The Profit Formula for Video Production Businesses
Many video producers believe that the secret to growing their business is simply generating more leads. And while leads are important, they’re just one piece of the puzzle. You could double your leads and still struggle if you’re not converting them into paying clients or maximizing the value of each project.
The reality is that profitability isn’t just about working harder—it’s about working smarter. And that’s where the Profit Formula comes in.
This formula, popularized by business coaches like Brad Sugars and marketing expert Jay Abraham, provides a structured way to grow your revenue and profit by focusing on multiple growth levers. When you improve each lever by even a small percentage, the effects compound, leading to significant business growth.
In this blog post, we’ll break down the core elements of the Profit Formula and explore actionable strategies to implement them in your video production business. If you’re ready to take control of your growth and profitability, let’s dive in.
Understanding the Profit Formula
At its core, the Profit Formula is structured as follows:
👉 Leads × Conversion Rate = Customers
👉 Customers × Number of Transactions × Average Dollar Sale = Revenue
👉 Revenue × Margin = Profit
Each of these factors represents an area of your business that you can improve. Instead of obsessing over just one aspect (like generating more leads), your goal should be to make small but meaningful improvements across multiple areas. This approach leads to exponential growth rather than incremental progress.
Let’s explore each of these six growth levers in detail.
1. Generating More Leads (Inbound & Outbound Strategies)
Leads are the lifeblood of your business. Without a steady flow of potential clients reaching out, you’ll struggle to grow. Yet, many video producers rely too heavily on word-of-mouth—a great source of work but one that doesn’t provide consistency or scalability.
To build a reliable lead-generation system, consider diversifying your approach:
🔹 Inbound Marketing (Attracting Clients to You)
SEO & Content Marketing: Optimize your website and create blog posts or videos that help potential clients find you when searching for terms like “corporate video production in [Your City].”
YouTube & LinkedIn Content: Share valuable insights, case studies, and behind-the-scenes content to establish authority and attract inquiries.
Email Marketing: Build a list of prospects and nurture them with useful content to keep your business top-of-mind.
🔹 Outbound Marketing (Proactively Reaching Out)
LinkedIn Outreach: Connect with potential clients and start meaningful conversations before pitching your services.
Google Ads & Social Media Advertising: Target businesses actively searching for video production.
Referral Incentives: Encourage past clients to refer new businesses by offering discounts or bonuses.
📌 Action Step: Look at your last 10 projects. Where did those clients come from? If you’re relying too much on one channel, it’s time to diversify.
2. Increasing Your Conversion Rate (Turning Leads Into Clients)
Getting inquiries is one thing, but converting them into paying clients is another. If your conversion rate is low, it’s often because of one or more of these reasons:
Your sales process is unclear or inconsistent.
You’re not effectively communicating your value.
You’re not following up enough.
Here’s how to fix that:
🔹 How to Improve Your Conversion Rate
✅ Use a structured sales process. Ask the right questions to uncover a client’s real needs. Don’t just talk about video—talk about business goals and outcomes.
✅ Leverage case studies & testimonials. Prospects want proof that you deliver results. Have a portfolio ready with success stories.
✅ Follow up professionally. Many deals don’t close on the first email or call. Polite, persistent follow-ups can double your conversion rate.
📌 Action Step: If you don’t know your conversion rate, start tracking it. Out of every 10 inquiries, how many become clients? If it’s low, optimize your sales process.
3. Increasing the Number of Transactions Per Client
How often do your clients work with you? Increasing the frequency of transactions can have a huge impact on revenue.
🔹 Tactics to Increase Repeat Work
Upsell additional content formats. Social media cutdowns, subtitles, thumbnails, and different aspect ratios.
Sell batch production packages. Instead of one video, offer a series of videos for a campaign.
Create annual contracts. Offer ongoing video support rather than one-off projects.
📌 Action Step: Identify one client who has worked with you once but hasn’t returned. Reach out with a relevant offer.
4. Increasing Your Average Dollar Sale (Pricing for Profitability)
Many video producers undercharge because they fear pricing themselves out of the market. However, raising prices strategically can significantly increase revenue without requiring more clients.
🔹 Ways to Increase Project Value
Bundle services into premium packages. Offer “Basic, Standard, and Premium” pricing.
Use value-based pricing. Charge based on the impact of the video, not just hours worked.
Offer strategic consulting. Add value by helping clients plan their content more effectively.
📌 Challenge: The next time a client asks for a quote, offer three pricing tiers—most will pick the middle or top option.
5. Maximising Margins (Keeping More of What You Earn)
Revenue is important, but profitability is what keeps you in business. If your margins are too low, you’ll always struggle, no matter how much you sell.
🔹 How to Improve Margins
💰 Raise your rates. If you’re fully booked but not making enough, it’s time to increase prices.
💰 Cut unnecessary expenses. Audit subscriptions, software, and overhead costs.
💰 Outsource editing & admin tasks. Focus on high-value work and delegate lower-value tasks.
📌 Action Step: Review your last five projects. Were they actually profitable? If not, something needs to change.
The Next Steps: Take Action
Understanding the Profit Formula is just the beginning. The real magic happens when you apply these principles to your business. Here’s what to do next:
1️⃣ Identify the weakest link in your business—Leads, Conversion Rate, Average Sale Value, Transactions, , or Margins.
2️⃣ Start with one area to improve this month. Small, consistent changes lead to exponential growth.
3️⃣ Need support to apply this formula? Check out my coaching program and see if it’s what you need.
🚀 If you found this valuable, share it with a fellow video producer! Let’s build profitable, sustainable video production businesses—together.