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How Much Should I Charge For My Work?
By Ted Hope
Reprinted from blog.vhx.tv
You just put a lot of blood, sweat and tears into making a movie – that was hard! Selling it shouldn’t be. But how much should you charge? Can you really put a price on genius? Probably not, but here are some tried-and-true guidelines based on our research that will make the decision to purchase it a no-brainer. Short on time? Skip to our quick guide.
1. Single videos (without bonus content) perform best when priced between $4.99 and $9.99.
- Chalk it up to our mysterious brains: When people see a film for below $4.99, transactions don’t increase. Why undercharge for no reason? On the other end of the spectrum, films exceeding $20 drastically underperform, so it’s best to stay away from that territory.
- Don’t offer your film for $1 or less. VHX titles at this price point haven’t sold well, plus transaction fees cut too much of your already small profit. We’ve found people are unlikely to take out their credit cards for a buck.
2. Make it deluxe! Offer both standard and deluxe packages with bonus content. 50% – 75% of VHX customers opt for more material when it’s available. People always want more of the story: throw in deleted scenes, show them how everything came together with a director’s cut, serenade them with your great soundtrack… get creative! Your fans will thank you.
- Deluxe packages should be priced at 30% – 60% more than standalone videos. Offering a simple Q&A? Bump the price up 30%. Including 100 minutes of bonus content? Add a full 50%. So, for example, a $7.99 film with bonus content should sell for between $10.99 and $12.99.
- MINECRAFT is a perfect example: 67% of their customers purchased the deluxe package with a lot of bonus material, priced 50% higher than the standalone film.
- Don’t sell extra content on its own (remember when we talked about $1 purchases?). It might be tempting to offer a bargain item, but a package that doesn’t include the film itself usually doesn’t sell. And, remember that over 50% of your audience is likely to purchase a deluxe edition. So keep package options to a minimum and then up-sell with plenty of extra appealing content.
- Make the deluxe package the default option on your website. People will spring for added value if it’s presented as valuable. (And it is!) And because it’s the first thing they’ll see on your site, they’ll consider going for it automatically.
3. Selling multiple films or episodic content? Bundle it up. Make one awesome package. An average of 75% of VHX customers purchase packages over single episodes, seasons or films.
- Bundled packages should be priced at a 20 – 25% discount relative to individual videos. Extra value will convert most customers to packages. For example…
- Episodic content: Consider selling just the first episode, or give it away for free, so fans have a taste of what’s to come. Then sell the remaining episodes in a bundle to optimize revenue and minimize transaction costs. Have multiple seasons? Sell them individually, but make a master bundle as well.
- Multiple films: Sell each on its own (because fans will always look for a specific title), and offer them as a discounted package together. This way, a lot more people will end up watching all your films and spreading the word about your work.
- BURN is a great example: They sell TOO HOT FOR BURN, BURN and both together; 49% opted to purchase the combo.
- Price single videos around $5 and $10 (stay away from the $20 price point).
- Offer deluxe packages with bonus content for 30% to 60% more.
- Selling several videos? Offer them individually and together for a 20% – 25% discount.
There you have it! You’re well on your way to making more cash, not to mention getting a lot more people to watch your movie (which is probably why you made it in the first place). All your blood, sweat and tears were worth it. And what more can you really ask for?