In order for videographers to be truly successful, they need multiple streams of video business income.
In other words, videographers need multiple sources of revenue to thrive in the great times and to survive in the down times.
What are the main sources of video business income?
Source #1 – The End Client
Whether you are a wedding and event videographer or a corporate video producer, your main source of revenue is the end client. The end client is the person that hires you to produce a video directly for them. Money flows out of their bank account and directly into yours. In my opinion, End Clients should make up about 50% of the revenues you generate for your video production business.
Source #2 – Creative 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 production services.
In the wedding video arena, an agency might be a chapel or large wedding coordination company that provides turn-key services to brides and their families. In the corporate video arena, there are marketing, PR, advertising, interactive and website design agencies that develop projects for End Clients that will need to outsource professional video services.
Creative agencies should make up about 25% of the revenues you generate for your video production business. This will be a hard fought 25% and you’ll earn every penny…but you’ll want to have relationships with several agencies so you’ll have money coming in when End Clients aren’t spending any.
Source #3 – Other Videographers and/or Producers
One of the most overlooked sources of revenue are other videographers and video producers. Seriously! You should spend as much time meeting and networking with these people as you do trying to attract End Clients and Creative Agency clients. Become known as the go-to guy or gal in your market and other videographers and producers will be calling every week wanting to know if you’ll work on their crew. And at full freelance 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.
Also, in the years of running my video production business, there have been many times when I’ve had to rely on strategic partnerships with other videographers just to make ends meet. We’d both promote our services to the same clients while agreeing to give the other exclusive rights to be on the crew if and when a contract was signed.
This doubled my chances of winning work whether I won the contract or not! Pulling $300 to $500 in a day back then was WAY better than nothing…and in many cases it came just in time to put food on the table and to pay the rent.
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.
Kris Simmons is a successful video business entrepreneur and coach whose purpose is to help videographers around the world learn how to grow, manage and sustain highly profitable video production companies. To date, thousands of videographers internationally have taken advantage of the business-building resources found at http://www.mindyourvideobusiness.com.