Highly Profitable Video Agency and Animation Studio Produces Live Action Content for Companies of All Sizes – 70% Repeat Order Rate and 37% Net Margins
Video Agency & Animation Studio is a leading provider of live action video content for large and mid-sized companies. With a 70% repeat order rate and 37% net margins, the company has established a strong reputation in the industry.
OPERATIONS
The company operates by producing high-quality live action video content for its clients. It has built an impressive creative network of talented professionals who have been working with the agency for over 7 years. The company has a streamlined process for delivering projects on time and meeting customer expectations.
The company’s supply and logistics involve managing the creative network of freelancers and contractors who work on projects on a per-project basis. This allows the company to be flexible and scalable in meeting client demands.
MARKETING AND KEY METRICS
The company’s marketing strategy includes targeted emails using Zoom Info, which accounts for around 60% of new business. The brand also performs well organically in search engine results, particularly for animation studio and explainer video services. Drip email marketing campaigns and word-of-mouth referrals also contribute to new client acquisition.
The sales channel for the company primarily involves direct sales and referrals. The company has a high percentage of repeat orders, indicating customer satisfaction and potential for growth through upselling and cross-selling additional video services.
The key metrics for the company include a 70% repeat order rate, a net margin of 37%, and an average contract size of $8,000 to $12,000. The company also has a strong customer base and a high percentage of revenue that comes from past clients and referrals.
The company has a diverse customer base, including large and mid-sized companies. The customer base is primarily B2B, with clients from various industries such as technology, healthcare, manufacturing, and retail.
BUSINESS MODEL & RESOURCES NEEDED
The company has three full-time employees and one full-time contractor. An extensive list of contractors also works with the company on a per-project basis. The owners oversee sales, management, operations, finances, and marketing.
THE INDUSTRY
The video production industry is a highly competitive and mature market. Major players in the industry include production companies, marketing agencies, and freelance videographers. Examples of companies in this industry include Pixar Animation Studios, Wieden+Kennedy, and The Mill.
OPPORTUNITIES TO SCALE
There are various scale opportunities for the company, including expanding into new industries or target markets, offering additional video services, and leveraging existing client relationships to offer new marketing and technology solutions. For example, the company could explore partnerships with marketing agencies to offer end-to-end video and marketing solutions.
Asking Price: $2,200,000
Gross Income: $1,401,312
Cash Flow: $516,327
Year Established: 2010
Employees: 4
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