Corporate Sponsors or Investors in Indie Film? A Guide to Film Sponsorship
As an independent filmmaker, you’ve most certainly had your share of ups and downs. Especially when it comes to establishing the relationships with sponsors. Who could potentially make or break your production. Sponsorships are the key to acquiring the funds needed to produce an indie film. But they aren’t always easy to come by. Even when you do find yourself in front of the sponsors that could change the direction of your film project. Launching it full speed ahead into production status. How do you choose between corporate sponsors or investors in indie film?
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Financing an independent film is largely a matter of understanding the various types of financing that are available and what it means to find a film sponsor or an investor.
Difference Between Corporate Sponsors or Investors in Indie Film
In its most basic format, the difference between a sponsor and an investor is that sponsors generally take on some responsibility. In exchange for their investment into a film.
Whereas an investor usually provides money in exchange for the intended return of a profit. Thus, corporate sponsors invest their resources into your independent film project in the form of money, product or service offerings.
Or both! All in order to help you get your project off the ground. Whereas investors generally provide money in exchange for an expected return on their investment when the film profits.
The Relationship
In determining which is best for your project, corporate sponsors or investors in indie film projects will generally have different benefits.
The sponsor is going to provide a give-and-take relationship. Such that they will provide resources in exchange for some part in the film’s production or in exchange for a credit of some kind.
Likewise, an investor is going to provide resources in exchange for an agreed upon percentage of the future profits or sales.
How Corporate Sponsorship for Indie Films Work
Corporate sponsorships tend to frequently be connected with advertising. But sponsorship does not mean advertising. Don’t get the two confused! Corporate sponsors for indie films will provide corporate resources. Sometimes including advertising.
As well as other benefits that could potentially help a film production succeed. However, a corporate sponsor might also have specific expectations or a “vision” in mind for the film.
And they might want to be more involved in your production than you so wish. This is important for you to consider, and to discuss upfront, before entering into any corporate sponsorship deal.
How Investors in Indie Films Work
Unlike sponsors, investors typically don’t want a role in the production nor do they have a vision for your film, in fact they expect you to have all of these bases covered.
The investor is going to provide funding for your film in exchange for the potential ROI that will come from future film sales, merchandise sales and similar profits.
However, filmmakers beware! It is illegal to over promise or to otherwise inflate the potential value of your film when seeking investors. You must not tell investors that you’ve got the next Titanic unless you can actually back up your claim!
In Summary
As you seek to decide between corporate sponsors or investors in Indie film, make sure that you’re closely analyzing the differences in the two types of financial assistance and what it may mean for your production.
If you’re looking for a more hands off approach where there will be few requests made as to the direction of your film, investors might be the way to go!
