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Acquisitions
Hi, first time post and my question is:
Can anybody tell me the protocol to show a project for purchase by broadcasters. I am working on a project to deliver music concerts to HD TV broadcasters. I have a meeting next week to discuss my project. It’s a little premature but I want to get info on what to ask for or perhaps when they tell me what they’ll pay, itf it will be a good deal or not. I also want to know if broadcasters purchase the program outright or if the purchase just the showings. Is it better to retain the rights and show it on different networks – home & abroad? I would appreciate any comments.
Jeff
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2 Replies
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Hey Jeff,
Good question. I think that an early meeting is a good idea, and I personally am not the kind of person who belives you need to “front,” oversell, or otherwise pretend you know a whole lot about stuff that you do not actually know when you meet with prospective clients. While that strategy does work for some poeple, it is not for most. If you are new at this there is no shame in admitting it.HOWEVER, I would NOT discuss price at an exploratory meeting. The broadcasters do not know you, they do not know what kind of product you can deliver, and asking them what they would pay could really put them on the spot. If they do answer, you will esentially be allowing them to set the terms while openly acknowledging that you do not know what your services are worth. In short, they will lowball you, and getting them to go up from there later will be hard.
I would say it is imperitive that you find out money info in a different way, and the sooner the better. Work the phones, be clever, look in trade magazines…try top find out as much as you can about similar businesses and what they get paid. This is the only way you can begin to know whether you are getting a good deal and when you need to ask for more. Remember, just because you are making a profit does not mean you are getting paid as much as you deserve, and on the flip side, it is also possible that they might never be able to pay you enough to make your business work.
I’m not sure this answers your question but I hope it helps.
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Thanks Alex. I understand exactly what you are saying. Unfortunately, in order to deliver a final product, I have to do some major upgrades. I am willing to take the chance on spending money and delivering a quality project but only if I have an idea of what the possibilities are. What I am working on is a series of 12-16 music concerts done live WITHOUT and audience, in a studio controlled environment with a consistent backdrop with artist interviews. I’m not looking to necessarily hit a home run but at least be able to amortize my expenses and some equipment. Hopefully when I make a name for myself here, I can demand more but now I haven’t a clue what they would pay for a consistent hour program. Is it $5k, 10K, more, less?
Jeff
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