How To Create Multiple Streams Of Video Production Company Income

July 4, 2012 · Posted in Business 

How do successful videographers make money in good and back economies? They understand how important it is to have multiple streams of income generated from several different types of video clients.

What are the main sources of video production business income?

Source #1 – The End Client

As a professional videographer, most of your sales usually come from these end clients. These are consumers or business professionals that hire you to produce a video just for them. They pay you directly so there are no middlemen in the transaction. To be highly successful, this type of client should make up 50% of the money you make in your video production company.

Source #2 – Creative Agencies

Even though it can be frustrating to work with other advertising agencies, it helps to stay on their good side so they will get you involved in their projects. In this situation, the end client hires the advertising agency, who ultimately, hires you to produce a video as part of a larger agency project. The payment starts from the end client, goes to the agency and finally, comes to you. These types of projects will often get your creative juices flowing in ways your end client projects won’t and they’ll typically pay a fair rate for your 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 3 – Videographers

Another great income source is other video professionals. No kidding! Spend as much time meeting these pros as you do trying to get the attention of agencies and end clients.

Become known as the preferred video professional in your market and other videographers will be asking you on a regular basis to work on project with them. And at standard freelance production rates too!

Seriously, the easiest and quickest money comes from other people in our industry…even our competitors. Plus, when an End Client calls a videographer who is booked, they’ll most likely pass the lead on to you instead of leaving the client in a lurch. This gives you an opportunity to win a new End Client and it didn’t cost you anything to get them.

You never know when your end clients and agency clients will decide to stop hiring you (or your services) for a while so having relationships with other videographers may be the only thing left to keep you from closing your doors. Even though freelance rates are usually lower than the rates you get by working for the other two types of clients, they can definitely help pay the bills when times are tough.

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 want to greatly improve your changes for business success, it’s important that you generate multiple streams of video business income using the sources I discussed above. This strategy has worked for countless others in our industry and I know if can work for you.

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.

Comments

Leave a Reply

You must be logged in to post a comment.