Hi ,
We often get asked if our
Tools & Templates Include the Film Recoupment Revenue Distribution Waterfall? The answer is YES!
We use a simple revenue
recoupment model in our actual
Business Plan Template. We also offer three other options for the Distribution Waterfall in our
Film Financing Manual, along with
this visual chart showing how a $30M film recoups its money down to the net profit producer's pool (thank you, Producer's Guild)! We highlight hurdle rates, producer's net profit, deferred talent agreements, profit participation and more.
One of the waterfalls is also included in our
PPM
template, with all the legal-eze you need. You can choose one of our four scenarios, or combine them, for how you plan to payback your investors customized to your specific project. Of course, you should always work with an attorney on finalizing these details.
You know who consistently buys our
Film Financing PPM? Attorneys! Not once has anyone asked for a refund. They know what a great value it is and they buy it, use it and charge their clients $10s of $1000s for revising it rather than create it from scratch.
What is the Film Distribution Waterfall?
One of THE most important things your investors (and talent) need to know, is how, when and how much they will be paid back? The waterfall
(also known as a recoupment schedule), describes how and when a film’s proceeds are distributed among all investors and talent, in what order and priority. Obviously, the earlier in the waterfall, the larger the pie for distribution.
If you encourage your talent to work off deferred agreements, then of course, they want to know when and how they will be paid.
Investors want to know when they get their money returned and also
when they may make a profit (ROI), which are often two different times in the revenue cycle.
