Website Closers® presents a 13-year-old Video & Animation Agency that has adapted with the times to stay at the forefront of their niche. Their corporate structure has allowed management to minimize costs while maximizing profits, and easily pivot to new initiatives and services as needed. A key reason behind their prolonged success in the market has been their quality services offered at a highly competitive price point, making for a great option for consumers.
Their eye for talent and sheer quality of their work has let the ownership put together an extensive creative network that they regularly use. This network is comprised of “go-to” creatives, many of whom have been working with the agency for over 7 years, and have the skills and knowledge to understand the process, know what customers expect of the brand, and meet their demands in full.
Over the years, they have put a variety of barriers and competitive advantages in place to differentiate them from their rivals, making this acquisition particularly valuable for buyers looking to break into the established market that this company operates in.
Much of the brand’s revenue comes from past clients, who, satisfied, then go on to refer the company’s services to their peers. The built-in base means that they don’t require a large advertising budget to find new clients, as shown by the fact that less than 3% of their revenue is used for marketing. This loyal customer base would be costly and incredibly challenging for a new company to build from scratch in the video and animation industry, putting the company ahead of those looking to step fresh into the market.
The five core services that this acquisition offers are as follows:
60% of their revenue is generated by their explainer videos, which are a little over a minute in length. Their clients typically use these videos on their websites’ home pages as an overview video or to explain some of their key products and services. Screencast videos, or demo videos, are their next most profitable service, accounting for 20% of income. The rest of their balance is split between their other services.
All the company’s orders are project-based, with the average contract size falling between $8,000 and $12,000 and taking about five to seven weeks to complete.
The payment structure of each order is structured differently, and depends on specific benchmarks such as script approval, board approval, and the first preview of animation, with payments being prompted at various points of the order process. An example of this would be a multi-video order where a client purchases 8 to 10 videos over a year, during which they would pay a percentage upfront and the remainder upon completion.
Another example would be a client wanting to move forward with a set of five videos for their quarterly strategy, with the agency starting with one video to get their branding and style down. Once this video is completed and approved to the client’s standards, the rest are produced.
Many of these past clients regularly return to update their videos or buy additional ones, such as ones that are more product-specific or are shortened versions of past videos better formatted for social media advertising. Other clients may look to edit their videos when their app interface is updated, or if they decide to rebrand their company.
The brand’s lead generation process has been polished over the years, as while they initially experimented with PPC advertising, they realized that there were better alternatives to reach an optimal return on ad spend. Since 2018, their lead marketing strategy has consisted of targeted emails using Zoom Info, which led to a remarkable ROI of 400% within the first two years alone.
Zoom Info has continued to be their key lead generator, with targeted campaigns sent out on a weekly and bi-weekly basis to roughly 8,000 contacts. This strategy now accounts for about 60% of new clients.
Their other key source of revenue has been organic traffic, with their brand performing well in specific areas under the term’s animation studio and explainer video, for which they appear on the first page of Google.
The company has also recently polished up their SEO on their Vimeo portfolios, which features dozens of videos pertaining to certain niches. These include, but aren’t limited to, tech, patient education, product-specific videos, manufacturing, and retail, and have led to positive results in showing up organically when, for instance, a particular company is searching for a B2B tech explainer video. Roughly 10% of their client base can be traced back to their organic SEO.
A few other strategies the brand has put in place are showing themselves to be promising as well, such as drip email marketings and being regularly featured in countless ‘Top Explainer Video Companies’ lists over the years. These highly word-of-mouth strategies have led to approximately 5% of their new clients.
The owner typically spends 25 to 30 hours on the business, which are used to oversee operations that include sales, creative team management, finances, and marketing. There are 5 full-time employees, 1 part time bookkeeper, and 1 full time contractor. These workers are supplemented with an additional and extensive list of contractors that the company works with on a per-project basis.
This lucrative acquisition has been steadily refined over the years, and will serve as either a great bolt-on for a marketing agency, or as a sturdy foundation for an ambitious individual buyer to build upon. Some skills that would be valuable for the buyer to have consist of being able to continue relationships with existing clients to offer new products and marketing, automation, SEO, and potential SDRs, with these abilities being ones that a savvy entrepreneur would already likely be familiar with.
This Technology Company is Represented by:
Tech & Internet Business Brokers