Hey Nick thanks you for providing so much value man. This is really a just way to get paid for. Could you advice me on an issue I have? I'm bout to start a CZcams channel with a realtor where we're going to make walk troughs trough the most exclusive villas in Turkey. The realtor has also his own agency so he's going to get a ton of attention and money. How can I charge him justly based on the value I provide?
Love this strategy. So you in the contract, you agree on a x% cut of the actual increased revenue from the baseline before the video is implemented in the landing page measured in Google Analytics? Or do you invoice them upfront based on the expected increase in sales?
Sounds like you're making the assumption that $3k LTV is full profit. Gyms normally operate on very thin margins, so how would they be able to pay you 5% of sales? Seems to me you're purposefully ignoring this to get your video across. To correct your calculation, you'd have to subtract the cost out of the $3k LTV and that is anywhere between 70-90%, leaving the profit between $300-900. 10 clients * $900 = $9,000 14 clients * $900 = $12,600 You only created an additional $3,600 of value and even if you took 10% of that, it's still only $360. Remember, your video is only one part of getting the sale. Please don't mislead people.
while I agree the video is too simple and doesn't take other costs into account, your math is wrong. It's 10 clients per month, 14 clients per month. All you calculated is the added LTV for 1 month. You're not charging for a video for 1 month, especially in this case the video is supposed to be the landing page video which should last at least a year but usually more depending on how often the company wants to change it. Technically the value you bring is the .4% extra clients for as long as the video is being used on the landing page. Assuming it stays on for a year then: Assuming same profit numbers as you: 10 new clients PER month * $900 LTV (profit)* 12 months = $108,000 14 new clients PER month * $900 LTV (profit)* 12 months = $151,200 $43,200 is your video's generated life time value of profit in a year. The video only looked at 1 year (probably because he didn't take profit margin into account), with the same numbers as above except for 1 year you get: 4 clients per month * $300 profit * 12 months = $14,400 annual profit value generated by your video in a year. These numbers are still far off from $7K per project though lol even at 10% of 43k is only 4.3k but the concept remains intact.
Amazing strat Nick, one question! How do you know how many client you will bring in? If im doing 15 reels a month for a client, how many customers do you think that would bring? or how can I see this before I charge?
Well, making social media content is a longterm game. In the beginning it might not get them a lot of customers. But over time it will. You have to make sure they understand that. Then it's just a matter of time.
We calculate based on Lifetime Value (LTV) of a client. So if a client is worth $3,000 LTV and you add 10 of those a month you add $30,000/month in revenue (which will be collected over the next 3 years)
@@iamnickmetzger So its not really a months revenue as no one pays 3K up front for 3 years, but one that is accrued over a 3 year period. So the 10 new clients are paying revenue of $833 per month. 1000/ 12 months = 83.3 x 10 clients
How would you apply this to real estate videography? And do you show them the value up front? I always hear the words “it’s over my budget” but how do you actually show them the value
How many clients are they currently getting from their marketing? How many would they be getting if they had video? What is one client worth to them? --> Then do the math :)
Hey Nick thanks you for providing so much value man. This is really a just way to get paid for. Could you advice me on an issue I have? I'm bout to start a CZcams channel with a realtor where we're going to make walk troughs trough the most exclusive villas in Turkey. The realtor has also his own agency so he's going to get a ton of attention and money. How can I charge him justly based on the value I provide?
Appreciate you!
Ask him how much commission he gets per sale. Then charge a percentage of that :)
Thank you 🙏🏽
Of course! :)
Brilliant
Amazing
Love this strategy. So you in the contract, you agree on a x% cut of the actual increased revenue from the baseline before the video is implemented in the landing page measured in Google Analytics? Or do you invoice them upfront based on the expected increase in sales?
Invoice upfront because a x% cut is very hard to enforce especially when you're not in control of anything besides the video.
Awesome
Sounds like you're making the assumption that $3k LTV is full profit. Gyms normally operate on very thin margins, so how would they be able to pay you 5% of sales? Seems to me you're purposefully ignoring this to get your video across.
To correct your calculation, you'd have to subtract the cost out of the $3k LTV and that is anywhere between 70-90%, leaving the profit between $300-900.
10 clients * $900 = $9,000
14 clients * $900 = $12,600
You only created an additional $3,600 of value and even if you took 10% of that, it's still only $360. Remember, your video is only one part of getting the sale.
Please don't mislead people.
while I agree the video is too simple and doesn't take other costs into account, your math is wrong. It's 10 clients per month, 14 clients per month. All you calculated is the added LTV for 1 month. You're not charging for a video for 1 month, especially in this case the video is supposed to be the landing page video which should last at least a year but usually more depending on how often the company wants to change it. Technically the value you bring is the .4% extra clients for as long as the video is being used on the landing page. Assuming it stays on for a year then:
Assuming same profit numbers as you:
10 new clients PER month * $900 LTV (profit)* 12 months = $108,000
14 new clients PER month * $900 LTV (profit)* 12 months = $151,200
$43,200 is your video's generated life time value of profit in a year.
The video only looked at 1 year (probably because he didn't take profit margin into account), with the same numbers as above except for 1 year you get:
4 clients per month * $300 profit * 12 months = $14,400 annual profit value generated by your video in a year.
These numbers are still far off from $7K per project though lol even at 10% of 43k is only 4.3k but the concept remains intact.
Share it guys
Very interesting!
Good to hear!
Wow
Amazing strat Nick, one question! How do you know how many client you will bring in? If im doing 15 reels a month for a client, how many customers do you think that would bring? or how can I see this before I charge?
Well, making social media content is a longterm game. In the beginning it might not get them a lot of customers. But over time it will. You have to make sure they understand that. Then it's just a matter of time.
Hi Nick what do you think is the most profitable niches to scale up to $10k ?
Healthcare
How did you get the 30k and 42k a month when it’s over the time span of 3 years?
We calculate based on Lifetime Value (LTV) of a client. So if a client is worth $3,000 LTV and you add 10 of those a month you add $30,000/month in revenue (which will be collected over the next 3 years)
@@iamnickmetzger So its not really a months revenue as no one pays 3K up front for 3 years, but one that is accrued over a 3 year period.
So the 10 new clients are paying revenue of $833 per month.
1000/ 12 months = 83.3 x 10 clients
@@alanvidot344 correct!
How would you apply this to real estate videography? And do you show them the value up front? I always hear the words “it’s over my budget” but how do you actually show them the value
How many clients are they currently getting from their marketing? How many would they be getting if they had video? What is one client worth to them? --> Then do the math :)
😘