Yesterday, we dispelled some of the rumors associated with investing in Broadway shows. Today, we’ll step through my checklist of how to decide whether or not to invest in a particular Broadway or Off-Broadway show.
Different objectives will greatly affect what project you choose to do. Do you want to make money? Do you want to get access to opening night parties, etc. so you can network? Are you looking to get inside access to agreements and figures, etc. so you can learn more about how to produce your own show? Do you want to support the work of a specific playwright?
One of my favorite “objective” stories is about the investor who was thinking about graduate school as a way to learn how to produce. They decided against it, and took the money they were going to spend on tuition and invested it in several shows. They thought there was more to learn by playing the game. Last I heard, they were doing pretty well and beating the odds.
There are a zillion reasons to invest in a Broadway show. Make sure you have at least one.
BROADWAY INVESTING RULE #4: Don’t try and be a one-hit wonder.
We all want our first time to be perfect (I even wrote a show about it!), but often our first time out isn’t what we hope it will be. Don’t expect to knock one out of the park your first time up at bat. When signing up to invest in Broadway, imagine that you’re a baseball player playing a full nine innings. If you strike out the first time (or even the second and the third) don’t worry, you could hit a homer in the bottom of the 9th and win the game.
If your first show doesn’t make it, have a post-mortem with yourself (and with the Producer) and try and determine why it didn’t work. Learn from it, and apply those lessons to your next time up at bat. Your odds of success should get better each time.
Just don’t pull yourself out of the game.
BROADWAY INVESTING RULE #5: Examine the lay of the land.
It’s impossible to time the market. But, in a playing field as small as Broadway, with its limited audience, it’s important to take a look at your potential competition. Are you doing a new musical at a time when six other new musicals are opening? How do your stars match up against the other shows’ stars? Are you the only classic play? Are you the only comedy?
The big TV networks program their seasons so they can appeal to all of the appropriate demographics, without too much weight on one type of show. Since Producers are mostly independents, we can’t program collaboratively, but as an investor you can look to see if your show is going to get lost in a sea of other similar shows, or if it will stand out amongst a lack of competition, without having to place $125k New York Times full page ads.
So there you have it! The above are the first five basic questions I ask myself when contemplating investing in a Broadway or Off-Broadway show. There are countless others you should ask when you get into the details of the production after you examine the budget, find out who’s directing, etc., but these will get you started on the road to investing in a show.
You’ll notice that a lot of the above rules and checklists are very similar to the rules and checklists for investing in the stock market or any market (invest for the long haul, know your objectives, risk tolerance, etc.). And that’s the most important thing to remember.
Too many people think investing in Broadway is a hobby, which it can be, and in those cases you’ll probably only hit a winner on the average 1 out of 5 times.
Broadway is big business, and should be treated as such. And if you apply the same principles you’d apply to other investment vehicles and do the due diligence, there’s no reason you can’t turn that hobby into something that is fun, educational, and yes, even profitable.
SIGN UP TODAY
Ken’s Current Shows
MOST POPULAR BLOG POSTS
CATEGORIES10 Qs for Broadway Pros
Fun on a Friday
Invest in Broadway Shows
Overheard At Angus
Questions From Readers
The Most Popular Posts of the Month
Theater Things That Don't Make Sense
Things To See
Upcoming SeminarsMar8SatApr9WedApr12SatMay17Sat11:00 am How To Raise Money for your Show @ DTE StudioHow To Raise Money for your Show @ DTE StudioMay 17 @ 11:00 am – 5:00 pmTo view alternate dates for “How to Raise Money for Your Show” Click Here. Ever since I started teaching my Get Your Show Off The Ground and Broadway Investing [...]
Ken’s Top 5 Reads
Purple Cow: Transform Your Business...
The Writers Journey: Mythic Structure for Writers