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SBA Pre-Qualified Video & Animation Agency | 13 Years in Business | Solid Growth for 4+ Years | Fortune 50 Clients | 70% Recurring Revenue

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Website Closers® presents a seasoned Video & Animation Agency with 13 years of experience under its belt. They have stayed at the top of their niche by adapting to changing times, with their corporate structure minimizing costs while maximizing profits. This has provided them with the flexibility to pivot to new initiatives and services as needed and allowed them to offer quality services at a highly competitive price point to clients in need of solutions.

The exceptional quality of their services and their knack for finding talent have given current ownership the tools needed to build an extensive creative network they regularly put to use. This network includes various “go-to” creatives, many of them having worked with the agency for 7+ years now and have the expertise to know their way around the process, understand what clients expect, and fully meet their needs.

Since its launch, this brand has established several barriers and competitive advantages to set it apart from its rivals, making the company a valuable acquisition for a buyer interested in breaking into this established industry.

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.

  1. 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.

  1. 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.

The brand’s five core services consist of:

  1. Explainer Videos
  2. Screencast Videos
  3. Mobile App Demos
  4. Live Action Video Content
  5. Video Editing Services

Their explainer videos, which are a little over a minute in length, are by far their most popular service, accounting for 60% of their revenue. Clients typically use these videos on their websites’ home pages to offer a summary of the brand or to explain some of their key products and services. Their second most profitable service is their screencast, or demo, videos, which make up for 20% of their profits, with the rest of their balance being divided between their other services.

The agency’s orders are all project-based, with their average contract size ranging from $8,000 to $12,000 and taking roughly 5-7 weeks to complete. Each order has a different payment structure, which depends on specific benchmarks such as script approval, board approval, and the first preview of animation, with the brand prompting payments at various points of the order process.

One example of their process would be a multi-video order where a client buys 8-10 videos over a year, during which the client would pay a percentage upfront, and then, once the project is complete, pay the rest.

Another example would be a client looking to purchase a set of 5 videos for their quarterly strategy. The agency might start with one video to get the branding and style down. Then, once the video is completed and approved to the client’s standards, they move forward with the rest.

Current ownership spends an average of 25-30 hours per week on their responsibilities, which primarily consist of overseeing operations that include sales, creative team management, finances, and marketing. The agency has 5 full-time employees, 1 full-time contractor, and 1 part-time bookkeeper working for them, which they supplement with the extensive list of contractors that they work with on a per-project basis.

This video veteran has been honed into an industry leader through the past 13 years, making them either a great addition to a marketing agency, or an excellent foundation for an individual buyer to grow as they see fit. A few skills that would be beneficial for a buyer to have would include automation, SEO, potential SDRs, and the ability to maintain relationships with existing clients to continue promoting new products and marketing.

This Video AGency is Represented by:

Website Closers

Technology Business Brokers

WC 3366

Asking Price
$ 2,000,000
Cash Flow
$ 556,442
Gross Income
$ 1,523,949
Year Established

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