Revenue Streams
What Financial Options are there for you?
Every project needs finance and this comes through streams of revenue. These come with risk, unpredictability and return.
Things that affect type of finance:
. Size of organisation
. Commercial / Government
. Your project needs money. What are the options to acquire money:
Crowd Funding - Gofundme
Bank loan
Shareholder investment
Sponsorship
Corporate finance
Franchising
Advantages of Crowdfunding
. Its more efficient than traditional fundraising
. Doubles as marketing as media exposure - good for a production company
. Not a big loss of money for individuals if project fails
. Generally Online - helps geographically
. Everyone is happy - crowd funders get a stake in the project - they could end up getting more many than they gave in - if our short film does well - crowd funders could recieve alot of money
What is a sponsorship?
Money that is given, usually by a company, to support a person, organisation or activity. It can be the act of providing money for a product such as: TV, Radio programme. a sports event.
Examples
TV Shows may have a sponsor to have an ad in the break
. Films may have sponsors and this means that they can have product placement based on sponsorship (Waynes world product placement scene)
Types of revenue
Sponsorship - Payment for brand association with the final product. (Deliver made football advert to associate with football games going on
Crowdfunding - Funding from a wide variety of public sources using social media promotion
Corporate Finance - Money injected by businesses convinced the project is a good investment and will provide good return over a lengthy period of time
Advertising - Payment for brand placement within a media product
Franchising - The intellectual property if the original product is licensed to other partners for commercial use like merchandising in return for a fee or share of resulting revenue.
A piece of advertisement from the mens health website sponsored by Honda to show off a new car which applies well to lifestyle as it shows a general sense of pleasure and enjoyment.
A wide range of sponsored advertisements for lifestyle. These things include a wide range of demographics from older people of ages 60 over to people in a much younger generation about technology and general lifestyle options as well as tools such as gram marly being sponsored which can apply to uni students upwards
What is Crowdfunding?
People turn to crowdfunding because banks consider startups and small business ventures too risky. This is due to economic downturn while banks are able to borrow cheap and lend expensive (credit cards)
Entrepreneur -> New Method -> Crowdfunding websites -> crowd-investors/donors
Donation model
People can donate money in small amounts to a project which they believe that they have moral and ethical values. ( They don't get return for money given ) Which in turn means the business idea is also used
Pre order model
People make online pledges during a campaign to pre buy the product for later delivery e.g Kickstarter
Reward Based model
Where investors get the satisfaction of whelping and immediately receives a pre-determined rewarded or item of value. e.g indiegogo
Equity Model
People expect to make money from this model, allows large numbers of regular people to investing small amounts funding early startups, with the expectation to receive dividends or investment appreciation
Crowdfunding has grown at the same rate as internet usage.
Go on insight
Every project needs finance and this comes through streams of revenue. These come with risk, unpredictability and return.
Things that affect type of finance:
. Size of organisation
. Commercial / Government
. Your project needs money. What are the options to acquire money:
Crowd Funding - Gofundme
Bank loan
Shareholder investment
Sponsorship
Corporate finance
Franchising
Advantages of Crowdfunding
. Its more efficient than traditional fundraising
. Doubles as marketing as media exposure - good for a production company
. Not a big loss of money for individuals if project fails
. Generally Online - helps geographically
. Everyone is happy - crowd funders get a stake in the project - they could end up getting more many than they gave in - if our short film does well - crowd funders could recieve alot of money
What is a sponsorship?
Money that is given, usually by a company, to support a person, organisation or activity. It can be the act of providing money for a product such as: TV, Radio programme. a sports event.
Examples
TV Shows may have a sponsor to have an ad in the break
. Films may have sponsors and this means that they can have product placement based on sponsorship (Waynes world product placement scene)
Types of revenue
Sponsorship - Payment for brand association with the final product. (Deliver made football advert to associate with football games going on
Crowdfunding - Funding from a wide variety of public sources using social media promotion
Corporate Finance - Money injected by businesses convinced the project is a good investment and will provide good return over a lengthy period of time
Advertising - Payment for brand placement within a media product
Franchising - The intellectual property if the original product is licensed to other partners for commercial use like merchandising in return for a fee or share of resulting revenue.
A piece of advertisement from the mens health website sponsored by Honda to show off a new car which applies well to lifestyle as it shows a general sense of pleasure and enjoyment.
A wide range of sponsored advertisements for lifestyle. These things include a wide range of demographics from older people of ages 60 over to people in a much younger generation about technology and general lifestyle options as well as tools such as gram marly being sponsored which can apply to uni students upwards
What is Crowdfunding?
People turn to crowdfunding because banks consider startups and small business ventures too risky. This is due to economic downturn while banks are able to borrow cheap and lend expensive (credit cards)
Entrepreneur -> New Method -> Crowdfunding websites -> crowd-investors/donors
Donation model
People can donate money in small amounts to a project which they believe that they have moral and ethical values. ( They don't get return for money given ) Which in turn means the business idea is also used
Pre order model
People make online pledges during a campaign to pre buy the product for later delivery e.g Kickstarter
Reward Based model
Where investors get the satisfaction of whelping and immediately receives a pre-determined rewarded or item of value. e.g indiegogo
Equity Model
People expect to make money from this model, allows large numbers of regular people to investing small amounts funding early startups, with the expectation to receive dividends or investment appreciation
Crowdfunding has grown at the same rate as internet usage.
Go on insight
1.How much money were they asking for? - They were asking for around a total of
£250,000
2.How much did they get? - They received a total of £255,564
3.How many backers were there? - there was a total of 2712 backers on this film
4.Who is the director and why is this important? - The director was Vincent regan this
is important because this director has loads of experience from other films and was
previously with the royal Shakespeare company Therefore people know their
investment for the show is a safe bet.
5.How else is the project being funded? Private investors helped fund the film
6.What was the funding for? To be used in the production in a movie
7.Why do you think this was successful in gaining funding? Because it was a safe bet
to be invested on due to the director being well known
8.What has happened since it was funded?
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