Hi all--I was told I should post in here after soliciting feedback for my horror pitch deck in the 'Your Stage' lounge. While this relates specifically to an original screenplay of mine, I figured that others with similar projects would benefit from having numbers that are optimistic but not unrealistic to run by investors. With that said:
1) Is 45% ROI within (2) years a reasonable figure to pitch to investors? This assumes an R-rated horror film with a standard theatrical window and a flexible streaming timeline.
2) Depending on the answer to the previous, is 120% a standard recoupment to pitch for initial investor payout?
3) Hypothetically, for every million budgeted towards the project, how much would be spent on the development fund at the start? I'm curious if the increase would be directly proportionate or if there are diminishing returns when it comes to seeking development funds.
If there is anywhere else I should go in search of answers, by all means, let me know! And if I've not bored you all, I welcome more feedback on my pitch deck ;-P Here is the Canva link:
https://www.canva.com/design/DAGcbg1u2kw/ZYWC55VOOZHulpNKUQ_jNw/edit?utm...
Endless thanks,
Tommy G
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Tommy, here's some input for you sir: you'll need a budget completed because you'll be providing a 'Top Sheet' in your packet, and you'll need a shooting schedule completed first, and the budget is do...
Expand commentTommy, here's some input for you sir: you'll need a budget completed because you'll be providing a 'Top Sheet' in your packet, and you'll need a shooting schedule completed first, and the budget is done based on a shooting schedule. What's your ROI based on? Be sure your gross revenue - all expenses (all!!) = Net revenue. You mentioned "standard theatrical window" - a lot of distributors do not distribute small indie films as it's costs to much. Plus you will have to deduct the theaters/exhibitors cut, and then deduct the distributors cut. And it's at this place in the money chain that filmmakers often end up with nothing. I've never heard of Development Funds being based on proportion to budget. For example, if you require $10K in dev funds, why would this increase to $30K for the same thing for $10K? You're an indie filmmaker so you'll probably have to absorb this cost yourself. Keep in mind, that an investor probably will not look at your project/packet, someone on their team will vet it, and this includes handing it to someone who knows film production, so all your numbers will be checked. Be ready to defend your budget, i.e. where you got the rate for ____.
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Hello Tommy Garcia As above is certainly very good advice and critical steps to being prepared for investment. I agree, development funding should not change drastically, save for reaching for higher...
Expand commentHello Tommy Garcia As above is certainly very good advice and critical steps to being prepared for investment. I agree, development funding should not change drastically, save for reaching for higher stars which might increase that figure.
As for ROI that is entirely project contingent and only a thorough market analysis by a professional will yield that answer.
A Premium Return of 120% is a standard recoupment figure prior to disbursement of net proceeds.
Good luck with your film!
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Tommy Garcia What's your target budget? You have a lot of titles on your profile that should answer all the questions you just asked so I'm don't really get where you're coming from. The smaller the b...
Expand commentTommy Garcia What's your target budget? You have a lot of titles on your profile that should answer all the questions you just asked so I'm don't really get where you're coming from. The smaller the budget the bigger you can make your ROI offer because it comes out of the revenue your film makes. I wouldn't go over 150% but at least it gives your investors a added incentive. What kind of cast do you need? It's a horror film so you don't need A-list actors. You need good screams and actors that can do the materials. You need a good script. No lame dialogue. Give your characters an I.Q. over 70 and be original to your approach. Do you need a distribution deal? No. Not if you're a good film maker. If they think it'll sell, they'll make you a deal. If you sign now, you put yourself at their mercy, but if you're gambling on your skill, you better be the best and know your craft. Modern day audiences want to be amazed and entertained. They don't want to make up excuses for poor quality because of your budget.
You can find all the market projections you need on the site The Numbers. Don't worry about market projections. Focus on market goals. Always plan for a theatrical release of at least 1,500 screens (Not theaters) There are 39,000 screens in America alone. Set a goal on how many tickets you want to sell and plan a marketing strategy to make the public aware of your project. Distribution marketing is more of a scam then it is a plan. They have no accountability to how many people they reach and no data on how many people they convince to watch your film. It's not all on them because you have make a great film.
Control the tiller of your ship. You're in a leadership role. Show everyone you can lead with a clear mind and a razor sharp focus to succeed by creating entertainment a lot of people can enjoy.
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Philip David Lee The Numbers is a great tip... thank you!!!