Agency Based Discussion > VideoBlocks
We need to help videoblocks to grow
weathernewsonline:
--- Quote from: sharpshot on December 14, 2015, 12:44 ---They have wholly owned content, so I don't really see how the two different models can be compared? 100% seems good but how does this work in the long term if they keep growing their wholly owned content?
I'm quite happy with Pond5, 50% and letting me set my own prices.
--- End quote ---
I wonder if they are growing their wholly owned content though? or is that it and then customers wanting more choices need to click over to the paid marketplace.
I too like Pond5's model of allowing us to set our prices, it works, my problem was I was priced too low, sales were low in the $40-60 range, I raised my prices and sales and revenue went up right away.
PeterChigmaroff:
I am all for paying the creator for their work. But any business practices 101 course will tell you that 100% royalties is hard to maintain while at the same time damaging the overall business. Seriously, how do you help someone like this grow?
Symbiostock Official:
I think videoblocks relies on contributor videos to swell its numbers, and this is a short term necessity. They need to make money, so it must be from their subscription plans. Therefore, once the subscription numbers swell up, contributors will be less necessary.
I don't mind them as you're right - it's great for us right now. But it can't last because there's no business model for them with us earning 100%. If you can think of one, post it - that would be great to explore.
weathernewsonline:
So maybe at some point they will have to change up or add to their content for the subscribers, otherwise people will subscribe, download everything and not renew. Or rotate stuff in and out of the free marketplace with contributors permission of course? or buy some of our content for the subscriber marketplace to keep it interesting and attract more subscribers?.
Another option would be to raise prices to $200 a clip and then start taking a small commission. They have a few tools at their disposal if needed.
weathernewsonline:
--- Quote from: Zeus on December 14, 2015, 13:38 ---I am all for paying the creator for their work. But any business practices 101 course will tell you that 100% royalties is hard to maintain while at the same time damaging the overall business. Seriously, how do you help someone like this grow?
--- End quote ---
But I wonder if those $49 prices are damaging the business, I say this because with the volume of sales that VB contributors get it sure is making me money, a lot more sales than I get at SS which locks in at $79.
When I had low $40 to $60 prices on P5 I was getting low sales, horrible spring and summer for me, massively in debt now trying to stay afloat, joined VB and very nice sales volume and revenue and then I raised prices on P5 to $200 and sales and revenue went up.
So I am thinking there might just be some upward wiggle room for all agencies to move prices up for photo and video and get out of the race to the bottom, everyone is trying to compete with the sites that give away video and photos for free, those will fail, the only reason they are alive is investor funds and those sites can't turn a profit with the product being priced at $0.
So, we need ignore them, the free stuff for now is there but will not last, it is silly, it's no different than McDonalds giving away free coffee here for two weeks in November, Tim Horton's didn't drop prices to free and after two weeks McDonalds had to put the prices back up to normal.
Speaking of business 101, if we all filled out a business plan I suspect to cover our costs, equipment renewal and be well financed for emergencies in general as many of us are self employed we would need to set our prices in the $700 range and maintain steady sales volume. Same for all these agencies, they have much higher costs than we do so I'd say at least $200 needs to be the new standard.
No one and no business can be successful selling a product for less than it costs to make it.
If I have to go out and shoot new content....I am loosing money right now as soon as I fill up the gas tank.
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