A Profitable Podcast Video Production Subscription Model with an Average Contract Value of $1,500/Month and Customer Lifetime Value of $18,000.
A podcast and video production company that provides outsourced podcast production services to clients ranging from individuals to large businesses.
OPERATIONS
The company provides clients with a podcast production done remotely by their USA-based production crew and offers both audio and video podcast options. Clients are assigned a producer who reviews their show and provides them with a recording schedule. The company’s podcast production services range in price from $1,500 to $7,000 per month with additional services including booking guests for podcasts and social media distribution.
The company provides a turnkey operation with steady monthly cash flows and very low expenses. The current owner spends just 1-3 hours per week operating this business, focusing mainly on business strategizing and negotiating with vendors. They have a director of operations, supervising producer, podcast producer, and sales and talent producer who handle daily tasks.
MARKETING AND KEY METRICS
The company relies mainly on word-of-mouth referrals, which have made up the majority of their marketing efforts to date. They also have an email marketing campaign with a newsletter sent out to their 2,000+ subscribers in their email database.
Sales are generated mainly from podcasting production services, but they are starting to attract a higher percentage of revenue from additional services such as booking guests for podcasts, social media distribution, and editing and post-production work on individual episodes.
The company has a customer lifetime value of $18,000+ and an average contract value of $1,500/month. They generate strong long-term contracts and have an impressive 55% net margin.
The company provides podcast production services to clients ranging from individuals to large businesses and has attracted CEOs, non-profit agencies, business executives, athletes, motivational speakers, and podcast influencers.
BUSINESS MODEL & RESOURCES NEEDED
The company has a small team with only one or two employees needed for each production.
THE INDUSTRY
The podcasting industry is now worth $11 billion and continues to grow rapidly. The company has found itself facing very limited competition in this niche field. The technology behind podcasting is only becoming more advanced each year, opening up new opportunities for podcasting to be used as a marketing tool, a teaching tool, and a source of entertainment. This business appeals to a wide audience and has attracted CEOs, non-profit agencies, business executives, athletes, motivational speakers, and podcast influencers.
OPPORTUNITIES TO SCALE
The company is ready to scale into a much larger organization with opportunities to hire a sales team, exhibit at trade shows and industry events, and boost their digital marketing plan. Any country is accessible for their podcasting services, as long as the foreign client has the staff in place to support their podcasting work. Their marketing has been quite effective without budgeting, and this company now has plenty of video testimonials from satisfied clients, providing it with strong word-of-mouth referrals driving sales higher. There’s enormous untapped potential to scale this business.
Asking Price: $825,000
Gross Income: $399,701
Cash Flow: $232,490
Year Established: 2018
Employees: 5
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