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Individual film investors typically invest comparatively small sums of money in independent films. While the investment can be enormous for the film, it is typically much smaller than the amount of money that can be invested by a studio. That said, while the budget of an independent film is generally smaller than a big budget blockbuster, film investors can still turn a profit on a small film. Usually, film investors should look for projects that they themselves love because investing in films is risky and it helps to have a personal investment. Other things to look for when considering film investments include the experience of the filmmaker, the scripts, and the strategy the team is using.
First and foremost, film investors who are working individually should try to invest in projects that speak to them personally. When the investor is personally interested in the film, he or she often looks at it as more than just a mere chance to make money. This can be helpful for the filmmaker, who feels that he or she has a partner rather than a boss to please. Also, if the film does not end up making much money, the investor doesn't necessarily feel as terrible for taking a chance.
It is also essential to consider the experience of the filmmaker and the crew involved. If the director, for example, has a lot of experience and has created other films that one likes, he or she may signal that the film is a good investment. Generally, it is important to trust in the skill and professionalism of all the people who are making the film. Investing in a film is much more like investing in people than in a business because the hard work and competency of the people involved can highly influence the film's success.
The idea of the film is also important. If the script is not well written and the concept is not interesting, then the film has very little chance of succeeding. In order for a film investor to make money off a film, the film itself must be good. No amount of marketing can make up for a bad product in the entertainment industry.
When filmmakers approach film investors, they typically have some kind of strategy in mind. Considering this strategy and determining if it makes sense from a business perspective is important when determining if a film is a good investment. A filmmaker should understand how a film makes money and should be able to explain to potential investors why the film is a good investment. If one really enjoys the idea of the film but does not trust in the business side of the model, one might offer encouragement and an investment conditional on the filmmaker seeking additional help. Film investors are often thought of as angel investors because they do not often recoup their losses, but by investing carefully and with a lot of love, it is possible both to be successful and to support independent artists.
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