Having some experience before you start investing in films can be quite helpful if you want to make sure that you can make savvy business decisions and see consistent returns. Here is some experience that can be beneficial if you plan on regularly financing films:
Money you can put forward and afford to lose: investing in a film can be risky and if it turns out to be a box office flop, there’s a chance that you could experience some losses. Many film companies require a minimum of $10,000 or $20,000 to own a portion of equity in a film. Having money that you can put down and afford to lose is one big aspect of financing a film successfully.
Some knowledge of investment: Having some knowledge of investing privately can be quite helpful when looking at trends in data in the film industry. Many people use financing for films as just one portion of their portfolio and if you have other investments that can provide returns that you can roll into this aspect of your portfolio, they can help you to see more consistent returns.
Negotiation skills: negotiating for equity or a deal when financing a film can be a crucial skill. When working with an independent filmmaker or even a major studio, there can always be room to negotiate. If a production studio needs access to another round of funding, you could get it at a premium rate or work out a percentage that you could get back for merchandise sales as part of your agreement to finance a large portion of the film. Being able to add in some of these negotiation features can make sure that you can see greater returns as an investor.
Knowledge of the movie industry: any knowledge of the entertainer movie industry that you can bring into investing in films will also be a large asset. Knowing the types of movies that are trending right now, the content of the public wants and even some actors and directors that tend to create successful returns are all part of making a smart choice in film investment.