I didn't make the A-list festivals like Sundance and Toronto, so I decided to go to the smaller, regional ones. And they're great because you can always drum up local press. You get a list of the local journalists covering the festival, you send them a copy of the tape, and hopefully you'll get a review or a mention. Once you start collecting press on your film, then you have something to show a possible distributor. Because, at that point, you have to convince a distributor that this film is worth investing in.
Programmers are also a potential source for creating a buzz.
If they like your film and it plays well to the audience, they'll tell other festival directors and programmers about it. It's not easy for small distributors, either. Putting up money for an independent film with no stars is a big risk. It's highly unusual for a second-tier distributor to put up finishing funds. It will be another low budget, independent feature.