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How Can You Get Others to Invest in Your Comic?

gamalhennessy Community • Oct 1, 2020


After you figure out how much you can invest in your comic (See my earlier posts on self-financing), you may find that you don’t have enough to fully fund your publishing based on your initial budget. That’s when it’s time to go out into the world and find more money.

Before we go into details about getting investors and the different types of investment, we should understand that in many cases, it is very difficult to convince anyone to invest money in an untested comic book idea. The three economic realities of comic publishing we discussed earlier reduce the risk tolerance of most potential investors to the point where your offer isn’t attractive to them. From their standpoint, your idea has no track record, all the money they put in could be completely lost, and you’re making something that no one needs.

In the instances where someone is willing to invest, they might want something from you that has less to do with your idea and more to do with some other personal or real property you own. Don’t look at this resistance as a statement about the quality of your idea or your commitment to the project. It is simply an expression of economic prudence.

What Do You Need to Show Investors to Convince Them to Invest?

Every potential investor will have different requirements depending on the type of investment you’re looking for. Some will want detailed information about your idea, so you’ll need to be ready with the following documentation:

1. Your idea structure, including pitch, tagline, and synopsis

2. Your IP review to prove you own the idea

3. Your copyright registration, public domain analysis, or license agreement

4. Your marketing data, planned distribution channels, and projected sales

Other investors are looking for specific financial information including:

1. Your financial contribution to the project

2. Your budget for the project

3. Your credit score

4. Your collateral

We’ll go into details about credit scores and collateral in this post, but as a general rule, it makes sense to have both your creative and financial information ready for whatever type of investment might come along.

What Are the Different Types of Outside Investment?


Like personal investment, every type of outside investment has unique benefits and risks that you should take into account while you’re trying to collect funds. These broad categories can give you an idea of the options that might be available, but you’ll need to understand your risk tolerance for each one depending on your situation and discuss the options with your financial advisor and anyone impacted by your economic decisions.

1. Credit Cards

a. Description: A credit card is an account that allows you to borrow money from a bank to make purchases on a short-term basis. If you pay back the money within a specified period (typically 30 days), you don’t have to pay any additional funds. If you take longer than 30 days to pay, you’ll have to pay interest (a percentage of the money you owe to the bank) on top of the money you borrowed.

b. [url=https://www.fundera.com/blog/using-credit-cards-to-fund-your-business:
i. Credit cards are relatively easy to acquire, depending on your credit rating
ii. The revolving credit of a card is more convenient than a bank loan
iii. Credit cards don’t require you to give up ownership of your book or your company
iv. They don’t require collateral
v. They make it relatively easy to track costs

c. Disadvantages:
i. Credit cards require a personal guarantee, which means if you don’t pay off the credit card, the bank can attempt to recover the money from your real or personal property
ii. Credit cards have generally low limits compared to loans
iii. Credit card interest rates can start high and get higher over time
iv. Failure to repay credit card debt will harm your credit rating.

d. Considerations: Understand your credit rating and the impact that credit cards will have on your secret identity if you make or miss payments.

e. Your credit rating is a number that represents your ability to pay back a loan. It is based on your payment history, the amount you owe, the length of your credit history, and the types of credit you use. You can currently determine what your credit rating is by using free services like Credit Karma or similar sites.

2. Gifts

a. Description: A [url=https://www.dictionary.com/browse/giftis defined as something given without expectation of anything in return. This could be anything from a family member giving you money to support your comic to a creator offering a service to help get your book off the ground.

b. Advantages: True gifts are investments with no strings attached. You get money for your comic. The person who gives you the gift gets to see you fulfill your dreams.

c. Disadvantages:
i. Personal manipulation: Some gifts are given with an unspoken expectation of reciprocation in material or emotional terms. In many cases, these social transactions aren’t detrimental, but if you sense a gift is a form of negative manipulation, it might make sense to look for money elsewhere.
ii. Gift Tax: Gifts over a certain amount are subject to a federal gift tax. As of 2018, any person who gives a gift over $15,000 is subject to a tax of up to 40% and must be reported to the IRS
iii. Future expectation: If your book happens to become the next Walking Dead, your generous donor might expect to share in the success their money helped create.

d. Consideration: While gifts on this level don’t normally require formal contracts, it would help you and your donor if you both understood the tax implications and what could happen if the book blows up and becomes a huge hit. If they do want a piece of the pie, then it might make more sense to structure this money as a private investment instead of a gift.

3. Grants

a. Description: A grant is financial assistance given by a government, organization, or person for a specific purpose. Unlike a loan or a line of credit, this money does not have to be paid back in a majority of cases.

b. [url=http://www.businessgrants.org/2018/12/8-advantages-and-disadvantages-of-business-grants.htm:
i. Grants have all the advantages of gifts with none of the potential disadvantages.
ii. Once you get a grant, you can likely get other grants because once you get the first one you will be seen as a more reliable candidate.

c. Disadvantages :
i. The research and paperwork for grants can take up a lot of time that you could be using to make your comic,
ii. There is no guarantee that the time you spend will result in grant money.
iii. There is a lot of competition for grants of any type.
iv. There is a limited amount of grants specifically available for comic book publishing.
v. There are often restrictions on how grant money can be used.

d. Considerations:
i. Make sure you follow the exact instructions for any grant you apply for. Submissions with errors or completed incorrectly are often rejected regardless of the quality of your idea.
ii. Start your search for a grant that will fit your publishing plans with the lists creators Melanie Gillman or [url=http://www.creatorresource.com/grants-fellowships-and-residencies/ put together in 2018.

Next week, we'll look at other possibilities for outside investment in your comic.

Have fun.
Gamal