There are a lot of filmmakers who think it’s still 1990. While it is nice to dream of Hollywood deals, the Modern Moviemaker refuses to ask permission. Film crowdfuding is gaining popularity as a viable way to raise money for movies.
Aside from raising money, the more important aspects of crowdfunding include testing, proving and pre-selling your movie concept. Additionally, a crowdfunding campaign allows you to test the footprint of your social influence.
When crowdfunding attempts fail, it could mean the concept is not yet interesting to the marketplace, your social media reach is limited or your marketing needs tweaked.
When in doubt, think of your project from the perspective of an investor. What seems more risky? The filmmaker who just had a successful crowdfunding campaign, sourced a mailing list of 10,000 rabid fans clamoring to see the movie? Or the unproven project with no plan for ROI?
Just because you are producing a film does not mean that you are no longer bound to the general principals of business. Traditional distribution is being replaced with Video On Demand. Pre-Sales are not what they used to be. And if you think you are going to sell a gazillion DVDs to the big box video rental company, think again.
You must never forget that you are creating a product. So before you approach any prospective investor, you need to first figure out how your project will make money. Film crowdfunding is great way to test the selling strength of your concept without spending all year creating a movie nobody wants to watch.