Sold. B2b Video Production Business In High Margin Rapidly Growing Niche

The primary focus of this business is the development of explainer videos for business clients. 80% of the revenue has come from the production of explainer videos and 20% from the development of websites. Major clients have included Google and Pioneer.

An explainer video can best be understood by looking at what they do, how they work, and the results they can produce.

When Dropbox was first launched, they hit a wall and couldn't grow their business at the rate they wanted. They had a challenge of converting visitors that hit their home page into customers. The reason was because no one understood their service. The average customer did not understand the benefits of their software. Somehow they came up with the idea to create a short video that condensed all the tech terms and hard to chew information into an easy to understand, fun and enjoyable video.

This one video skyrocketed Dropbox to acquire 50 million customers, raise gobs of funding and lock in a 4 billion dollar valuation. Dropbox got so much press and so well known and so successful that Steve Jobs offered to buy them out.

These explainer type of videos have far above average conversion rates and can be used as extremely powerful marketing and brand building tools.


Key Assets & Highlights:

- The development of explainer videos is a highly profitable niche business.
- 80% is pure profit
- The explainer video quality is on par with the competition which charge 5x more than this business. (real potential to instantly increase prices)
- The explainer video staff are experts in their work and need minimal oversight.

Expansion Potential
The business has the potential of becoming a million dollar per year revenue business in the right hands the current owner just doesn't have the time to manage it.

The top competitors are charging 5x more for the same quality videos this business produces. For example, the biggest competitor charges their clients $50K+ to produce a 3 minute explainer video. Where this business charges less than $10K to produce that same quality video.

They lowered their prices the first year to build the portfolio faster and acquire more clients. Now that there is a large sized portfolio, the business is ripe to start charging clients similar prices ($50K+ for a 3 minute video like its competition does).

The key difference is this businesses profit margins which are 80-90%. It would only cost $2,000 in labor expenses to produce a 3 minute explainer video. The company pays their employees $2-$4 per hour for full time work. So they can sell explainer videos at $50K with huge margins after paying the employees and voiceover artists.

If the new owner can do 3 videos like this per month, they'll have themselves a million dollar yearly business.

(SEE PROSPECTUS FOR FULL DETAILS)