FINANCE YOUR MOVIE with CREDIT CARDS (Beware! …DO NOT DO WHAT THIS ARTICLE SAYS)
by Dov S-S Simens on August 28, 2015
LOW BUDGET MOVIES FINANCED WITH CREDIT CARDS
When financing your 1st feature film… Although several speakers teach the cuteness of making a movie utilizing credit cards (as if they’re free) I beseech you “Don’t” “Don’t” Don’t”. Now permit me to explain why Funding your 1st feature film, especially Micro-Budgets, with 1-10 credit cards is a very bad idea.
Below is a very slick article (Click & View it) titled “HOW LOW BUDGET FILMS GET FINANCED”
CAVEAT: When you click Hyperlink it brings you to a Time Warner Page then scroll down and you’ll see the article “HOW LOW-BUDGET FILMS GET FINANCED”. the click.
Do it… please
It is from a site “CreditLoan.com” and it shows pretty graphics and wonderful numbers about the success of films that were financed by using credit cards. And it does give 4-5 examples of movies being made, and profiting, with the use of Visa/Master Card/Amex but what it does not do is give you the 30,000-40,000 examples of movies made that never made a profit and probably never even got distributed… But the person utilizing the credit card, fueled with a dream, is now fighting or declaring bankruptcy.
Once again, I repeat, after reading this very slickly written-produced article, which is really an advert…. “Don’t do it”…. “Don’t do it”… “Don’t do it”…
Now on to the article…
The films they discuss to sucker you into using credit cards with 22%-29% interest rates are.
(A) “HOLLYWOOD SHUFFLE” (1987)
(B) “EL MARIACHI” (1992)
(C) “CLERKS” (1994)
(D) “FOLLOWING” (1998)
(E) “BLAIR WITCH PROJECT” (1999)
(F) “AROUND: EMBRACE THE FALL” (2008)
(G) “VALENTINO: THE LAST EMPEROR (2008)
The article then went on to show that….
(A-1) “HOLLYWOOD SHUFFLE”… made for $100,000, Grossed $5,200,000
(B-1) “EL MARIACHI”… made for $7,000, Grossed $2,000,000
(C-1) “CLERKS”… made for $27,000, Grossed $3,100,000
(D-1) “FOLLOWING”… made for $6,000, Grossed over $43,000,000
(E-1) “VALENTINO: LAST EMPEROR”… made for $1,200,000, Grossed $1,700,000
(F-1) “AROUND: EMBRACE THE FALL”… was made for $175,000 with over 40 credit cards
(G-1) “BLAIR WITCH PROJECT”… was made for $35,000 and Grossed $140,000,000
The article (read it yourself… Please. Please. Please) went on to talk Rah-Rah about how successful you can be with low-budget movies when you have talent, passion, desire and a script.
READ THIS ARTICLE & DON’T DO IT….
www.visualeconomics.creditloan.com/how-low-budget-films-get-financed/ (Don’t do this. Don’t do this. Don’t do this)
The article is one of those “sponsored articles” (aka: paid ads) you see on Facebook or Google in hopes that it goes viral (which I sadly am assisting BUT WITH LOUD CAVEATS) and that you utilize your credit card to finance your movie.
What they don’t tell you is how stupid a venture it is. The credit cards must get repaid. The interest on these cards runs many times from 22-29%. And my guess is that 999 out of 1,000 first-timer filmmakers that use credit cards to finance their dreams… their films… go broke.
But this article only tells you about the 1 out of 1,000 that forever reason got lucky (God liked) and the filmmaker hit what I call “Filmmakers Lotto”.
WARNING. WARNING. WARNING.
Do not (I repeat) Do not (I repeat) Do not ever use a credit card to finance a movie.
Now, what to do!
FINANCE YOUR 1st FEATURE FILM:
(ONE) MEGA-BUDGET: Partner with a Production Company with a Major Studio’s Development Deal
(TWO) MEDIUM-BUDGET: Take your package (Script, Budget, Actor) and book a room at Cannes, AFM or EFM and pre-sell, pre-sell, pre-sell
(THREE) LOW-BUDGET: Do a Private Offering with Investors, offer 50% of profits & sell 20 Units (aka: shares at $25K+ each) and raise $500,000+
(FOUR-1) ULTRA-LOW-BUDGET ($50K-$500K): Do Crowd Funding “Equity” with sites like WeFunder, Fundable & FundAnything.
(FOUR-2) MICRO-BUDGET ($5K-$50K): Do Crowd Funding “Donations” with sites like Kickstarter, Indiegogo or Rockethub
Again…. Please. Please. Please… No Credit Card Financing for your 1st Indy Feature Film
Dov Simens / Dean / Hollywood Film Institute
I’m Dov Simens and if you desire to Write, Produce or Direct then my 3 affordable & practical Film Programs (Live, DVD or On-Demand) are perfect for you…
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