How do I learn whether a video production company’s work comes from agencies or direct clients?

Ask for a client list built from invoices, not from memory. For each name, note whether the studio billed an agency or the end client, and what the studio knows about who really commissioned the work. Sometimes a studio thinks it has direct clients that are in fact sitting behind a production house.

Then compare the two groups. Agency work often means steadier volume but tighter margins and less say over creative choices. Direct work can pay better and build loyalty, but it requires the studio to find and manage clients itself. Ask how payment terms differ and how late payers are handled.

Look at where each relationship lives. If a handful of agency producers send most of the jobs because they like the owner, those relationships may not transfer smoothly. Ask how contact was first made and how many agencies there are. Finally, ask what happens when an agency loses its own client. Ask the seller to introduce a couple of both types. Your accountant can help you see how the mix affects the numbers. Ask also how each client first found the studio, because that shows where new work will come from.

Key takeaways

• Build a client list from invoices showing who was billed and who commissioned the work.
• Compare margins, payment habits and creative control between agency and direct work.
• Find out which relationships belong to the owner personally.
• Ask what happens when an agency loses its own client.