Profit-Sharing in Reward Campaigns: Legal & Financial Minefield?

Posted by Lucas Andersson in Cinematography 0 views · 3 replies

Hey everyone, Lucas here. I’m a Gaffer, usually wrangling an M18 or a few SkyPanel X units on set, but I'm diving into a passion project a bit outside my comfort zone. We’re shooting a short film, mostly on an ALEXA 35 with some vintage anamorphic glass, and we’re trying to crowdfund some post-production money. We’re considering offering a small percentage of potential future profits as a 'reward' for higher-tier backers, thinking it’d be a good incentive.

Now, I’ve heard whispers about this being a tricky area, legally speaking. We’re not talking about huge sums, definitely not selling shares or anything formal like that. But if I promise someone 1% of net profits from, say, streaming revenue down the line, without having any specific securities structure in place, are we walking into a legal and financial quagmire? What are the actual risks here? We’re just trying to get this film made without any unintended blowback later.

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