Film Project Package Prospectus (Template)
Film Project Package Prospectus (Template)
Film Project Package Prospectus (Template)
Send you Film Package to potential investors with a cover letter which includes the
offering. Say Hello, Intro the package by telling the potential investor what it is, who
is in it, etc. Also include what type of investment you are seeking (Loan or Equity)
and how you are going to do it (Single or Multiple Investors) and be sure to spell out
the deal as specifically as possible leaving no room for misinterpretation or
renegotiation.
The first thing you do to make a film is form a Limited Liability Company (L.L.C.),
which will own the film. The company can have the same name as the film. The
Limited Liability Company (L.L.C.) can be set up through IncUSA.com
(http://www.incusa.com). In the equity investment arrangement you will sell points,
at a price you set yourself, to the investor which represents a percentage of the
ownership of the film you incorporate. The points are separated into two categories:
Producing Points and Financing Points. Producing Points are the points that you keep
for yourself and they will begin earning money after your financial investors earn
back their investment plus interest. Financing Points (Equity Investment) are the
points that you sell to investor to raise money to make your film and are the first to
get paid back (100% + Interest). For determining the prop interest rate to pay your
investors check the current Federal Interest Rates. Never sell more tha n fifty percent
of your film to financial investors or else you could loose control of your film project.
If you are planning on selling your film you need to do an Errors & Omissions Audit,
which is a legal and financial audit of all the work you did on the entire film project.
This is to prove to the buyer that all of your affairs are in order. If you can set aside
$3,000 to $5,000 each on an independent film and ~$50,000 on a feature film for a
Lawyer and a CPA to handles your legal and financial matters pertaining to your film
then you will be in good shape.
Best deal you can get for distribution is called Negative Pickup which means that
after you have made your movie the studio will buy the film from you for a fee and
give you a percentage of the revenues. Great deals for short films (IFC, Scifi
Channel, Sundance). The largest direct DVD distributor is Image-Entertainment.com
(http://www.image-entertainment.com). The Distributors have the P&A (Prints and
Advertising) Money which can help bring great success to your film project by way
of exposure.
Product Placement is something to keep in mind because companies may give you
money to help make your film for featur ing their products in your film.
When it comes to purchasing film stock check into buying film stock from outside the
United States in countries such as Russia (i.e. Mos Films) or India because the
exchange rates and the fact that the film all comes from the same Kodak factories
means that not only is it the same quality it is also much cheaper.
Keep in mind that the 13 year old male is the largest theater ticket buying
demographic in the world.