Securing the Deal

The entertainment industry is has many different dynamics and is very competitive in nature.  In past posts I discussed the double edge sword of freelancing and doing independent contracting.  Although I love this type of work because it offers flexibility that a 9am to 5pm could never offer.  The problem is that this type of work is a constant uphill battle.  South Florida is a very competitive market as are countless production companies and graduates. This week I interviewed production industry location manager Lyndell Pedis.  He has worked on countless productions with some of the industry’s leading creative minds.  He has scouted locations for more than 10 years working as an independent contractor. 

When discussing how he makes deals and works to create beneficial client relations, he said one thing he had to learn was to refer jobs or turn them down when conditions were not beneficial for both parties.  When faced with the positional bargaining he learned that it is rare a situation like this where both parties prevail.  When dealing with the all or nothing client sometimes it’s best to remove yourself from a situation where you may end up working for free.  Although developing relationships is a vital part of the deal making process, some relationships are not beneficial for the independent contractor.  It may be best to walk away from deals that will cost you instead of yield return.  He further explained that in the event you can accommodate the clients requests without giving away your time ensure you get all agreements in writing and never verbally accept terms as documentation is all that can truly clear miscommunication.

One example he recalled was working with bring a large production company to South Florida.  The company had countries bidding to get the company to move to their area.  They were very interested in taking their business out of the country, but that had certain requirements.  Pedis helped show them locations here in South Florida and showed the many benefits moving to this area had to satisfy their requirements.  His negotiating skills worked perfectly to mutually benefit both parties.  He also said that sometimes people can be very direct or not direct at all, so make sure that you keep personal feelings from business decisions.

Business Financial Option

In past posts I discussed how to deal as a freelancer artist and contractor.  I also discussed what you should expect from your clients.  This week I want to touch on something current in my professional growth, which is finance.  Although this sometimes-discouraging term has deterred me from ever truly delving into the subject, I’d like to discuss the importance that I have over looked in the past.

Financial Decision Making is a huge part of deciding weather to start a business or invest in an idea.  As creative people I have found we tend to have ideas with no plan of how to achieve them or how to create a profit.   What makes a good idea a good idea?  What makes an idea more successful than other?  How do you find investors?  I recently found a few websites to help with financial research and I’d like to share my findings.  Although there are many routes to securing finance for your new business what’s the best and most profitable way?

Recently, I read an article about two guys that took an idea and turned it into millions.  You can read the full article here.  Inc.com reports that Ben Lerer and Adam Rich and their company Thrillist made over 32 million last year and even with their significant growth they are still looking for a cash growth because they are expanding their company.

The author of this article Christine Lagorio, further says “Lerer told me the $13 million will go in the bank so Thrillist can create or buy new brands and hire more people: "When we have conviction of what direction to go in, we don't want to have to forego something."

What does this mean for their company?  Is this a good or bad decision to take on investors after they are already yielding a profit?  I am still researching to find answers to these questions this article is just one of many amazing resource.  Let me know what you think.  What are some of your financial resources?

Olympians & Endorsements; should Olympians tell their own stories?

In my last post I discussed, “the danger of a single story.”  This post I will delve into some examples of Olympians that have amazing stories.  After reading some exciting articles and watching some amazing Olympic coverage I found that the only way to tell your story is to do it yourself.

It’s no secret that Olympians are among some of the most marketable brands in the entertainment and sports industries.  Recently one young Olympian has exploded unto the scene and made a stand as a true winner.  Advertising agencies and product brands are fighting head to head to secure this young super star’s brand in a partnership with their own.   Gabrielle Douglas has won both the hearts and attention of the world during her debut at the London 2012 Olympics.  Additionally her heart-warming story of passion and determination are making her an advertisers dream.

         In 2008 Michael Phelps become a force as the Olympic swimmer.  He took home 18 gold medals and a wealth of endorsements, but one negative action almost caused him to loose it all.  After reportedly being caught smoking marijuana all of the positive publicity became a negative shadow that almost destroyed the Olympians image.  Robert Greene describes this situation in one of his 48 laws of power “so much depends on reputation, guard it with your life.”  Although many may argue smoking marijuana isn’t offensive this one thing damage the image people wanted from an Olympian. 

         Almost four years later, Michael Phelps is still making waves, but he is not as highly regarded as he once was.  The importance of telling your own story is more apparent than ever in this case.  Michael Phelps is an all star, but he is letting the media tell his story and they make it what they want.  The same is true for Gabrielle Douglas, but in her case she is making out like a bandit.  Advertising Age recently released an article about young Gabby and her journey to the Olympics.  They also further discuss her wildfire popularity upcoming partnerships that marketers are looking to capitalize on.  How do you think Gabby could tell her own story?  She is a household name today, but it won’t be long before the media finds another American sweetheart.  What do you think Gabby’s media team should do to keep her from becoming over saturated and washed out in the media?

Chimamanda Adichie: The danger of a single story

It isn’t easy to stand in front of a room of complete strangers from international backgrounds and discuss racial and economic differences; however the TED speaker I’d like to discuss today was able to attack these hard issues with a hint of comedy and humility.  Novelist Chimamanda Adichie discussed the danger of a single story during her 2009 TED talk.  She started her speech with a slight quiver in her voice and smile on her face.  Through addressing her background and upbringing she was able to bring the audience to a place of trust and understanding.  As she described her enlightenment through literature she says she realized after reading African books that, “Girls like me with skin the color of chocolate whose kinky hair could not form ponytails could also exist in literature.”  Although this young woman had grown up in a middle class family, she soon found that stories are more powerful than she could have ever imagined.

Chimamanda describes her personal experiences with the single story including people with a single story of who she is and where she comes from.  One very powerful story she discussed was when she first came to the United States to study at an University.  She describes how her roommate’s single story of Africans left her with first hand experience of a single story hindering understanding from those who only know that story as fact.  Through her words she illustrates how she learned how to understand that learning more than one story about a person or place was more valuable than listening to one popular story or watching what information is simply placed in front of you.  Chimamanda relates to the audience by illustrating that she is no different from anyone in the room, because she is African through the mention of popular music and literature references.  Her ability to expose her background and uncomfortable experiences opened a window of trust that otherwise may have been slighted.

Chimamanda’s speech allowed me to take a deeper look at how the industry uses stories to either develop or destroy a brand’s image.  As an entertainment business professional it is my responsibility to ensure that my brands entire story is told.  Our lives and cultures are a collection of overlapping stories that add to the fabric of who we are.   Chimamanda Adichie expressed how through her journey she found her authentic cultural voice, but she warned listeners that if we only accept a single story as fact about a person or place then we risk misunderstanding them and potentially misjudging their situation.

Florida's Entertainment Industry Financial Incentive Program

There are many very important organizations and associations in the film and media industry nationwide, but in Florida none is more vital than the Florida Film Commission, because it offers discounts and details that can help make a production a success.   The Florida Film Commission is a state economic development program that was created to help with the growth ad expansion of the film and entertainment industry in Florida.   This organization plays a very important role in the production process including working with production teams to navigate government rules and regulations.  They are the subject matter experts when it comes to successfully filming and promoting in Florida.  They work with various organizations and agencies to ensure a smooth production.

This program has dramatically assisted with the film and entertainment industry in Florida.  One recent film shot in Florida is the highly anticipated “Rock of Ages.”  The Florida Film Commission launched the Entertainment Industry Financial Incentive program on July 1, 2010 and sunsets on June 30, 2015.  The programs offer tax credits, discounts and secure locations for approved productions, which are separated in three queues based on the project type and budget.

Due to a constantly changing economy this program has brought more filming to Florida.  This program’s three major categories are general production, commercial and music video queue and independent & emerging media production queue.  Each area has specific application requirements and regulations.   In order to grow and expand the film company these types of programs are important because they entice production companies to spend money in Florida and hire Florida production crews.  This brings jobs to production professionals in Florida and helps to increase and sustain the industry.

The best strategy to create connections with the Florida Film Commission is to reach out to the by email or phone.  Their website offers a wealth of information for production companies.  The programs offered by this organization can save both the production company and client money, so it’s important to stay current on their information.

Freelance Rates 101

Last post I talked about freelance productions fast, good or cheap.  I also discussed the importance of setting your rates as a freelance artist, but I didn't really get into how to set rates.  This post I will go into further detail about setting your prices, so that you don't end up paying to work.  In my experience the most uncomfortable thing to discuss with a new client is cost especially when you have no idea what to charge.  When I first started out I was eager to jump into the industry, so I allowed the employer and client dictate the terms of payment.  This was my first beginner’s mistake, because if I didn't value myself how could anyone else?  My dad used to say, “you have to get burned to learn,” and after being burned a few times I finally got the point.

In order to put my views into perspective, I needed to evaluate my situation.  I came up with a three-step formula that I still use today to help me keep my rates competitive and in line with my competitors and other industry professionals. 

1) Research the competition and industry - The economic environment plays a huge role in what businesses and clients will spend on a production.  Although the industry is constantly fluctuating knowledge of where the industry is leaning is vital to growth and success.  Researching the competition is just as important, because you don't want your prices to be extremely lower or higher than the competition.  If your rates are too low then the client thinks something is wrong and if your rates are too high then the client will shut the door thinking they can't afford your services leaving you with a missed opportunity.

2) Know your salary range - If you were working a full time job doing what you do freelance how much would you make? Be realistic and don’t forget what you have to pay in taxes and benefits you don't get as a freelance artist.  If you don’t know what you rate then employers and clients may short change you or worse.

3) Do the math – “Why spend more time and money on a job then you are making?”  I have done this myself by covering costs I didn't bill the client for, because it was an unexpected expense.  I see ads and job postings all the time for editors and videographers that must have their own equipment, but don't get extra pay for using their own equipment.  Let's see if you spend 20 dollars both ways to a job in gas, 1,500 dollars on a camera, 235 dollars on audio and microphones and 150 on lights then you are starting in the hole.  I'm not saying you should charge every job the total cost of your equipment, but it should be a factor.

It’s your job as an industry professional to sell your skills and experience in order to get the rates you deserve.  Next post I will delve into client communications.  Hopefully these tips are helpful.  Do you agree or disagree with this logic?  I look forward to your feedback.

Freelance Productions fast, good and cheap

The world of video production is a constantly evolving machine due to dramatic advances in technology, but some argue that the floods of new video production are doing more harm than good for industry professionals.  Message delivery has also moved more toward video and social media than any other mediums in recent years.  This advance allows brands to connect to their target audiences on a more personal level and if created in an effective manner can become viral and take the brand to new heights.  Websites like YouTube, Viddler, Facebook, Twitter and Vimeo allow video sharing to become easier than ever, but at what cost?

As a recent graduate and full time producer I come across clients that was things fast, good and cheap.  When you are fresh in the industry this seems like an easy enough thing to do especially when you are talented and excited to add productions to your portfolio.  Stop this is never a good idea, because you will loose every time if you agree to these terms. There is no such this as a fast, good and cheap production.  They don’t exist. 

In recent years employers have discovered the loophole in lowering costs while growing their return on projects.  Author Robert Greene refers to this in his book, “the 48 Powers of Law” as “Get others to do the work, but take all the credit.”  Freelancers account for a third of the US workforce.  Due to a struggling economy people are willing to be freelance although they do all of the work, but get none of the benefits of full time employees.  This allows employers and clients to make more while they pay less.  When evaluating bids for clients many freelancers forget to pay themselves.  This rate calculator can help you decipher if you are getting paid what you should or simply taking a loss on the production. 

One simple way to evaluate a project is to decided weather it is worth your time by realistically evaluating your costs and time you will invest in the project.  In 2010 design creative Hoss Gifford released and article titled, “Fast, good, cheap.”  Although he was not the originator of this theory, his tale “some clients are evil and their work is toxic,” is a great example of how these types of jobs will poison your success as an industry professional.  Like anything else in life a relationship with your clients or employers should benefit both parties or animosity is bound to occur. 

Greene states in his fifth law of power that “so much depends on reputation guard it with your life.” This includes under cutting costs to get a job, because it devalues your time and talent.  Once you are known to lower rates people will always look for that deal even when they have the needed budget.  Every product produced should represent the best of your work.  If you can’t do it right, don’t do it at all.  No job is worth your reputation.