Has anyone ever heard of telemarketing firms being in the screen credits for a feature film? Me neither. And yet telemarketing firms have been instrumental for the financing of independent films for decades. You rarely ever hear about this unless one is involved with fraud or headline news like this one promising 1000% ROI in Burbank in 2011; http://SinCityFinancier.wordpress.com/2011/06/19/posterous-jeff-shares-a-web-site-with-you-72496
Here is an example of a Florida Film Fund that was telemarketing “kick-backs”; http://SinCityFinancier.wordpress.com/2013/08/23/no-1-in-stock-fraud-so-florida-busts-net-1-7b-since-2010-include-film-fund-kickbacks-to-hedge-funds-from-south-florida-bus-journal.
Film producers also hold hotel seminars orientated toward senior citizens. Here is what the Hollywood Reporter says about one film producer that used this approach to market to a large audience; http://www.HollywoodReporter.com/thr-esq/not-forgotten-lawsuit-ponzi-scheme-paz-vega-372735.
Fact is telemarketing is still the primary means to sell to large audiences including; private placement memorandums (PPM’s), or debt to equity conversion debentures (bonds), or EB-5 foreign investors marketing campaigns that can take a year to complete. Regular (DPO’s) direct or initial public offerings (IPO’s) don’t necessarily require telemarketing if their trading volume is sufficient to attract readily available bulk stock buyers. And DPO’s do not require investors to be accredited.
The above 5 types of capital for film finance only comprise part of the estimated 30+ specific types of film finance. The only expedient type of capital is asset-based funding. Unlike debt or equity capital; ABL funding consistently closes in under 30 days. Monetizable assets including film tax credits or purchase orders (distribution agreements) are a couple of examples. The majority of Hollywood is funded by investment banks.
In the 2000 film ‘Boiler Room’ starring Vin Diesel and Ben Affleck; a recruit is told that callers “make over 700 calls a day”. Compare that to call volume by ad reps at Groupon.com which claims is 100 a day each. The reality is with a brief call time average of only 10 minutes; any CRM staff can only average 48 calls in an 8 hour shift.
The other reality is Boiler Rooms represent a fringe minority within the telemarketing industry. Even though they do work only on commission the cost is often 50% or more of funds raised. The majority of time penny stock promoters charge a flat monthly PR marketing rate just like the PR firms they are.
The national median monthly rate for PR firms of $25K is reflected in the following survey; http://SinCityFinancier.wordpress.com/2013/10/08/survey-of-how-much-PR-firms-charge-in-nyc. Note these prorated annual PR rates are still about 1/10th the cost of 2015 TV ads of 30 second slots during the NFL Superbowl. They are also 60% less then the cost for brokers assuming a rate from 1% per $100M >sliding-scale< transactional volume.
Fast forward nearly 15 years and financial institutions like hedge funds are already using algorithm marketing. By 2020 it is projected that 50% of all marketing for any industry will be algorithm marketing. For this reason our company slogan at the top of our homepage is “Where IT meets IR”. http://SinCityFinancier.wordpress.com/2013/01/17/why-algorithm-automated-marketing-will-soon-a/
The 4 benefits for algorithm marketing over telemarketing are;
(a) More labor cost effective
(b) Better convergence ratio
(c) Compounds VALUATION
(d) Telling rather than selling (I.E. Coca-cola since 1892)
The trend of convergence of algorithm & telemarketing along with SOMOCLO technology is; http://SinCityFinancier.wordpress.com/2013/08/10/somoclo-the-convergence-of-social-mobile-and-cloud-technologies-and-its-impact-on-business-communications. This convergence begins to define half of what an IR media communications firm does which WIKIPEDIA defines simply as; http://SinCityFinancier.wordpress.com/2010/05/17/definition-of-an-IR-media-firm-according-to-w.
Despite technology advances to telemarketing efficiency; when it comes to raising any type of VC qualifying (by client) ultimately matters in the end. Packaging also matters. Feature films are not 100% equity and equity = securities. http://SinCityFinancier.wordpress.com/2012/12/25/5-facts-that-debunk-the-myth-that-assumes-fil.
As a courtesy, this syndicated (in 159 countries) blogfeed lists specific VC sources weekly by name for free. The sum of those listed by name for free is valued at $135B as of summer 2014. This unnamed specific film fund details are; http://SinCityFinancier.wordpress.com/2014/09/29/european-150m-film-finance-fund-seeks-qualified-film-production-companies-or-independent-film-studios
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