Rate for Compressing Video for Web

[Ron Lindeboom]

Most of what you said was actually quite good feedback, Ryan. But you can be honest with people without all the “extras.” Honesty doesn’t have to cross the line into denigrating a person with comments like…

“Your reel seems like some second rate attempt at being some blockbuster fantasy adventure trailer. Had you had the low voice over explaining your stuff I would have fell out my chair pissing my self. Shorter reels with A+ only top notch bits of your work are stronger than longer ones. somethings may be good, but as soon as I see something half ass I think your skill level is not as good anymore. Potential clients will see this as well. Some serious criticism here, and with the other posts as well, that you need to suck up and accept.”

…are simply over the top. Maybe you think they’re not but around the COW, we really strive for honest feedback without all the “cold water face slapping” that some seem to take joy in. If you like it, trust me, I will make you a regular recipient of it whenever I disagree with you.

Nearly all of my business is done outside my area. I have only a couple of local accounts. To me, $50 an hour for AE work is below my rate. I wouldn’t work for that. That’s me, your mileage may vary.

Best regards,

Ron Lindeboom
https://www.linkedin.com/in/ronlindeboom
Publisher, Creative COW Magazine
Join the COW’s LinkedIn Group

Now in the COW Magazine: Commercials. A look at the history, strategy, techniques and production workflows of successful commercials. All brought to you by some of the COW’s brightest members. Accept no substitutes!

Would you like to be in Creative COW Magazine with your story or contribution? Contact me.

Do you have your complimentary subscription to Creative COW Magazine yet?

[Mike Healey]

Tim, My two cents worth b/c I’ve been in your shoes in the past and found myself asking the same questions…

Keep in mind, my core business is :30 broadcast spots so your situation may be different.

My clients don’t want to walk out with a DVD/VHS any longer. Out of town clients (the bulk of my business) don’t want to wait next day for a FedEx proof either. So, they get an MPEG-1 straight off the timeline. Many agencies and clients walk in with a USB thumb drive and leave with their spot on their keychain. They go back to their office and e-mail the client or customer and await instant feedback. That type of turn around comes with a price tag.

For starters, the client/customer didn’t have the pass thru overnight charge of (fill in the blank) or have to wait for the proof to arrive the next day or perhaps two. Agency types don’t find themselves running around the city trying to get spots approved. Again, what’s that worth to the agency and client when you’re fighting deadlines?

I’m in a small market but provide turn-key service for clients and customers in some major markets. I don’t base my rates and fees on my market but rather what the service is actually worth based on an average across the board. What may seem expensive for clients in some markets is cheap for others. I’ve found a happy medium that many can live with.

If you charge $30-$50 for a single :30 broadcast spot to BetaSP there’s no reason why you can’t get the same for an MPEG or WMV file encoded and delivered via e-mail or saved to a thumb drive. I actually charge $5 for every spot we send out via e-mail or upload to an FTP site. This also includes radio MP3’s that get sent out to several radio stations. Some may say that’s nickel and dimming clients BUT I have to sit down and type and e-mail and communicate with the recipient. My time is valuable so I bill for it. Not to mention I (we) now have an archived version of the spot we can pull up in seconds if there’s ever a question. If the client ever has an issue or question about the spot I don’t have to go to the shelf, pull up the master and find the spot. I (or they) just click on the proofs directory on the computer and viola!

Almost every agency I deal with charges delivery fees for proofs regardless if it’s printed or e-mailed so I felt I should, too. If I go back and filter “e-mail delivery” of spots you’ll see several hundred dollars in revenue each year. It all adds up.

Again, your situation is probably different from mine. If you’re dealing primarily with corporate videos, sales pitches, etc. you’re looking at a time consuming process. In that case, I charge my hourly rate b/c it’s going to tie up the edit suite while the web file is encoded/exported. I may be able to make phone calls and return e-mails or run errands in the meantime but that’s good for me. I’m generating revenue during non revenue generating behaviors. I try to find a way to bill for all my time if possible and continue to work smarter, not harder.

Bottom line… don’t make the mistake and give your services and time away for free. Clients will have more respect for you if you charge for it and attach a value to your product. You may have certain clients and situations where you give a freebie now and then based on budget, history, return business, etc. but you and only you can make that call.

Hope this helps.

Cheers!

~Mike~

[David Braswell]

I realize I’m late to this thread but I felt compelled to respond to this.

I’m also on a large, international web design list. That list absolutely forbids discussions of specific rates. The idea that peers and competitors should discuss rates and establish “a true industry level cost for certain areas” is generally frowned upon by the government, who have been known to prosecute those practices as price-fixing/gouging. I’m not a lawyer and please don’t think I’m accusing anyone of any shady dealings. But I see discussions of this nature all the time in the COW threads, and thought it worth mentioning since sometimes the appearance of impropriety is as damning as actual misconduct.

FWIW, weekend warriors and the uncle Fred’s of the world do make it dreadfully tough to get paid sometimes. But arriving at equitable rates that provide for you and your family and maintaining competitiveness takes a lot more backend work than knowing what everyone else is charging.

Peace