The Economics of Self Distribution

You can earn up to 10 times as much per sale through self-distribution relative to a typical home video deal.

In a typical home video deal, the economics are as follows:
Retail price = $20
Wholesale price = $10 (price from distributor to retailer)
Royalty to producer = 20% of wholesale = $2 per DVD to filmmaker

In a typical self-distribution scenario, the economics of selling DVDs from the filmmaker's website are as follows:
DVD price = $20 + $5 shipping and handling = $25 revenue
Cost of replication + shipping and handling + e-commerce = $6.50
Revenue to filmmaker = $18.50

Also, filmmakers can sell other products (t-shirts, hats, CDs) related to the film, other films the filmmaker has made, and films the filmmaker recommends. Producers can sell to fans that come directly to their sites as well as to visitors referred by affiliate partners, word-of-mouth, or other sources.

Lastly, and most importantly, filmmakers can build a fanbase with whom they can communicate, provide clips of upcoming projects, collaborate with on a project, help to raise financing, rally around a cause, and engage in other activities characteristic of a personal relationship. Over time, this relationship can become that of artist and supporter or artist and patron. Some filmmakers have fanbases with 50,000 or more names and have sold 10,000 DVDs on the first day their titles were available.