Financial Benefits
The Bottom Line
How much income can you expect to earn?
Let's do the math ...
When a videographer shoots a wedding or event, they do the work and get paid once for their efforts, and that's the end of that job. In the meantime, you had better be looking for your next client.
Shoot & market your own video titles and the potential is unlimited and can last for many years!
A good day's orders, ready to ship out. About 98% of our orders are online. Many of them come in overnight or while we're away from the office. We rarely have to talk to a customer, although we maintain a toll-free number. When you offer downloadable products, you can skip this step altogether! That is a goal we are shooting for.
Let's Do The Math
Here are a few scenarios to get you excited about all the possibilities.
SCENARIO #1 - YOU HAVE ONLY ONE TITLE TO SELL
You sell just 2 DVDs per day at $20 each:
One month income: 60 copies x $20 = $1,200*
One year's income: 12 months x $1,200 = $14,400*
(That’s a very nice vacation or two, new furniture or as Kim recommends, a healthy contribution to your retirement fund. Not bad for very modest sales.)
Five year's income: 5 years x $14,400 = $72,000*
This is the “low price, high volume” model. Your goal is to attract many customers who will buy at a low price. This is a great formula because for the individual customer the cost is affordable - $20 will not break the bank and is less than what most people spend going on a movie date. Thus it is relatively easy to convince a lot of people to buy at this price point.
Merchant account fees, duplicating and packaging costs cut deeper into this model, not to mention time costs if you do your own shipping. Of course, if you sell digitally, you do not have the shipping and handling costs but you will have web hosting costs. We have begun to offer streaming videos, but as of publishing this Guide our experience is that people still seem to prefer a physical DVD over a downloadable video. I think it depends on the subject and length. Short tutorials are better suited to downloads.
If you build a list of 5,000 or more people interested in the topic who visit your website, it isn't unrealistic to expect 50 of them to buy your DVD. That’s only 1% of the total. That list size seems to be the set point many internet marketers use. But if you have a strong, targeted following, you can make money with a smaller list than that. We do it all the time. It is a matter of targeting your offer to a specific interest.
The email list for one of my stores is only 900 names with an additional 350 offline customers. The traffic to that site is 3,000/month but that "store" alone consistently brings us $1,500+ per month, and much more during the Christmas buying season. And we have other online stores with other products, all making a contribution of varying sizes to our monthly income.
Here's another example, based on selling 8-9 DVDs per tday..
If you can sell 250 DVDs per month at $20 each
(250 DVDs per month is 8-9 DVDs per day)
One year's income: 12 months x $5,000 = $60,000*
There are expenses to come out of that, but you can see that making $50,000 a year with just one product is not nearly as hard as you think, especially if you have a large potential market that you can reach economically.
When selling "Special Interest" or niche titles, the prices are usually higher - often much higher.
A client of ours sells 2-DVD sets with each DVD containing 2 20-minute programs, for a total of about 80 minutes of programming.
He sells these to schools at $400 per set! Actual cost to duplicate is about $2.00.
Check it out - click here.
SCENARIO #2
Assume a price of $120 each and aim for 30 sales a month, just one per day. This is a price point you could get selling to schools and institutions. Let's say you just sell one copy per day.
One month income: 30copies x $120 = $3,600*
One year's income: 12 months x $3,000 = $43,200*
Five year's income: 5 years x $57,600 = $216,000*
This pricing model is another option and the one I am most familiar with when selling to schools.
Yes, that price does seem high, but schools are used to paying that for DVDs. What are they getting for that price? They are getting what is called public performance rights. Those are the rights to show a video to a large public audience versus the home use versions we are used to renting at our local video rental store. We also often include a teacher's guide with questions and answers.Think this can't be done? I do a lot of work with San Luis Video Publishing; check their pricing. These are typical sales expectations for him. Here is another typical educational media firm. (These businesses works along the lines of Scenario #4)
Now bear in mind that this is based on selling only one title. From there you can add other products, books, guides, etc, do personal sales, joint ventures, membership sites, Google Adsense, do public presentations and sell at the event, and all kinds of things to take your income further, all from the one product. We have done this and you can too.
In my mind $50,000 a year is a nice amount of money for producing one video, especially if you produce it efficiently and inexpensively and if you can sell it for many years. What if you could sell it for 20 years (I've done it with one title). That's $1,000,000 off of one title.
SCENARIO #3
YOU HAVE 10 TITLES TO SELL
Assume that you have 10 titles with sales of only 2 copies per day of each title at $20 each :
One day's income: 10 titles x 2 copies x $20 = $400*
One month income: 30 days x $400 per day = $12,000*
One year's income: $144,000*
Five year's income: $720,000*
The Formula Is Simple - The More Your Produce, The More You Can Earn
Your goal is to produce a number of SIV titles which will continue selling regularly over time.
You have realistic sales goals for each title.
Your residual income will grow as the number of titles selling grows.
Your potential greatly relies on your productivity.
I'm going to suggest right here that you can produce a number of related titles on a subject and quickly reach 10 titles. Take a hobby such as woodworking. Couldn't you easily find 10 topics to produce videos on? You could show working with diffent kinds of machines, making different projects, solving common problems, maybe discuss the properties of different types of wood, have interviews with master craftsmen, etc. These don't have to be long videos. Twenty minutes is a good length.
SCENARIO #4
Assume that you have 10 titles with sales of only 2 copies per day of each title at the school price of $120 each :
One day's income: 10 titles x 2 copies x $120 = $2,400*
One month income: 30 days x $2,400 per day = $72,000*
One year's income: $360,000*
Five year's income: $1,800,000*
Now you see how video publishing, even on a small scale, can create freedoms you could never have before, possibly allow you to quit the job you hate, say goodby to clients you no longer with to work with, take holidays with your family, pay off your mortgage, and best of all, you get paid very well to do something you enjoy.
If that sounds like something you want to do, please read this Guide from start to finish. In this way you will gain important skills and education necessary to get started.
* These are gross sales. You have to deduct the cost of advertising, marketing, packaging, internet infrastructure and merchant fees if you are selling these yourself. If you are working with a distributor, you have to figure in their discount.
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