LOOKING FOR AN INVESTOR

[ad2478]

I think you have taken my question wrong. If you see the previous posts here. Direcroik said investors can ask what will be ROI. Now obviously we will have some strategy, planning or research to answer them. Or will be sit and see investor's faces ?
Now as Directorik himself said we need to be prepared to asnwer this question. So my question is what will be the answer of this question which an investor will ask. Secondly by what means we will derive the answer of ROI question by ROI?
i hope i have made it clear now.

 

[sonnyboo]

I want to know being a filmmaker how can i figure out an expected ROI?? I mean ok i can have a plan that i will make 1000 dvds, contact my local Tv channel, etc but how will i make a ROI estimation? Because no one knows who will buy my film and at what rate. So kindly guide me how can we analyse and calculate the expected ROI.

Regards

The original question on ROI was "what is ROI" not "what will be the ROI".

Predicting a return on investment is not an exact science. It is important to include relevant data, such as examples of ROI on similar genre and budgeted features, which can be obtained in many ways. If you can demonstrate another films with similar costs and themes, show there is an audience for it, then you present that to investors as a model for ROI that you are following. You have to clearly state these are not guarantees, but that you are demonstrating a business sense and some idea HOW to get money for your product.

Showing the costs of the production, the cost of the replicated 1000 DVD's and how much you are selling them for, plus any P&A campaign you intend will show the mathematics on how much money can be made.

 

[ad2478]

Sonnyboo.
See the first post of Directorik. He said

3) What ROI are you offering?

So the question obviously means that what will be the ROI to Investiors.


By the way thanks for your suggestions. I had the same thing in mind that we will have to show the past record of films like this to Investors. But i thought investors might be more specific and will purticularly ask about the project in front of them rather than seeing the past financial record of any other movie. So i was confused what will be our reply at that time. Now you have made it clear that we will show them the history of movie records with similar theme, costs etc.


Thanks a lot

 

[sonnyboo]

If you have no history of making money, all you can do is show how other first time filmmakers DID make investors money. Once you start developing a track record - film festival official selections, awards, press clippings on your filmmaking, shorts sold to cell phones, etc. you can start using the data to supplement a feature prospectus or business plan.

 

[ad2478]

sonnyboo thanks for the suggestions.

 

[sonnyboo]

Sonnyboo.
See the first post of Directorik. He said



So the question obviously means that what will be the ROI to Investiors.

In this context, I assume (and could be wrong) - what percentages. Usually the Indie Film norm is to offer first monies in to recoup investment, then 40%-50% of profits from there.

 

[directorik]

The distinguished Guru from Ohio is correct.

I ask that question mostly to hear the answer - to gauge the
understanding of the person asking for investors. Most people
asking for investors are not ready to even ask, and not knowing
what ROI means is an indication of that.

What a filmmaker has done their research (as you are doing Adeel)
they will be able to answer. Even if the answer is, “We haven’t
finalized the ROI yet.” or “We’re planning on full payback plus
3% before a 50/50 split.”

As you saw here, the OP got defensive when asked a question she
didn’t understand. Perhaps that’s why she has hag problems in the
past with producers.

 

[ad2478]

As you said directorik
What a filmmaker has done their research (as you are doing Adeel)

.
I hope you are complimenting me (or am i wrong).

You also said
As you saw here, the OP got defensive when asked a question she
didn’t understand.

i think we should always be positive and should ask questions. After all we are lucky to gain knowledge from www.indietalk.com, GURUS and it's members.