5 Secret Techniques Used by Film Financing Companies to Earn Their Cash

Film financing companies are most certainly on the rise as entertainment is becoming one of the most lucrative and popular business segments throughout the entire world. With movies netting hundreds of millions and even billions of dollars, independent film financing companies are battling to claim their slice of the pie. However, it’s not always as peachy as it sounds. This is when film financiers have to resort to their expertise and apply some of the tricks of the trade to at least break even with the movie. Let’s take a look at 5 secret techniques that they use in order to actually earn their cash.

1. Know the Finance Inside Out

A professional and experienced film financier is going to be well aware when things aren’t going his way. Understanding and being well aware of the budget and the finance of the movie is going to help you in reacting to situations which are unpredicted. This is most certainly going to be highly valuable down the line.

2. Keep the Plan Realistic and Adapt to Changes

You need to be aware of the type of movie you are putting your cash into and whether or not it has huge potential, a moderate one or a small one. This is going to help you set realistic goals which are actually achievable. Micro-management is amongst the best tricks in the hat of any film financier who knows how to cut profit.

3. Be Aware of the Problems

Knowing the film and its potential isn’t enough. You have to be aligned with the producer and get him to keep you posted about any particular problems that have come up or are about to do so. This is going to allow you to react accordingly and nullify their potentially devastating effect. Film finance companies are capable of optimising risk and assessing situations – that’s how they make profit.

4. Resort to Memorabilia

This is always a classic trick in the hat. Even if you film is a failure, if the genre allows it, memorabilia can always boost the sales a notch. This is another monetising strategy which may turn out to work just as fine, especially if you have a successful movie in your hands.

5. Pull the Plug When It’s Time

Endeavours fail. Being a professional and independent film financing expert or company means that you are well aware of this possibility. Of course, you can always cut back the odds significantly by aggressive and proper marketing. However, when there’s nothing left for you to do in order to maximise your winnings, it’s better to minimise your losses and pull the plug when you have the chance.