5 myths about film investment debunked
Have you ever dreamt about fame? I suppose, that yes. Sometimes each of us wants to forget about all daily problems and become a famous star, walking the red carpet gracefully. But in order to become a successful actor, you have to put great efforts and be really talented. Nevertheless, if you have a wish to be involved in the film industry, another way to do that might be becoming a film investor. Generally, the industry is surrounded by a lot of misconceptions that scare the unfamiliar investors off. So, let’s take a look and debunk some of those myths to understand the real situation in film financing.
Myth 1: Film investment won’t bring you money
One of the biggest myths about film financing is that you won’t make money investing in production projects. It is completely false. Film investing is not only about returns on sales in box-offices, it is also about bringing money from TV, Internet and advertisement related to the film distribution and, thus, lifetime earnings. So, as long as you devote your time to finding a good film that is worth investing in, your profit can reach from thousands to millions of dollars. A great bonus is that there are film finance companies, for example, Red Rock Entertainment, that engage in different film projects and can help you to decide which one you would like to invest in. Executive producers and experienced financing specialists may explain you all the details about the investment process and will guide you through the way of your next big success story.
Myth 2: There is no logic in film investment
Disbelievers always say that if you have money, it’s irrational to invest them in films. It’s better to invest in real estate, gems or to buy shares of some corporation, as there is no guarantee that when financing films, you will make the money back. The thing is that it’s almost impossible to have any guarantees anywhere, but the logic proves the fact that if you choose a film with a professional production crew, right actors and an interesting plot, the benefit you will get from your efforts and patience will definitely overcome all arguments and financial expectations.
Myth 3: You won’t get any other benefits investing in films
Many people are unsure whether it is worthy to finance films if you get no additional benefits from it. However, it is not really true, as almost in every film financing case you can be offered a wide range of extra advantages. For example, the majority of Red Rock Entertainment projects (of course, depending on the film and the amount invested in it) can offer you a number of additional benefits such as: possessing your name in the credits at the end of the film, a possibility to be involved in the production of the film, an invitation to attend red carpet events, tax relief benefits, etc.
Myth 4: Little budget — low profit
I guess that that one of the biggest myths is that films labeled as low-budget definitely won’t provide a substantial return on investor’s contribution. People’s most common misconception related to the film financing revenue is that they’re used to the stigma: the higher the film’s budget, the more profit it will generate. But it’s far away from the reality. Sometimes, despite the enormous budget spent on the film, it doesn’t perform well in the cinemas as it lacks the audience’s interest. For example, many independent projects with low budget financed by Red Rock Entertainment Ltd brought their investors thousands of dollars as income. There is no matter how much the film costs, it only matters how it will be produced and promoted to bring profit.
Myth 5: When financing a film, you have to pay everyone
Many people think that when investing in a film production project, you will have to pay the actors, the crew, and producers, and, in fact, everyone who can be involved in a film. Of course, it is only a myth. Usually, production teams pay everyone out of their cut of the money, as well as they ensure their obligations to the investors before getting anything themselves. It is logical, because if they want to have other their projects being financed, they will try their best not to ruin their reputation and maintain good relationships with the cooperating investors.
Now you have 5 myths about film investment that have just been debunked. Hopefully, this information will help you to make a final decision when it comes to getting involved in film production and financing projects you’re passionate about.