Most independent filmmakers do not research and utilize realistic sales projections when developing their Business Plan, or worse, they do not use sales projections at all. This is a huge mistake. Sales projections for your film project are absolutely necessary so you can properly budget your project, raise the necessary financing, and ensure your chances of paying your investors back.
When you are developing a set of projections, the following should be considered:
- Develop a set of projections starting with detailed revenue. It is important to have a clear idea of where the movie will be released and how it will be released. The type of release will greatly impact the revenue you could receive. You should have a good idea of what you can sell your movie for before you develop your budget.
- Make sure your production budget is solid and based on the final shooting script. These numbers can change, but it is important that you know they have changed, and why. You should be constantly updating your budget throughout the film project.
- Do not guess. You should always make every effort to obtain good, hard numbers. Have other producers located in the area you are planning to film take a look at your budget.
- When developing your projections, be sure you to include all of the available distribution channel
- US Theatrical
- US Broadcast
- US Home Video
- Foreign (DVD and other rights
- Online streaming, download and Film websites - The sales projections should be done for 3 different levels, starting with a low revenue estimate, a high estimate, and a mid range estimate. The high and low extremes are very important as they will form a potential range of possibilities.
Keep in mind there are many variables which will determine the price distributors will pay for your film at any given time (including, but not limited to: market trends, comparables, genre, subject matter, actors, producers, or directors involved in the project, if it did well at festivals, commercial viability, etc).
Include distribution costs you expect to incur. These will vary with the level of revenue included in the projections and will be different for each distribution channel. You will also need to develop a cash flow projection, a cash break even, and a net profit break even analysis. These can be included in your business plan.
Back to Top of Importance Of Sales Projections For Your Independent Film Project
Author: Jack Heape, Originally Published March 4, 2009
http://www.articlesbase.com/movies-articles/importance-of-sales-projections-for-your-independent-film-project-801203.html
About the Author
Jack Heape is a native of Columbia, South Carolina. He attended school in North Carolina, where he was active in the arts, performing in numerous theater, dance, and TV productions. Jack received his BS degree in Economics from Excelsior College, and graduated with honors with a Masters in Project Management from the University of Arkansas. After graduation from school, Jack entered the US Navy, where he served in various capacities, in particularly as Supply Officer on various nuclear submarines stationed in Charleston, SC. Currently the Executive Director of the Carolina Film Factory, a 501c(3) corporation, Jack is also the general partner for Hobo Productions, LLC. Jack has over 20 years of experience in Marketing, Advertising, and Public Relations. Directing Highlights Dollar Girl (2007) Six Degrees of Desperation (2007) Saving Maggie (2008) In production Producer Highlights Final Reckoning (2006) Dollar Girl (2007) Six Degrees of Desperation (2007) Saving Maggie (2008) E-motion (2009) Preproduction Ruby (2009) Preproduction
Back to Top of Importance Of Sales Projections For Your Independent Film Project
2020 is YOUR Year - Make Your Movie
FilmProposals Financing Packages
Bronze
- Financing Manual
- Financial Projections Template
- Business Plan Template
- Regular Price $137, Save $38
Silver
Most Popular- Full Bronze Package
- +Indie Film Pitch Deck
- +Investor Agreement Outline
- +Film Budget Template
- + BONUSES
- Regular Price $214, Save $75
Testimonials
Check out some of our Filmmaker Reviews-
Just want to thank you for your materials and help over the past year. I could not have raised the $1.5 million or made this film without the materials you provided -- and for $99? The bargain of my career!
-
I'm now sending out my completed business plan/film proposal document to potential investors and the one comment I'm getting back almost immediately is that it's so well laid out and professional. Believe me, first impressions really do count.
-
This is perfect! I have potential investors but I had no idea how to prepare a professional investment package to present to them. (I'm an artiste', not a business person. :) ) The information is clear and easy to understand, and Melissa is very prompt in answering emails.
-
When I came across the Business Plan Tools and the Finance Guide, I felt like I could stop searching for the pot of gold...I’d found it. In one place, with clear, easy to follow materials and spreadsheets, my questions were answered.
-
Hi Melissa! I purchased Package #3 a couple of days ago, and I feel like I'm taking a crash course in film financing. So far, what I've read and learned has been invaluable. Thank you!
-
I've made short films before, but this is my first feature, and the first film I've tried raising money for. This template, actually the whole package, has been invaluable and well worth the money I spent on it. So much information is packed into what I got that I'm almost dizzy from it all.