Blog

01
Sep
How to Invest in a Movie – What to Look For

Investing in a movie isn’t as easy or simple as it might seem from afar. It takes a lot of research, planning, due diligence and often comes with a lot of deals that fall through before the right one eventually clicks. This is why it is essential to work with the right producer/movie investment company who will use their experience to filter out the most appropriate investment that suits you. It is important if you are considering investing in a movie to know the in and out of how the financial maze works in the industry. Investing in movies may or may not come with having a say in what movie your money goes into, after all what you are after is financial profit not on screen aesthetics or thematic bias. Therefore it is important, to focus on the business side of investing in movies while allowing the creative to do their job freely. Of course, you would however want to know details of who gets hired, what location is being used, who is writing the scripts and that is totally fine.

It is not so often, that you find one financier backing an entire project, it isn’t only economically unwise, it doesn’t allow for entry into the industry. So if you want to invest in a movie you might want to team up with likeminded individuals, form a consortium of some sort or join one that is already formed. $5 million independent project for example, can thus be funded by as many backers as possible, each with their own stake and share of risk.This is where a Movie Investment company is ideal as they offer all the options in an easy to understand way and also link up potential investors to secure a deal.

Another thing to look for when you want to invest in a movie is to get the best possible budget planners. It is very important to get the budget right, manage costs as prudently as possible as well as be careful not to overshoot estimates. While managing costs, be careful not to compromise on quality else it would result in a penny wise, pound foolish situation.

Also, you would want to tie up marketing and distribution home and abroad before going into production.This ensures that when the movie is done you don’t start running helter-skelter looking for means to begin to reap returns on investment. Therefore taking care of marketing and distribution before movie goes into production is a crucial step. You can do this by selling the names of the actors, or directors that you are bringing into the project.Again, all this organization and background work is usually handled by the producer/investment company as they have the experience and know how to make sure this gets done right from the first step.

As implied earlier, consider that the movie business is first and foremost a business, like any other. So treat it as such. Apply and follow business principles and rules that you have learnt and imbibed over the years. Decision making should be informed and pragmatic else you fall into disastrous loopholes.

Before investing, it is also important for you and your team to consider consumer patterns. Ask what niche or genre is profitable. Research. Gather data. Analyse.

Don’t invest more than you can afford to lose. Movie investments aren’t a gamble but if it doesn’t exactly work out, we do not want a despondent movie investor who gets out of the water and never touches movies again. You certainly don’t want to be reeling from a disastrous outing. Rather than throwing $5 million in your first investment, a $150,000 investment is more reasonable if it goes well, great, you can more confident to increase your investments over time.

The difference between the investor who puts his money in Microsoft stocks and the one who puts his money into a movie investment like you is that for the movie investor you will feel part of a project, a living, integral part without whose input the project might never quit be what it ends up to be. With substantial investment, You get your name on the big screen in the credit roll, as well as perks such as private viewings, exclusive Oscar Parties, Festival invites and so on. Sometimes the Director and production crew may allow investors to come on set and have a run of how things work. Perhaps even allow you act the role of an extra, throw you into a crowd or a rioting mob or at least a part to remember. The point is, investing in movies, aside the profit, offers excitement, thrills and the feeling of being part of something the whole world will soon see.

When investing in movies, also look for ways that your own experience and knowledge can among other things cut costs and improve production. For example, if you have a beach house and a scene needs this setting, it is only wise and prudent that you let production team know about the use of your beach house to shoot. Perhaps you are a Surgeon, and there is a hospital scene, if something about the script is not professional, rather than let production continue incorrectly, you can point it out in your professional capacity. All production teams are generally content with positive input.

Most importantly, if you are looking to invest in a movie, what you should look for is all here on movieinvestor.com. We gather a great array of movie investors, producers, script writers and distributors and creating a platform where like minds can meet, rub minds, exchange ideas and begin work on important and valuable projects for their careers and life time.

Sidebar