You need to
practice caution when thinking of investing in film making. Many people who are
quite financially successful, often loose their investment, when putting their
money into film making. Investing in film making is exciting and glamourous,
but not every film becomes a hit, and a flop can mean a huge loss for you.
Never invest in anything, unless you can afford to lose the amount you have
invested with minimal damage to your finances.
The winners
in the film making business have proven that they are successful, and are
already completely financed. These film makers have many years of experience in
the film making field. While it is possible to invest in film making and make
money, it isn't very easy. There are several people out there who are waiting
to give you poor advice and take your well earned cash.
A few quick
tips to set you on the right track:
1. 30% to
40% in equity should be enough to make most films if others will agree with the
idea.
2. Keep the
budget low, foreign should cover at least 50%, 70% would be even better.
3. Search
for a script carefully and take your time, don't grab the first script that
interests you. You need to make sure film makers will agree with the use of the
script.
4. You will
need to take care of distribution with your own money, distribution is where
you can make a good deal of money from your investment.
5. If you
invest more $5 million or more, you will be able to buy into more than one
film.
6. Never put
up more than 50% of the total amount it will take to make the film, the
producer should be able to drum up the rest, if they can't- withdraw now.
7. Do not
look at hit movies made by major motion picture studios as a guide. You will be
working with independent film makers, and there are big differences.
Do your
homework and become knowledgeable about the workings of independent film
making. Know the film trends that work and what is popular, and what trends
will be expected to last for a year or more. Has the film maker worked in the
industry at all, if so to what extent is his expertise?
While
investing in film making can be quite lucrative, you should believe in the film
project and the ability of the film makers before you invest a dime. Meet with
them to see how professional they are and what their goal is when it comes to
the film project at hand. How excited are they about the project? Do they seem
like the go-getter type that will be able to see the film making project
through to completion? Are they opposed to you visiting the set once in a while
to quietly see how the film is progressing?
These are
all things you should check out before you decide to invest in film making.
There may be other issues you will be concerned with, make sure you write them
down while they are fresh in your mind and bring them with you to the meeting.
There is never a guarantee when it comes to investing in anything, but if you
believe in the project and are satisfied with the film makers there is a good
chance you will see a profit.