Selling Videos Created by Animoto

[Brian Cook]

I have a "commercial user" account with Animoto, and
have been creating videos for use on my own sites.

Now I am considering using Animoto to create videos
for sale to other business owners and am a bit confused
with Animoto's TOS (terms of service).

I have emailed Animoto (more than once) with my questions
but haven't heard anything back yet, so thought I'd
check to see if any Warriors have the scoop...

The business license chart is confusing to me... is it $249 PER
license for the first 10 licenses, or is it a TOTAL of $249 for
the first 10 licenses?

The TOS also states that each business I sell a video to must
have an active account... how are these accounts created
and at what point?

Finally, the TOS states that if my "term" expires, all hosted
videos will be taken down and not be viewable. If clients have
purchased videos from me, will their videos still be viewable
(provided their videos are hosted on their own websites,
youtube, etc.)?

On a related note, do my customer's user licenses expire?

Thanks!

[Vikuna2009+]

Sorry,

can't help you here and I agree, it's confusing. I THINK it's $249 per account, but sure. Hopefully, somebody with the correct knowledge will chime in. Sure would like to know myself.

[dbressler]

My understanding is:

* The $249 is a per-license price. The first 10 licenses are $249 each after which there is a quantity price break.

* Your client would have to purchase this same license. It would expire the way that your license would expire.

* The "hosted" videos would be taken down. But, that refers to hosted videos on Animoto's site. If you have uploaded those videos to youtube and other sites, I believe that is a different situation.

Again, that's my interpretation. Hopefully, they will get back to you one of these days!

Debbi Bressler

[ctaylordill]

Brian, are you the person that narrates online videos? I need a youtube video done for me for my online dating site, Coming Soon!

[Chris_Willow]

I've seen WSOs selling Animoto stuff for like 10 bucks a pop. So it's $239 loss per video for the marketer.
Yeah right...

Chris

[Brian Cook]

Yes, I've seen that too.

Hopefully the sellers won't get in hot water with Animoto.

Originally Posted by Chris_Willow

I've seen WSOs selling Animoto stuff for like 10 bucks a pop. So it's $239 loss per video for the marketer.
Yeah right...

Chris

[Video Gal Becky]

Here's a nice story (for me at least).

Being a video creator myself, I've always been tempted to use Animoto for the videos I deliver for clients. It's easy and it's fast. But then again, the ToS, as most of us know, forbid me from doing so unless I have a commercial account and my client has a commercial account as well.

I only have a personal account (the $30 one).

Then, I saw a guy offering to sell Animoto-created videos for $24 over at a certain forum. And I told myself, "hey, that's not right!"

So, I reported him to Animoto.

Animoto promptly replied that they'll look into it immediately and that, as a token of their appreciation, they were awarding me with a one year upgrade to a business account.

Hence...



I don't know what fate befell the person I reported. But a graphic artist I know also reported him. He already has an Animoto commercial account, but he was rewarded with a one month extension for free.

[Brian Cook]

I heard back from Animoto regarding my questions below,
and wanted to share the response with Warriors interested
in using Animoto to create videos for other businesses...

"It's $249 per license, and then once you hit the 11 +
package threshold, the price is reduced.

The accounts for your business clients can be set-up by
you or them, depending if you want them to know what
you're using to make the vids. They can be made upon
you purchasing them.

Posted vids will not be taken down, but ones on our
server will be. Lastly, consumer licenses don't expire."

Originally Posted by Brian Cook

The business license chart is confusing to me... is it $249 PER
license for the first 10 licenses, or is it a TOTAL of $249 for
the first 10 licenses?

The TOS also states that each business I sell a video to must
have an active account... how are these accounts created
and at what point?

Finally, the TOS states that if my "term" expires, all hosted
videos will be taken down and not be viewable. If clients have
purchased videos from me, will their videos still be viewable
(provided their videos are hosted on their own websites,
youtube, etc.)?

On a related note, do my customer's user licenses expire?

Thanks!

[bigdollarsnow]

Could you take that Animoto video and run it thru Moviemaker which makes it no longer an Animoto movie and load it into another video sharing. In Movie maker you can add additional splash page. Just a thought.

[kenboss]

Originally Posted by ctaylordill

Brian, are you the person that narrates online videos? I need a youtube video done for me for my online dating site, Coming Soon!

Hi ctaylordill - if you're still looking for a video narrator, that is what I do! Just sent you a PM. Hope that's ok...

cheers
Ken

[Tsnyder]

Do I understand this correctly? $249 for a license to make one video to sell to someone else? I'm trying to imagine what makes this a good idea...

Tsnyder

[Josh Anderson]

Originally Posted by Brian Cook

I heard back from Animoto regarding my questions below,
and wanted to share the response with Warriors interested
in using Animoto to create videos for other businesses...

"It's $249 per license, and then once you hit the 11 +
package threshold, the price is reduced.

The accounts for your business clients can be set-up by
you or them, depending if you want them to know what
you're using to make the vids. They can be made upon
you purchasing them.

Posted vids will not be taken down, but ones on our
server will be. Lastly, consumer licenses don't expire."

Funny but even after their clarification it sounds confusing...

I bet that not even everyone at Animoto understands their TOS.

I'd think there is still one more question to ask them...

"That is only for hosted Animoto videos right?"

Because $250 for a video you created and downloaded and sent to the client...

Well that would be plain ridiculous...

Because that would be a $250 fee just to use the software to create one video for one client... unless of course that client had you make multiple videos.

That would mean if you had just 8 clients like that you would pay $2000.

Compare that to the fact that you can buy the entire Adobe CS4 Master Suite for that price including every product Adobe offers and create a thousand videos, graphics, pdfs, and websites for a thousand clients.

Hosted videos.. the license makes sense. Non hosted videos... yeah right. That would be a deal killer...

Heck that would fall into the "can a company be that stupid" category.

Having confusing TOS like they do (which I am sure they had grandma whip up after IM people first discovered and starting using it) almost falls in that category already.

[Randy Bheites]

Why bother using Animoto? Buy the Muvee package and do everything Animoto does and more, fast and easy and no license fees.

[VegasGreg]

Animoto for Business is loaded with features designed to support the unique needs of businesses. In addition to Animoto's regular features, your account will be equipped with the following:
White label

Remove all Animoto branding from your video when you sign up with Animoto for Business.
Unlimited DVD-quality videos

Create, download and burn as many DVD-quality videos as you like. Give these to clients as gifts or resell them for profit.


Call-to-action button
Add a custom call-to-action button at the end of your videos. This optional feature turns an Animoto video from a passive viewing experience into an active marketing tool for lead generation. For example, create a button to "inquire about rates" that links to your appointments page, or "learn more" that links to your website.

Note: the "Call to Action" button works only with the Animoto embed code. It won't appear in downloaded videos, and won't link to your site if you export a video to YouTube.
Commercially licensed music library

300+ free-to-use songs licensed for commercial use. We did all the heavy lifting for you.
Speed control

In addition to Animoto's recommended speed, derived from the tempo of the selected song, you can choose half and double speeds. Half speed is ideal for displaying each image longer within your videos, while double speed can heighten the action in a more stylized video composition.

It seems pretty clear to me that you can resell the videos as you want. Maybe the confusion is for the hosting part? Just download and host elsewhere, problem solved.

Create, download and burn as many DVD-quality videos as you like. Give these to clients as gifts or resell them for profit.

[Jay Jennings]

Yeah, what Randy said -- go to Muvee and check it out. I started using that years ago and *loved* it. It sucks that it's Windows-only. =:(

Jay Jennings

[Success With Dany]

Originally Posted by Video Gal Becky

Here's a nice story (for me at least).

Being a video creator myself, I've always been tempted to use Animoto for the videos I deliver for clients. It's easy and it's fast. But then again, the ToS, as most of us know, forbid me from doing so unless I have a commercial account and my client has a commercial account as well.

I only have a personal account (the $30 one).

Then, I saw a guy offering to sell Animoto-created videos for $24 over at a certain forum. And I told myself, "hey, that's not right!"

So, I reported him to Animoto.

Animoto promptly replied that they'll look into it immediately and that, as a token of their appreciation, they were awarding me with a one year upgrade to a business account.

Hence...



I don't know what fate befell the person I reported. But a graphic artist I know also reported him. He already has an Animoto commercial account, but he was rewarded with a one month extension for free.

Animoto seems good for video marketing... Do you concur?

[Steven Carl Kelly]

Let me also say that anyone wanting to create quick and simple videos for clients should check out Muvee to avoid the high account and/or license costs of Animoto.

[havplenty]

Originally Posted by Chris_Willow

I've seen WSOs selling Animoto stuff for like 10 bucks a pop. So it's $239 loss per video for the marketer.
Yeah right...

Chris

Don't the videos you make on the $249 license come without Animoto branding and can be downloaded? In which case they could potentially be sold without any comebacks from Animoto.

I think

[Vikuna2009+]

Originally Posted by Steven Carl Kelly

Let me also say that anyone wanting to create quick and simple videos for clients should check out Muvee to avoid the high account and/or license costs of Animoto.

If you read the TOS' of Muvee, it clearly states that it is for personal use only.

Anybody else got a good alternative for commercial use?

[Nat Jackson]

You can buy a 3 month commercial license for $99 with no branding and sell videos as long as the person you sell them to only uses it for their own personal use...the whole TOS is stupid if you ask me...it confuses you into buying a business license, only to find out you cant sell the videos you make to busineses...

it would be a right money maker to take these videos and sell them to offline companies...

You COULD charge say $147 for a video, buy a 3 month pass and pocket the difference for each video you do....

[Nat Jackson]

Originally Posted by Vikuna2009+

If you read the TOS' of Muvee, it clearly states that it is for personal use only.

Anybody else got a good alternative for commercial use?

The software is for personal use...the videos can be used any way you want...i pay cash for the software only to find a restriction on the videos i make with the software i paid for????...Get real....

[DennisM]

Originally Posted by Chris_Willow

I've seen WSOs selling Animoto stuff for like 10 bucks a pop. So it's $239 loss per video for the marketer.
Yeah right...

Chris

Hi Chris,

Not necessarily true. There's value in those $10 Animoto videos if one already own a license. I do agree though that most buyers probably do not.

Dennis

[DennisM]

Originally Posted by Brian Cook

I have a "commercial user" account with Animoto, and
have been creating videos for use on my own sites.

Now I am considering using Animoto to create videos
for sale to other business owners and am a bit confused
with Animoto's TOS (terms of service).

I have emailed Animoto (more than once) with my questions
but haven't heard anything back yet, so thought I'd
check to see if any Warriors have the scoop...

The business license chart is confusing to me... is it $249 PER
license for the first 10 licenses, or is it a TOTAL of $249 for
the first 10 licenses?

The TOS also states that each business I sell a video to must
have an active account... how are these accounts created
and at what point?

Finally, the TOS states that if my "term" expires, all hosted
videos will be taken down and not be viewable. If clients have
purchased videos from me, will their videos still be viewable
(provided their videos are hosted on their own websites,
youtube, etc.)?

On a related note, do my customer's user licenses expire?

Thanks!

Brian,

I just build the cost of the Animoto license into the video service I offer. These offline businesses do not understand software licensing in general. You'll just blow the sale if you start going down that path with the business owner.

Again, much easier to build the cost into the service. "I just tell clients that the videos created need to be "parked" somewhere. We call that hosting in the tech world but that's nothing you have to be concerned with. We have you covered."

It's worked really well for me.

WARNING TO OFFLINE MARKETERS. DO NOT attempt to go around Animoto and start creating videos for other clients without ponying up a license. You will get sued. If not by Animoto but your offline client. Nothing like killing your credibility in a local market once the word gets out.

Regards,

Dennis

[AmyBrown]

Dennis, my understanding after reading the Animoto for Business TOS, is that the videos have to be removed when you stop paying for the subscription. As I understand it this includes 3rd party sites such as YouTube. Is this something you disclose to your clients? I'm trying to wrap my head around that conversation but maybe I'm making it too difficult.

It seems like there is a hole in the market for someone to jump in with a competing product with more generous licensing terms.

Amy

[Scott Lundergan]

I recently did doing a food montage for a new restaurant that opened using Animoto just for kicks....it took me about 20 seconds to do and turned out great. I was really just playing around to see the functionality of it.

The TOS were confusing so I decided to rebel and do in ILife O9 where it had a much more polished, solid look to it. With iLife 09, it took the same amount of time and is as automated or customizable as you want with the new slideshow themes.

To see what I'm referring to, go to Apple - iLife - Find out how to use iLife applications on the Mac. then click "Create and share a slideshow" below the video under "Share Your Photos". You'll see that with choosing either "Shatter" or "Sliding Panels" you can create stunning contemporary slideshow videos (just scroll ahead a little bit in the video and see the demos)

On a side note, a good friend of mine that lives here in San Diego is in one of the photos

[Josh Anderson]

Edit:

In one breath Animoto gives express permission for licensed business users to distribute their videos by giving or selling them to clients:

animoto - professional video. ridiculously easy.

Then in another breath (in their commercial TOS) they take that right away for third party commercial purposes:

Thus, for example, Commercial Users may not distribute or make available Animoto Videos to third parties if such third parties intend to use the Animoto Videos directly or indirectly to derive a commercial benefit or pecuniary gain.

So...

It sounds like the only legal way to distribute to third parties using Animoto would be to have them pay the $99 or the $250 license fee.

So someone selling video made at animoto would cost at the minimum the $99 licensing fee that the client is required to have paid to be able to use the video.

That would essentially mean that each client before they could use a video made for them must at the least buy the $99 three month license.

But get this...

YOUR CLIENT in order TO CONTINUE TO USE THE VIDEO YOU CREATED must CONTINUE TO PAY THE MONTHLY OR YEARLY FEE or THEY MUST STOP USING THE ANIMOTO VIDEO.

Check out this from the business TOS:

Your use of the Animoto Videos within the Scope of Use is limited to the time period covered by the applicable Fees paid ("Term") and you understand and agree that in the event your status as Commercial User is terminated or interrupted for any reason, including but not limited to the expiration of the Term and/or your failure to renew a new Term, that you must immediately cease your use and/or distribution of your Animoto Videos whether downloaded or hosted.

So to sum it up one video...

Will cost your client for the life of its use... at the minimum $250 a year and if they ever stop paying they must stop distributing the video and using it regardless of whether Animoto hosts it or they have downloaded it.

What a deal eh?

So... any of you offering Animoto video creation services better first verify that your client is paying the yearly fee and had better inform them that if they stop they can no longer use the video.

I'd have to say that Animoto has the worst one sided licensing I have ever seen in the realm of video creation solutions.

I wonder how many thousands of users are violating their TOS just because they did not read deep enough.

It appears as if Animoto wants to discourage businesses from using their services unless of course that business is willing to pay the most outrageous licensing fees imaginable much more expensive than enterprise level commercial solutions from Adobe, Sony, and Apple and much less appealing than high quality affordable royalty free music licensing options.

Animoto's business use licensing rating is a big "you suck" F minus for distribution for commercial use.

Its hardly even reasonable for business use by the actual creator of the video since if they ever stop paying they too must also stop using the video according to animoto TOS.

I guess their intention is to really only be a free non commercial based service.

[PLRwithAlex]

Has anyone ever tried Pinnacle Ultimate Studio? They offer several versions and you don't need the premium content.

it makes great videos and exports to different formats. Great software, low costs and easy to use.

Alex

[Josh Anderson]

Originally Posted by PLRwithAlex

Has anyone ever tried Pinnacle Ultimate Studio? They offer several versions and you don't need the premium content.

it makes great videos and exports to different formats. Great software, low costs and easy to use.

Alex

I own it... have used it... prefer Sony Vegas myself... but a lot of people use Pinnacle just fine.

[Scott Ames]

For those who already own Camtasia, why not put something together with that? It's no Animoto or Sony Vegas, but you can quickly put something together.

I did this in minutes. It's not that great, but if I spent time on it perhaps it could come close to acceptable for a client. No audio, you could add a track, I was lazy... but you get the idea.

Created by Camtasia Studio 6

[mbenton]

Not a bad video, Scott. Who needs Animoto and all their baloney?

I've used Pinnacle Ultimate Studio and found it capable.

[Jay Jennings]

Originally Posted by Nat Jackson

The software is for personal use...the videos can be used any way you want...i pay cash for the software only to find a restriction on the videos i make with the software i paid for????...Get real....

That was my thinking -- it's like Microsoft saying Word is for personal use only and you can't sell something you write using their word processor.

However, I decided to ask muvee and this was the reply:

We are coming up with a PRO version for our muvee products, which can be used for commercial purposes. For the time being, you could use the end user version available at http://www.muvee.com/en/products/ to make muvees for your clients.

When the PRO version is released, we will send you a notification, so that you can upgrade to that version which allows using it for commercial purposes.

That is, to my way of looking at it, contradictory. On the other hand, you could read it as permission granted *until* the commercial version comes out. Not sure.

Jay Jennings

[DennisM]

Originally Posted by AmyBrown

Dennis, my understanding after reading the Animoto for Business TOS, is that the videos have to be removed when you stop paying for the subscription. As I understand it this includes 3rd party sites such as YouTube. Is this something you disclose to your clients? I'm trying to wrap my head around that conversation but maybe I'm making it too difficult.

It seems like there is a hole in the market for someone to jump in with a competing product with more generous licensing terms.

Amy

Hi Amy,

That's the gray area. Does one have to remove the videos from YouTube, etc. for not paying? Well, this is why I just make sure a license is registered in EACH client's business name.

Why, because regardless if my client wants me to create the videos or they decide to do it in house they're always legal with the licensing. You're always covered legally doing it this way.

The licensing model Animoto has is ridiculous. That's like Microsoft asking everyone to pay for MS Office licensing to view PowerPoint slides, etc. Completely stupid if you ask me.

Animoto doesn't give a $hit who creates the videos. Regardless if it's commercial or private. They just want to get paid.

For those of you suggesting other options, thank you for sharing here but I don't have time to be "creative". Creativity doesn't make you money. Time management does! If I want to get really fancy then yes, let's talk Adobe or other options as mentioned above. But then , I would just outsource it

I'm telling you, these offline business's are just blown away by these cool, little, animoto videos.

On another note, here's some FREE advice that can make you a cool $500 by next week...

NOTHING is more easier making money in the offline niche then setting up YouTube channels for small business's and using Animoto as the platform. Charge $500 upfront and get them on a continuity plan of $150 a month and do 2 videos a month. About 1 hour of your time. Or you can outsource that too! :-)

To your success,
Dennis

[jsherloc]

Dennis,

Here is my question....

I plan on registering my offline clients with their own commercial Animoto license like you do, and I will create/distribute their videos for them.

Now, do they have to buy a $250 license EVERY SINGLE YEAR if this is the case, or is the $250 essentially just a one time thing?

Could they make this licensing BS any MORE confusing jeez.....

[DennisM]

Hello J,

YES, this is a YEARLY subscription. Animoto would get killed on bandwidth costs for hosting all of that video for FREE. They do that already for the consumer but businesses must pay.

I sell my clients on the fact they can host or "Park" unlimited videos for a yearly fee of $250 paid directly to Animoto themselves. Some understand that concept. Others do not and just won't get it.

As noted on Animoto's site. It states for "a full year". Not completely clear but let's not assume anything. If it was a one time fee they would certainly hype that up for more sales. It's not obviously. Pay the annual fee and stay out of legal issues. Here's the link...

http://animoto.com/business/pricing

Sell the features and benefits, NOT the service itself. You WILL close business!

Good luck!
Dennis

PS: I answered your PM. :-)

[Steven Carl Kelly]

Originally Posted by Jay Jennings

That is, to my way of looking at it, contradictory. On the other hand, you could read it as permission granted *until* the commercial version comes out. Not sure.

It seems to me that you can use the existing version of the Muvee products to create videos you're selling to clients. Once the pro version is released, it appears that there will be new licensing arrangements -- I'd guess the regular versions will note that the output if for personal use, in order to sell the output you'll have to upgrade to a "pro" version.

So as I read it, for now folks can go ahead and make videos to sell to clients.