Video Production Business Tip – Marketing Ideas to Grow Your Business

One of the things I’ve learned in almost 20 years of being in the video production industry is that if you want to be crazy successful, you need to find certain “accelerators” that can propel you forward in ways traditional marketing can’t or won’t.

Here’s an example of how I used an “accelerator” marketing tactic that has the potential to be a huge revenue boost for my production company this year.

I recently wrapped up and delivered a kick butt fundraising video for a local non-profit. It just so happens that this chapter is just one of more than 800 within the same organization worldwide. When I delivered the DVDs to my local client, I asked them the following questions…

1. Do you compete with other chapters associated with your organization? Or, do you each have your own territory without any overlap? The answer was that there was no competition between chapters. (great news)

2. Do you think other chapters would be interested in having a similar fundraising produced for them? The answer was an astounding YES!

3. If you are okay with using your video as the “template” that we can customize for each chapter’s specific needs, would you be open to us offering it at a discounted price since most of the hard work has already been completed? The answered yes again.

4. If we offered other chapters a price of $2,500 to customize the video, would it be okay if we gave $500 of that revenue back to your local chapter since you are the one that took the risk in the first place to pay for the original production? They love this idea but have to check with headquarters and their local board of directors to make sure it’s okay for them to collect money in this fashion. They paid $3,500 for the production so the other chapters would get a discount of $1,000 which is pretty good.

5. What would be the best way to get this in front of all the other chapters to see if there is any interest? At this point in the conversation, their wheels are turning and they said they’d have to get back to me with what the best approach might be for this.

When I’m working on an “accelerator” for my business, I like to do a “What’s the revenue potential if I get 100% of the chapters wanting to customize the template?” exercise. Of course, we won’t come anywhere near this but it’s still fun to dream at the front end of the deal.

800 chapters x $2,500 = $2,000,000

Wow! So this shows me the upside of the potential here. Now, let’s look at what is probably the worst case scenario… 1% decide to take advantage of our officer.

800 chapters x.01 = 8

8 chapters x $2,500 = $20,000

In my mind, the worst case scenario is still worth the effort as long as I’m smart as to how much time and money I put into getting these new customers.

The other cool factor is that even if I only get a 1% return on the initial push, there is still 99% of that micro niche market that I can approach with future marketing efforts over time.

If you think about it, you can apply this approach to just about any type of video you produce for your customers in your video production company.

Video Production Business Tips – Inexpensive Techniques to Advertise Your Video Production Company

Do you find yourself having less money to spend in advertising your video business?

Are you searching for inexpensive techniques to advertise your business to potential clients? Absolutely! I’m positive that’s what you want.

In a slow economy, it’s hard to make an excuse to shed a little amount of money for advertising purposes. Because of this, I will show you some tricks that I tried implementing in my business. I’ve been doing this for a few years now and I’m sure that it fits your budget.

1. Business Community Gatherings – This is one of the highly recommended events that I suggest for you to attend if you want to interact with people who are in the same business level as yours. If you need to bring your video business to the next level because you’re just starting out, you should take time to be in these types of gatherings. These meetings won’t increase your expenses to more than $20. If you make it a point that you meet three or more people in every event, you will increase your network of possible clients in the future. If you correspond with more people in each event that you go to, you will have a greater chance to increase your revenue in the next few months.

2. Asking Current Clients to Refer You – This is not always given importance by many business owners although it is one of the simplest ways to gain new customers. If you haven’t tried asking your existing clients to refer you, you’ve missed a lot of opportunities to earn a relatively good amount of money. In my case, I always try to gain one new business from the referrals I get from my customers.

3. Meeting with Business Owners in the Same Industry – You should also meet with vendors who share the same market as you. If you cater to wedding videos, you must have enough connections with wedding organizers, photographers, etc so that you will get more referrals. Same is true if you provide video production services to corporations. Figure out which vendors have the same client as you and try to set a meeting with them. Tell them how you would like to contribute in growing each other’s businesses by working together.

Marketing your video business doesn’t necessarily mean spending tons of money. You just have to know the right people to talk to and the right place to be in to introduce your business.

Choosing a Fulfillment Partner For Your Info Products Business

The track record of any company you’re considering working with should be one of the major criteria in your decision making process. There are hundreds of companies capable of manufacturing your information products and it can be a real challenge to sort through all your options and make the best choice.

Any company you’re considering will probably have some testimonials on their website from satisfied customers. You should definitely listen to or read these testimonials but, more importantly, you should talk with some of their clients directly. What has their experience with the vendor been like? What’s gone well? What may not have gone so well and what did the vendor do to make it right?

Does the vendor have experience working with companies such as yours? Some fulfillment companies ship every type of product under the sun and others focus specifically on a particular type of product, such as information products.

Does the fulfillment company understand the information marketing business or do they just make and ship your stuff? One that understands information marketing may be able to offer additional services and resources to help you grow your business.

Finally, you should find out the names of some of their former clients and talk to them. Why did they leave? Any business that’s been in business for a few years or more will have clients that departed. Maybe it just wasn’t a good “fit”. Or maybe they left because the fulfillment company failed to perform some important function properly. Once you’ve gathered that information, go back to your potential fulfillment partner and find out what’s been done to improve those processes or procedures that created the previous problem.

Choosing a fulfillment partner is one of the most important decisions you’ll make for your information marketing business. Be sure to do your due diligence to make the best possible informed choice for you.
The questions you should ask:

• Can you provide names, phone numbers and email addresses of 3-5 clients you currently work with?

• Can you provide names, phone numbers and email addresses of 3-5 clients you previously worked with who have left and why they left?

• What changes have you made to address the reason any of those clients left?

• How long have you been in business?

• How many orders can you handle per day?

Video Production Business Tips – A Guide on Setting Your Rates

I get asked a lot of questions related to how much you should charge for various types of projects.

Instead of breaking it down to what you need to charge per project, break down how much you need to make per month and how many hours you’ll actually be able to work on billable production services.

Here’s what I mean…

In order to run a sustainable (and successful) business, you can’t work 40+ hours a week just on video projects. There are a ton of other responsibilities that go into being a business owner. For starters, you have to market your services, attend sales meetings, write proposals, pay bills, collect checks from delinquent clients, etc.

In my video production company, before I hired a full-time editor, I realized that the most I could work each week in production while still having something that resembled a life was 20 to 25 hours. I dedicated 20 hours a week to handle all my non-billable (non-production) work and the remainder of the work to my billable work.

If the assumption is that you will only have 20 to 25 hours of billable work each week, what would your hourly or day rate need to be in order for you to make the salary you need to provide for yourself and your family?

Here are a couple break downs based on various rate structures…

$75/hr x 25 hours a week = $1,875 ($1,875 x 50 work weeks a year = $93,750 in total revenue)

I’ll assume you have about 30% of that in overhead (office, loans, occasional freelance support, etc. so that brings your net revenue to $65,625 before taxes. (This is what you can pay yourself because everything else is built into the 30% or whatever percentage works for your business needs)

Can you meet your financial goals with that salary? If not, you’ll need to look at charging a higher average rate.

$100/hr x 25 hours a week = $2,500 ($2,500 x 50 work weeks a year = $125,000 in total revenue)

If your overhead stays the same (30%), you’ll have a net revenue of $87,500 before taxes.

Is that enough? If not, let’s look at another hourly rate structure.

$150/hr x 25 hours a week = $3,750 ($3,750 x 50 work weeks a year = $187,500 in total revenue)

Assuming overhead stays at 30%, that’s $131,250 in net revenue (before taxes).

Hopefully this gives you a quick primer on how the rates you charge impact the amount of money you make. Some people may complain about others who charge less per hour for their services but you really have to look at their overall goals before you can make that kind of judgment.

If they only need $65k in salary each year, charging less might help them guarantee that salary where charging more might make it harder for them to close enough deals to meet that financial obligation.

On the other hand, if you want to make more money without having to hire people, you can experiment with higher rates as well as reducing overhead at the same time. If you can get your overhead expenses down to 20% or less per year, your net revenue (or salary) can increase quite a bit without you having to charge higher rates or book more projects.

Here’s the biggest piece of advice I can give.

Don’t hire people or greatly increase your expenses in any way until you have mastered how to squeeze the most out of your revenue potential while working alone. That will enable you to learn how to properly run each part of your business before making the jump to bigger revenue potential