Don't Get Scammed

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Far Effect takes pride in running a fully transparent and honest business. With any industry there are plenty of ways your investment can be shaven, lost unintentionally or outright scammed. Our goal is to always educate our partners and have them feel comfortable and confident with their investments. All of Far Effect's projects are audited by a major accounting company. Below are 5 basic tips if you are new to the film industry.

Tip 1

Always invest into the Intellectual Property that is the film itself. Do not write a check to a production company unless they are very reputable and you know EXACTLY where your hard earn dollars are going.

Tip 2

As all business ventures carry some risk, the best thing you can do to de-risk your investment is diversification. Having your money spread out through multiple projects ( known as a slate ) reduces your chances of going backwards and raises your chances of hitting a home run.

Tip 3

Know who you are working with. There are a lot of "talkers" that throw out big names and numbers. But can they actually deliver? Did their movies actually make money? Did you know there are two budgets? An announced budget and an actual budget. Only deal directly with teams that have a history of making successful films with positive return on investments.

Tip 4

Know where you are in the payout waterfall. A movie may make money, but if you are the last to get paid you're going to be waiting a very long time to make some money. You should first to be paid only behind Print and Advertising and debt if there is any.

Tip 5

Make sure your distribution commissions are normal. What does this mean? It means distributors are paid to share your film and are rightly paid for their services. But make sure you are not paying two distributors or being "double dipped".