WebsiteClosers® presents a top-tier agency that has been a leader in the Video & Animation space with 13 years of experience under its belt. This agency has consistently stayed at the top of their niche by evolving with the times, maintaining a corporate structure that minimizes costs while maximizing profits. This strategic flexibility has enabled them to pivot quickly to new initiatives and services, offering top-quality solutions at highly competitive prices.
The Company
The agency’s success is driven by the exceptional quality of its services and a keen eye for talent, allowing current ownership to build a vast and reliable creative network. Since its inception, this company has established several competitive advantages that set it apart from its rivals, making it a valuable acquisition for anyone looking to enter this established industry. Their core services include Explainer Videos, Screencast Videos, Mobile App Demos, Live Action Video Content, Video Editing Services, and more. Explainer videos, typically just over a minute long, are the most popular, generating 60% of the agency’s revenue.
These videos are often featured on clients’ websites to introduce their brand or explain key products and services. Screencast, or demo, videos are the second most profitable service, accounting for 20% of the agency’s profits, with the remaining balance spread across other services.
All orders are project-based, with average contracts ranging from $8,000 to $12,000 and completion times of roughly 5-7 weeks. Payment structures vary depending on specific milestones such as script approval, storyboard approval, and the first preview of animation, with payments prompted at key stages of the process. For instance, a client purchasing multiple videos over a year might pay a percentage upfront and the balance upon project completion. Similarly, a client ordering a set of five videos for a quarterly strategy might start with one video to establish branding and style before proceeding with the rest.
Operations
The current ownership spends a few per week overseeing operations, including sales, creative team management, finances, and marketing. The agency is supported by a team of 6 employees, with a network of contractors engaged on a per-project basis. Many of these “go-to” creatives have been with the agency for over 7 years, bringing deep expertise and a thorough understanding of the process, client expectations, and how to meet those needs effectively.
This company has been meticulously honed into a market leader over the past 13 years, making it an ideal addition to a marketing agency or a solid foundation for an individual buyer to scale as they see fit. Skills in automation, SEO, potential SDRs, and relationship management would be highly beneficial for a new owner to continue driving growth and success. Contact Website Closers today to learn more about the incredible opportunities this brand has to offer.
Business Broker Takeaways
1. Strong Word-of-Mouth Traffic. The brand generates much of its revenue from past clients, who are satisfied to the point of referring the agency’s services to their peers. Many of their clients regularly return to the brand to update their videos, buy additional ones, or edit their videos when their app interface is updated or if they decide to rebrand their company. This built-in base has kept them from requiring a large advertising budget to attract new clients, which is evidenced by the fact that less than 3% of their revenue is used for marketing. Their devoted client base would be a massive challenge for a fledgling company to build from scratch, putting this deal ahead of any ground-up competitors. The brand’s reputation has grown to the point that they have also been regularly featured in many “Top Explainer Video Companies” lists throughout the years. They supplement these tactics with drip email marketing campaigns. These two strategies combined lead to approximately 5% of their new clients.
2. Refined Lead Generation Tactics. The company has steadily polished its lead-generation process over the years. While they initially experimented with PPC advertising, it didn’t take long for them to realize that there were more efficient methods they could use. Since 2018, they have used targeted emails using Zoom Info for their lead marketing, which has given them an astounding ROI of 400% within the first 2 years since its implementation. Zoom Info has continued to be their top lead generator, with targeted campaigns being sent out on a weekly and bi-weekly basis to about 8,000 contracts. This tactic generates roughly 60% of new clients.
3. Superb SEO Strategies. They recently refined the SEO on their Vimeo portfolios, which feature dozens of videos about various niches. These include but certainly are not limited to, tech, patient education, product-specific videos, manufacturing, and retail. Their improved SEO has led to positive results in organically showing up for various searches, such as when a particular business is looking for a B2B tech explainer video. The brand has also been performing well in specific areas under the term’s animation studio and explainer video, for which they now appear on the first page of Google. About 10% of their client base is generated through their organic SEO.
