When you are in the process of making a film it's important to prepare for future costs and the time it takes to generate revenue.
Especially independent short films tend to have difficulty generating consistent revenue that takes the project into profitability.
However, at Blauw Films we truly believe that it's not only an essential step of your production plan to make your short film profitable —
we also believe it's fully within your abilities as an independent creator to monetise and succeed in this effort.
And by implementing strategic business moves all throughout the development of your original IP (Intellectual Property) you will set yourself up for a self-sustaining film production.
A key distinction to make in the creative industry is one between Products and Assets.
Your IP, whether that is a short film, feature film or series, is in essence not a product.
Similar to a painting or to the masters of a piece of music, the IP is the tip of the umbrella which contains all possible avenues for exploitation.
An Asset is a resource with economic value that an individual or company owns or controls with the expectation that it will provide a future benefit.
It's yours to own and to guide into appreciating in value. With time your IP will gain new audiences and build a stronger fanbase from previous audiences.
The asset serves as a magnet for commerce, while in essence it isn't the commerce itself.
Should you wish to sell your IP, thus selling your asset, you are selling the potential future value that will be created from it for its new owner.
And then there is a Product.
A Product is an item or service that is offered for sale to the market, ideally at a higher price of sale than it costs to make it.
There are many different types of products that can be made. And there are many different routes one can take to get the product to market.
In the creative industry I like to categorise products in to three distinct categories/approaches:
Once you have come up with your amazing idea, you have created Intellectual Property.
It's important to know that some IP rights are awarded to you automatically.
Examples of these are:
Several other IP rights are not awarded automatically and you will have to register at the governing bodies in your respective countries. Examples of these are:
Whichever way you decide to approach your Intellectual Property, it is important to know that when it comes to claiming your IP rights, it is always best to have a written record that states you are the owner of the IP rights of a product or service.
In a future video and article I will cover the in-depth process of IP protection as well as the Legal Considerations one should make when creating a film with commercial intent.
With your IP in the pocket it is time to start working on your assets.
Similar to the top-down analogy of the IP-umbrella, I'd like to discuss assets with an analogy too.
However in this case let's look at it from bottom-up as an IP-plant.
From the moment you start the development of your IP, it opens its potential to appreciate.
And from there on out it's your responsibility as creator (and of the team) to nurture the IP through the development of various assets.
These assets will each add additional value to the IP they are a part of and together, over time, they will help with the appreciation of your IP.
There are three core types of assets that make up the total value of your IP:
Depending on the type of production you are developing, you will have a different USP (Unique Selling Proposition) to work with.
It's important to make decisions on the relevance of your assets so that they best align with the project's USP.
I will be making a series of videos covering all important aspects of self-sustainable filmmaking.
With Step 1 being a broad overview of Digital Assets.
For the upcoming videos we are testing each principle with our original IP and collecting all the relevant data to present to you as separate case-studies.
That means these videos will take quite a bit longer to be released online.
However, I think that as there are so many different types of IP that creators want to make, each with their unique set of challenges and solutions, it's important for us to showcase a clear overview self-sustainable filmmaking.
As the creator of an IP you have the choice on how and to what extend your IP will be exploited.
What I can tell you is that audiences world-wide like to purchase a piece of the IP they love. But not all products and services have market demand though.
Having an audience for your IP and taking the time to communicate with the fanbase is essential to getting a better understanding of why they like it.
Understanding the associations your audience has with your IP is an incredibly valuable insight when deciding on what products you should develop.
When it comes to getting products to market there are really two approaches:
And ideally you should be looking at a combination of the three for the different products you want to offer.
I will break down some key concepts you should be aware of for each of the approaches.
Manufacturers can make your product idea a reality with their expertise, machinery and raw materials.
In this approach you will want to know the exact specifics of the product you would like to get made.
You can choose whether you would like domestic or international manufacturers.
And it will mostly depend on the cost of manufacturing and shipping, and on the timeline for delivery.
Finding manufacturers requires patience and clear communication.
The best ways to find manufacturers are simply:
If you are looking to make a product that is highly specific you can have a look at the manufacturers of similar products in the market that you enjoy.
Is there a certain IP from which you enjoy one of their key products?
There is a good chance that it wasn't manufactured in-house.
Finding the exact contact information of who has manufactured it however is often more complicated than you might think.
Due to Non-Disclosure Agreements (NDAs) it is often the case that manufacturers don't talk about the exact clients they manufacture for.
You can however, by doing a deep search in directories, find these manufacturers by search "by product type" and looking at their websites for clues.
This takes time. Believe me.
But for specific use-cases it can be extremely valuable to contact a manufacturer who's products you already trust.
Now an important distinction to make between the Manufacturing and Licensing approach, is that manufacturers do not help you get to market.
You are purchasing product-stock B2B (Business to Business).
The stock is yours. And so is the responsibility of sales.
For small amounts of stock you will most likely be looking at an e-commerce sales strategy.
Before committing to manufacturing the product there are a few things you should consider:
As the owner of the IP you are the Licensor. And licensing is one of the best ways to bring your IP into the homes of many around the world.
Instead of connecting with solely with manufacturers to buy stock, you will be connecting with companies, brands and other entities that act as the Licensee.
They are looking to temporarily use, by way of a license agreement, your intellectual property for the purposes of manufacturing, distributing, and selling goods or services using that IP under specific conditions.
This is a partnership between Licensor and Licensee. And together you negotiate distribution with retailers.
For that reason it is very important to be very upfront with a licensee about your goals for the product and about your roadmap for your IP.
A licensee takes a gamble on your IP and expects it to appreciate between the time they sign a licensing agreement and the products are ready to go to market.
It really is a relationship between Licensor and Licensee, each with their unique responsibilities.
Licensor: IP/Brand owner. The legal entity that controls the IP. Signs off any legal decisions. Responsible for the overall direction of the property. Provides brand strategy, annual themes and tentpole moments. Identifies gaps in the Licensing program. Prospect new partners and sets out the retail roadmap.
Licensee: Manufacturer, retailer or design company. Applies the Licensor's assets to the product or service. Responsible for manufacturing, sale and distribution, marketing to consumers and ensuring that the product is well-positioned at retail. Product launch should be matched with Brand's strategy and tentpole moments.
Both the Licensor and the Licensee have people on Product Development.
The Licensor should focus on creating:
The Licensee should focus on creating:
Licensors and Licensees will work together to maximise retail opportunities.
How can licensing help your IP/Brand?
1. Storytelling
2. Engagement
3. Create Additional Revenue Streams
And that's it for a general overview of Merchandising and Licensing your IP.
Creating art and monetising your project in a sustainable and profitable way is a unique challenge filled with unknowns.
But that being said, it is not and has never been, impossible.
Art and Entertainment (when focused outwards, towards audiences in external demographics) are incredibly resilient industries.
And they have enough room and demand for new voices with talent and a unique story to tell.
If you are thinking of taking the path of independent creator and you're developing an original IP, I'd recommend you take a step back and look at what you have.
What do I have? And what do I not have?
Then consider what are the things in my project that are considered Money In and what is considered Money Out?
Build a plan of attack around this reality.
Use what you have to bring money in.
Think long-term.
Think evergreen.
Think with a problem-solving state of mind.
Good luck! And I'm excited to witness all of your creations :)
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