HOW DO VIDEO PRODUCTION COMPANIES MAKE MONEY
A good video can communicate so much more than just texts and pictures and with the advances in technology, making amateur films have become so easy. Whether you work for a media company or a brand, video is a powerful and important medium that should be invested in. This is where video production companies come into play because everyone wants high quality, professional footage. So here are some of the best ways a production company can make money:
Define Company Focus
The number one thing that must be done is to outline the main focus of your video production company. In some ways, you’ll continuously be checked out as a learner and be expected to be competent in several areas of video production. So, as you develop a name in one specific space, you’ll become “branded.” This means that once individuals have a necessity for your skills, your name will be the primary thing they think about as a result of being “branded.” In their minds, you simply become an expert in that particular area. If you’re new the business of video, it’s a decent plan to accept any job that comes within your wheelhouse. This can enable you to develop new skills, provide you with heaps of expertise, and supply a chance to seek out what you’re brilliant at and what you actually relish. However, there’ll come a time when you wish to be more proactive in developing your video production company, which can mean process the parameters of what you wish to try and do. You furthermore ought to perpetually value what you’re doing in order that you don’t get into a rut. Every couple of years, it’s a good idea to re-evaluate what you’re doing and ask yourself if you are still having fun or if your work has become routine. Changes must be made to recapture the thrill that you simply ought to have in operating a video production company. I call this “reinventing” yourself and therefore the direction you wish your video production company to travel. This can enable you to still experience the enjoyment and fulfillment which will keep you motivated, grow your business, and most importantly, make money!
As you refine the focus of your video production company. . .
you’ll be regarded as an “expert” that area and frequently sought-after out for recommendation. That will actually boost your name and deepen the “branding” that will guarantee success for your video production company. It’s ok to say “no” to the opportunities you don’t wish to try, but try to refer those jobs to different videographers. This way, you’ll develop loyalty and respect among your peers. You’ll even be able to manage your workload and even be able to take time without work for yourself and your family. It sounds like a backward way to operate. . .turning down jobs, but you will want to specialize in one area and dominate. We discuss this a bit more in our article What is a Video Production Company. By specializing in the items you relish, you won’t think about your occupation as “work,” and you won’t simply get burned out. Instead, you’ll be stunned that you simply have the privilege of doing what you’re keen on – and really being bought it!
Quality Videos over Quantity
It’s simple. Low-Quality video production will make a brand look cheap. When companies or brands consider publishing videos, the first questions they always want to ask is “What is our budget? And how much would it cost?” and sometimes they assume the best way to handle video production costs is to spend less money on more video, forgetting to factor in “quality” as the yardstick which is a definitely a wrong approach. As a video production company that is already establishing a good name and not looking to destroy that reputation anytime soon, that is a “no-no”. Money shouldn’t be the motivation behind making good quality content. As a matter of fact, publishing no video at all is better than publishing low-quality content. As a new production company, MAKE SURE you PRODUCE HIGH-QUALITY VIDEOS and share them on your social channels. Someone will see them and offer you jobs. QUALITY OVER QUANTITY.
Selling Stock Footage
Just like photography, it’s absolutely possible to make money as a video production company by commercializing your footage to stock footage corporations. Several corporations like Shutterstock and iStock pay for high-quality production footage.
Shutterstock has given some outlines on however best to start out doing this. The easiest way to move forward is to study what the most popular stock videos are and alter your work thereto. For instance, many of the most popular footage on Shutterstock falls within the travel footage class.
Rent Your Gear
This is a great way to make connections and work your way to more projects. So, if you the company is investing in high-quality technology but cannot seem to make money back at that moment, there are lots of market place and professional startup companies that you can rent them to.
Here are some tips on what must be done before renting out equipment’s to prevent running on a loss:
- There must be a favorable company policy for both parties when it comes to faults. Anything could go wrong, so it’s a good idea to know if you would be getting new equipment for whoever is hiring when they need it.
- The equipment has to be insured. As nobody ever wants to incur charges for fault.
- Make sure there is a strict policy on deposits
Seek Out Legal Advice
An important step towards making more money is making sure you are not losing money at the same time. Else, what’s even the point?
So, the moment you decide to start putting a project together, you should also seek out the legal and tax advice of qualified professionals. After meeting with these folks, you might find that operating your production company under the protection of a corporate entity (such as a corporation or LLC) may provide safeguards that you otherwise were not aware of. Also, when choosing a name you will want to search and make sure no one has already used it. After finalizing your arrangement, get registered for local taxes and set up a bank account. It is after all these have been done, you start creating your website, social media accounts and YouTube channel so you can collect likes and subscribers.
Setting up a business is more than hanging your shingle and waiting for the phone to ring. I certainly encourage you to go through these guides multiple times. If you need more insight into How Video Production Companies Work, click the link and share it with a friend using the social buttons above and below this article. We hope this article has given you some insights. If there’s anything we can do for you, just get in touch and we will be sure to get back to you and help where we can.