Video Production Markets

Corporate and event video production companies face the same challenge that all small business owners face - namely finding profitable and renewable niche markets.

A profitable market is one that compensates you for your time, overhead, opportunity cost, AND delivers you profit above and beyond the cost you would incur if you had to hire someone to do the work for you. The ultimate test of profitablily is if you make PROFIT.

A renewable market is one that generates repeat business. This occurs when the client rehires you for their next project or the event you provide video coverage for occurs on a regular basis.

If a video market does not deliver BOTH profit and repeat business then it is not a business to build a business around. It is ok to take-on this business when it comes to you, provided it at least covers your costs and compensates you for your time but think twice before you target this market or send time or money to attract this market.

Here are 3 examples of profitable and renewable markets.

1 - Dance Recital Videos: Most dance schools have year-end recitals every year in May & June so they pass the renewable test. Provided your sales exceed your cost to produce the video it also passes the profitability test. The best predictor of future performance is past performance so find out what sales were like in previous years for that dance school and determine if the school will be profitable. You can safely add 10% if you can improve on the sales process of the previous provider but don't be too agressive in your predictions.

2 - Corporate Video Production: Companies are using video more and more everyday for internal communication, sales, training, and conferences. If you can establish yourself as their video provider this can be a great source of renewable business. Corporate clients are also not as price sensitive as other markets so it is easier to ensure you can make a profit for your business.

3 - Sport Event Videos: This market is similar to dance recitals in that you typically make one video and sell multiple copies. What makes this market different is the time of year that the sporting events happen. Every sport has its own season so if you find ones that fill your slow periods you are well on your way to creating a business that generates income year-round.