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| | #1 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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I was goofing around on youtube last night and came across some videos made by yellowpages.com. They were simply videotaping small business owners and their premises, 30-45 seconds long. Looked good but nothing spectacular. So, I googled yellowpages, got a phone number and just called them. In order to get their information I had to give my personal name, business name and phone number (I faked the phone number, lol). Based on my geographic area (500,000 people) in order to get the video, I would have to purchase a banner ad in their directory, $129 per month with a 12 month contract = $1,548. To get the video (published on youtube and 12 other directories, mostly other yellow pages), an additional $181 per month x 12 = $2,172, for a grand yearly total of $3,720. Now, if you can't do the actual video but do a video slide show with Microsoft Photo Story 3 (free software), if you charged let say $350 for a whole year, in my book, that would be a bargain. Throw in Tubemogul.com and you would really provide a great service and then put the video on maps.google.com and you would make that business really stand out. Feedback please? How could I enhance it even more? Thank you guys, Eva |
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| | #2 |
| Advanced Warrior War Room Member Join Date: Nov 2006 Location: Spokane, WA
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Great idea! You could enhance it further by social bookmarking the video, and repurposing content from the video into articles and a press release. |
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| | #3 |
| Blue Collar Marketer War Room Member Join Date: Sep 2006 Location: Taxachusetts
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The price the yp charge is expensive, but they do have a good deal of traffic. But I agree, the exposure they can get via google, yahoo and all of the video sites is good as well, but don't undercharge for your services. Put together a really nice package that not only creates a video/story board, and get it seen. The whole deal is being able to add value for the customer. A video alone wont do this, its getting it seen by the right people that will sell the owner.(and convincing him/her that it will increase exposure and possibly help drive increased sales) _keith |
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| | #5 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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| Hmmm, something to think about, for sure. On google maps, you can also offer a coupon that they would need to print in order to get the discount.
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| | #6 |
| Battle Scarred Warrior War Room Member Join Date: Feb 2009
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This is why directory listing and advertising based sites for offline, local business become failures. The service becomes commoditized. There's always someone out there willing to do it for less money, and eventually it will find its way to offshoring. The funny thing is, people immediately jump to the conclusion that they can provide the same service for 1/4 the price - all without calculating a very important number... what's your real cost of customer acquisition? Then there's the real cost of doing business... are you IN the business or do you OWN the business? Are you working IN the business or ON the business? The biggest hurdle in any offline marketing effort of actually going out there and getting business owner's attention, and then being able to sell them on your whatever xyz thing you're doing. Yellow Pages already has a massive database of customers. That's paying customers with credit card billing information, etc... Why do you suppose they charge more than $350 to do this? Because they're stupid and want to rape the client? Or maybe larger companies have figured out the price to profit thresholds with everything considered. Let me give you an example, I used to own a screen printing business. Now my business was very differet than the average local mom & pop shop that printed jerseys for the hometown varsity volleyball team. But I was well aware of all the business models that go on in that industry. Because the barrier to entry in the marketplace is fairly low, the cost to set up a shop is fairly accessible to the average blue collar worker (and their simpleminded understanding of business). Their approach to getting business is to undercut everyone for 25 cents a shirt, or whatever. Nearly every screen printer that gets into the business does so as a low-end price leader, and they do so because they have no concept of the real cost of doing business. Now, they're building a customer base on next to no margins... while simultaneously working IN the business because they cannot afford to hire staff. They find themselves stacked up with customers who are eager to get a cheaper deal than their current provider, and soon they're overwhelmed. After a few months of busting their butts working IN the business, they look at their bank account and financial statements and realize they could have earned more money per hour as a Wal-Mart door greeter. Then the shop closes, liquidating the equipment to some other starry-eyed schmuck with similar plans - thus perpetuating the low cost to market entry and low margin problem that plagues the business. It's a cycle that plays out over and over in nearly every metro market. The players that survive are the ones that build value into what they do, diversify into other areas, and develop customer relationships on more than price leading. My point to all offline marketers is... STOP BEING GHETTO. |
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| | #7 | |
| Blue Collar Marketer War Room Member Join Date: Sep 2006 Location: Taxachusetts
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You are right on, and I said the same thing, just not as well put. I think every industry faces the problems of undercutting and it devalues that industry as a whole. One of my businesses is selling aftermarket hot rod and speed accessories. Have been doing it since 01 and it literally is a Whore's Market. There is always someone willing to sell it cheaper and make $1 and hope to sell thousands of products a day. I pay very close attention to my pricing, but I try to stick to a %. I fought to get my prices cheaper for buying, so that I can increase my profits and charge the same. Offline Marketing is the same to a degree, there is always someone willing to sell for cheaper. An equal or slightly cheaper price is fine so long as you can add more value and customer service to the clients experience. Keith | |
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| | #8 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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[Quote] My point to all offline marketers is... STOP BEING GHETTO.[End quote] Well Michael, I guess we can all get on a high horse..... I used to own a custom drapery business and my prices were NOT cheap and 9 out of 10 times, I got the job. However, in my current example, I know the time commitment involved. Due to the current economic times, I see nothing wrong with offering a service at an affordable price. I guess we all can't target high end businesses and charge an arm and a leg. To each his/her own but thanks for your input. Best of luck to all of you, no matter what's your strategy, lol. |
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| | #9 | |
| Battle Scarred Warrior War Room Member Join Date: Feb 2009
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[quote=Vikuna2009+;1318681] Quote:
Anyone who is a self-professed marketer, and then pursues a price leader strategy is a double talking, confused person that doesn't understand marketing OR business. This is about the industry as a whole. You're pricing things, not on the value you create, but on the assumption that you can sustain your business by not only undercutting what you perceive to be the competition, but radically undercutting the competition. We offline marketers need far more than luck when dealing with lowballer, undercutting providers that have no real understanding of the value (or ability to create any) or the overall cost. | |
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| | #10 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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[Quote]is a Whore's Market[End quote] Wow Keith, now you guys are really talking. I guess I better up my prices before I get a bad reputation, lol. Seriously, I can not see myself competing at a level with yellow pages AND charge their fees.If it takes me more or less an hour to produce the whole thing and somebody would pay me $350, that is enough to keep me smiling (and eating). I don't have an office so no expenses there and I do not print a gazillion yellow page books. As I said, to each his/her own. |
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| | #11 | |
| Blue Collar Marketer War Room Member Join Date: Sep 2006 Location: Taxachusetts
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[quote=Vikuna2009+;1318712] Quote:
Smiling and eating is good, but if the yp charges $3000 a year, and you want to charge $350, there is a big discrepency here. Of course you don't have the tools that the yp does, but I am sure, as a marketer, you can add some value that the yp cant AND charge $2200. If they wont pay $2200, they certainly wont pay the $3k, so what have you got to lose? ADD value and create a great experience for the customer. Hell, charge $350 initially, then charge a monthly fee up to the final value. I am sure one can be creative... keith | |
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| | #12 |
| HyperActive Warrior War Room Member Join Date: Oct 2008 Location: U.S.
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two words.. press release. a good press release will be a major blessing for a company. |
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| | #13 | |
| Battle Scarred Warrior War Room Member Join Date: Feb 2009
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[quote=Vikuna2009+;1318712] Quote:
But $350 for an hour's actual work is not your real net income. How many hours did it take you to get that customer? How many hours go into the accounting and management of other administrative issues surrounding that customer? That's my point. When you don't have an understanding of the true cost involved, it's easy to make mistakes in arbitrary pricing of your services. Back to my analogy of printing... to a printer, they are technically only making money when the press is running. But there's a lot of time involved in getting jobs, setting up jobs, cleaning up after jobs, machine change over... and we've not even started answering the phones yet dealing with customer management issues, let alone accounting, etc... We've not even gotten into the peaks and valleys of cash flow based on the sole guy having to go sell when he's not creating, and then not being able to sell while he's creating. So now you're talking about hiring a sales person, or a technical person to do the work that you once did. How much does that impact your bottom line? Here's my challenge to you. Charge more than the yellow pages and add services and value the YP isn't doing. Don't be scared. | |
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| | #14 | |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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Thank you Michael Motley, will look into that. Keith, I actually thought of a monthly charge but in more modest price range. I realize very well that as a business owner, you have to provide value and charge enough to make it profitable. Anyway, what else could you add to it to make it even better? | |
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| | #15 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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| Yo Yo Yo, Michael, Im happy for ya & Ima let you finish, but that was THE BEST OFFLINE STATEMENT OF ALL TIME!! ![]() C'mon Michael, don't hate the players, hate the game. Seriously though, he's right, how much value can you offer someone on such a meager return for yourself? Even if you do end up with a few clients who are paying you meager sums of money, you will begin to hate this business for putting in too much time for so much aggravation and so little money for yourself. |
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| | #16 |
| Active Warrior Join Date: Mar 2009 Location: Clearwater, FL
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| | #17 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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Gosh, charging MORE ? No, I am not afraid, I guess I am GHETTO after all, lol. Seriously though, I do get your point and I will take it into consideration. Adding additional value is what I was looking for initially and by breaking it down to WHAT ELSE you are offering, will justify your price point. Keep it coming and try to keep your mouth "clean", lol. |
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| | #18 | |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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[quote=Vikuna2009+;1318681] Quote:
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| | #19 | |
| Website Solutions Warrior War Room Member Join Date: Nov 2008 Location: PH
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[quote=MichaelHiles;1318780] Quote:
Thanks | |
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| | #20 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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Well, at least I stirred something up. What about adding value, any suggestions besides discussing the price point? Go ahead, can't wait to hear it.
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| | #21 |
| Warrior Member Join Date: Oct 2009
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this is an awesome idea. right now loads of businesses are throwing cash at marketing and promotion so this seems like a good way to ride that wave.
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| | #22 | |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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- Animoto - Tube Mogul - Google Business Listing This will get you off the ground and give you a high perceived value with a minimal out of pocket. I personally price this service between $595-$795. If you consider what they get and what others prices are, thats a steal. Not to mention they can reuse this advertising via a short link in their print media ads. After that up sell - Autoresponder Integration - Website Rehabilitation or New Construction - Optimizing Videos & Website For Search Rankings (SEO) - E-Faxing Service (Incoming & Outgoing) - Voice Over IP Phone Numbers (VOIP) With VM to Email Features - On Location Video Shoots Using Your Videographer (Or You) - Seminar/Event Planning - Webinar Coordination I don't want to give away all my trade secrets, but this will get you started on Adding Value & Perceived Value. | |
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| | #23 | |
| Blue Collar Marketer War Room Member Join Date: Sep 2006 Location: Taxachusetts
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Another is, in your video example, is taking the time to do it right. Talking with the customer about what they want to portray(or helping them determine this). Its their money they would be putting up, and I'm sure the yp people could care less about the quality of the video, unlike you. How about ensuring the video is placed as many places as deemed necessary(I think you mentioned tubemogul which is a great tool). Lastly will be driving traffic. Researching and targetting keywords that are not only relevant, but actually being used to find that particular local business? Other things as an afterthought: social media, bookmarking, site optimization, free hosting for one year, website re-designs for a discount if they purchase your video service, etc. The list can go on, and depends on what you feel biz owners in your area will value the most. keith | |
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| | #24 |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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Thank you Handsome and Keith for your suggestions, really appreciate it. Depending on budget and individual needs, a custom solution is probably the best way to go since no two are alike.
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| | #25 |
| HyperActive Warrior War Room Member Join Date: Sep 2007 Location: Canada
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Great concept, thanks for sharing |
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| | #26 |
| Joshua Hayes War Room Member Join Date: Mar 2009 Location: Hillsboro, OR
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I'd be careful with Animoto's licensing...
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| | #27 |
| Advanced Warrior War Room Member Join Date: Jan 2007 Location: , , .
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In business, pricing is often perceived by the customer as an indication of the value of your services. Few large companies or extremely profitable smaller companies will contract with a $350 website or video provider simply because the price screams amateur. What you're more likely to get are the Mom and Pop businesses that have been told that they need a web presence, but don't really have the money to pay for one. So automatically, you'll find yourself in a price-cutting part of the market no matter how much value you add. If you're satisfied with that type of client, then stay with $350 pricing. But if you want to attract more monied clients, boost your prices (and your confidence) and charge like the big providers. You'll receive more money for less work and you'll develop a better reputation based on your product/service and not on your price. That's business 101. Perception becomes reality. Michael Hiles may have said it without tact, but he was right IMHO. Personally, I like a straight shooter. Debbie |
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| | #28 |
| Battle Scarred Warrior War Room Member Join Date: Feb 2009
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Consider me the "Larry Winget of Offline Marketing". You want everything sweet and loveable, cuddle up with someone else. lol |
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| | #29 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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| Covered. Just use the $249/yr Professional option, if you cant swing it, you should be doing something else anyway. From Animotos site: Unlimited full-length videos, each licensed for commercial use with no Animoto branding. Takes just minutes to create one. Easily update it anytime. Hassle-free pre-licensed music. Embed it to your site or share it. Also in FAQ section: What are some specific examples of how a business may use Animoto? This is left up to your imagination! Our Case Studies provide an overview of how a few businesses are using Animoto for Business today. Other uses of Animoto for Business videos include: A sports team showing photo highlights on the JumboTron in real-time. A winery playing an Animoto DVD in tasting room to provide a recap of a harvest. A service business posting a promotional video to YouTube to increase exposure. A product business creating a video ad to advertise through Google Video. An Ebay/Craigslist seller adding video to posting. A daycare facility or summer camp providing a weekly recap video for parents and kids. A wedding planner or photographer selling DVDs to their clients. A travel agent highlighting destination packages using video. Landlords showcasing listings using video. A sports bar showing videos on TVs. Conference organizers showing videos to kick-off day, spice-up dead time between presenters, or recap day/conference. A trade show booth playing video on booth TV to stand out. Presenters grabbing the attention of an audience with a video. Using video to pitch ideas to your boss or customers/clients. Creating compelling video content for your website. |
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| | #30 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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| No sweat. I wish you the best on your burgeoning business. Plenty out there for us all to eat. Thats why I enjoy the make shift think tank on the forum here. We all come away with something, veterans and newbies alike. Thank for the original post and keep at it. Thats how we all learn.
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| | #31 | |
| Joshua Hayes War Room Member Join Date: Mar 2009 Location: Hillsboro, OR
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If it was only the $249/yr it would be a fantastic deal. I have no issues with that... I do have issues with the following: Animoto for Business "Every business that uses an Animoto video commercially must have an active account. In cases where a business wants to sell Animoto videos to other businesses a separate license must be purchased for every business customer." Animoto will absolutely not work in this scenario (at least at the price-point mentioned above). Additionally, this is an annual fee... if you read the terms thoroughly, once you (or your clients) stop paying the annual fee, you/they no longer have the rights to the videos produced using Animoto. Here is another nasty tid-bit that has to do with noncompliance: "Audit Rights Animoto (or a third party hired by Animoto for such purpose) shall have the right, at any time, to inspect and audit all accounts, records and other of Your information to determine your compliance with the terms contained herein. The costs of such audit shall be borne by Animoto unless the audit uncovers that You have materially breached this Agreement, and then You shall be responsible for reimbursement of all reasonable costs and expenses of such audit." Quote:
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| | #32 | |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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BOOOMMMMM!!!!!!! | |
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| | #33 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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Under The Affiliate FAQ BTW: "If I am a web designer/marketing consultant, can I include the Animoto for Business package into my client product? The Animoto for Business package requires that every business using Animoto commercially has its own Animoto for Business package. In other words, no B2B re-selling of videos. However, many successful affiliates re-sell packages to their clients. This way, the client can legally use Animoto commercially, and the marketer/web designer gets a commission for having included Animoto for Business in that client’s web design/marketing package.." |
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| | #34 | |
| Advanced Warrior War Room Member Join Date: Feb 2009 Location: California, an hour north of L.A.
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Now, I FINALLY get it, lol !I have read so much about Animoto and since legalese is not my strongest point (duh), you are now saying you can actually be an affiliate with Animoto and use it all day long?! Would you care to elaborate on the necessary steps, plz | |
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| | #35 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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You'll just have to buy my WSO to find out. ![]() I kid, I kid. Basically, Sign up as an affiliate. For my domain I use "google apps for your domain" (free) for email service through a gmail browser and use pop & imap to get on my smartphone and Thunderbird on my laptop. Since the google app for your domain allows so many email accounts (200 email accounts), I would just use the name of the biz @ MS.com. This way I can maintain control of the accounts. I would set it up using my affiliate link to get credit for it though. Once the account is setup your consulting begins by taking on site vids and photo shots. This way if there ever is an audit and they say you are selling vids, you can show them the contract with your client and say the fee was for the Photo/Video services. I feel this is just an extra layer of protection you will never need though. Even still its just good to use CYA tactics all the time. |
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| | #36 | |
| Joshua Hayes War Room Member Join Date: Mar 2009 Location: Hillsboro, OR
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Keep in mind the business will have to continue paying the annual fee to be able to use the videos that you create for them. Quote:
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| | #37 |
| Offline Takes Brass Balls War Room Member Join Date: Nov 2007 Location: Princeton, NJ
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| I see this as a benefit. You can convince a client after seeing the videos that the $20/mo is worth it. It also means you can keep a client on your roster and continue to maintain the relationship whereby you can up sell them and graduate them to a better video product with a videographer and some better production value for a much greater profit spread. This way it creates an outside incentive for them to continue to use Animoto, or upgrade. Any business has operating expenses, this is no different. The trick is finding a creative way to spin the obstacles into benefits.
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