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There are a lot of parallels between doing a sequel and doing low budget movies, which is they give creative parameters. As a creative person myself, I work better with parameters as opposed to anything goes. Sequels force you to work creatively so that you don't make a movie that people say, 'That was so original, why was that a sequel? That should have just been its own movie. It had nothing to...
His rules for making a cheap movie include: 1) Limit the amount of speaking parts, because actors with lines get an additional fee; 2) Limit the amount of locations (preferably only one); 3) Pay actors the legally minimum, and offer them a percentage of perspective profits; 4) Never break the budget, don't ask for more money ("don't buy your way out of a problem, but solve it creatively").
His business moto is making his films 3 millions and under