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Rayan asked:
OK, So we’re all graduating this year and on our course at newcastle business school, we’re all pretty much entrepreneurs.

One dude called Simon basically gets up in strategy class and says he wants to start making porn, but this got me thinking.

How does someone who starts out in this industry start making money? You need money to pay the porno actors, but you need to start selling the film in order to gain capital to pay them.

Does this mean that you need capital to pay the actors before you even start making the movies?

Might be a simple one, but its certainly one that Michael Porter didn’t account for in his frameworks!
(If u dont know who michael porter is, ignore this part!)


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Comments ( 14 )

Busboy at the IHOP.

Zasu added these pithy words on Nov 13 08 at 2:23 am

it’s all about the connections in the industry

Audi11 added these pithy words on Nov 14 08 at 11:47 am

start something like girls gone wild where you pay your actresses in t shirts and hats

maranzano doll added these pithy words on Nov 19 08 at 2:07 am

Probably the same way as with other movies. Either financing it with personal money or by selling a percentage of the profits to investors.

wld_jkr added these pithy words on Nov 21 08 at 5:22 am

You have to be a porno star first and learn the bizz. Then when you’ve got some street cred and some dough you can hopefully become a director.

Gilette added these pithy words on Nov 22 08 at 9:54 am

You need to get a financial backer to front the production costs. They would usually be on a points deal when the film was completed and sold.
Watch the movie Boogie Nights – it will explain about this in some ways, and you get to see Heather Grahams t*ts – its all good …

zappafan added these pithy words on Nov 22 08 at 1:59 pm

Hmmm … talk about an interesting start up business. You’d definitely need capital and I guess once you start to sell movies you begin to pay yourself … Can you imagine the legal stuff that would go into starting such a business? Age stuff, consents, zoning restrictions for where you can film, wow …

My 2 Cents added these pithy words on Nov 25 08 at 10:08 am

Go to the strip joint and talk to the strippers. Some of them have all the connection and the knowledge you seek.

THDK added these pithy words on Nov 26 08 at 5:01 pm

Get everyone to work for free to start… Offer everyone a cut of the profits until your business is on it’s feet. No pun intended. Yes there will be some up front investments but the biggest one is the labor, if you can call it that.

Rex B4U added these pithy words on Nov 27 08 at 6:54 am

Like any startup business you need a certain amount of capital to get started.

A retail shop for example needs a site , shelving, counters, stock, advertising and staff. Also utilities. These need to be paid before the store is even open for business.

Someone who wants to make porn videos would need a location , sets, wardrobe, props, lights, cameras, microphones, editing equipment and a way to produce tapes or dvd. They also need actors, camera operators, editors, makeup and hair and wardrobe staff.

In a very small operation many of these might be the same person. They also need office clerical and a distributor for product or someone has to spend time on distribution.

Startup costs can be very high in some businesses.

mark added these pithy words on Nov 29 08 at 10:33 pm

You need to make connections and enter into competitions. Yes, more than likely you will need to pay people who are participating in porn (which is really what you want to do)…unless you are able to get them to agree to a contract that would provide them just a percentage of total sale of the film…this could also include intake within the first year of release or so. You might even want to play a part yourself or get friends involved. You can start out with “soft porn”. There are RECENT films that have received awards that don’t ’show’ explicit porn. “Pirates” is one example. Then when you make money from that one…you can move on. But it doesnt just involve ACTORS…you need to have a staff!! There are make up artists (your mom), accountants, lawyers, blablabla. You should really do more research into the production of a film. You will also make money (and possibly recognizable actors) if the story is good.

What, what, what?? added these pithy words on Dec 03 08 at 2:14 am

Well it’s just like any business, most businesses start with funding either from the original investor usually the owner, or from getting loans (which is harder because you have nothing to go by), or equity financing which in the case of small businesses usually is from individuals who give money in return for a portion of the profits. They are venture capitalists.

So in this case, most likely the director would be the entreprenuer and need to use their own money to start. They’d be at a loss until sales starting to come in and hopefully would turn a profit.

Ravensman04 added these pithy words on Dec 05 08 at 3:33 am

Well, once he gets out of jail, he goes and gets a real job.

eric h added these pithy words on Dec 07 08 at 11:10 pm

Dawg, they take life insurance policies out on their actors….and collect the $$$ after the actors drop from AIDS. Or they can make money by selling viagra to any porn actors from the UK, they all got limp dicks.

chaotic_psychic_clown added these pithy words on Dec 10 08 at 2:37 am

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