Where are the best places to generate income for your video production company?
First Source - End Client
Regardless of the type of professional videographer you are, your main source of income comes from the end client. This is the person or company that hires you to develop a video just for their purposes only. Payment comes out of their bank account and moves directly into your account. There are no middlemen in the transaction. I think these clients should make up about half of the income generated by your video production company.
Source 2 - Marketing Agencies
Although it can sometimes be a challenge to work with other creative agencies, try to stay on good terms with a handful of them because they can send you a steady stream of work. In this scenario, the End Client hires the agency who then in turn, hires you to provide video services for a larger project. The money flows from the End Client's pocket to the Creative Agency's pocket and eventually, to your pocket. Agency projects usually work to stretch your creative abilities and they pay a decent rate for your video services.
As a wedding video professional, this type of relationship can be with an event venue or event coordinator that provides a full-service solutions for people getting married. As a corporate video professional, these are marketing, public relations, advertising, web design and multimedia companies who get hired by end clients but need your services to offer a total solution.
About twenty-five percent of your income should come from advertising agencies. It will be challenging and you'll earn every penny, but it's important to have relationships with multiple agencies so you'll have a good flow of income when your direct (end) clients are hiring you.
Source Three - Other Video Professionals
Videographers are another outstanding source of revenue. I'm not joking. Even though they may be your competition, they will often refer business to you if they are too busy and can't handle it. You should spend plenty of time getting to know other videographers in your market.
Develop a great reputation as a freelance videographer in your area and other professionals in our industry will be contacting you all the time to work on their projects. And at industry standard rates too!
The best way to get quick money comes from other people in our industry...especially our competitors. When a client calls another video producer who is booked, they'll most likely recommend they call you versus leaving them high and dry. This is a really easy way for you to win a new client without having to spend a lot of time, money or energy doing so.
In my years in the video production industry, there have been numerous times when I've had to rely on freelance work provided by other videographers just to be able to pay my bills. We would often agree to work on each others crew for affordable rates so that we could all stay busy as much as possible.
Even now when most of my time is spent operating as the video producer/director, I still try to make sure 25% of my business revenues come from projects with other production companies.
If you diversify where your income is derived from, you'll greatly improve your chances for video business success. It has certainly worked for me and I know it will work for you as well.
About the Author:
Want more strategies for how to grow a successful video production company? Visit Kris Simmons's website to learn how to use your filmmaking skills to generate a six-figure income.
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