How can commercial video production be so lucrative?

Thanks everyone for the descriptions of agencies - I can see their value and it's clear why the relationship means so much more than a single job! I had a sense for that already but it's helpful to hear it all articulated. I'm also glad to hear business is good here - if I bump into your buddy I'll say hello for you ;)

If it's okay.....I am going to ask a direct question of you.

What are your goals? Do you want to develop a company/business model that rivals these ad agencies? Or, do you want to get your company work from these ad agencies?

It is important to define the objective here. I am seeing that you might be unsure of the track you may want to take, but that could just be me and how I am reading this.

I'm glad you ask it - I don't want to be ad agency. But broadly speaking I don't actually have a firm vision what niche we want to fill and what our goals are. At a direct level I love what we are doing now, and long for opportunities to do it on a grander scale. (We do short videography + motion graphics promos, among other things)

Personally - I am passionate about communicating. I love being empowered to share stories that educate, inspire and excite people. I am enamored by beautiful cinematography and animation - so I naturally enjoy using those means to the ends. I'm excited by the idea that there is a virtually unlimited market for video production, because even small businesses have a message they need to share. (Their budgets tend to be small of course, as we've learned)

The reason I started the topic is because I'm just trying to understand what markets exist and where it's most reasonable to focus our efforts. While we're able to keep the budgets basically balanced right now, I personally long for larger projects, because higher budgets would give us time & resources to create better work and break new ground - a challenge that is fundamentally exciting.

How I intend to do that I don't know. I don't honestly want to become an ad agency and deal with ad buying - that doesn't seem like fulfilling work. I feel like we could do a great job for an agency / their clients because we have high standards creatively & professionally. And I'm learning time and again how important relationships are to progress at this point.

I feel so privileged to work with a team of similarly dedicated and talented people, and I'm determined to take advantage of that to propell our business forward. Where we're going exactly is still unclear to me, but that's what we're going to figure out :)
 
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