Can you make money investing in movies? Is film investing risky? What are the hazards, and what should one look out for when purchasing a movie? These questions and more is going to be answered in this article.
Yes, you can make cash investing in a movie. And here is a surprising fact: It is easier to make money having a low budget movie, than with a big budget movie.
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Of course the big blockbuster movies make the headlines, and make a lot of money sometimes. But because their own cost of production is so high, percent wise, the profit they can earn is not anywhere near what a low quality movie can make, percentage wise. A large budget movie can make two or three times their own cost of production. But a low budget movie can make a thousand times the price of production.
You can find low budget movies to purchase by searching the net for “how to invest in a movie” or “how to invest in a low budget movie. ” When searching for a low budget movie to purchase, it is best to not even think about there becoming big name stars involved, or costly action scenes. Low budget movies earn money when there is a compelling and intriguing story that viewers can determine with. If a movie can make an audience laugh, and cry, and if there is suspense, and danger, with a delighted ending, it has a good chance of making a profit. It must of course be professional looking, with good acting, plus there are talented filmmakers and many very talented unknown actors who will function cheap to achieve this.
When researching any film project to invest in there are certain things to look for. Usually the prime person will be the writer/director, and this person should have a great track record. This person may not possess achieved big fame yet, but he or she should have successfully produced a few short films, and won some awards or other recognition. If they have already produced a feature film or even two with little or no success, they may not be as good a bet as a short film producer who has talent and that has shown much promise with brief films. It is a judgement call, the other to look for is a filmmaker who has already put heart and soul into their project, plus who will be investing money in this too.
Such a filmmaker may have already done a lot of prep work, which includes shooting practice scenes with offer actors. By doing this, the filmmaker probably learned a lot about each scene, and made some mistakes. This means that when the actual movie is being chance, it will be like it is being shot for your second time, with all the bugs worked out. This makes the actual movie shoot go quicker, which will keep it under budget. Your investment will be driving on the talent, ability and determination of this key person. You should check out this person to see if they have credit with the Independent Movie Data Foundation. (IMDB). It is also wise to watch a selection of their earlier work, and to check out any successes at film festivals.
Just how much might a low budget movie price? A typical movie might cost two hundred to 300 thousand dollars. Yet a filmmaker may actually have 2 budgets. For example the filmmaker may wish to work with a budget of 300 thousand dollars, but have an alternate budget of approximately half that or less. The movie can still be made for the lower amount, with the cast and crew being paid less up front, with the guarantee of a larger amount when the film is sold. With the higher budget, the particular unknown cast and crew is going to be satisfied to be paid out fully for work, with nothing more because of them afterwards. With the lower spending budget, they will at least earn living expenses, with the expectation of considerably more later. As an trader, there is less risk for you with all the lower budget, but your profit potential will be less than with the higher spending budget.
Finally, it is important to pick a movie task that will not make theatrical distribution the prime focus. There is plenty of income to be generated through TV sales, and a great story movie will be shown on TV repeatedly for many years. There is also huge potential these days for streaming videos, on desktop computer computers or TV screens, or perhaps mobile devices. If you do your research with all of the over in mind, you can make money investing in a movie. Be sure to ask to read the script after you have done some initial conntacting the filmmaker.
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