The online video business is booming. There has been a massive push towards video content in the past few years. About 49% of people watch five videos per day, and by 2022, it’s estimated that more than 82% of consumer internet traffic will be online videos!

More online content means there’s a much bigger demand for video producers. But if you’re a newbie, it can feel overwhelming. You may find yourself wondering, “How can I profit the most in this emerging market?”

It can be difficult to know how to start a film business, but no worries - the folks at FilmQi are here to help. The first thing you need to figure out is what business model you’ll be using.

Here are two of the most commonly used business models. We’ll give you pros and cons for each to help you figure out which model works best for you.

The Generalist

From a small-town baker to a multinational company, the generalist sells to anyone and everyone. Anyone who likes your portfolio is a potential customer for you! This model is more product-oriented.

Pros:

·       The most obvious pro here is that you’ll have a ton of potential customers!

·       By working in multiple markets, you’re more likely to have consistent work. If one market’s demand goes down, you’ll have multiple other options to pursue.

Cons

·      You’ll likely need a bigger marketing budget in order to attract such a broad audience.

·      Because you’ll be serving so many kinds of customers, it may be difficult to gain in-depth intel on their individual markets. You’ll have to rely on your client to provide that information, which may give you less of an edge.

The Specialist

Instead of marketing yourself to everyone, the specialist finds themselves a niche market. You work for a specific set of customers who all have the same general needs. This might include wedding videos or cooking videos. This model is more customer-oriented.

Pros:

·       Your marketing budget will be much smaller. Since you’re working in a niche, your customers are more likely to know each other and recommend you to others in their base.

·       You’ll be able to gather specific intel on your customer base, thus giving you more opportunities to target advertisements. This will also make it easier to tailor your videos to your clientele.

Cons

·       It can get very repetitive making the same general videos – beware of creative burnout!

·       This model isn’t as secure compared to the generalist. Economic circumstances or seasonal demand can hit you much harder. For example, think about how those in the event industry were affected during COVID-19.

At the end of the day, it all depends on which model suits you best. You may find that you’re already subconsciously working towards one model – use this guide to figure out what the future holds for you, and whether or not that model will work for you in the long-term.

Ready to march forward? Check out this video to see how you can enter Booming Markets for Filmmakers.