Thursday, April 12, 2012

Ten Tips on How to Invest in Movies

Are you looking for tips on how to invest in movies? The one thing that most people don’t know about is that movies can actually be a rather safe investment. Sure, with any investment there will always be risk of the return not being substantial enough. But that is the inherent risk with investing monies into any enterprise; one may not get the return that they seek from their investment. However, much like any other worthwhile investment, movies also offer a lucrative returns benefit, one that is far more intriguing than many other investments. While there is a bit of a higher risk – as on any given opening day a movie can fail or epically perform – by comparison, it’s an associated factor that goes hand-in-hand with any other type of investment. And if the movie that you do become an executive producer on performs well, it may very well be your meal ticket to sweet, lasting dividends and financial remunerations. Learn some helpful tips on how to invest in movies in this article—and get your silver screen dreams rolling.

Ten Tips on How to Invest in Movies

  1. Calculate distribution. Ensure that the movie you are investing in has the appropriate distribution channels to make it a success.
  2. Talent. You always want to ensure that the movie is using known actors and names, and is not using no-name actors; as talent can often sell a movie on its own accord.
  3. Being patient. It will take some time for you to see a return on your investment. Movies take a while to produce and distribute, so be patient. 
  4. Tax incentives. This can vary from region to region, but look into the matter; there may be some cushy tax incentives.
  5. Business plan. Always demand a business plan before investing in any endeavor.
  6. Reputation. How reputable is the movie production company and its staff? Do your due diligence before writing a check.
  7. Marketing. Review all demographic reports, and ensure that the movie you are investing in has a strong market appeal and a defined niche. 
  8. Budget. Ensure that the budget won’t be constrained, and that the project won’t go into limbo because of budgeting issues. 
  9. Script. Read over the synopsis and make sure you are happy with the script before investing.
  10. Get a contract. Ensure that you always have everything in writing, and have your attorney review and approve any documents before signing them. 

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