Dropbox Raised $48,000,000 With Their Explainer Video. Here’s How You Can Do The Same For Your Startup!
The growing popularity of video content in online marketing is something that cannot be questioned. In fact, from the headline of the article, it is safe to say that Dropbox as a company is what it is because of a simple video that took less than fifty thousand dollars to produce but brought in $48,000,000, an ROI of more than 1,000%.
I know, you want to know how you can raise your own $48 000 000 for your own startup but I feel that the information I will give might not be adequate enough if you don’t know the story of Dropbox and how exactly they raised the $48,000, 000 through a simple video.
According to CEO, Drew Houston, before making their famous MVP explainer video, Dropbox had tried all other methods of online marketing including social, paid search and affiliate marketing but to no avail. He also said the company was spending a total amount ranging from $250 — $300 for paid search to acquire a single customer who would pay $99 for the product that was being marketed. The whole thing was draining money from their pockets.
Before making the MVP explainer video, they had used another video just for testing how the market would react to what they were offering and the results they got from that video were just amazing.
The video reached a total of about 2,000,000 people and they received 100,000 visitors to their website including 70,000 new sign-ups to the beta version of Dropbox.
When they saw the potential and the mind-blowing results from their video marketing campaign, they then decided to scale it up into what we now know as the MVP explainer video that racked in additional revenue of over $48 000 000.
The video was largely successful because Dropbox observed some really important fundamentals when creating it. One of those fundamentals that made the video and overall success was that Dropbox had a professional explainer video company create the whole promotional video on a budget that was less than $50, 000 at the time, back in 2009.
When creating an explainer video, the importance of having great people work on it cannot be underestimated. Making mistakes is easy and by having an affordable explainer video company to create your promotional video for you, you would have saved yourself from a potential catastrophe that would have resulted if mistakes were to be made during the process of producing the video.
As a result of having a great company create the video, Dropbox managed to acquire 10 million new customers who bought in the additional revenue of $48,000,000 because the video increased their conversion rates by 10%. Today, Dropbox keeps on updating their explainer videos on an annual basis, a process that has grown their customer base to 100 million as of 2017.
Dropbox’s video as I said made use of some fundamentals which is why it was successful. By making use of similar fundamentals, you will make money from your own explainer videos just like Dropbox did with theirs. Here are some of the things to look out for if you want to create a great explainer video.
- They had a great script and stuck to it
Go to any explainer video company and ask them what the most important ingredient for making an explainer video is, they will probably say the script. Why? Because a video’s script is the basic outline detailing how the video will come out on the screen. For an explainer video to be effective, things don’t have to be randomized. Rather, everything should be detailed including some of the product’s key features that make it appealing to your customers.
Have a meeting with your promotional video company and discuss some of the key features of your product so that they can understand them and effectively bring them out in the video.
2) Keep it short
Dropbox’s explainer video total runtime was kept under 2 minutes. The Explainer video creators behind the MVP video for Dropbox understood the fact that people have a very short attention span. That’s why in addition to keeping the video short, they added some repeat attention boosters to help keep people glued to their screens whilst watching the video.
Keeping the video short will also mean forgetting all the other clutter around your product and only focusing on the primary features that offer the most benefits to the customers when they purchase the product.