Every film maker will reach a crossroad when they must make a decision on whether they want a full-blown career as a film maker, or they prefer to make films as a hobby. This decision usually depends upon the film makers ability to fund or finance their own projects. Most film makers do not think about financing future projects, they usually have all of their attention on the work at hand. Any film maker needs to acquire a knowledge of what it means to be a professional film maker, and how film investment works.
There will be plenty of people who want to give you advice and take advantage of your ignorance on these matters. While there are many legitimate companies, there are also those that will try to rook you out of the money you have earmarked for your film making project. A legitimate organization will not promise you they can get you a list of potential investors. The interest in your project will determine whether it should be presented to investors, not good fortune at running across a group of investors by chance.
The legitimate consultants know that there is no money to be made in the few hundred dollars many producers can afford to pay for their services. Serious financial consultants don't even want a percentage of the funds earmarked for your project. While they will charge you fees for their services, their goal is to see that your project succeed and find distribution. You will want your consultant to think of accumulated interest on the money borrowed over the course of production, and other aspects of the financial end of the project.
The most difficult thing about this will be to convince a legitimate producer's financial consultant to become involved with your project. The investor is the key to this, you need to find someone who is willing to invest in a high-risk film making project. You will need to know the investing criteria from the point of view of the investor. Below are a few film investing basics.
- A film investor will usually put up about 50% of the total film cost. The film producer is responsible for the other 50%.
- 30% to 40% should be enough to get most films made, depending on whether you will be able to convince other end users to buy into the plan.
- The investor will want to keep the budgets for the film project as low as possible. Foreign sales should be enough to cover at least 50%.
- An investment of $5 million should allow an investor to buy into several films.
It can be quite difficult for the independent film maker to gain financing. Another idea on financing your film making project is the idea of grant awards. There are many out there who will give an award to film makers who are excited about, and believe in, their film project. You will find them by doing a search for film making grants. Make sure you become knowledgeable about each grant, as they all have different criteria for the grant giving process.