Choosing a Production Company
by Guillermo Rendon

With so many production companies to choose from, how do you know which is the best option available for your project? You want to make a good choice but you don’t know what the indicators are for making the best selection. After many hours of research you will be overwhelmed by the quantity and price ranges there are out there. This article will help you get an idea of how to gauge and select a company, even if you’ve never worked with a production house before.

One of the first things you will find is that cost will differ dramatically from company to company.  If you hire a young company that is only 2-5 years old you will get a better price but you won’t get the experience that comes with 30 years work. However, in many cases younger companies can be an advantage.  They are usually comprised of younger more energetic and creative talent that will produce footage that will dazzle you.  They will be in touch with what is new and currently appealing. (In most cases they will be the same employees that would staff a larger company)  They will be more eager to make you happy and they will try harder to deliver a product you will like. On the flip side you may also run into irresponsability and lack of professionalism. So what is a good way to balance out these extremes? How can you tell if they will deliver what they promise? A good way is to inquire on their previous projects and existing clients. Click on the link to their client testimonials. Read to see what others have said and then consider them as references if you are serious about working with them.  A good track record almost always guarantees a good result. Many young companies are full of talent that is just waiting to get a “chance” to prove themselves.

Once you have revised the client testimonials and feel good about what you read, you can sample their previous work and judge their quality of video.  This sample is almost always referred to as the “Demo Reel” or  “Sample Reel”.  It will be available online or by mail in the form of a DVD.  The first thing you should know about the Demo Reel is that it is a tricky thing.  Because video production is a collaborative effort that employs a wide range of talent there is no single person responsible for the quality of the Demo.  The production house may have writen the script but they hired an outside cinematographer, editor and director to do all the creative work.  The production company DOES NOT have to have all the talent on payroll to ensure a great video.  As long as they are wise enough to hire the right team, they are eligible to deliver a quality product. Demo reels will also come with a credit notation to let you know what they are responsible for. Ask them to see if the demo is an in-house production. Some very large companies will do all the work themselves and have the whole crew on-staff, although this is very rare.  Consider that working with a production house is like calling a taxi cab in a new city.  When you call the company you don’t know what driver they are going to send but you are always sure they will get you where you want to go.

Look for a production house that is flexible and open to working with your ideas.  Not all filmmakers are going to bend their strict production rules, working fees and packaged costs.  Because production houses are small businesess owned and operated by a handfull of people they are capable of changing their policies to meet your needs.  If you cannot find what you need from them that might be a red flag. Don’t go into a relationship with someone who might end up being a real headache to work with.  The production process in itself is already full of stress, don’t make it any harder than it is.  Find someone that loves what they do, that likes working with you and has a “good vibe”.  Approach a production house the way you would approach a custom furniture craftsman or a highly skilled carpenter. 

When it comes to talking about the payment method there are many avenues to take.  Cost can be figured out by the hour or paid on a flat fee contract agreement.  Like lawyers, production houses will take retainers in order to ensure that they are paid for work performed.  Because not paying filmmakers is a national sport, people in the business have learned how to protect themselves.  A 50% up front refundable retainer is common practise.  Some clients prefer to receive an invoice after delivery, but some prefer not do that because you don’t know how much the bill will be.  Invoice payments are done only with businesses and individuals whom you trust.  Our production house would never do an invoice payment on an individual we have never worked with before.  We will however invoice payments to a large client like a transnational computer company; they are always good about paying.  Periodic invoicing is also a great way to go. If the production runs for a month, a weekly invoice would be in order.  If you decide to be billed by the hour make sure you know how much you will be billed for the principal photography, editing, special effects, DVD authoring and graphics.  These are done by seperate individuals who may charge different rates.  In the end it is my best advice to negotiate a flat fee contract with a retainer of some sort.  The retianer shows the production house that you are serious about working with them and it serves as a bona fide statement. Here's something to think about when working on the invoice method. We once had a client call to say that our invoice had exceeded their budget and they couldn't pay our amount. In this case it was either some money or no money. We took some money.

In the end you may end up with five best choices that are equally as good. Their price is within your budget and their quality is all good.  In this case go for customer service. Pick the production house that has the friendliest and best service track record.  Be advised that the prodcution process is a stress filled experience you may not be ready for. Don’t be caught off guard: YOU WILL BE STRESSED. Sorry but that is just part of making videos.  Take things as they come and place all your trust in the production team you have chosen. Eventually you will get a rough cut that can always be re-edited or re-shot to fit your tastes. Best of luck!