust me on this. And remember, send thank you truffles or coffee cards to everyone who ever gets you in front of anyone else for a meeting - whether you close a deal or not.

NOW GO SELL THOSE PASSION PROJECTS!

For more in-depth process and resources, buy:

• “The 1-3-5 Story Structure Made Simple System: The Nine Essential Elements of a Sellable Screenplay“; and
• “The Show Starter Reality TV Made Simple System, Vol. 1: How to Create and Pitch a Sellable Reality Show”

now from Movie in a Box Books!

I get this question a lot, so I now have published a definitive book on the process. It’s called “The Show Starter Reality TV Made Simple System, Vol. 1 - Ten Steps to Creating and Pitching a Sellable Reality Show.” It’s only $29.95 (including tax and U.S. shipping) at the Show Starter Web site - and it comes with FREE STUFF. Until your order arrives in the mail, here’s a very clean and concise explanation of what to expect from the process.

Let’s start with the “gut” answer. If you’re like most people who work in reality TV, you sell a show by working for some years in reality television, amassing good credits and production experience, building strong relationships with production companies, networks and vendors, running someone else’s shows for trench education, then pitching your concepts and your solid reputation to make your first sale(s). If that doesn’t sound like you, or even if it does, please read on.

If you’re like most people who don’t work in reality TV, you sell a show by coming up with an entertaining concept and find a personal “in” to a network exec or a production company where you can pitch. If a network exec likes the idea, s/he will partner you with a production company or show runner s/he already knows and trusts, and they will execute your concept. You will turn all of the control of your show, as well as most of whatever initial fees come in, over to the show runner or production company.

The same process happens if you approach a production company yourself to bring your idea to a network for you. Your attorney will work with the production companies to hammer out a “deal memo” that spells out what involvement, if any, you will have in the show. The company will do their best to remove you from any control over the process…because you have no idea how to run a television show. They also will take most of the money involved…because you are bringing nothing to the table but an idea that they will have to do all of the work to develop then execute, as well as use their hard-earned contacts to sell. In their eyes, you are bringing nothing to the table.

If you are still reading this blog after that stunning statement, you are ready for the road ahead as you try to pitch a show. You understand now how the industry will perceive you, and you accept your own limitations as someone who knows nothing about making a show but has an entertaining spin on a popular concept. You also understand, because I’m about to tell you, that you are not going to become rich when the show is sold.

Don’t confuse non-fiction TV with selling a movie or a sit-com or drama. “Back-end” and “created-by” fees and “residuals” are rare in this world. On your very first sale, be ready for some serious compromise if all you have is an idea. Your attorney is going to work hard enough just to keep you from being removed from the show entirely.

I’m going to write that again. YOUR ATTORNEY IS GOING TO WORK HARD ENOUGH JUST TO KEEP YOU FROM BEING REMOVED FROM THE SHOW ENTIRELY.

So how exactly do you sell your own show?

The smart way is to work in the biz and know that you are selling yourself and your experience and your reputation and your contacts far more than any concept itself. In fact, networks who have come to know you will call you and ask you to do a show for them! And you will be able control the production process and make the fees from it, because you’ve learned and earned you way into that position. Your agent is your best friend here because s/he is pitching you non-stop to the nets, setting up meet-and-greets with execs and keeping you up-to-date on how the net calls for content are shifting (and they always are shifting).

The fast way is to have a terrific concept and partner with someone else who can get it executed. You will have researched similar shows, checked out imdb.com for company and network information and approached the right people to match your genre and audience. If all goes well, you, indeed, will have sold a show, but often with limited involvement or reward! Your attorney will be your best friend here because s/he will need to be determined and creative to keep you a part of the process after the sale.

The back-door way is to know a person or property (like a popular book) that people want a piece of, develop a show with them attached to it, and have a written “option” that binds them to any sale. This is where having Paris Hilton as a close friend actually is a good thing. A hypothetical: Yes, she stole your boyfriend, but she felt so bad that she signed an option agreement allowing you to shop a makeover show with her as the host. Pretty much anyone will talk to you now, and you’ll have a lot more power keeping yourself attached since you are, at last, bringing something bankable to the table!

Whatever way you try to sell your show, remember, as always, to do an “entitlement” check before you start the process. If you are not Tyra Banks, do not expect to get a deal like Tyra Banks. If your talent is not Donald Trump, don’t expect to get a budget like Donald Trump’s. And if you have never run a television show (I didn’t say never written, produced, edited or shot, I said RUN), then don’t expect to run even your own. Not the first season, at least.

And please don’t go into reality TV to get rich. (Where are all of these Discovery Health- and Food Network-producing millionaires people think they’re joining the ranks of?) If you want to get rich, please go back for your MBA and head to Wall Street and build and protect your stock options like everyone else does. There’s way more chance you’ll get a return on your investment - and in a far shorter period of time! If you want to get rich quickly, with minimal effort, keep buying scratchers and hope for the best. But if you really want to make reality TV, while there’s no money at the start in this world, like almost everything else, working hard in this business ultimately has its own personal, professional and, yes, financial rewards. Plus sometimes, you get to make people eat bugs.