Non-profit groups who depend on grants and donations put on some productions, especially ones staged outside of New York City. But in Broadway, off-Broadway and other New York playhouses, most producers are out to make a profit. Most producers have a stable of interested investors on their mailing list. Minimums and Risk Producing Golden Child cost about a million dollars, Mordecai says. But most investors put up much more.
Some opportunities exist to get in at a lower level, but most require a high investment.
Vogel adds that knowing about the general partner with whom you are getting involved and knowing his or her work is important in deciding if you will let them use your money. It's a high risk gamble. Vogel can often break even on a show if he fills the theatre to 42 percent capacity every night, but other producers often require 50 to 60 percent of capacity to break even, according to Vogel. That can rise as high as 75 percent capacity to keep from losing money for a grand musical. For investors who are not already turned off by the big numbers and high risks, there is a bit of good news.