Upfront or Contingency?
WellcomeMat has stirred the pot again on a big topic for the type of service that I offer. The big debate is pricing; should a video producer charge upfront for real estate video or on a contingency basis?
You can read the forum topic here to see what many video producers and realtors from around the country have already said.
In my personal opinion, we have tried so many different ways of charging for our services over the 6 years we have been creating real estate video (since 2003). What has worked out for the best is our current pricing. Now it may not have given us as many customers as we have wanted, but in return we have more quality customers that know and appreciate the value of video, as well as marketing their image.
We have tried incentives before to getting new clientele, such as charging upon contingency. However, that did not work for us on many levels, the largest of which was that we were too dependent on the quality and integrity of realtors who wanted that option. We have also tried charging after the video was finished, only to get shafted on payment. In the long run, it was best for us to charge up front and a fair amount for the time we put into the final product.
One person had commented in the thread that perhaps a videographer should take a percentage of the sale. Essentially, with our pricing levels, that is what we are doing, but the percentage actually gets reduced as the listing price rises (that keeps us from making $10000 on a 20 million dollar home, of which, we have taped many).