Mark's Pro Tip #3

Pro Tip #3 - Not all money is good money.

"Just get the movie made," I often say to clients, colleagues, mentees and friends. Getting your movie made is paramount. That sometimes entails killing your darlings or making sacrifices you wouldn't otherwise make. It also means sometimes taking less money or money with strings attached. However, it's imperative that you're able to determine whether money is "good" money or "bad" money, as the last thing you want to do is end up in a legal situation or worse. Here are a few ways to determine whether money is "good" (worth taking) or "bad" (not worth taking):

- Are the recoupment terms overly onerous? In other words, might you be unable to meet the obligations the investor is asking for, even under the rosiest scenario?

- Does acceptance of the money put your other investors in a bad place or, worse yet, cause them to drop out because it now makes their position untenable?

- Does the investor seem to have unrealistic expectations of what you can truly do?

- Is the investor asking you to personally guarantee return of the money at some future date?

- Are there strings attached to the money that otherwise put you, your team, your other investors or any others working on the project in a precarious position legally, financially or reputationally?

- Does the investor demand he retain control of the funds and all key decision-making during the production process?

- Is the investor refusing to work with legitimate organizations like major banks where funds can be verified and escrowed or provide other reliable methods of verification?

If you answered "no" to these questions, the money may very well be good to go. If you answered "yes" to these questions, it's probably not. To know for sure, the best bet is to consult legal counsel and any knowledgeable stakeholders that you trust.

At the end of the day, if you need to turn down some bad money, just remember that that funding source is not the only game in town and that there are plenty of good money sources out there to fund your movie. You just need to go find them.