Investing on movies is definitely not for the weak heart; however, it has a better upside potential compared to investment made on international currencies, rental properties, and real estate properties. It has a possible return of at least 10% annually. In addition, the entry requirement in terms of capital is significantly low while the possible return can be immense. For instance, the movie Halloween has a total cost of approximately $320,000, and it earned a total of $75,000,000 (and it will continue to earn). However, why don’t most people consider movies when they are making investment? This is probably due to the old myths about film investment that we will try to debunk.
Debunking Myths about Film Investment
A lot of people are hoping to become a part of the film industry. One of the best ways to do it is to invest on movies. However, the old myths that abound on the movie industry are preventing a lot of investor from investing on film.
Investing on Movies Will Not Make You Money
Probably, one of the biggest myths about movie investment is that you can’t make money out of it. No one is aware how this rumour started but this is definitely untrue, and it doesn’t have any concrete basis. As long as you understand the basic and you choose a great movie, there is a potential to earn thousands or probably millions of dollars. Did you know that the Blair Witch project cost only $5,000 and it was able to earn more than $150,000,000?
Investing on Movies is Not a Logical Investment
Some people think that investing in movies is not a logical move. However, with the right amount of research, movies can lead to great investment opportunities. You only need to invest on a movie that has the right actors, crew, and production and has a large audience base. You need to research about your audience base and the movie to make this a sound investment
Film Investors Don’t Have Any Perks
Some people are wondering why people are choosing to invest on movies when they are not getting anything out of it. It is a completely a false claim; investors, as well as the production team, are getting a long list of perks. Contingent upon your degree of investment, you may probably qualify for additional benefits. You will have the power to visit the set, attend the exclusive events and the red carpet premier. You can also request to meet the entire cast or crew. There are also some production companies that will allow you to play an extra part in the movie.
The Film Accountant Will Scam You
Some investors believe that accountants that are primarily involved in film making will exhort you with a significant amount of money and will just swindle you. People who invest their money whether it is on real estate or stocks are exceptionally protective of their investment, so this myth is clearly illogical. Production Company exists because they want to create movies. If they want to continue to produce movies, they have to treat their investors well.
After clearing all the myths that surrounds the movie industry, perhaps you will now consider investing in movies.