Investing in Independent Films to Make Money
74Independent films can be a profitable investment opportunity.
Independent films produced on micro-budgets of $ 500,000 or less can bring tremendous profits to the investors. The Blair Witch Project cost $ 35,000 and grossed $240 million and Tadpole cost $150 thousand then sold to Miramax Films for $5 million.
A movie is a product and creating a positive return on investment depends on key variables:
- the story,
- the production team,
- opportunities to screen at film festivals and
- the chance for distribution.
How much money does it take to invest in an independent movie?
Consider Joshua: Heart of a Warrior.
Investment and advertising opportunities exist for both individuals and companies.
An executive producer can own up to half the film for $ 50,000.
For only $ 5,000, an investor can receive up to 5% of the revenue from the film.
Or, businesses can advertise in the film for complete packages ranging from $ 6,000 to $ 1,500. Individual sponsorships are also available.
A full investment and advertising package is available from producer Marcos de la Torre.
Joshua: Heart of a Warrior is directed by Addison Henderson, a respected documentary filmmaker from Buffalo, NY and written by Choice Skinner, an accomplished actor and martial artist. Filming begins June 22. Promotional footage is available on YouTube.
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I spoke with producer Marcos de la Torre on why he believes the film is a good opportunity for an investor or business wanting to advertise:
The Story
An investor needs to consider if the story is one where people identify with the characters.
"The film is a mixed martial arts film which is growing in popularity as a sport," said Marcos. "But instead of just being an action-packed film, we see the humanity of the characters through a tragedy that strikes the main character, Joshua. He becomes disabled and a once ‘mighty warrior' now depends on others to care for him."
Marcos believes the story will appeal to a wide audience.
Production Team and Production Values
An investor needs to see who is producing the film.
Darkan Entertainment approached Knuckle City Films as the production company. The film fits with both companies core values of portraying real life situations. Marcos de la Torre and director Addison Henderson of Knuckle City Films have won acclaim for previous films and documentaries which are featured on the company web site.
Opportunities to Screen at Film Festivals
An investor needs to determine the film's chance of building an audience which will result in later sales in the domestic and foreign markets.
Filmmaking is a calculated risk. But the strength of the story, the production values, and since Knuckle City Films has had previous productions in film festivals all combine to give Joshua: Heart of a Warrior an excellent chance of building an audience.
Distribution
Investing in an independent film also requires distribution to ensure success. Joshua: Heart of a Warrior has earned the interest of Think Film for distribution upon completion (http://www.thinkfilmcompany.com/).
Knuckle City Films has produced a complete investment package including marketing strategies, risk analysis and competitive advantages of Joshua: Heart of a Warrior.
Requesting the package gives prospective investors a chance to expand their personal and corporate portfolios and offers an education on the financing of an independent feature film.
Investing and legal resources
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Dollar General may prove a worthwhile investment since it serves customers who rely on cash and low prices rather than credit and growth. - Using Legal Zoom for small business owners and entrepreneurs
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Interesting I am goign to have to look into that more, I knew you could invest I honestly just do not know how. I always thought you had to be in the industry to do such a thing. When I lived n Redondo Beach I never was able to follow up. Do you have more information on this ? Great Article !!!
Great hub and extremely useful information. Has this hub and/or your blogging brought you any potential investor inquiries for the aformentioned project?
Some very good infromation.
Great hub. We are working on something just like that. Check it out (my hub)
Interesting hub Don. I agree that films can be a very lucrative venture. I write screenplays and am considering producing one of my movies here in Chicago.
Several years ago I met and worked with a filmmaker that produced micro-budget horror. He worked with digital to keep expenses down and shot on a $15,000 budget. When finished he would sell the film in specialty and foreign markets and make a clean 20 grand or more in profit then move on to the next film.
His stuff would never be seen on the big screen but he didn't care, he was making the kinds of films he enjoyed and working with the kinds of people that helped him succeed.
Self financing or finding investors would be the route I take when I'm ready to produce.
What I'm always surprised to discover is how many independent films there are that were inspired by or heavily influenced by short films. The film Napoleon Dynamite, for example, was sold to Fox Searchlight for $3.2 Million (and later earned over $44 Million in box-office sales) but was expanded from a short film that the filmmakers had previously made called Peluca, which was shot in two days for less than $500.
Filmmaking can be expensive, but if you've got a marketable idea--and short films are a good way to find out--the profits can be substantial.
Thanks, Chad. I had no idea that Napoleon Dynamite was taken from a short film. I wonder how many other short films have that potential and yet remain unrealized.
I am gearing up to make a low budget movie this summer and you have some good advice here. I had tried once to make a film using my credit cards but got burned out due to not having the resources near me at the time.
Good luck with the film. Are you in pre-production now? Do you mean you purchased some initial expenses using the credit cards but couldn't pull together the talent or other resources?
Mr. Simkovich, I apologize for not replying to this sooner! In response to your questions:
I am no longer in production on the film. The more I worked on it, the more I lost the desire to do that project so I let the writer take over. He is going to film it this summer. I am moving on with another project that I myself am writing right now.
As for what happened with the credit cards: This is probably worthy of a hub all by itself but in a nutshell: yeah, it was all the initial expenses. I then hired some college kids to crew it but they didn't show up and never heard from them again. I was stupid at the time... heck, I'm probably still stupid now but at least I know how to do things now.
That's why it's called the "MOVIE BUSINESS." But you can also diversify and invest in a portfolio instead of only one movie. Stratus Media Group(SMDI) is an example, owning and operating over 140 live entertainment events.
check out their website....http://www.stratusmediagroup.com/
And Here's some info about the Perugia Film Festival, a great festival right near Tuscany!Stratus Media Group just bought the rights and will do a great job of drawing talent and making into a profitable and beautiful celebration of film!
John, I'm late in responding to your comment. Thanks for it and I'll take a look at your site and the film festival you mentioned.
Thanks so much for this, up until now I've only dared to invest in music though I've been looking to widen my horizons.
In fact, Secret by Ryan Inglis (1st single from his upcoming album) is released for download tomorrow on all major internet retailers, check it out!
I'm producing and directing a low budget feature comedy that has already garnered quite a bit of interest. The word of mouth is going fast and we have got some very good meeting with two canadian distribution companies at the last TIFF. We are still looking for investors. Hit me up if you're interested. More details on the project at :
Hein Marais 3 years ago
Great Hub. Never thought of movies as an investment opportunity.