The excitement of attending a major film market like the American Film Market (AFM), Cannes, or Natpe can be overwhelming, even for seasoned professionals. The prospect of pitching your project and finding potential partners often leads filmmakers to make decisions too quickly. Unfortunately, this eagerness can result in signing agreements with the wrong people, jeopardising their creative vision and financial outcomes.
Stories abound in the industry of directors and producers who have been scammed, misunderstood, or locked into deals that place their masterpiece in the wrong hands. In the world of filmmaking—essentially an investment industry by another name—performing due diligence before committing to any partnership is not just advisable; it’s essential.
What Is Due Diligence?
In the film industry, due diligence involves researching potential partners—whether sales agents, distributors, financiers, or investors—to ensure they are reliable and trustworthy. While it might sound daunting, the process is relatively straightforward.
Steps to Perform Due Diligence
- Research Online
- Start by looking up the company or individual online. Check their website and social media presence. While these sources can provide helpful insights, they rarely tell the full story.
- Identify Past Projects
- Look for a film, television, or documentary project the potential partner has worked on in the past couple of years. Ideally, this should be a project that has already completed its revenue cycle, meaning the producers should have received payouts.
- Verify Through IMDb
- Use IMDb or IMDb Pro to confirm the partner’s involvement in the project. Identify the producers who worked on it.
- Contact Producers
- Reach out to these producers via LinkedIn, email, or other professional channels. Speak with two or three people to get an unbiased perspective on their experience working with the partner.
- Ask Key Questions
- Did the partner deliver on their promises?
- Was the revenue distribution fair and timely?
- Were there any unexpected challenges in the relationship?
- Assess the Feedback
- Compare responses from multiple producers to identify patterns. Consistent positive feedback indicates reliability, while red flags should steer you away.
Why Due Diligence Matters
The film industry is rife with scams and unreliable partnerships. By performing due diligence, you significantly reduce the risk of entering into harmful agreements. Unbiased confirmation that a partner does what they say they will do is invaluable. It ensures your project is in trustworthy hands and sets the foundation for a successful collaboration.
The Bottom Line
Protecting your project requires more than excitement and trust. By taking these simple yet effective steps to vet potential partners, you can safeguard your creative vision and financial interests. In an industry built on trust and reputation, due diligence is your strongest tool for navigating the challenges of the film market.