How Does an Independent Film Producer Raise Money for a Film?
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Independent Film Producers
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An independent film producer has to be creative and persistent when working to raise money for the production of her film. Independent film producers have not proven themselves in the business, and their films have a good chance of losing money. It may seem that the odds are against them when it comes to raising money, but that is not true. There are many investors who enjoy supporting the arts and who will help fund an independent film.
The Proposal
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The first--and perhaps most important--step for an independent producer to do when trying to raise funds is to create a proposal for potential investors. A good proposal outlines the title and summary of the film, actors cast for the film if known, the director if known, the estimated costs to make the film, the expected release date of the film, where the film will be shown if known (film festivals or video release), and the percentage of profits the investor would get if the film makes money. A well-written proposal will increase the chances that an investor will take the independent film producer seriously.
Investors
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Independent film producers look in multiple places for investors. They ask investors that they know. They sometimes ask industry associates for a list of investors. They enlist the help of companies who match independent filmmakers with investors. Some even choose to use books like the "Hollywood Creative Directory," a book that lists active producers with their contact information.
Independent film producers sometimes contact companies who own products. Some product companies will invest in a film in exchange for advertising of their product. For example, a soda company invests in the film in exchange for their brand of soda being shown in the film.
The Contract
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When an investor agrees to invest in a film, a contract is signed between the producer and the investor. The contract states the terms of the investment. For example, the contract states how much money the investor gets if the film makes a certain amount of money. If the investor is a product company, the contract states how the product will be displayed in the film.
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