Everyone knows film is a speculative investment even on its best day. The odds of an investor ever making their money back on a film are only slightly better than those of winning the lottery. That's not to say it can't happen, but there are tons of factors involved that, despite your best effort, are 100% out of your control. So... what's the draw? How can you make someone want to invest in your next film?
When pitching, you may want to consider employing one or both of the following strategies (for lack of a better word):
1) Urgency & FOMO: Set a start date. Let your investor know that you are moving forward on INSERT DATE HERE and you would love to have their support. Now, this is admittedly a tricky approach, especially if you don't have any money committed. So, "moving forward" could simply mean the creation of the LLC and the official, limited opportunity raise. Get a verbal commitment and let them know you will follow up with the legal documents by X date. If you keep your raise small and make the opportunity "exclusive," there is a chance you could strike a FOMO (fear of missing out) nerve. Then, when you have your commitments in place and can set a start date, launch that crowdfunding campaign to shore up the last few thousand without impacting the share price.
2) ROC (Return on Community): Everyone talks about return on investment (ROI), but I work with an EP who often talks about "return on community." Meaning, the impact the production of the film has on the place where you live. Granted, if you live in a big production hub, this is a little harder of a sell, but if you want to produce your film in a place that doesn't experience a lot of film production, the making of a movie can be an exciting event! Not to mention, it has an economic impact on the people and businesses supporting the production. Films give back. So tell your investor that they're not just supporting your film, they are supporting the community where it's being made. I've seen some success with this approach, and you might too!
How do you like to generate excitement with investors? Let us know in the comments below!
Thanks for sharing the strategies, Michael Fitzer, Mfa! A solid business plan and outstanding pitch deck can help generate excitement with investors.
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I think having a great screenplay is the best way to find producers to finance a project -- Vic Alexander