Financing / Crowdfunding : Percentages for investors by Bryce Gardner

Bryce Gardner

Percentages for investors

The way I'm reading it, when using investors 50% gross is used to pay percentages to investors 50% gross goes to producer to pay for defferments, expenses and income. Is this correct? How are percentages figured out for investors? Amount needed divided by amount given? Does the payout stop after a given time, or is it infinate? I'm not a math person and this stuff gets confusing for me.

D Marcus

That is one of many possible methods. 50% can be high for a producer without a strong track record of making profitable movies. But you have the right idea - the investors get a percentage and the producer gets a percentage. Sometimes talent and the writer and director may get gross points. If you have multiple investors their points should reflect their investment. so someone investing $500,000 gets more points than someone investing $100,000. The payout can stop after a given time. But that could severely affect the value of the investment.

Bryce Gardner

Good to know I'm finally understanding some basics. Thanks D Marcus!

Other topics in Financing / Crowdfunding:

register for stage 32 Register / Log In