Film investing – high risk, but ultimately satisfying to a true movie lover.
Film investing is a good way to invest your money in a creative industry – and if you invest in the right film, then you may even make a lot of money. Generally, it is pretty hard to invest in Hollywood films – however, you can always invest in independent films. These films are more likely to be looking for funds, as well, since most independent film makers do not have the thousands of dollars that are required to make a full film.
However, you should keep in mind that there are a lot of risks involved in film investing. After all, this is an artistic industry, and there are even more factors at play with films than there are with most other products. First of all, it’s possible that the film could be done badly, that it could be done well and just have unappealing writing – or it could be a well-made movie and still flop. The thing with independent films is that they must be very good and generally need to do well at a film festival or two before they can make it to the big screen.
If you are looking to get into film investing there are a few things that you definitely need to do. First of all, read the script of the movie that you’re looking to invest in. If you don’t like the script, then don’t invest! It’s not fair to the filmmakers for you to invest and then demand that they change their project, and if you don’t like the movie, then there’s a chance that it will not be popular at all. Plus, since there is such a risk associated with making an independent film, you should at least enjoy what you’re planning to invest in.
Next, you should make sure that you understand how film investing works before you even approach filmmakers. For instance, if you invest in a film, you are generally only responsible for the amount of money that you give the filmmakers. If the company that you have invested in builds up a lot of debt, then you do not have to pay that debt. Also, make sure that you understand how revenue sharing and premiums work – and you should probably have a lawyer look at the contract for your investment before you sign.